Kospi shows poor performance in May

South Korea’s benchmark Kospi shed 7.34 percent in May alone, according to the Korea Exchange on Tuesday, its largest monthly loss since October last year.The main bourse’s lackluster performance last month is fueling concerns among investors still recovering from the shock in October, when the stock market experienced the steepest monthly decline in a decade.  At that time it shed 13.37 percent, weighed down by the US’ decision to implement 10 percent tariffs on $200 bill

June 4, 2019

Korea’s wealthy most concerned about inheritance: data

South Korea’s wealthy are more concerned about inheritance issues than generating profit from financial products in terms of asset management, data compiled by Samsung Securities showed Monday.The data was based on 1,630 cases of regular consulting with the firm’s clients who have over 3 billion won ($2.6 million) deposited in the firm for investment.  Of the clients, 30.2 percent acknowledged that inheritance issues were their priority concern, while 30 percent chose collecting

June 3, 2019

Korea’s fintech-led overseas money transfers grow 25x in over a year

The amount of international money transfers handled by South Korea’s fintech firms have increased more than 25 times over the past year, hinting at the growing popularity of small-sum cross-border money transfer services.According to the Financial Supervisory Service, Korea handled $365 million worth of small-sum money transfers in the first quarter of 2019, up 2,507 percent from $14 million handled in the fourth quarter of 2017 when such services began operations here.This total figure is

June 2, 2019

Kospi logs 2nd-weakest return among G20 bourses

South Korea’s main bourse Kospi posted a weak return rate of 0.03 percent since the beginning of the year, data from the Korea Exchange showed Sunday, putting the bourse near the bottom rank among its G20 counterparts. According to the KRX, the Kospi’s rate of return stood at a lackluster 0.03 percent as of Friday, the last trading day of May, placing it at No. 19 out of 20 major bourses around the world. Its rate of return hovered just above Turkey’s benchmark XU100, which ran

June 2, 2019

Seoul shares up for 2nd day on upbeat BOK assessment

South Korean stocks rose for the second straight session Friday as the central bank said the economy is recovering. The local currency fell against the US dollar. The benchmark Korea Composite Stock Price Index edged up 2.94 points, or 0.14 percent, to 2041.74. Trading volume was moderate at 426 million shares worth 4.8 trillion won ($4.3 billion), with gainers outnumbering decliners 485 to 348. The index opened lower, but it moved into positive terrain, apparently tracking Wall Street gains.US

May 31, 2019

State pension to increase overseas investment to 50% in 2024

South Korea's state pension will gradually increase its overseas investment to some 50 percent of its assets under management in 2024 as part of its effort to boost returns and diversify its portfolio, its management committee said Friday.Under the five-year investment plan, the National Pension Service, the fund's operator, aims to log a return rate of 5.3 percent for the 2020-2024 period.As of late 2018, some 30.1 percent of the pension fund's assets were invested in overseas assets."With

May 31, 2019

Bank of Korea freezes base rate at 1.75%, citing uncertainties

South Korea’s central bank on Friday froze the key interest rate at 1.75 percent, leaving the rate unchanged for six consecutive months, amid lingering concerns over weakening economic growth and rising global risks.The Bank of Korea’s Monetary Policy Board voted to leave the rate unchanged, with Gov. Lee Ju-yeol reiterating that now is not the time for a rate cut considering macroeconomic conditions and financial stability. “Expectations for a base rate cut seem to be eme

May 31, 2019

Stock transaction tax cut to take effect Thursday

South Korea’s decision to lower the tax rate on securities transactions by 0.05 percentage point is set to take effect on Thursday, with the financial sector divided on whether it will successfully stimulate the market.Tax levied on stocks listed on the nation’s main bourse Kospi will be cut down to 0.1 percent from the previous 0.15 percent. Stocks on the secondary tech-heavy Kosdaq will be traded at the rate of 0.25 percent instead of the previous 0.3 percent. The rate for third-ti

May 29, 2019

S. Korean firms issue more than W5tr of ESG-related bonds

South Korean firms have issued more than 5 trillion won ($4.27 billion) worth of environmental, social and governance-related bonds so far this year, which surpasses the volume of the asset class floated for the entirety of last year. ESG-related bonds are fixed income investments -- mostly issued by government-run organizations or institutions at the moment -- that finance environmental or social projects that help boost transparency and sustainability in society. Local firms including state-ru

May 28, 2019

Kospi-listed firms’ debt-to-equity ratio worsens in Q1

South Korean companies listed on the main bourse saw their average debt-to-equity ratio up by nearly 6 percentage-points in the first quarter of the year, data showed Monday, with analysts citing poor corporate performance and implementation of new accounting standards. The average D/E ratio of 640 Kospi-listed firms, that end their fiscal year in December, increased 6.37 percentage points from the end of the year to 110.7 percent by end-March, according to data provided by the Korea Exchange, t

May 27, 2019

[Contribution] Do we hold too much cash?

The Korea Herald is publishing a regular contribution series written by senior investment strategists at Standard Chartered Group Wealth Management. -- Ed.After being desensitized for many years by virtually zero interest rates, one can suddenly earn a positive yield on cash again in many major currencies. While the rates may still not be terribly exciting -- 12-month USD Libor yields are now approximately 2.75 percent per annum, for example -- these yields can be seen by some as credible compet

May 27, 2019

Regulator rejects 2 applications for online banks

In an unexpected turn of events, South Korea’s financial regulator on Sunday rejected applications by two consortia to set up the nation’s third and fourth internet-only banks.One consortium is backed by financial technology firm Viva Republica and the other is led by brokerage Kiwoom Securities.The Financial Services Commission said it accepted the recommendations of an independent evaluation committee that both consortia had put together inadequate bids. The outside evaluators said

May 26, 2019

S. Korean stocks retreat, won dips amid US’ threat to slap duties

South Korean stocks fell Friday, while the won closed higher against the US dollar, hours after Washington’s remarks that it is considering to impose anti-subsidy duties on nations that undervalue their currencies against the greenback. The announcement, which came amid an intensifying US-China trade dispute, put Korea at risk of higher tariffs, alongside the world’s second-largest economy China, Japan, India, Germany, and Switzerland.  The benchmark Kospi closed 14.28 points, o

May 24, 2019

[Photo news] Paving the way to Myanmar

 

May 23, 2019

Inaugural Korea Fintech Week kicks off

The inaugural Korea Fintech Week event kicked off in Seoul Thursday, bringing together more than 50 local startups and 2,500 attendees to share business ideas and clinch new investment opportunities.The three-day event taking place at the Dongdaemun Design Plaza in Seoul through Saturday is organized by the Financial Services Commission, Financial Supervisory Service and Fintech Center Korea.The CEOs of fintech operators, including mobile payment platform Kakao Pay, personal finance managem

May 23, 2019

Net profit of overseas FI branches jumps 37%

The overseas branches of South Korean financial institutions reported a 37 percent growth in their combined net profit on-year to nearly $1.3 billion last year, data from the Financial Supervisory Service showed Thursday.Overall, 79.1 percent of the combined net profit came from branches in Asia. China contributed the most with $252 million, with Hong Kong and Vietnam each tailing behind at $235 million and $157 million, respectively.  The number of overseas branches operated by the firms i

May 23, 2019

Toss vs. Kiwoom: anticipation builds for Korea's third internet-only bank license

As South Korea’s financial regulators prepare to issue new operational licenses for internet-only banks here next week, all eyes are on the approval prospects of Toss Bank and Kiwoom Bank -- the two consortia currently in the running for preliminary permits. 　Up to two licenses are up for grabs, though the Financial Services Commission, the country’s chief financial regulatory body, has hinted it may approve only one. 　 The FSC’s review panel and the Financial Supervisory Servi

May 22, 2019

MBK Partners-Woori Bank consortium selected as new preferred buyer of Lotte Card

Lotte Holdings said Tuesday that it has selected a consortium of MBK Partners and Woori Bank as the new preferred buyer of Lotte Card, amid legal irregularities surrounding former negotiations partner Hahn & Co.　 The holdings unit of the Korean-Japanese retail conglomerate said in a disclosure that it had initially chosen local private equity fund Hahn & Co. as its preferred bidder on May 3, but that the priority period for negotiations had expired as of May 13. As a result, Lotte deci

May 21, 2019

Costco Korea to make switch to Hyundai Card this week

Costco Wholesale Korea, the South Korean unit of the US wholesale giant, will officially switch to Hyundai Card as its credit card partner from Friday in line with contract stipulations, the credit card company said Tuesday. This means that starting Friday at all Costco outlets in Korea, Costco members will only be able to pay with a Hyundai credit card or cash under the wholesaler’s single-network credit card policy. Samsung cards will no longer be accepted.The change follows an agreement

May 21, 2019

Woori conducts first overseas IR meeting as holding firm

Woori Financial Group has conducted its first investor relations meetings abroad after adopting a financial holding firm structure early this year, the firm said Monday.Group Chairman Sohn Tae-seung is participating in the first leg of the company’s IR roadshow in Japan and Hong Kong, which kicked off Sunday. The roadshow will take place over the course of four days. Sohn plans to outline the firm’s first-quarter performance for its foreign investors, the firm said, adding that the f

May 20, 2019