[News Focus] Woori, FSS lock horns over Sohn’s leadership

The conflict between Woori Financial Group and South Korea’s financial watchdog has escalated over the disputed leadership of its top executive in light of the alleged extensive financial product misselling. While the group is gearing up to prolong the term of incumbent Chairman Sohn Tae-seung at all costs, the Financial Supervisory Service is set to corner it with a new information-theft case. The FSS on Monday decided to summon its sanctions committee over allegations that Woori Bank

Feb. 10, 2020

Korea’s capital market full of opportunities: FSC chief

Giving the thumbs-up to South Korea’s capital market which is undergoing continuous reforms, the nation’s top financial regulator said Monday that foreign investors can discover fresh opportunities here. “Expanding cooperation with startups such as fintech firms, invigorating the asset management market by converting capital flow to corporates and keeping the growth of the pension funds will benefit investors immensely,” Financial Services Commission Chairman Eun Sung-s

Feb. 10, 2020

NPS raises number of big-stake firms

South Korea's state pension provider owns 5 percent or more of over 300 listed companies amid increased shareholder activism by the service, a financial information provider said Monday. The National Pension Service held stakes of 5 percent or greater in 313 companies traded on the country's major and secondary bourses as of the end of January, up 7.2 percent, or 21 firms, from the end of 2018, according to FnGuide. The state pension provider also owned 10 percent or more of 96 listed corpora

Feb. 10, 2020

[Contribution] Will strong capital market performance continue?

The Korea Herald is publishing a regular contribution series written by senior investment strategists at Standard Chartered Group Wealth Management. -- Ed. After a stellar 2019, investors are naturally asking themselves whether the strong performance can continue in 2020. Trying to answer this is difficult as different perspectives provide different answers. Our approach to this challenge is to start with a historical, quantitative lens before trying to figure out why the current situation mi

Feb. 9, 2020

KRX unveils detailed disclosure guidelines for biopharma firms

South Korea’s financial authorities on Sunday unveiled a new set of guidelines on public disclosure of information for listed biopharma firms, in a move to ward off market uncertainty. Clinical trial-stage pharmaceutical companies listed on the tech-heavy Kosdaq are required to disclose any significant progress in their business -- including each stage of clinical trials, from success to suspension or termination, approval or cancellation for drug production, distribution and sales, techn

Feb. 9, 2020

[Herald Interview] As market dynamics evolve, so does Korea’s private equity scene

The fast-emerging silver economy and changes in consumer behavior have given birth to theme-driven investment strategies. And South Korea is not an exception. Those aged 65 or older take up nearly 15 percent in the country, while technologies in one of the most penetrated countries in the world are reshaping the way consumers purchase goods, order food or make payments. This potentially puts Korean assets on the radar of Adams Street Partners, an international investment house with over $40 bil

Feb. 9, 2020

NPS hikes stake in local firms upon eased rules

South Korea’s state-run pension operator has sharply increased its stakes in major listed firms after investment rules were eased at the beginning of this month, a financial market tracker said Sunday. As of end-January, the number of listed companies in which the National Pension Service held 5 percent or more stake came to 313, up 7.2 percent from the end of 2018, according to data compiled by FN Guide. The NPS held 10 percent or more stake in 96 companies -- up 20 percent on-year. T

Feb. 9, 2020

FSS in hot water for failing to prevent derivatives disaster

South Korea’s financial watchdog, the Financial Supervisory Service, has become the target of criticism for having failed to prevent the recent fiasco involving derivatives-linked funds. The state-run agency is also accused of trying to duck responsibility for the incident, which involved two of the largest banking groups here. The FSS on Monday decided to impose sanctions on the CEOs of major banking groups --  Woori Financial Group and Hana Financial Group -- which will have

Feb. 7, 2020

Lime likely to release result of audit on its funds: FSC

Hedge fund operator Lime Asset Management will likely announce the amount of losses made by some of its troubled funds next week, according to the Financial Services Commission on Friday. The audit process on Lime’s now frozen funds, being conducted by audit firm Samil PricewaterhouseCoopers, has reportedly completed and the result is scheduled to be sent to the fund operator today. “The audit seems to have taken more time than expected because necessary documents and data have

Feb. 7, 2020

S. Korea to control supply of masks, hand sanitizers

Finance Minister Hong Nam-ki said on Friday that the ministry will implement measures to control the supply and distribution of masks and hand sanitizers next week, warning that the government would impose harsh penalties on those hoarding the products. “The government will take stricter measures to prevent illegal activities that could risk the public health and stoke concerns among the people,” said the finance minister, who chaired a meeting with officials at the ministry on t

Feb. 7, 2020

Seoul stocks open lower on virus woes

Seoul stocks opened lower Friday following a three-session winning streak as investors continue to assess the economic impact of the new coronavirus. The benchmark Korea Composite Stock Price Index (KOSPI) fell 9.21 points, or 0.41 percent, to 2,218.73 in the first 15 minutes of trading. Some investors turn to offload stocks on profit-taking following the market's solid rebound in the past three sessions from a 5.7 percent decline last week. Positive factors include China's decision to cut

Feb. 7, 2020

Seoul’s office vacancy hits 10-year low in Q4: JLL Korea

The vacancy rate of Grade A offices in Seoul reached a 10-year low last year as landmark buildings in central business districts welcomed new tenants, global real estate service provider Jones Lang LaSalle said Thursday. The latest quarterly report of JLL Korea showed that the vacancy rate for Grade A offices in the capital city came to 7.7 percent in October-December last year, down 1.9 percentage point on-quarter, marking the lowest since the third quarter in 2010. The key business district

Feb. 6, 2020

Woori Financial chief to remain until further notice

South Korea’s Woori Financial Group on Thursday said its current chief would maintain his role for the time being despite sanctions imposed by financial authorities for misselling of derivatives-linked funds. The announcement came as a result of a preliminary board meeting, on the eve of the regular board meeting scheduled Friday. Woori Financial’s seven board members, including Chairman Sohn Tae-seung, gathered with the goal of releasing a statement conveying the chairman’s

Feb. 6, 2020

Insurance sector speeds up digital transition

Traditional insurance companies in South Korea are speeding up digital transformation of their operations and services to compete with emerging tech-savvy companies that are proliferating in the financial sector. However, their digital strategy also involves industrial crossover partnerships with the emerging competitors, if necessary. Samsung Fire & Marine Insurance, the nation’s largest non-life insurance firm, and Kakao Pay, a fintech spin-off of mobile messenger giant Kakao,

Feb. 6, 2020

Kakao’s entry into brokerage to vitalize fintech market: reports

Mobile messenger Kakao’s entry into the stock trading market, via its fintech spinoff Kakao Pay, will boost growth of the financial technology sector and the brokerage market, according to local analysts on Thursday. The Financial Services Commissions, South Korea’s financial regulator, on Wednesday approved Kakao Pay’s request to acquire a controlling 60 percent stake in local brokerage Baro Investment & Securities. The stock trader has been renamed to Kakao Pay Securi

Feb. 6, 2020

Kyobo Securities to establish dual CEO system

Kyobo Securities is set to launch a dual CEO system to strengthen the company’s two business pillars -- investment banking and wealth management -- the company said Wednesday. The board of directors approved the nomination of Park Bong-kweon, the former vice president of Kyobo Life Insurance, as the firm’s new CEO in charge of wealth management. Park’s CEO designation will be finalized at the general meeting of stockholders in March. The securities firm has been led by incu

Feb. 5, 2020

NPS short on time for March proxy season

South Korea’s public pension fund, the National Pension Service, is now gearing up for new committees to ramp up the shareholder engagement push for its portfolio firms here at an unprecedented level. But time appears to be running short ahead of the March proxy season in Korea. The NPS’ Fund Management Committee has to start from scratch to forge a fully fledged decision-making system to shortlist companies under what is equivalent to a “focus list” by the California P

Feb. 5, 2020

Kakao Pay gets green light to acquire local brokerage

The Financial Services Commission, South Korea’s financial regulator, said Wednesday that it has approved fintech firm Kakao Pay’s request to become the largest shareholder of brokerage house Baro Investment & Securities. With that final authorization, the fintech firm will be able to operate stock trading businesses on its own mobile platforms as well as those run by its parent firm, mobile messenger giant Kakao. Last year the Kakao fintech spinoff submitted an application

Feb. 5, 2020

Net assets of Mirae Asset’s ETF surpass W100b

Seoul-based asset management giant Mirae Asset Global Investments said Wednesday that the net asset value of its exchange-traded fund invested in the US-based Nasdaq has surpassed 100 billion won. Mirae’s Tiger Nasdaq 100 ETF tracks 100 companies listed on America’s tech-heavy stock market Nasdaq including Microsoft, Apple and Amazon. Having gained total returns of 391.03 percent since October 2010, the net worth of the company’s fund has doubled from 56.5 billion won in 201

Feb. 5, 2020

Hahn & Co. to buy SK Chemicals’ biofuel operation for W382.5b

Seoul-based private equity house Hahn & Co. agreed to buy SK Chemicals’ biofuel operation for 382.5 billion won ($322.2 million) in cash on Wednesday. The proposed acquisition of South Korea’s No. 1 biodiesel producer marks the first deal to be announced since Hahn & Co. closed a new Korea-focused fund worth $3.2 billion in October last year, a Hahn & Co. official said. As of end-2018, SK Chemicals took up one-third of market share here by biodiesel production. This c

Feb. 5, 2020