[Photo News] Seoul Mayor tests out Zero Pay mobile pay system

March 5, 2019

Hyundai Motor cuts ties with 5 credit card firms amid dispute over transaction fee hike

Hyundai Motor on Monday raised the stakes in an ongoing conflict with credit card companies over a transaction fee hike, announcing that it will be terminating its partnerships with five local credit companies The firm, however, left room for resolving the conflict by stating that the suspension would take effect from March 11, leaving the following week up for negotiations. “Hyundai Motor opposes the unilateral transaction fee hike initiated by some card companies. And with this, we

March 4, 2019

Securities firms’ offline branches drop below 1,000

South Korean securities firms saw their local branch network fall below 1,000 in late 2018, with the rise of mobile trading infrastructure here, data showed Monday.According to the Korea Financial Investment Association, the number of brick-and-mortar branches of 55 securities firms with at least one business unit here came to 979 at the end of last year. This is 46 branches less than the previous year.  Along with the shrinking branch network, the number of employees at the firms declined

March 4, 2019

S. Korea keeps close tabs on financial markets after N. Korea-US summit

South Korea said Monday it is maintaining round-the-clock tabs of financial markets and set to take necessary steps in case of volatility.The move came four days after the leaders of North Korea and the United States ended their high-stakes nuclear summit in Hanoi with no agreements being reached. Still, the breakdown is unlikely to have any big direct impact on South Korea's financial markets, the Ministry of Economy and Finance said after Lee Ho-seung, the first vice minister of economy and fi

March 4, 2019

Korea approves 3 new real estate trust operators

South Korea’s financial regulators tentatively approved three new real estate trust operators on Sunday, enabling new players to join the business segment for the first time in 10 years. The Financial Services Commission granted preliminary licenses to three new companies in the works: Shinyoung Asset Trust, Korea Investment and Securities Real Estate Trust and Daishin Asset Trust. Shinyoung Asset Trust is a company being formed by Shinyoung Securities in partnership with Eugene Investment

March 3, 2019

Analysts recommend new industries, technology stocks for 2019

Analysts recommend stocks related to new industries and technologies for investors mulling to expand their investment portfolios this year, with the latest rally in the Seoul bourses boosted by a foreign buying spree clouding judgments. The main keywords are electric vehicle, 5G, and content streaming services, they say.  Among them, the EV battery market is projected to expand 30 percent annually for a decade, according to Han Byung-hwa, an analyst at Eugene Investment & Securities.Ana

March 1, 2019

Bank-regulator tension thaws upon KEB Hana Bank’s CEO replacement

KEB Hana Bank, the core affiliate of the banking group, said Thursday that it has appointed Ji Sung-kyoo, vice president of global business, as its new CEO, replacing Ham Young-joo, who had served two consecutive terms.The move indicated a thaw in tension between the bank and the financial watchdog over the reappointment of its embattled chief.The commercial bank had stood at odds with the Financial Supervisory Service concerning the reappointment of Ham for the third time. While the FSS had exp

March 1, 2019

N. Korea-related stocks plunge, defense stocks rise on summit breakdown

Share prices of North Korea-related businesses on the Seoul bourses took a brutal hit Thursday on news of failed nuclear negotiations between the US and North Korea, while defense shares surged.The South Korean stock market and the won plunged Thursday, with the benchmark Kospi closing 1.8 percent lower from the previous closing, the biggest one-day fall since Oct. 23, and the won slipping 0.5 percent against the US greenback.  Once soaring shares of South Korean firms with business ties to

March 1, 2019

KEB Hana Bank chief decides against 3rd term amid charges of hiring irregularities

Facing charges of questionable hiring, KEB Hana Bank CEO Ham Young-joo has decided against running for his third term, industry sources said Thursday.　According to the sources, Ham pulled out of the race during a meeting of Hana Bank‘s candidate recommendation committee.　Ham took over KEB Hana Bank in September 2015. He was indicted without physical detention last June on allegations of hiring irregularities and obstruction of duties. He has been on trial since last August, and the court v

Feb. 28, 2019

S. Korean market loses ground over Trump-Kim summit breakdown

The South Korean stock market, the Korean won and bond prices lost ground Thursday following the summit between US President Donald Trump and North Korean leader Kim Jong-un, which ended without any agreement contrary to widespread anticipation for a breakthrough.The nation’s main bourse Kospi closed 1.76 percent or 39.35 points lower from the previous trading day at 2,195.44, while the Kosdaq ended 2.8 percent lower at 731.25. The Kospi marked its biggest daily percentage loss since late

Feb. 28, 2019

Seoul shares close lower on US-N. Korea uncertainty

South Korean stocks closed lower Thursday following uncertainties over the US-North Korea summit, analysts said. The local currency gained against the US dollar.The benchmark Korea Composite Stock Price Index plunged 39.35 points, or 1.76 percent, to 2,195.44. Trading volume was high at 489 million shares worth 8 trillion won ($7.15 billion), with losers outpacing gainers 748 to 115.Analysts said Seoul shares closed lower as investors expressed concern over the outcome of the meeting between US

Feb. 28, 2019

Vietnamese funds draw attention in S. Korea

South Korean investors have been turning their heads toward funds that invest in Vietnamese stocks, which have been boasting a strong presence among foreign funds, market data showed Thursday, as a summit between the leaders of the US and North Korea was held in the Southeast Asian country.Sixteen South Korea-based investment funds established with a balance of more than 1 billion won ($892,000) saw net inflows of 109.8 billion won over the past three months as of Tuesday, according to financial

Feb. 28, 2019

[News Focus] KEB Hana Bank in tight spot over 3rd term of CEO Ham Young-joo

KEB Hana Bank, one of South Korea’s major commercial banks, is at odds with local financial regulators over the reappointment of its incumbent CEO and President Ham Young-joo as chief for the third time.The Financial Supervisory Service has expressed concerns that Ham, currently indicted and under trial here for alleged involvement in a hiring scandal at the bank, may be unfit to lead. Hana, meanwhile, is said to be prioritizing Ham’s “proven managerial talents and profit miles

Feb. 28, 2019

S. Korea central bank freezes key rate at 1.75% for February

The South Korean central bank on Thursday held its policy rate unchanged at 1.75 percent for February amid widespread concerns over an economic slowdown.　The monetary policy board of the Bank of Korea voted to leave the base rate steady for the third straight month after raising it by a quarter percentage point in November.The BOK‘s wait-and-see stance has been widely expected as Asia’s fourth-largest economy shows some signs of a downturn in exports and employment amid protracted U.

Feb. 28, 2019

How far has Korea's FSS got in investigation of Merrill Lynch high-speed trading case?

In August, South Korea’s financial auditor and the Korea Exchange set out to scrutinize Merrill Lynch’s Seoul office over mounting complaints that the US investment bank’s high-speed trading was unfairly disrupting local stock prices.　About six months later, it remains to be seen how far the Financial Supervisory Service has come in terms of monitoring high-frequency trading and collecting evidence.　The FSS and KRX had strengthened their monitoring of the investment bank after

Feb. 27, 2019

Korea's Financial Supervisory Service to crack down on unfair trading

South Korean financial regulators said Wednesday that they would crack down on unfair trading practices this year, with a focus on false disclosures, unlawful short-selling and high-frequency trading activities.The Financial Supervisory Service has set its sights on curbing unlawful short-selling by closely monitoring sudden increases in stock value and their possible links to insider trading. The agency said in a statement that it would also step up its monitoring of foreign investment companie

Feb. 26, 2019

Korea to form open financial payment network to boost fintech

South Korea’s financial regulator plans to establish an open interbank payment network this year that can be accessed not only by banks but also financial technology companies, with the goal of bolstering the country’s fledgling fintech business sector. The Financial Services Commission on Monday announced plans to create an open financial payment system accessible to nonbank players, and to lower the required usage costs. The move is expected to help Korea foster more successful fin

Feb. 25, 2019

[News Focus] Grand vision aside, who pays for Zero Pay?

Whether it’s a subway station or a local market, it’s easy to spot signs across Seoul promoting Zero Pay, a state-sponsored mobile payment system designed to lower credit card processing costs for small merchants and business owners here.Led by the Seoul Metropolitan Government, the Zero Pay system was introduced in beta trials in December. But a couple of months into its launch, public interest in the state-sponsored mobile pay system remains weak, while doubts persist about the mer

Feb. 25, 2019

Solar stocks buoyed by China’s potential U-turn on subsidies

Stocks of South Korea’s solar energy-related businesses rose Monday on the latest reports that China might be mulling changes to a major solar power subsidy policy announced last year. A meeting between China’s National Energy Administration and companies involved in the solar energy industry took place last week and participants discussed whether subsidies for utility-scale projects would be renewed, reports said.  The subsidies were largely halted in June 2018, resulting in lo

Feb. 25, 2019

Dividend payouts likely to hit record-high W30tr

The total dividend payments by listed companies in South Korea are likely to exceed 30 trillion won ($26.7 billion) this year, data showed Sunday, reaching a record high in light of mounting pressure from the country’s largest investor, the National Pension Service, to raise their dividend payouts.The total cash dividends of 612 Kospi- and Kosdaq-listed companies that have disclosed figures for 2018 as of Sunday amounted to 27.5 trillion won, according to Seoul-based financial data provide

Feb. 24, 2019