Korea to make decision on proposed virtual currency exchange shutdown

The government said Monday it will make a decision on a proposed shutdown of all cryptocurrency exchanges after "sufficient consultation and coordination of opinions" as the proposal sparked confusion in the market and anger among investors.The Office for Government Policy Coordination made the announcement, downplaying the justice minister's remark last week that the government is working on legislation to close all virtual currency exchanges to tackle speculation."The proposed s

Jan. 15, 2018

Securities firms protest new capital gains tax system for foreign investors

Local securities firms are protesting recent tax revisions that levy heavier capital gains taxes on foreign stock investors, citing the absence of an effective monitoring system, financial sector sources said Monday.The finance ministry announced tax code changes Jan. 7, effective from July, to collect capital gains tax from foreign investors who own more than 5 percent stakes in locally listed companies. The previous threshold was 25 percent. Non-resident foreign investors and overseas companie

Jan. 15, 2018

Korea struggles to come up with cryptocurrency measures

Confusion persisted in South Korea over the weekend regarding the government’s measures against criminal use of cryptocurrencies, with the financial authorities urging banks to join their efforts and Cheong Wa Dae stressing that the relevant organizations were “in tune.” On Sunday, a high-ranking Cheong Wa Dae official said the presidential office’s stance toward cryptocurrency transactions is consistent with that of the government’s announcement made on Dec. 28. Th

Jan. 14, 2018

[Herald interview] 'Tax code revision portends stock market disruption'

Through a revision of the tax enforcement decree, South Korea expects to levy capital gains tax on a wider range of foreign investors, as the revision defines those holding 5 percent or more of a firm as a “large shareholder” -- the target of taxation -- from the previous threshold of 25 percent. The revision was announced on Jan. 7 by the Ministry of Strategy and Finance and is set to take effect in July.Under the new rule, however, it would cause a cumbersome process of all parties

Jan. 14, 2018

Cryptocurrency traders face fines for virtual accounts

Cryptocurrency investors in South Korea will be fined for refusing to convert their virtual accounts into real-name ones, financial authorities said Sunday.The move comes as South Korea is scrambling to rein in the virtual currency frenzy in Asia's fourth-largest economy, including preparations for a bill to ban cryptocurrency exchanges at home. According to the authorities, cryptocurrency traders will be allowed to convert their virtual accounts into real-name ones within this month, but those

Jan. 14, 2018

Seoul shares likely to be under pressure next week

South Korean stocks are expected to move in a tight range next week as investors await a mixed bag of economic data at home and abroad ahead of the corporate earnings season, analysts said Saturday. The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,496.42 points on Friday, inching down 0.04 percent from a week ago. Local stocks got off to a strong start on Monday thanks to an upbeat mood on Wall Street, but slumped for three consecutive sessions as flagging tech heavyweigh

Jan. 13, 2018

Moody's revises Emart's Baa2 rating up from negative to stable

Moody's Investors Service on Friday revised up the outlook for Emart Inc.'s Baa2 rating to stable from negative due to the company's improved financial situation."The change in Emart's rating outlook to stable from negative reflects its improved financial leverage in 2017, and our expectation that such deleveraging will continue into 2018, primarily owing to a decrease in adjusted debt," Moody's Vice President and Senior Credit Officer Wan Hee Yoo said in a statement. The rating a

Jan. 13, 2018

[Newsmaker] Ministries stand at odds over cryptocurrency regulations

South Korea’s government came under fire Friday for sending out confusing policy signals on bubble-prone cryptocurrency transactions, vexing investors and paralyzing market functions.While the Ministry of Justice reiterated its latest pledge to seek for the shutdown of cryptocurrency operators, the presidential office Cheong Wa Dae and the Ministry of Strategy and Finance put the brakes on drastic actions in an attempt to steady the market.“The shutdown of (cryptocurrency) exchanges,

Jan. 12, 2018

IT industry watches for fallout on blockchain due to cryptocurrency bans

Local IT firms and academics raised concerns on Friday that the government crackdown on cryptocurrency trading may adversely affect the blockchain sector, the core technology of such transactions.The justice ministry on Thursday moved in on the virtual currency market that has become overly speculative, with regulators currently unable to keep pace with developments in areas such as security against hacking, money laundering and other potential abuses. The ministry said it will legislate bans on

Jan. 12, 2018

Main opposition slams gov't over cryptocurrency policy confusion

The main opposition Liberty Korea Party on Friday criticized the government for confusion in its approach to curb cryptocurrency trading, citing it as a sign of policy ineptitude. On Thursday, Justice Minister Park Sang-ki said the government is working on legislation that includes a complete shutdown of all virtual currency exchanges in the country. But the presidential office Cheong Wa Dae said later that no decision has been made yet over the shutdown, amid growing complaints from disgruntled

Jan. 12, 2018

'Banning cryptocurrency exchanges needs more consultations'

Finance Minister Kim Dong-yeon said Friday that relevant ministries need to hold more consultations over the justice ministry's plan to ban cryptocurrency exchanges, but the government will continue to take actions against speculative investment in virtual coins. The remarks by Kim came a day after Justice Minister Park Sang-ki told reporters that the ministry is preparing for a bill to ban cryptocurrency exchanges at home. "The issue of shutting down (cryptocurrency) exchanges, t

Jan. 12, 2018

Woori Bank to partially restrict services during Lunar New Year holiday

South Korea’s Woori Bank announced Wednesday a temporary restriction on use of its debit cards and other services for the Lunar New Year from Feb. 15 to Feb. 18, via its official homepage. The local bank apologized for the inconvenience. The restriction on Woori debit cards will begin at 12:01 a.m. Thursday, Feb. 15 and prolong until 11:59 p.m. on Sunday, Feb. 19.  Woori Bank added that customers will still be able to use their credit cards, but not debit cards. Also, long- and short-

Jan. 11, 2018

Cryptocurrencies plunge upon Seoul’s ‘all-out ban’ warning

Cryptocurrency markets at home and abroad responded quickly and radically Thursday on signals by South Korea’s Ministry of Justice that it would seek to shut down all exchanges for digital assets.In a press conference Thursday, Justice Minister Park Sang-ki said the government was drawing up a bill against overheating in the virtual currency market, perhaps even intending to ban cryptocurrency trades in Korea completely.  “Cryptocurrency trade in Korea is similar to speculation

Jan. 11, 2018

Korea unveils plans to prop up second-tier stock bourse

South Korea unveiled Wednesday plans to prop up the tech-heavy Kosdaq bourse by giving tax relief to investors, creating new composite stock market indexes and lowering the entry barrier for firms to go public on the market. The measures, released by the Financial Services Commission, aim to stimulate venture firms’ growth in line with the Moon Jae-in administration’s policy direction and the market itself suffering from the flight of powerhouses, such as Kakao and Celltrion, seeking

Jan. 11, 2018

Korea’s crackdown on cryptocurrency sparks backlashes

The South Korean government’s recently accelerated moves to put the brakes on the heated cryptocurrency market has been triggering fierce reactions from investors here, with some even calling for the dismissal of top financial policymakers.Authorities here have been intensifying their warnings, the latest coming from the Justice Ministry, which said Thursday the government was mulling a bill to ban cryptocurrency trading.On Wednesday, the National Tax Service conducted on-site investigatio

Jan. 11, 2018

Regulators inspect virtual bank accounts for corporate customers

South Korea’s financial regulators have inspected banks that have opened virtual accounts for corporate customers amid concerns that such accounts could be exploited as a loophole to attract new investors for cryptocurrencies, an official said Wednesday. Regulators have banned banks from offering virtual accounts, which are needed to sell or buy cryptocurrrencies, to individual customers, in the latest measure to help prevent speculative investment for virtual coins. However, virtual bank

Jan. 10, 2018

[Herald Interview] ‘Crypto crackdown to adapt to changing tides’

South Korea has for weeks ramped up pressure on the local cryptocurrency industry through a pangovernmental body that includes the Prime Minister’s Office, Justice Ministry, financial authorities and police, among others. Following the move, Korea has imposed a ban on non-real-name transactions and trading by foreigners and minors. Last year, initial coin offerings were also forbidden. Moreover, financial watchdogs are inspecting commercial banks -- within their control -- for failing to p

Jan. 10, 2018

Top financial regulator calls on banks to ‘gate-keep’ cryptocurrency craze

South Korea’s top financial regulator on Monday called on banks to act as “gatekeepers” in monitoring cryptocurrency-related transactions, elaborating on the need to set off a nationwide survey Monday on banks that have provided virtual accounts for the transactions. “Concerns are rising as banks have kept mum about money flows for illegal use, instead of taking the role of gatekeepers,” said head of the Financial Services Commission Choi Jong-ku in a press conferen

Jan. 8, 2018

Kakao Bank denies opening business to corporations

Kakao Bank, South Korea‘s leading direct bank by transaction volume, denied news reports Monday that it is looking to turn to corporations to diversify its customer group, currently solely composed of retail customers. Earlier Monday, the online-only bank was reported to have revised its terms and conditions in December to allow for business entities to open checking accounts through its mobile platform, with interest rates settled quarterly. Kakao Bank said Monday the revision was meant t

Jan. 8, 2018

Banks likely to tighten screening for household loans in Q1: BOK

Banks in South Korea are likely to tighten their rules on household loans in the first quarter of this year amid a recent trend of rising interest rates, central bank data showed Monday.The overall index measuring banks' "attitude" toward extending loans to households came to minus 13 for the January-March period, compared with minus 17 a quarter earlier, according to data by the Bank of Korea (BOK).A reading below zero means banks will implement tougher screening for household loans,

Jan. 8, 2018