Carbon tax would cost Korean firms up to W36tr: Nice Rating

If South Korea passes a carbon tax bill in line with global standards, local companies, particularly those in heavy industries that emit high levels of carbon dioxide, may face between 7.3 trillion won ($6.26 billion) and 36.3 trillion won in additional taxes, a local credit rating agency said Wednesday. The carbon tax bill is currently pending in the parliament. The financial costs will be even higher with the implementation of the European Union’s Carbon Border Adjustment Mechanism, sa

Sept. 8, 2021

Bitcoin, Etheruem fluctuate amid El Salvador’s historic move

Bitcoin’s trading price declined to about 55 million won ($47,200) locally Wednesday afternoon, only 24 hours after it touched 60 million won for the first time in three months, data from Upbit, South Korea’s largest cryptocurrency exchange showed. The decline came as El Salvador became the world’s first country to adopt bitcoin as legal tender Tuesday. Bitcoin, the original and largest cryptocurrency, hit the 60 million-won milestone on Feb. 20 and continued to rise to 82 mi

Sept. 8, 2021

Seoul stocks down for 2nd day on tech regulation concerns

South Korean stocks extended losses to the second straight session Wednesday as investors offloaded tech shares amid concerns about regulations against online platform giants. The benchmark Korea Composite Stock Price Index (KOSPI) shed 24.43 points, or 0.77 percent, to close at 3,162.99 points. Trading volume was high at about 839.72 million shares worth some 16.89 trillion won ($14.5 billion), with losers outnumbering gainers 560 to 307. Foreigners sold a net 283 billion won worth of local

Sept. 8, 2021

Brokerages overtake banks in ISAs

The number of people who held individual savings accounts, or ISAs, through brokerage houses in South Korea has soared as the government changed the rule allowing holders to invest in equities from this year, data showed Wednesday. Nearly 1.29 million people held ISAs at local securities firms as of the end of July, up 1.13 million from the end of last year, according to data compiled by the Korea Financial Investment Association. But while the number of ISA holders grew at brokerages, the nu

Sept. 8, 2021

IBK signs MOU with Saudi SME Bank to support small enterprises

Industrial Bank of Korea said Wednesday it signed a memorandum of understanding with Saudi Small and Medium Sized Bank through a videoconference, in a bid to share IBK’s knowledge and expertise in financial support for small companies. Under the agreement, IBK will help Saudi SME Bank in developing a credit loan system and products, business strategies, risk management measures and IT and computer systems. IBK will also form a taskforce with working-level staff to directly communicate a

Sept. 8, 2021

Seoul stocks open lower on Wall Street losses

South Korean stocks opened lower Wednesday, tracking losses on Wall Street amid concerns about the pace of US economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) fell 18.16 points, or 0.57 percent, to trade at 3,169.26 points in the first 16 minutes of trading. Overnight, the Dow Jones Industrial Average fell 0.76 percent and the S&P declined 0.34 percent, while the tech-heavy Nasdaq composite inched up 0.07 percent after the release of a disappointing US jobs report

Sept. 8, 2021

Financial firms ask regulators to keep hands off internal affairs

South Korea’s financial services lobby groups have called on regulators to take a step back from their involvement in corporate internal affairs, industry sources said Tuesday, apparently irked by the authorities’ clampdown on their chiefs held responsible for private fund misselling scandals. Six representative bodies for financial service firms here, including commercial banking, brokerage and insurers, filed a joint request Monday asking regulators to hand the companies’ b

Sept. 7, 2021

Seoul stocks slump amid US tapering uncertainties

South Korean stocks retreated Tuesday amid lack of major market-moving events as investors still assess weak US job data and its impact on the Federal Reserve's timeline for tapering its stimulus. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (Kospi) decreased 15.91 points, or 0.5 percent, to close at 3,187.42 points. Trading volume was moderate at about 745 million shares worth some 11.7 trillion won ($10.1 billion), with losers outnumbering gainer

Sept. 7, 2021

Daily mobile stock trading volume surges 220% in 2020

Stock trades carried out through mobile transaction platforms in South Korea hit an all-time high in 2020, data showed Tuesday, reflecting retail investors’ strong appetite for stock investment during the pandemic-hit market. The daily average amount of stock transactions via mobile trading systems came to 26.66 trillion won ($23.03 billion) last year, up 219.6 percent on-year from 8.34 trillion won, the Bank of Korea said in its annual report on financial information. An average of 11

Sept. 7, 2021

FSS warns KB Savings Bank against lax control of soaring household debt

Amid the government’s move to bolster household debt management, the Financial Supervisory Service said Tuesday it has handed down a warning to KB Savings Bank over its loose screening for unsecured loans. KB Savings Bank turned out to have increased the amount of credit loans allowed for households since July last year by raising its lending programs’ loan limit and offering a discounted interest rate, without a strict review process led by the executive meeting, a FSS official sai

Sept. 7, 2021

Seoul stocks open slightly lower on investors' wait-and-see mode

South Korean stocks opened a tad lower Tuesday as investors took to the sidelines in the absence of major events related to the US Federal Reserve's timeline for tapering its stimulus. The benchmark Korea Composite Stock Price Index (Kospi) fell 1.82 points, or 0.06 percent, to 3,201.51 points in the first 15 minutes of trading. Overnight, the US stock exchanges were closed for a holiday. In Seoul, top cap Samsung Electronics lost 0.91 percent, and No. 2 chipmaker SK hynix retreated 0.47 perc

Sept. 7, 2021

Both sides claim victory as Kyobo Life-shareholder arbitration ends

Kyobo Life Insurance and its minority shareholders both argued Monday that they had won an arbitration at the International Chamber of Commerce over a drawn out dispute surrounding shares Kyobo Life Chairman Shin Chang-jae has to buy back from investors. The binding resolution indicated that the strike price for the put option -- forcing Shin to buy back the minority shareholders’ combined 24 percent stake in Kyobo Life at 409,000 won ($353.4) apiece -- is invalid, but the contract still

Sept. 6, 2021

Hyundai Capital chief to resign from CEO post after 18 years

Hyundai Capital Services Vice Chairman Chung Tae-young is poised to offer his resignation from the company’s top post later this month, the company said Monday. Chung will step down as chief executive officer and executive board member of the auto financing firm on Aug. 30, 18 years after he was promoted to the position in 2003. The brother-in-law of Hyundai Motor Group Chairman Chung Euisun was set to serve a three-year term as Hyundai Capital chief ending in 2024. Vice Chairman Chun

Sept. 6, 2021

Hyundai Heavy’s IPO price set at top end

Major South Korean shipbuilder Hyundai Heavy Industries shares were priced at 60,000 won ($51.90) apiece, the top of its indicative range for its initial public offering amid strong demand, the firm said in a regulatory filing Monday. The shipbuilder wrapped up its two-day book building Friday. While institutional investors placed bids to obtain the firm’s new shares from its initial public offering, a total of 1,633 domestic and foreign institutions participated. The competition marked

Sept. 6, 2021

[NK DEFECTOR'S EYE] South Korea’s financial market, crypto assets and metaverse through the eyes of NK defectors

This is the first installment in a series of articles on North Korean defectors in transition, and the challenges and opportunities they encounter in the face of South Korea’s financial market and its rapid digitalization. -- Ed.  Kim Ui-jin, a North Korean defector, had never been to a bank or engaged in any kind of financial investment before he crossed the border in 2006. In the totalitarian socialist country, where personal possession of private assets is forbidden, ownership

Sept. 6, 2021

Seoul stocks inch up after weak US jobs data

South Korean stocks edged up after choppy trading Monday as investors seek to digest weaker-than-expected August jobs data in the United States. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 2.27 points, or 0.07 percent, to close at 3,203.33 points. Trading volume was moderate at about 716 million shares worth some 12.1 trillion won ($10.5 billion), with gainers outnumbering losers 427 to 412. Foreigners bought a net 64 billion won,

Sept. 6, 2021

Toss Bank to expand loan service to thin filers amid delayed kick off

Toss Bank will expand its loan services to thin filers with little credit history or borrowers with low credits through its advanced credit assessment system while delaying its official launch to next month, officials said Monday. The internet-only lender was expected to start business late this month after receiving the green light from the country’s financial regulator. But due to the bank’s last-minute schedule rearrangements, it will begin its operation starting the first week

Sept. 6, 2021

KakaoBank shares decline for 3 days amid downward pressure

KakaoBank, the country’s mobile-only bank that went public a month ago, saw its shares fall for three consecutive days on Monday due to an expiring lock-in period for millions of its shares. Shares in the banking arm of mobile giant Kakao declined more than 5 percent to 77,300 won ($66.76) in morning trade, while the benchmark Kospi inched up 0.04 percent. Some 3.14 million shares or 8.72 percent of the total shares subscribed by institutional investors became available for trading as

Sept. 6, 2021

Samsung Asset launches dollar-denominated stock index fund

Samsung Asset Management said Monday it has launched a dollar-denominated equity index fund that tracks the United States‘ broad-based S&P 500 constituents. This marked the first dollar-denominated stock index fund in Korea’s asset management industry, which allows dollar holders in South Korea to indirectly invest in popular foreign stocks in the US, the company said. The S&P 500 comprises of 505 constituents as of July, including technology stocks Apple, Microsoft, Amazo

Sept. 6, 2021

Seoul stocks open nearly flat after weak US jobs data

South Korean stocks opened nearly flat Monday as investors seek to digest weaker-than-expected August jobs data in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.98 points, or 0.03 percent, to 3,200.08 points in the first 15 minutes of trading. The US jobs increase came to a seven-month low in August amid the spread of variant cases, raising expectations that the Federal Reserve would not rush in tapering its asset buying plans in the September meeting. Fi

Sept. 6, 2021