[Monitor] Local brokerages see IB profitability rise in Q1

Major securities firms saw their operating profits rise in the January to March period this year, mainly boosted by the expansion of investment banking business, Financial Supervisory Service data showed Sunday.According to the watchdog’s electronic disclosure board, NH Investment & Securities, Mirae Asset Daewoo and Meritz Securities all saw the contribution of the IB sector to total quarterly profit surpass 30 percent. Leading the trend was Mirae Asset Daewoo, which logged 142 billio

May 19, 2019

S. Korean investors shift attention to overseas stocks

South Korean investors are turning their attention to foreign stocks, with local shares continuing to yield disappointing results amid the benchmark Kospi’s lack of long-term movement. The nation’s benchmark Kospi index inched up nearly 7 percent from the beginning of the year as of Thursday, but is moving at a snail’s pace compared with other major global indexes. It was just last month that the US’ S&P 500 and Nasdaq Composite closed at record-high levels, buoyed by

May 19, 2019

US-China trade dispute weighs on Korea’s financial markets

The value of South Korean won compared to other major currencies fell to a 19-month low as of Sunday, with the ongoing US-China trade disputes weighing down the economy.Asia’s fourth-largest economy also saw its benchmark Kospi shed 7 percent after US President Donald Trump’s announcement to impose fresh tariffs on Chinese goods, two weeks earlier. According to real effective exchange rate index compiled by the Bank for International Settlements, the value of the South Korean currenc

May 19, 2019

S. Korean stocks likely to remain range-bound next week

South Korean shares will likely continue facing downward pressure next week due to lingering effects of the trade dispute between the United States and China but largely remain range-bound, with some positive factors also expected, analysts said Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,055.80 on Friday, down 52.6 points, or 2.5 percent, from a week earlier. South Korean stocks got off to a weak start this week as the US announced an increase in its import tari

May 18, 2019

Lotte Card sale mired in uncertainty over investigation of Hahn & Co., labor union backlash

The pending sale of Lotte Group’s credit card unit, Lotte Card, appears uncertain, as an executive of its preferred bidder, Hahn & Co., faces an investigation over alleged tax irregularities -- a development that could preclude the private equity firm from completing the acquisition. Further complicating the situation, Lotte Card’s labor union has strongly opposed the idea of a takeover by a profit-driven PEF due to concerns of employment stability, pledging group acti

May 17, 2019

Listed firms’ Q1 net dips on sluggish exports

South Korean listed firms’ profits tumbled nearly 40 percent in the first quarter of the year due to weaker exports, data showed Friday.　The combined net profit of 573 non-financial companies listed on the main bourse came to 20.9 trillion won (US$17.6 billion) in the January-March period, down 38.8 percent from a year ago, according to the data from the Korea Exchange and the Korea Listed Companies Association.　Sales of the firms, which close their books in December, edged up 0.2 percent

May 17, 2019

[News Focus] Will Hana’s win over Lone Star affect ISDS arbitration?

Hana Financial Group’s latest win over Lone Star Funds over the purchase of KEB Hana Bank, formerly known as the Korea Exchange Bank, prevented the South Korean banking group from paying the US private equity fund some $1.44 billion in compensation. All eyes are now on how this outcome will affect another high-profile arbitration that is still pending -- the investor-state dispute settlement between the Korean government and Lone Star involving a $4.68 billion damage claim.Hana Financial s

May 16, 2019

Hana Financial wins suit against Lone Star on KEB deal

Hana Financial Group, one of South Korea’s four major banking groups, said Wednesday that it has won an international arbitration against US private equity fund Lone Star Funds over its purchase of KEB Hana Bank, formerly known as Korea Exchange Bank. Lone Star had filed a suit at the International Court of Arbitration under the International Chamber of Commerce in 2016, accusing Hana Financial of internationally lowering the price of KEB in negotiating the deal.　But the court has dismisse

May 15, 2019

Samsung Pay marks W40tr in total transactions in Korea

Samsung Pay, the mobile payment service operated by Samsung Electronics, has reached 40 trillion won ($33.7 billion) in accumulated transactions in South Korea, the company said Tuesday.Since its launch in August 2015, the mobile payment system logged transactions worth 2 trillion won during the first year and surpassed the 40 trillion won mark in end-April. The number of subscribers also exceeded 14 million.Of the total amount, 25 percent were online payments, reflecting the shift of payment tr

May 14, 2019

S. Korean stocks rebound amid intensified US-China trade dispute

South Korean stock markets rebounded slightly Tuesday after getting off to a weak start, amid signs of escalating tensions between the US and China in a trade war. The nation’s main bourse Kospi closed 0.12 percent higher than the previous trading, at 2,081.59. It had recovered on the back of institutional buying after opening 0.9 percent lower than the previous close at 2060.24.The secondary tech-heavy Kosdaq ended 0.24 percent higher at 710.49, having gained throughout the day after open

May 14, 2019

Korea’s finance-banking sector sets aside W584b toward digital transformation projects in 2019

Technology is shaking up South Korea’s banking-finance industry, with players embracing digital transformation as a core part of their business strategy going forward.　　Reflecting this shift, 71 of the 108 (65.7 percent) finance companies here are pursuing various business projects aimed at digital transformation. And this year, these firms have set aside 584.5 billion won ($492.7 million) toward running such projects, an analysis by the Financial Supervisory Service showed Tuesday.　The 10

May 14, 2019

Korea’s promissory note market projected to top W10tr

The market size for promissory notes issued by South Korean investment banks is projected to reach 10 trillion won ($8.5 billion) this year, according to data released Monday, with securities firms seeking to further solidify their identities as IBs. Promissory notes are short-term means of financing with less than one-year maturity and a maximum limit of 200 percent of their capital. The business segment can provide capital to expand the scope of overseas and alternative investments. The licens

May 13, 2019

[News Focus] Convenience, tangible benefits propel prepaid cards to popularity in Korea

In South Korea, credit cards have long dominated the payment scene. Most locals prefer credit cards over other forms of payment and the use of cash is on the wane, particularly among consumers in their 20s and 30s. But now a new form of payment -- the prepaid card model -- is rising in popularity here, revitalizing cash usage and diversifying the offline payment landscape.Put simply, “prepaid cards” are cards that people can charge with cash and use like debit cards. Launched by loca

May 12, 2019

Despite jitters, bourse closes higher as China-US trade talks extend

South Korean stock markets rebounded at Friday’s close, after the main bourse fell below 2,100 earlier in the day, reflecting market fluctuations caused by ups and downs in the trade confrontation between the US and China. Tension had peaked at midday, as US tariff hikes on $200 billion of Chinese imports going from 10 percent to 25 percent took effect in the midst of negotiations. The higher close, however, also showed the market stabilizing for the time being, as the two sides are expect

May 10, 2019

Chiefs of AIA, SK discuss ways to strengthen social value

The chiefs of global insurance group AIA and South Korean telecom-to-chips conglomerate SK Group met in Seoul Thursday to discuss ways to cooperate in creating shared value and strengthening social value. AIA Group CEO and President Ng Keng Hooi met with SK Chairman Chey Tae-won at SK Telecom’s headquarters in Seoul for an in-depth discussion on corporate social responsibility and creating shared value for the local community, AIA said. The two exchanged ideas on ways to strengthen social

May 9, 2019

Korean markets tumble on US-China trade tensions

South Korean markets were rattled Thursday, along with other markets in the region, after US President Donald Trump claimed that Beijing “broke the deal” in the ongoing trade talks with Washington. Trump’s remarks made at a rally in Florida early in the day, dragged down major indexes by further dampening investor sentiments. Korea’s main bourse Kospi closed at 2,159.79, 66 points or 3.04 percent lower from the previous session. The secondary Kosdaq also slipped 21.1

May 9, 2019

Korean securities firms post strong Q1 earnings

South Korean securities firms delivered strong first-quarter earnings this year by shifting their focus from equities to investment banking, principal investments and asset management services. This comes after most suffered an earnings shock in the fourth quarter last year due to a lackluster stock market.  Meritz Securities’ first-quarter operating profit jumped 22.8 percent on-year to 165.9 billion won ($141.9 million), according to data from the Financial Supervisory Service, mark

May 8, 2019

FSC rejects Anyband, leaving Toss, Kiwoom vying for internet-only bank license

South Korea’s financial regulator has rejected one of three contenders seeking a license to operate a new internet-only bank here, making way for a two-way competition between two local finance powerhouses: fintech company Viva Republica and local brokerage Kiwoom Securities.　The Financial Services Commission said late Tuesday that it had rejected Anyband Smart Bank’s application due to a weak shareholder base and the submission of inadequate documents -- a move that had been widely

May 8, 2019

Korea moves to ease crowdfunding, asset management regulations

South Korea is moving to amend its finance and investment-related laws to allow more diverse players to utilize crowdfunding for raising capital and ease requirements for those engaging in the asset management business.The Financial Services Commission said Tuesday that a bill to amend the Financial Investment Services and Capital Markets Act has been passed by the Cabinet.As a result, the bill will now move to the National Assembly for further deliberation by the relevant committees. Korea&rsqu

May 7, 2019

Strong dollar fans fear of foreign capital outflow from Korean market

With the Korean won extending its losing streak against the dollar, analysts voiced concerns on Monday that the prolonged trend may trigger an outflow of foreign capital from the local stock market. The won remained at 1,170 won -- its closing price on Friday -- against the US greenback, which marked the lowest value in 27 months. Korean stocks, bonds and foreign currency markets were closed for a public holiday Monday. On Friday, foreign investors net purchased shares worth 150.8 billion w

May 6, 2019