Seoul stocks almost flat, won sharply down

South Korean stocks finished almost unchanged Monday paring earlier losses on new stimulus measures aimed at minimizing the fallout from the spread of the new coronavirus.  The local currency dropped sharply against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 0.61 point, or 0.04 percent, to close at 1,717.12. Trading volume was high at 753 million shares worth 8.97 trillion won ($7.32 billion), with gainers outnumbering losers 615 to 256.   The in

March 30, 2020

Financial regulator backs KDB ownership of insurer

South Korea’s financial regulator Monday cleared uncertainties, allowing the Korea Development Bank to take control of a local insurer unit for the time being and buy the time to sell it off. A private equity firm jointly created by KDB and Consus Asset Management -- which controls a combined 92.73 percent of KDB Life Insurance -- reached the end of a 10-year grace period before being regulated as an insurance holding company in February. Under the Capital Markets Act, the private equity

March 30, 2020

Card firms' 2019 net down 5.3% on increased costs

South Korean credit card firms saw their combined net profit fall 5.3 percent in 2019 from a year earlier due mainly to increased loan-loss reserves and marketing spending, data showed Monday. The combined net profit of eight card issuers, including Shinhan Card Co., Samsung Card Co. and KB Kookmin Card Co., came to 1.64 trillion won ($1.3 billion) in 2019, compared with 1.73 trillion won in 2018, according to the data released by the Financial Supervisory Service (FSS). The value of credit ca

March 30, 2020

Korean stocks sharply down late Monday morning

South Korean shares remained down late Monday morning after opening sharply lower on fears of the new coronavirus outbreak further slowing economic activities throughout the globe, limiting demand at home and abroad. The benchmark Korea Composite Stock Price Index (KOSPI) plunged 40.74 points, or 2.37 percent, to 1,676.99 as of 11:20 a.m. On Monday, South Korea reported 78 new cases of COVID-19, bringing the nation's total infections to 9,661. The United States became the new global epicente

March 30, 2020

Mirae Asset takes lead in local pension fund industry

Mirae Asset Global Investments, a Korean asset management firm, has been cementing its leadership in the local personal pension fund market with assets under its management continuing to grow this year. Personal pension and retirement pension funds operated by Mirae Asset have reached a combined 7.59 trillion won ($6.3 billion), or 3.63 trillion won and 3.96 trillion won, respectively. As of this year, the pension funds had increased by 500 billion won, the highest increase in the local mark

March 29, 2020

Korea’s short-term funding market reels from coronavirus

South Korea’s short-term funding market is showing no signs of stabilizing, despite the central bank’s relief package to help ease the credit crunch amid the global coronavirus pandemic. The interest rate of commercial papers with 85-91 days of maturity -- a frequent short-term debt instrument by nonfinancial companies -- soared to 2.09 percent Friday, up 5 basis points from the previous day’s close, according to data from the Korea Financial Investment Association. The figur

March 28, 2020

S. Korea calls for allocation of Special Drawing Rights

South Korea's finance minister has called on the International Monetary Fund to consider allocating the Special Drawing Rights, an international reserve asset, to provide global liquidity amid the rapidly spreading coronavirus pandemic. Hong Nam-ki made his case in a video conference of the International Monetary and Financial Committee, the governing body of the IMF, which was held Friday to discuss the unprecedented challenge posed by COVID-19. The SDR is an international reserve asset that

March 28, 2020

S. Korea approves W1tr financial relief package for Doosan Heavy

South Korea’s government and key state-run banks on Friday sealed a plan to provide a credit line of 1 trillion won ($826 million) to Doosan Heavy Industries & Construction, in an effort to prevent a possible liquidity crunch amid the novel coronavirus spread. As the key creditor, the Korea Development Bank said it will provide financial support to the struggling power equipment maker jointly with the Export-Import Bank of Korea. “Together, we shall provide some 1 trillion w

March 28, 2020

Hanjin KAL’s proxy war to intensify despite activist fund's defeat

South Korea’s activist private equity fund Korea Corporate Governance Improvement on Friday vowed to restore Hanjin Group “back on track,” signaling its push for activism despite the Friday defeat. “We could feel the shareholders' desire to change Hanjin KAL’s management by the owner family,” the coalition led by KCGI wrote in a letter to shareholders. “The most crucial is for Hanjin Group to make a breakthrough, and we believe that the only solut

March 27, 2020

Korean firm buys stake in Russian liver cancer therapy developer for $20m

Seoul-based Thelma Therapeutics said Friday it has closed a deal to buy 27 percent stake in Russian liver cancer therapy developer for 24.3 billion won ($20 million), to tap the overseas health care market. The stake was of NBT, a parent company that wholly owns radioembolization therapy device developer Bebig, both located in the Dubna Special Economic Zone on the northern outskirts of Moscow. Bebig is known for selling the therapy device called Microsphere, used to cure liver cancer -- a the

March 27, 2020

Mirae Asset Daewoo loses $5m in email scam

Korean brokerage firm Mirae Asset Daewoo said Friday that its Hong Kong branch has suffered a loss of $5 million in a recent email fraud scam. The firm’s Hong Kong branch concluded an underwriting agreement to take over airplanes from an aircraft leasing company last year and made another contract to sublease the aircrafts to a carrier in Asia. But it was targeted in a “spear-phishing” attack while paying the balance, the brokerage said. Spear-phishing is an email scam targe

March 27, 2020

Seoul stocks open sharply higher tracking Wall Street gains

South Korean stocks opened sharply higher Friday, tracking overnight gains on Wall Street boosted by historic stimulus measures amid the novel coronavirus pandemic. The benchmark Korea Composite Stock Price Index rose 62.47 points, or 3.7 percent, to 1,748.71 in the first 15 minutes of trading. US stocks rallied for a third straight day Thursday (local time) after the Senate passed a $2 trillion relief package to tackle the economic fallout from the COVID-19 crisis. The Dow Jones Industria

March 27, 2020

Moody's reviews ratings of Hyundai Motor, Kia Motors for downgrade

Moody's Investors Service said Thursday that it has placed the ratings of Hyundai Motor and its affiliate Kia Motors on review for downgrade due to the coronavirus outbreak.    The global credit rater said the two South Korean carmakers remain vulnerable to the spread of the COVID-19 pandemic and predicted demand for new vehicles will reduce meaningfully over the coming months, especially in the Europe, the Middle East and Africa (EMEA) and North American markets.    "

March 26, 2020

Financial watchdog warns Woori, Hana over board infractions

The Financial Supervisory Service on Thursday issued warnings to two major banking groups here -- Woori and Hana -- directing them to improve their overall transparency and corporate governance. The financial watchdog noted that Woori Financial Group’s board meeting minutes -- which serve as official legal records -- between January and September 2019 lacked transparency. The minutes were treated “as mere formalities” and contained few details such as the substance of

March 26, 2020

[Weekender] How to raise W100m by 30: Millennial investment strategies

  It’s not a fancy car or a Louis Vuitton bag that Joung Hye-dan, a 27-year-old former nurse in Seoul, is interested in.  Once called a big spender by college friends, she transferred nearly 80 percent of her monthly income from her former job into 10 separate bank and investment accounts. She has now diversified her personal financial portfolio from regular deposits to peer-to-peer investing, profiting by 1.2 million won ($980) so far.  “I started my nursing career

March 26, 2020

KB Card to lease Apple products

   Local credit card issuer KB Kookmin Card said Thursday it will launch a new leasing service of Apple devices -- from iPhones to iPads -- starting April. The company will purchase products on behalf of customers and charge them regular payments for an agreed upon period, according to the officials. The company has signed a contract with six Apple premium resellers to start the service.  “In response to the latest consumer trend of using different smart devices rather th

March 26, 2020

Seoul stocks down after strong 2-day rebound, Korean won falls

South Korean stocks finished lower Thursday after two straight days of robust gains, as investors cashed in part of recent gains. The Korean won lost ground against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) shed 18.52 points, or 1.09 percent, to close at 1,686.24, ending its two-day winning streak. The index spiked nearly 14.5 percent over the last two days on stimulus hopes.  Trading volume was high at 982 million shares worth 12.2 trillion won ($9.9 billi

March 26, 2020

Shinhan Financial chief reappointed despite recruiting scandal

Shinhan Financial Group Chairman Cho Yong-byoung on Thursday was reappointed for another three years, despite disapproval of the largest shareholder and an ongoing legal dispute. The appointment was approved at the group’s annual shareholders meeting in Seoul which was livestreamed on the its website due to the COVID-19 spread. Cho will retain his position until March 2023, with no apparent signs of dissent from the attending shareholders. “I will make the best efforts to mini

March 26, 2020

BOK to supply dollars next week under swap deal

The Bank of Korea said Wednesday that it will release its first batch of US dollar reserves in the financial market next week in accordance with a currency swap deal with the US Federal Reserve. “Negotiations on the swap contract are still underway and we plan to start supplying US dollars next week,” BOK Deputy Gov. Ryoo Sang-dai told reporters. The US dollars will be made available in different installments, but the exact amount has yet to be confirmed, he said.  Earlier,

March 25, 2020

NPS contemplates stance on fate of Hanjin KAL chairman

South Korea’s state pension fund said Wednesday that it will take a final stance Thursday on the family feud centering on management control of Hanjin KAL, holding company of Hanjin Group which runs Korean Air. A trust management committee under the state-run National Pension Service, which holds 2.9 percent stake in Hanjin KAL, will decide on its vote on the reappointment of Cho Won-tae, chairman of Hanjin Group, at a shareholders meeting scheduled Friday. It is widely expected that

March 25, 2020