KCGI criticizes Hanjin KAL chief over merger plan

South Korean activist private equity fund KCGI on Tuesday lashed out at Korean Air's plan of acquiring its rival Asiana Airlines with the policy lender’s help, claiming that the scheme is being pursued to cement Hanjin KAL chairman Cho Won-tae’s control over the air carrier. Hanjin KAL is the holding company of Hanjin Group, which owns Korean Air. “The state-run Korea Development Bank’s pledge to finance the acquisition in advance helps the Hanjin KAL chairman complete t

Nov. 17, 2020

Late Samsung chairman’s stock value exceeds W20tr on November gains

Boosted by the recent surge in stock prices of Samsung Group affiliates, the stockholding value of late group Chairman Lee Kun-hee surpassed the 20 trillion won ($18.07 billion) mark for the first time, data showed Tuesday. According to data compiled by local corporate tracker Chaebul.com, the accumulated stock value of the late chairman came to some 20.08 trillion won as of Monday, soaring about 14 percent from some 17.62 trillion won at the end of last year. Lee died last month after six year

Nov. 17, 2020

Seoul stocks down as investors lock in gains

South Korean shares snapped their two-day gains Tuesday after hitting a nearly three-year high the previous session, as valuation pressure offset optimism over Moderna's experimental COVID-19 vaccine. The Korean won rose against the US dollar. After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) fell 3.88 points, or 0.15 percent, to close at 2,539.15. Trading volume was high at about 1.2 billion shares worth around 17.5 trillion won ($15.8 billion), with losers outnumb

Nov. 17, 2020

Pelicana-backed PEF to close W20b deal to acquire Mr. Pizza

South Korea’s private equity fund backed by fried chicken franchise Pelicana Chicken is on the verge of closing a 20 billion won ($18.1 million) acquisition deal to become the biggest shareholder of MP Group, which owns pizza restaurant franchise Mr. Pizza and coffee chain Manoffin, a filing showed Tuesday. The deal will reach a final close once MP Group gets the green light to resume trading on the Korea Exchange’s development bourse Kosdaq in a decision affecting some 10,000 smal

Nov. 17, 2020

Seoul stocks open flat on valuation pressure

South Korean shares opened flat Tuesday after hitting a nearly three-year high the previous session, as valuation pressure offset optimism over Moderna's experimental COVID-19 vaccine. The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.1 point to 2,542.93 in the first 15 minutes of trading. Stocks traded choppy after a 1.97 percent gain the previous session. Valuation pressure, along with the unrelenting coronavirus toll, increased investor caution. Market bellwether Samsung Elec

Nov. 17, 2020

Late Samsung chief's stock value tops W20tr

The stock value of Lee Kun-hee, the late chief of South Korea's top conglomerate Samsung Group, has surpassed the 20 trillion won mark for the first time thanks largely to a surge in shares of tech giant Samsung Electronics Co., data showed Tuesday. The value of stocks held by Lee, who died on Oct. 25 after being bedridden following a heart attack in 2014, totaled 20.08 trillion won ($18.1 billion) as of Monday, according to the data from market researcher Chaebol.com. It was up about 14 perce

Nov. 17, 2020

Korean flag carriers eye tie-up as policy lender backs W1.8tr deal

South Korea’s two flag carriers Korean Air Lines and Asiana Airlines are anticipating a tie-up, as the nation’s policy lender Korea Development Bank vowed to finance the 1.8 trillion won ($1.62 billion) megadeal. Announcing a plan to help Korean Air Lines acquire a majority stake in its longtime rival, KDB said Monday that the merger is indispensable in keeping the nation’s struggling aviation industry afloat. “The new integrated Korean flag carrier will rise to one of

Nov. 16, 2020

Seoul stocks hit almost 3-year high on chip rally, vaccine hopes

South Korean stocks surged to a nearly three-year high Monday despite the spreading coronavirus woes, buoyed by a rally in chipmakers and vaccine hopes that fueled investor appetite for risky assets. The Korean won rose to the highest in nearly two years against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 49.16 points, or 1.97 percent, to close at 2,543.03. The reading marks the highest closing since 2,568.54 points on Feb. 1, 2018. Trading volume was high at a

Nov. 16, 2020

Korea to roll out plans to stabilize soaring rents after long deliberation

After a series of meetings among ministers and high-ranking officials earlier this month, the South Korean government is expected to roll out another package of measures to address issues linked to the soaring cost of housing offered through “jeonse” contracts. Jeonse is a two-year housing rental agreement that involves a large lump-sum deposit in lieu of monthly rent. The new measures are expected to include supplying more than 100,000 subsidized homes for low- and middle-incom

Nov. 16, 2020

Foreign buying spree pushes Kospi above 2,540, to highest point in 33 months

South Korea’s main bourse Kospi, crossed the 2,540-point mark Monday for the first time in nearly 33 months, amid net buying on a massive scale by foreign investors, according to market operator the Korea Exchange. The nation’s benchmark began trading at 2,507.46, up 13.59 points or 0.54 percent from the previous session’s close. It sustained an uptrend to close at 2,543.03, extending its winning streak for a third consecutive session. The index had not surpassed the 2,500-po

Nov. 16, 2020

S. Korea to cut maximum legal lending rate to 20% next year

South Korea’s government and the ruling Democratic Party of Korea have decided to lower the maximum legal lending rate to 20 percent from the current 24 percent starting next year to ease financial burdens on beleaguered debtors, the nation’s top financial regulator said Monday. Through the rate cut, nearly 87 percent or 2.08 million of 2.39 million borrowers across the country -- being charged with 20 percent interest rate per annum or more -- are expected to see their debt shrin

Nov. 16, 2020

Seoul stocks open sharply higher on chip, auto gains

South Korean stocks opened sharply higher Monday on strong advances by chip and auto heavyweights, despite concerns over the spreading coronavirus pandemic in the global markets. The benchmark Korea Composite Stock Price Index (KOSPI) rose 21.86 points, or 0.88 percent, to 2,515.73 in the first 15 minutes of trading. Investor sentiment remained strong in the wake of the vaccine rally that elevated the KOSPI to an over 2-year high and the S&P 500 to a pre-pandemic high. The strong local c

Nov. 16, 2020

S. Korean investors bet on electric vehicle stocks

Since the election of Joe Biden as the US president earlier this month, South Korean investors have rushed to purchase stocks of electric vehicle producers in the US that are expected to gather momentum during the new presidency, data showed Sunday. From Nov. 9 to 13, after Biden’s victory started becoming clear, domestic investors bought a combined $96.63 million worth of stocks for electric vehicle makers, including Xpeng Motors and Tesla. Among the EV companies and other US stocks i

Nov. 15, 2020

Shinhan Bank partners with Microsoft to develop R&D platform

Shinhan Bank said Sunday said it would collaborate with Microsoft Korea in building and operating its new research and development platform. On Friday, the two companies signed a strategic partnership for Shinhan’s Expace -- a combination of “experience” and “space” -- which will allow the bank’s digital team to work with fintech companies, startups and other innovative firms to develop and test cutting-edge financial services and technology. Expace’s

Nov. 15, 2020

Shinhan presses ahead with zero-carbon drive

South Korea’s financial behemoth Shinhan Financial Group has pledged to promote carbon neutrality in Korea and the rest of East Asia by adopting environmentally friendly standards for its investment portfolios and intra-group management. By announcing its “zero carbon drive,” at a board meeting for social responsibility on Friday in Seoul, the nation’s No.1 banking group by total assets vowed to adopt eco-friendly lending and investment rules for firms and industries res

Nov. 15, 2020

Mirae Asset Daewoo listed on DJSI for 9th consecutive year

Korean brokerage firm Mirae Asset Daewoo has been included in the Dow Jones Sustainability World Index for the ninth consecutive year in recognition of its sustainable efforts for environmental, social and governance, or ESG, causes, the company said Sunday. The Dow Jones Sustainability World Index, the longest-running global sustainability benchmark, provides information about companies’ sustainable business practices as reflected in their investment portfolios. Launched in 1999, it curr

Nov. 15, 2020

KRX, S&P DJI develop carbon efficiency green new deal index

South Korea’s sole bourse operator Korea Exchange and S&P Dow Jones Indices are set to launch a new index Monday that gauges the contributions of companies in reducing carbon emissions in line with the Moon Jae-in administration’s “Green New Deal” initiative, one of the key pillars of its economic stimulus package, the officials said Sunday. The KRX/S&P Carbon Efficiency Green New Deal Index aims to persuade local companies to put greater effort into cutting carb

Nov. 15, 2020

Korean institutional investors turn to fast-growing private debt market

Despite the pandemic increasing the risk of doing so, institutional investors in South Korea said they would venture into unfamiliar nonbank financing bets, such as private debt funds. Representatives of Korean investors said last week at PDI Seoul Forum Virtual Experience 2020 that they are developing an eye for suitable external partners dedicated to private debt fund management, as this particular asset class has become a more reliable source of income than traditional assets like stocks, wh

Nov. 15, 2020

Seoul stocks rebound on chip rally despite global virus resurgence

South Korean stocks closed at a nearly two-year high Friday on advances in chipmakers, backed by massive foreign buying amid the resurgence of the new coronavirus around the globe. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 18.25 points, or 0.74 percent, to close at 2,493.87 points. Trading volume was high at about 1.1 billion shares worth some 16.8 trillion won ($15.1 billion), with losers outnumbering gainers 530 to 299. "Tod

Nov. 13, 2020

Hanwha Life’s Q3 operating profit jumps 134.6%

Hanwha Life Insurance‘s third-quarter operating income surged by 134.6 percent on-year to 206.9 billion won ($185.5 million), mainly due to a lower loss ratio, the company said Friday. An increase in sales of Hanwha Life‘s guaranteed products has reduced its ratio of insurance claims to premiums, officials said.  The company’s third-quarter earnings was also driven by a decline in the insurer’s reserves set up to cover claims of variable life insurance products,

Nov. 13, 2020