Seoul stocks open higher on Wall Street gains

Seoul stocks opened higher Wednesday, tracking overnight gains on Wall Street amid the new coronavirus pandemic. The benchmark Korea Composite Stock Price Index (KOSPI) rose 23.51 points, or 1.24 percent, to 1,918.88 in the first 15 minutes of trading. US stocks advanced for a second straight day Tuesday (local time) as investors bet on a gradual reopening of businesses around the country after coronavirus lockdowns. American stocks also received a boost from a rebound in oil prices. The

May 6, 2020

FSC to foster senior-friendly ‘untact’ financial services

South Korea’s financial authorities said Tuesday they plan to set detailed guidelines on non-face-to-face services -- recently labeled “untact.” As part of its efforts to help seniors adapt to digital trends and technologies in the financial sector, the Financial Services Commision announced last week that it will commission research to identify demand for digital banking and financial services among seniors through surveys and data collection. In addition, the financial auth

May 5, 2020

S. Korea plans extra emergency loans to virus-hit small businesses

  South Korea’s top financial watchdog announced Tuesday it plans to launch the second round of an emergency loan program worth 10 trillion won ($8.2 billion) from May 18 in a bid to financially support small business owners who have been affected by the novel coronavirus outbreak.  The affected business owners will be able to borrow loans from six commercial banks -- Shinhan Bank, KB Kookmin Bank, Woori Bank, Hana Bank, Industrial Bank of Korea and NH Bank. Those who have alrea

May 5, 2020

Jeonse-to-sales price ratio for apartments in Seoul on downtrend

The average jeonse-to-sales price ratio for apartments in Seoul and surrounding areas continued a downward trend last month, according to real estate data tracker KB Kookmin Bank Liiv On on Tuesday. ”Jeonse” is a real estate term unique to South Korea that refers to a two-year property lease. The average apartment lease was equivalent to 54.7 percent of the average sales price in Seoul, while the figures for Incheon and Gyeonggi Province, respectively, came in at 73.1 percent and 6

May 5, 2020

BTS label Big Hit Entertainment on bumpy road to public offering

Big Hit Entertainment, one of the largest music labels in South Korea and home to K-pop darlings BTS, has been preparing to go public on the nation’s main Kospi bourse this year on the back of the boy band’s worldwide popularity. The K-pop band’s latest album, “Map of the Soul: 7,” sold 422,000 album equivalent units in the first week since its release in February, topping the Billboard 200 chart for the fourth time. The K-pop kings recently performed an online c

May 5, 2020

FSC to receive applications for digital finance MBA program

The Financial Services Commission said Tuesday that it will start receiving applications for its part-time MBA program focused on digital finance from May 15. The program, slated to launch in September, will be managed by KAIST College of Business, a graduate school from technology and management, and jointly promoted by the FSC and the Seoul Metropolitan Government. The program will receive 40 students for this year’s fall semester to be the first graduating class. Those who have wor

May 5, 2020

Brokerages' overseas operations see profit jump in 2019

Overseas branches of South Korean securities companies saw their combined net profit rise 48.5 percent in 2019 from a year earlier due mainly to increased interest income and earnings from commission fees, data showed Tuesday. The combined net profit of 67 overseas branches of 14 securities companies stood at $182.4 million in 2019, up $59.6 million won from 2018, according to the data from the Financial Supervisory Service. The hike in net profit came on the back of increased interest income

May 5, 2020

Yulchon scouts US litigation expert from O’Melveny & Myers Seoul office

South Korean law firm Yulchon said Monday that it had named Kim Yong-sang, a US lawyer specializing in international litigation and arbitration, as co-head of its international dispute resolution team. Kim had previously worked as co-representative of the Seoul office of Los Angeles-based international law firm O’Melveny & Myers since 2016. Kim is noted for his 15 years of experience and expertise in US litigation involving antitrust, anti-corruption, international arbitration a

May 4, 2020

Ex-Shinhan Bank CEO takes post as Heungkuk Life vice chairman

Former Shinhan Bank CEO Wi Sung-ho has joined Taekwang Group as an executive member of its insurance arm, filling his financial career vacuum after stepping down from his previous post. Wi on Monday attended his first day on the job as the new vice chairman of Heungkuk Life Insurance, according to the insurer’s officials. He will also serve as management adviser for Heungkuk Fire & Marine Insurance, Heungkuk Securities, Heungkuk Asset Management, Goryo Savings Bank and Yegaram Saving

May 4, 2020

[Market Close-Up] How traditional banks can survive in the fintech era

Competition between traditional banks and fintech or Big Tech companies, such as Kakao, is set to heat up further as the financial authorities clear away hurdles to new projects. In this new environment, traditional lenders will be required to diversify their revenue sources -- from interest on loans to commissions and trusts -- to keep their heads above water in the financial market, officials and experts here say. “With the digitalization of the global economy and the expansion of e-co

May 4, 2020

Seoul stocks snap 3-day winning streak on renewed US-China tensions

South Korean stocks snapped a three-day rally to drop more than 2 percent Monday on renewed tensions between the United States and China amid the novel coronavirus pandemic. The Korean won sharply fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) shed 52.19 points, or 2.68 percent, to close at 1,895.37. Trading volume was high at 1.1 billion shares worth 10.1 trillion won ($8.2 billion), with losers outpacing gainers 549 to 312. Investor sentiment was spooke

May 4, 2020

Foreigners likely to extend stock selling spree in May amid sluggish exports

South Korea’s bourse regained some momentum in April as the spread of the new coronavirus showed signs of easing but the prolonged export slump will continue to deter foreign investors, brokerages said Monday. According to the Korea Exchange, the country’s main bourse Kospi plummeted to an 11-year low of 1,439.43 on March 19, but recovered 35.3 percent to reach 1,947.56 on Wednesday. After a selling spree by foreign and institutional investors on Monday, the index once again plung

May 4, 2020

Mirae Asset drops $5.8b US hotel deal as litigation escalates

Mirae Asset Global Investments, the asset management arm of Korean financial group Mirae Asset, said Monday that it scrapped a $5.8 billion deal to acquire 15 luxury hotel properties in the United States from Chinese investor Dajia Insurance, weeks after it called off the takeover. Mirae Asset, which acts on behalf of funds it manages, also said it invoked its right for the return of the 10 percent deposit from a third-party escrow agent as the transaction had failed. Amid ongoing litigation,

May 4, 2020

Lotte chief likely to push for Hotel Lotte IPO to win power struggle

Lotte Group Chairman Shin Dong-bin is likely to accelerate the initial public offering of its subsidiary Hotel Lotte to consolidate his grip on the multinational group’s South Korean entities amid a resurfacing proxy battle with his elder brother Shin Dong-joo, analysts said Monday. This comes as he immediately needs to increase the value of Lotte Corp., a Seoul-based holding firm of Korean-Japanese retail giant. The Hotel Lotte IPO will not only water down its Japanese control but also

May 4, 2020

Shinhan Bank copyrights sanction compliance manuals

In a preemptive risk management action, Shinhan Bank has registered the copyrights for the business guidelines and training videos that it has produced to comply with global economic sanctions, officials said Monday. The six articles that the bank has copyrighted include the full version of its economic sanctions compliance manual, the abridged version in Korean, the English version and three versions of related training videos in English, Chinese and Japanese. Last year, in light of the he

May 4, 2020

[Contribution] Evaluations and research during crisis?

Lenin once said, “There are decades where nothing happens and there are weeks when decades happen.” One of the unsung and first casualties of humanitarian crisis situations is the neglect of applied research: Research that can otherwise tell us what works, for whom, how much, why and under what circumstances. Indeed, a recent article in the journal Science discusses scientists who are having to abandon projects they have otherwise invested lifetimes in because of COVID. This is no

May 4, 2020

Seoul stocks open sharply lower on Wall Street losses

Seoul stocks opened sharply lower Monday, tracking losses on Wall Street amid the new coronavirus pandemic. The benchmark Korea Composite Stock Price Index (KOSPI) fell 46.72 points, or 2.4 percent, to 1,900.84 in the first 15 minutes of trading. US stocks plunged Friday (local time) after US President Donald Trump indicated he may consider imposing tariffs on China over its handling of the novel coronavirus outbreak, renewing bilateral tension between the world's two largest economies. T

May 4, 2020

[Herald Interview] NK risk still matters to markets, but not more than COVID-19

The return of North Korean leader Kim Jong-un to the public eye on Saturday instantly dispelled rumors of regime change, as well as the snowballing concerns about turmoil in the markets here. Observers specializing in North Korean issues suggested that even if the unlikely scenario of a leadership change were to take place, market volatility would likely be short-term and less extensive than the fallout from the COVID-19 pandemic. “Since North Korea is under a dictatorship, it is inevit

May 3, 2020

Daily trading in ETN market surges in April

Profit-seeking retail investors flocked to South Korea’s exchange-traded notes market to invest in the benchmark West Texas Intermediate, triggering a record trading volume of risky derivative proucts, data showed Sunday. According to the local bourse operator Korea Exchange, the average daily trading amounts in ETN market in April reached 412.3 billion won ($336.6 million), which was nearly 20 times higher from December last year and also the largest figure since the section was launche

May 3, 2020

[Contribution] The importance of understanding yourself

The Korea Herald is running a regular contribution series written by senior investment strategists at Standard Chartered Group Wealth Management. -- Ed. What we have experienced in the past two months is unprecedented. The COVID-19 global pandemic and the resulting physical lockdowns will deliver a massive blow to the global economy. France’s statistical office estimates the current lockdown will cost the French economy 35 percent of daily GDP as long as it continues. That means a one

May 3, 2020