Shinhan’s net profit surges 29 percent in Q1

Shinhan Financial Group said its net profit rose to 997.1 billion won in the first quarter this year, a 29 percent gain from a year earlier, mainly due to improved net interest margins and reduced general and administrative expenses.The nation’s largest financials having banking, credit card, insurance and other financial units said its first-quarter net profit this year was the largest since the establishment of the holding company in 2001.“While banking and non-banking affiliates i

April 20, 2017

Korea to support vulnerable borrowers

South Korea’s financial regulator said Thursday it planned to allow borrowers who cannot repay debts due to a job loss or the death of a relative, to suspend the repayment of the principal for up to three years.The Financial Services Commission announced a set of measures to help alleviate the debt burdens of vulnerable households after releasing new data on household debt. The growth of household debt slowed in the first quarter after quickly rising 11.7 percent on-year in 2016. Household

April 20, 2017

Daewoo Shipbuilding files for debt restructuring

Daewoo Shipbuilding & Marine Engineering filed a petition with the Changwon District Court on Thursday, seeking approval for its 2.9 trillion won ($2.5 billion) bailout plan. If DSME’s mass debt-restructuring proposal is approved, the cash-strapped shipbuilding firm will receive 2.9 trillion won in liquidity from its major creditors, including the Korea Development Bank and the Export-Import Bank of Korea. Upon the court’s approval, there will be a weeklong window for bondholders

April 20, 2017

BOK launches pilot program to achieve coinless Korea

The Bank of Korea on Thursday launched a pilot program with major distribution giants to push forward its long-term goal of creating a coinless society in Korea by 2020.By partnering convenience store chains, department stores and supermarkets nationwide, the BOK is encouraging consumers to use their change from purchases for electronic prepayments. Participating store operators include CU, 7-Eleven, With Me, E-mart and Lotte Mart.For instance, the change that results from a purchase at a CU sto

April 20, 2017

Dollar-won volatility widens in Q1

The volatility in the dollar-won exchange rates slightly increased in the first quarter from the previous three-month period as the US greenback weakened this year, central bank data showed Thursday.The average daily variation, showing the change from the previous session's closing price, came to 5.7 won in the January-March period, up from 4.9 won in the previous quarter, according to the Bank of Korea.The increased fluctuation in the dollar-won exchange rates came as the dollar has weakened si

April 20, 2017

Korean shares turn higher in late morning trade

South Korean stocks turned higher late Wednesday as foreigners and institutions went bargain hunting.The won fell against the US dollar.  The benchmark Korea Composite Stock Price Index advanced 8.75 points, or 0.41 percent, to 2,147.15 as of 11:20 a.m.Foreign and institutional investors bought a combined 114.84 billion won ($100.56 million) worth of stocks, while individuals sold stocks valued at 108.99 billion won, keeping the KOSPI from rebounding further.  The KOSPI ended in negati

April 20, 2017

China Ocean Resources on verge of being dropped from Korean stock market

China Ocean Resources Co., a Hong Kong-based deep-sea fisheries company, is on the verge of being delisted from the South Korean stock market due to its false financial disclosures. If China Ocean Resources is dropped, it will become the latest Chinese firm that is booted from the local bourse after grappling with lower valuations and a lack of investor confidence.A total of 22 Chinese companies were allowed to trade their shares on the Korean stock market since 2007, but seven Chinese firms hav

April 20, 2017

Korean shares open lower on US losses

South Korean stocks opened lower Thursday, tracking losses on Wall Street, ahead of major companies' first-quarter earnings releases. The Korean won fell against the US dollar.The benchmark Korea Composite Stock Price Index shed 1.65 points, or 0.08 percent, to 2,136.75 in the first 15 minutes of trading.Investors took to the sidelines as major companies such as Samsung Electronics and Hyundai Motor are set to announce their first-quarter earnings results later this month, analysts said.  T

April 20, 2017

Seoul stocks end lower on US slump, foreign selling

South Korean stocks closed lower Wednesday as foreigners offloaded stocks on profit-taking in the face of overnight losses on Wall Street. The won rose against the dollar. The benchmark Korea Composite Stock Price Index rose 10.06 points, or 0.47 percent, to close at 2,138.40. Trade volume was moderate at 337.71 million shares worth 4.71 trillion won ($4.1 billion), with decliners outnumbering advancers 412 to 376.Foreign investors sold 238.11 billion won worth of shares, offsetting net purchase

April 19, 2017

Tightened acquisition rules eyed for savings banks

South Korea's financial watchdog on Wednesday unveiled a set of new regulations on the acquisition of a savings bank by a consumer credit service company in a bid to improve transparency.Under the new rules, a consumer credit service firm is required to present a plan to shut down its retail lending business if it applies to acquire a savings bank in South Korea, according to the Financial Supervisory Service.The new rules also ban a major shareholder from owning a majority stake in more than th

April 19, 2017

Samsung to build $480m PEF for infrastructure

South Korean investment firm Samsung Asset Management announced Wednesday that it would build a $480 million worth private equity designed to fund infrastructure, by teaming up with the Australian investment company IFM Investors. The fund is slated to be earmarked by four Korean institutional investors, but a target for injection has yet to be chosen, according to the deal sealed in Seoul on Wednesday. The Seoul-based investment arm under the nation’s largest conglomerate will m

April 19, 2017

Woori Bank's Q1 net up 44% on decreased provisions

Woori Bank, a major South Korean commercial lender, said Wednesday its first-quarter net profit shot up 43.8 percent from a year earlier due mainly to decreased loan-loss provisions.Net profit jumped to 637.5 billion won ($559 million) in the January-March period on a consolidated basis, compared with 443.3 billion won a year earlier, the lender said in a statement.The bank attributed the rise in net profit to decreased loan-loss provisions, increased noninterest income, and a cut in costs throu

April 19, 2017

Korean shares widen losses in late morning trade

South Korean stocks widened losses in late Wednesday trading as foreigners and institutions offloaded stocks. The won rose against the US dollar.  The benchmark Korea Composite Stock Price Index dropped 10.58 points, or 0.49 percent, to 2,137.88 as of 11:20 a.m.Foreign and institutional investors offloaded a combined 60 billion won ($52.7 million) worth of stocks on profit-taking.Individuals bought stocks valued at 62 billion won, keeping the KOSPI from falling further.  The KOSPI ende

April 19, 2017

Top accounting firms dominating corporate clientele

Accounting firms are in sharp contrast in the scale and number of their corporate clients, with the top four in the field sweeping up half of the listed companies, a state portal said Wednesday.According to securities information portal SEIBro, operated by the Korea Securities Depository, 108 accounting companies are handling 1,898 companies, averaging 17.6 corporate clients per firm. The industry's top four, however, were dominant with 50.1 percent of the clients. Samil PricewaterhouseCoopers w

April 19, 2017

Chief of financial holding firm arrested over stock price manipulation

The head of a bank holding firm based in the country's second largest city of Busan has been arrested over allegations of stock price manipulation, court officials said Wednesday.The Busan District Court issued a warrant on Tuesday night to detain Sung Se-whan, chairman of BNK Financial Group, citing the possibility of him destroying evidence. The investigation began after the Financial Supervisory Service (FSS) asked the prosecution to look into allegations the financial group rigged its stock

April 19, 2017

Korean shares open lower on foreign selling

South Korean stocks opened lower Wednesday on foreign selling and losses on Wall Street. The Korean won rose against the US dollar.The benchmark Korea Composite Stock Price Index gained 4.42 points, or 0.21 percent, to 2,144.04 in the first 15 minutes of trading.Two major factors weighed on the main index. Foreign investors offloaded local stocks and the Dow Jones industrial average lost 0.55 percent. Tech and automobile stocks led losses, with market behemoth Samsung Electronics falling 0.58 pe

April 19, 2017

Seoul stocks end higher on institutional buying

South Korean stocks closed higher Tuesday as institutions and foreigners became net buyers amid eased uncertainties following the United States' decision not to designate South Korea as a currency manipulator. The won fell against the dollar. The benchmark Korea Composite Stock Price Index rose 2.70 points, or 0.13 percent, to close at 2,148.46. Trade volume was moderate at 285.83 million shares worth 3.83 trillion won ($3.2 billion), with advancers outnumbering decliners 478 to 298.Earlier in t

April 18, 2017

K bank wins 200,000 customers, W230b deposits in 15 days

K bank, South Korea’s first internet-only bank and seventh commercial bank, had drawn more than 200,000 new customers and 230 billion won ($203 million) in deposits as of Tuesday morning, data from the bank showed.Nearly half of the deposits of K bank, which officially opened for business on April 3, had come from low-cost current and savings accounts, the bank said. K bank’s current and savings account ratio marked nearly 50 percent, 1.6 times higher than the average figure of 12 co

April 18, 2017

[News Focus] Timely or premature? Citibank’s bold move draws mixed reaction

Amid Citibank Korea’s recent decision to close down 80 percent of its physical branches nationwide, industry insiders are waiting to see how this bold push for non-face-to-face banking will stir the domestic banking industry. Citibank said slashing 101 branches is part of the company’s next generation of consumer banking strategy that emphasizes enhanced digital channels. In lieu of physical bank branches, the local unit of the US corporation will be introducing its new Cli

April 18, 2017

Korean shares lose steam in late morning trade

South Korean stocks lost steam in late Tuesday trading as institutions turned net sellers after scooping up shares amid eased uncertainties. The won rose against the US dollar.  The benchmark Korea Composite Stock Price Index dropped 5.63 points, or 0.26 percent, to 2,140.13 as of 11:20 a.m.Institutional investors offloaded 25.01 billion won worth of stocks on profit-taking. Foreigners continued to sell stocks valued at 30.75 billion won. Investor sentiment has improved after the Unite

April 18, 2017