Korean won dips further amid looming currency war

The South Korean won continued to sink to new lows against the US dollar Tuesday amid escalating trade tensions between the world's two largest economies that now appear to be set to include a currency war.After opening at 1,220.00 won, the local currency was changing hands at 1,217.45 won with the US dollar as of 9:37 a.m., down 2.15 won from the previous session's close.On Monday, the won closed at 1,215.30 to the dollar, the lowest in over three years.The won's continued decline came after Be

Aug. 6, 2019

Korea's current account surplus surges to 8-month high in June

South Korea's current account surplus reached an eight-month high in June on a goods account surplus and record high returns from foreign investment, central bank data showed Tuesday.The country's current account surplus came to $6.38 billion in the month, the highest since October when the country posted a $9.35 billion surplus, according to the preliminary data from the Bank of Korea. The reading also marks the second consecutive month of surplus after the country posted its first current acco

Aug. 6, 2019

KRX halts trading on Kosdaq as it breaches 600 points

South Korea’s secondary bourse Kosdaq sank below the psychologically important 600-point threshold for the first time in 17 months on Monday, triggering the stock exchange to temporarily halt trading as investor sentiment plummeted due to the escalating trade spat between Seoul and Tokyo. The Korean won also traded at a three-year low against the US dollar, breaking its own significant 1,200-won mark. It closed at 1,215.30 won after hitting 1218.30 won at 10:40 a.m., marking its lowest lev

Aug. 5, 2019

Bourse operator halts program trading as Kosdaq plunges

Program trading of shares listed on South Korea's secondary Kosdaq market was briefly halted Monday as the market's index plunged over global trade disputes, the bourse's operator said.  Program trading was halted for five minutes starting at 2:09 p.m. after the Kosdaq index slipped more than 6 percent, the Korea Exchange said in a statement. It was the first time since June 24, 2016, that the "sidecar" was activated according to exchange rules.South Korea's currency and stocks lo

Aug. 5, 2019

S. Korea to expand state budget to cope with Japan’s trade curbs

The ruling party, government and presidential office on Sunday vowed to add at least 1 trillion won ($833 million) to next year’s state budget, in an effort to expand fiscal space amid escalated trade tension with Japan.They also agreed to kick off a task force to promote the manufacturing competitiveness of local parts, components and equipment, to make up for the loss of Japanese imports.  “The government should swiftly execute the corresponding amount from the (recently appro

Aug. 4, 2019

Seoul stocks dip to 7-month low, Korean won sinks amid escalating trade tensions

South Korean stocks sank to finish below the psychologically important 2,000-point threshold Friday, by falling 1 percent, in the face of escalating trade tension between its two largest trading partners, and its own with Japan.The Korean won fell sharply against the US dollar.The benchmark Korea Composite Stock Price Index shed 19.21 points, or 0.95 percent, to 1,998.13, the lowest in seven months. Trading volume was low at 427 million shares worth 5.21 trillion won ($4.34 billion), with losers

Aug. 2, 2019

BOK vows market stabilization efforts amid escalating trade tensions

The Bank of Korea said Friday that it will remain vigilant against any potential volatility in local financial markets caused by escalating trade tension with Japan. "(The BOK) believes there is a possibility that the volatility in the local financial and foreign exchange markets may rise depending on how Japan's export restrictions are actually implemented," the central bank said in a statement after an emergency meeting to review possible fallout from Japan's expanded export restrict

Aug. 2, 2019

Seoul stocks open lower on trade tensions

Seoul stocks opened sharply lower Friday as Japan is set to remove South Korea from its list of trusted trading partners later in the day and a trade row between the United States and China is escalating.The benchmark Korea Composite Stock Price Index crashed 23.10 points, or 1.15 percent, to reach 1,994.24 in the first 15 minutes of trading.It marked the first time in seven months that the index was below the 2,000-mark during a trading session. Tokyo, which began implementing tougher restricti

Aug. 2, 2019

Kospi to plunge below 2,000 on prolonged Korea-Japan trade spat

South Korea’s benchmark Kospi is projected to dip below the psychologically important 2,000 mark, if escalating trade tensions with Japan are prolonged, a report released by a local brokerage firm said Tuesday.Amid a lackluster stock market performance, Tokyo is expected to implement the decision to exclude South Korea from its whitelist of trusted export nations on Friday, which would bar Korea from receiving preferential treatment via simplified export procedures. “The local s

July 30, 2019

Shinhan Financial raises $500m via debt sale

Shinhan Financial Group Co., a major financial holding firm in South Korea, said Tuesday it has raised $500 million by selling sustainability bonds. Sustainability bonds are floated to exclusively finance a combination of green and social projects.The US dollar-denominated bonds carry an yield of 3.34 percent, Shinhan Financial said in a statement. Proceeds from the sale will be used to help Shinhan Financial fund for a range of environmental, social and governance projects, the company said. (Y

July 30, 2019

Financial groups see earnings boost in H1 despite sluggish market

South Korea’s major financial groups posted record-breaking earnings during the first half of the year, notwithstanding external challenges that have weighed down the overall market, industry data showed Sunday. Shinhan Financial Group and KB Financial Group, the nation’s top two banking groups in terms of assets, logged 1.91 trillion won ($1.6 billion) and 1.84 trillion won in net profit, respectively, according to their recent earnings announcements.Runners-up Hana Financial Group

July 28, 2019

Woori acquires Kukje Asset Trust to beef up nonbanking sector

Woori Financial Group said Friday it has acquired Kukje Asset Trust, a local real estate trust company, in an effort to boost its nonbanking portfolio.The financial holding firm signed a stock purchase agreement to acquire a combined controlling stake of 65.7 percent from Kukje Asset Trust Chairman Yoo Jae-eun and his partners.  Woori said it has acquired the first batch of stock traded -- 44.5 percent -- and the remaining 21.27 percent will be acquired three years later, with Chairman Yoo

July 26, 2019

Eximbank to be more inclusive in financing new exporters

South Korea’s official export credit agency Export-Import Bank of Korea said Thursday it will expand its credit policy to be more inclusive in financing new exporters with low credit ratings. According to Eximbank, it has allocated a total of 20 billion won ($17 million), with individual raw material exporters funded up to 3 billion won.Also, firms in the innovative growth industry -- such as the energy, information and communications technology, and future transportation and materials sec

July 25, 2019

S. Korean investors favor Disney stocks among foreign stocks

South Korea’s individual investors chose Walt Disney stocks as their favorite foreign stock, a poll showed Wednesday.The survey, conducted by local brokerage Samsung Securities, involved 484 investors that participated in its foreign stocks seminar. About 20.9 percent of the respondents chose the media giant in a question asking which foreign stocks they would purchase before heading off to their summer holidays.Microsoft ranked No. 2 with 15.1 percent and Amazon No. 3 with 10.3 perce

July 24, 2019

BOK chief says another rate cut possible

Bank of Korea (BOK) Gov. Lee Ju-yeol hinted at an additional rate cut Tuesday, less than a week after the central bank slashed the key rate to help spur growth in Asia's fourth-largest economy."(BOK) maintains its stance that it will take measures if necessary, depending on the (rate of) economic growth," Lee said while speaking in front of the parliamentary finance committee. Lee's remarks came five days after the central bank cut the key rate by 25 basis points to 1.50 percent despit

July 23, 2019

Foreign investors on buying spree of Korean stocks amid trade row with Japan

Overseas investors have been on a buying spree of South Korean stocks this month, despite a dampening mood from the escalating Seoul-Tokyo trade row, data showed Tuesday. According to the Korea Exchange, foreign investors net purchased stocks on the benchmark Kospi worth nearly 1.8 trillion won ($1.5 billion) from July 1 to Tuesday. Separate data compiled by local brokerage Yuanta Securities showed that Korean stocks were the most popular among those categorized as emerging markets. Foreign inve

July 23, 2019

Woori Financial Group reports record-high net profit for H1

Woori Financial Group said Monday that it recorded a net profit of nearly 1.8 trillion won ($1.53 billion) for the first half of the year, marking a new high.The figure comes as the result of combined first-quarter and second-quarter net profits this year. Its second-quarter net income increased 7.2 percent on-quarter to 610.3 billion won. An official at the firm explained that they improved their financial structure by expanding core deposits and boosting noninterest income business center

July 22, 2019

[Contribution] 2019 has been good for investors so far, but can it last?

The Korea Herald is publishing a regular contribution series written by senior investment strategists at Standard Chartered Group Wealth Management. -- Ed.Asset markets rebounded strongly in the first half of 2019, following a poor 2018. Global equities led the way, rising more than 10 percent, but bonds (particularly riskier bonds) also performed well. Oil has rallied and gold recently broke out into a six-year high. The strong first-half performance has made some investors cautious on the outl

July 21, 2019

Stocks held by K-pop agency owners plummet

The value of stocks owned by both former and current entertainment agency owners in South Korea have dropped nearly 30 percent compared to last year, data showed Sunday, as the industry struggles to cope with a slew of scandals as well as trade tensions between Korea and Japan, a key market. According to conglomerate research firm Chaebul.com, the combined value of stocks held by seven most stock-rich entertainment agency owners fell 28.7 percent to 512 billion won ($435.5 million) as of Fr

July 21, 2019

Seoul shares forecast to remain in tight range next week

South Korean shares are expected to remain in a tight range next week as investors take to the sidelines ahead of the release of key economic data and earnings reports from major players such as Hyundai Motor, analysts said Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,094.36 points on Friday, slightly up from 2,086.66 points a week earlier.The index started weak on Monday as investors took to the sidelines over an escalating trade row with Japan. The Seoul-Tokyo t

July 20, 2019