Lawmakers call for eased rules for conglomerates’ investments in startups

A group of lawmakers, professors and industry officials on Thursday urged the government to relax regulations that have prevented the marriage between industrial and financial capital, stressing that they hinder the growth of corporate venture capital. The South Korean government has long prevented non-financial holding companies from wholly owning financial entities due to concerns about the excessive influence of business titans over both the industrial and financial segments. Though the

June 11, 2020

Seoul stocks end 9-day winning streak ahead of Fed outlook, won falls

South Korean shares closed lower to end its nine-day winning-streak on Thursday, with a gloomy outlook from the US Fed for the pandemic-hit economy spooking investors. The Korean won fell against the US greenback. The benchmark Korea Composite Stock Price Index (KOSPI) fell 18.91 points, or 0.86 percent, to close at 2,176.78. Trading volume was high at about 814 million shares worth some 16.6 trillion won ($13.7 billion), with losers outnumbering gainers 660 to 218. The index opened in negati

June 11, 2020

Asset management firms’ profits halve in Q1

South Korea’s asset management companies’ combined net profit has shrunk by over half on-year in the first quarter, data showed Thursday. The net income of 300 AMCs here came to 116.4 billion won ($97.32 million) during the January-March period, down 52.3 percent from the previous year, according to data by the Financial Supervisory Service. The volume fell 11.4 percent on-quarter. Their return on equity -- a key measure of financial performance -- stood at 6.1 percent in the firs

June 11, 2020

Seoul stocks open lower on Fed's gloomy forecast

South Korean stocks opened lower Thursday, following the Federal Reserve's dismal US economic forecast and the absence of stronger stimulus tools earlier anticipated amid the coronavirus pandemic. The benchmark Korea Composite Stock Price Index (KOSPI) fell 13.42 points, or 0.61 percent, to 2,182.27 in the first 15 minutes of trading. The drop came after Fed Chairman Jerome Powell predicted that the economic damages of COVID-19 may have lasting effects despite the Fed's plan to keep the curr

June 11, 2020

FSS plans to review security of fintech solutions due to unauthorized payments on Toss

The unauthorized transactions on Toss, an online money transfer platform operated by fintech startup Viva Republica, are likely to trigger extensive inspections of similar solutions by the financial watchdog. “We plan to conduct reviews of fintech systems that adopt payment technology similar to Toss, if necessary,” an official from the Financial Supervisory Service said. “Some 40 companies could be subject to such inspections,” the official added. The Seoul-b

June 10, 2020

Stock recovery puts Woori privatization plans back on track

Woori Financial Group’s privatization plan, which has been stalled due to the novel coronavirus outbreak here coupled with its plunge in stock price, is likely to move forward again, on account of its recent stock price recovery, government sources said Wednesday. The Public Fund Oversight Committee under the policymaking Financial Services Commission, overseeing Woori’s privatization, plans to discuss the sell-off of the state-run Korea Deposit Insurance’s stake in Woori in

June 10, 2020

Seoul stocks extend winning streak to 9th session ahead of FOMC meeting

South Korean stocks closed higher for the ninth consecutive session Wednesday, while investors sat on the sidelines before the outcome of the US Federal Reserve meeting currently in progress, analysts said. The Korean won gained against the greenback. The benchmark Korea Composite Stock Price Index (KOSPI) gained 6.77 points, or 0.31 percent, to finish at 2,195.69. Trading volume was moderate at 695 million shares worth 12.6 trillion won ($10.6 billion), with losers outpacing gainers 500 to 34

June 10, 2020

[Herald Interview] ‘Retail investors’ impact grows more powerful in Korea’

South Korea’s stock market still remains more vulnerable to global crises than its neighboring country, namely Japan. But its fast recovery from the initial impact of the COVID-19 pandemic was buttressed by the powerful influence of local individual investors, dubbed ant warriors, and that was an impressive event to mark, a foreign analyst in Seoul has said. As global stock markets rallied on rising hopes on a possible exit from the coronavirus shock, South Korea’s stock market r

June 10, 2020

Samsung Asset creates feeder fund to invest in Man AHL’s signature fund

Samsung Asset Management said Wednesday it has launched a fund to pool South Korean retail investor’s money into a signature fund by London-based quantitative hedge fund manager Man AHL. By investing in Man AHL’s TargetRisk fund, the Korean feeder fund is expected to offer capital growth through a long-only exposure, under which the fund manager takes advantage of profit opportunities by betting solely on undervalued assets. The Korean feeder fund, dubbed Samsung MAN Investment Ba

June 10, 2020

NH Bank forges consortium for cryptocurrency services

NH NongHyup Bank announced Wednesday its partnership with a local law firm as well as blockchain developer to set up a consortium for jointly developing financial services using virtual assets. The bank has signed a memorandum of understanding with law firm Bae, Kim & Lee and Hexlant, a blockchain technology laboratory, to launch a joint institution for the research and development of cryptocurrency exchanges.  The move came as the revised bill of the Act on Report and Use of Specif

June 10, 2020

Seoul stocks open lower on profit-taking

South Korean stocks opened lower Wednesday as investors raked in profits while taking a wait-and-see approach on the results of the US Federal Reserve meeting due this week. The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.97 points, or 0.14 percent, to 2,185.95 in the first 15 minutes of trading. Seoul shares closed higher for an eighth consecutive session a day earlier, tracking the reopening of businesses across the globe, including the United States. Overnight, the Dow Jone

June 10, 2020

Viva Republica in hot water over unauthorized payments on its fintech platform

Viva Republica, which runs the money transfer platform Toss, says it has recently found unauthorized payments made on its system, and is working to find the exact causes of the incident. According to the fintech firm, eight unauthorized purchases worth a total of 9.4 million won ($7,853) were made via Toss on June 3 from three online websites. Data such as names, phone numbers, birth dates and personal identification numbers were compromised in the incident, but it is “high

June 9, 2020

K bank gears up to resume operations after hiatus　

K bank is working to resume operations in July after a monthslong hiatus due to liquidity problems, according to industry insiders Tuesday. South Korea’s first internet-only bank recently announced that it would stop receiving new subscribers for its existing Dual-K Checking Account, its signature savings account product, from July 1. The announcement appears to be a prelude to introducing a new banking product as part of its reopening strategy, sources noted. K bank admitted that

June 9, 2020

Seoul stocks extend rally to 8th session, won sharply up

South Korean stocks closed higher Tuesday, extending a winning streak to an eighth consecutive session on hopes for economic recovery and ahead of the Fed meeting this week. The Korean won sharply rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 4.63 points, or 0.21 percent, to close at 2,188.92. Trading volume was high at about 805.3 million shares worth some 14.5 trillion won ($12.1 billion), with losers outnumbering gainers 473 to 366. The KOSPI exte

June 9, 2020

[Economy in Pandemic] S. Korean banks face fierce ASEAN market competition in post-virus era

Despite the pandemic impact being felt across the world, South Korean  banks are retaining their faith in the ASEAN countries -- dubbed as a new market with relatively high interest rates and demand for fresh funds. With travel restrictions to key ASEAN markets likely to be lifted soon -- as there are zero coronavirus deaths in Vietnam and Cambodia so far -- the countries will not only work as a breather for the lenders, but also as a battleground for heightened competition. The combine

June 9, 2020

Billions traded in first month of data exchange market: FSI

  South Korea’s financial data exchange platform, the first of its kind here, has seen billions of won worth of data being traded there in its month.  Since kicking off on May 11, the platform has reportedly arranged 315 transactions of financial information collected from local companies, including credit card issuers and lenders, according to the state-run Financial Security Institute, which operates the platform. A total of 113 data sets were sold and the average sales pri

June 9, 2020

Arrest warrant rejection likely to give Samsung stocks temporary boost: report

A court’s rejection of the prosecution’s request to arrest Samsung Electronics Vice Chairman Lee Jae-yong on Tuesday, appears to have temporarily cleared uncertainties surrounding the chip giant’s operations, a local brokerage said in a report. The de facto heir to the Samsung empire was released early morning after the Seoul Central District Court’s decision to try Lee without arresting him, citing insufficient probable cause. “As Lee avoided arrest, he is expe

June 9, 2020

Over 310,000 students benefit from Mirae Asset founder’s donation

Mirae Asset Financial Group founder Park Hyeon-joo has backed a total of 315,119 students over two decades as Park donated his dividend income, the group said Monday. The fund was offered through Mirae Asset Park Hyeon-joo Foundation, established in 2000. The donations went to scholarships to over 9,000 college students, or roughly 700 students each year since 2007. Of the total, some 60 percent of students participated in exchange student programs, for which the Mirae Asset Park Hyeon-joo

June 8, 2020

Market rally likely to continue despite concerns over Covid-19 impact

The South Korean stock market has been bullish in recent weeks thanks to abundant liquidity here and abroad given efforts to boost the coronavirus-battered economies. The nation’s main bourse Kospi has recovered to pre-coronavirus levels while the tech-heavy Kosdaq market has recently hit a new high. Although some experts warn of another big drop in the stock market, it is widely forecast that with the ample liquidity the crash will be more subdued than in March. “The stock mar

June 8, 2020

Seoul stocks extend winning streak to 7th session despite Samsung losses

South Korean stocks closed higher Monday, extending a winning streak to a seventh consecutive session despite losses in Samsung Electronics and other Samsung affiliates' shares. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 2.42 points, or 0.11 percent, to close at 2,184.29. Trading volume was moderate at about 842.9 million shares worth some 12.9 trillion won ($10.7 billion), with gainers outnumbering losers 444 to 393. Institutions s

June 8, 2020