KB, Shinhan first Korean companies to join Bloomberg’s 2019 Gender-Equality Index

South Korea’s top two finance and banking groups have joined Bloomberg’s fledgling Gender Equality Index, signaling the sector’s rising commitment to promoting gender equality and female-friendly policies in the workplace.KB Financial Group and Shinhan Financial Group said Thursday they have become the first Korean companies to be included in the Bloomberg GEI for their commitment to transparency in gender reporting and advancing women’s workplace equality. KB and Shinhan

Jan. 17, 2019

Barings recommends diversified investment in US, European high-yield bonds

A global asset management firm on Wednesday suggested diversified overseas investments in US and European high-yield bonds this year to reduce risk or volatility.“The point of this is to say that there can be technically driven differences in the markets that cause one market to outperform or underperform another market … again this is all corporate credit,” said David Mihalick, head of Barings’ US High Yield Investments Group, during a press conference in Yeouido, Seoul

Jan. 16, 2019

[Monitor] Volume of Korean investors’ holdings in foreign-currency securities

Holdings by South Koreans of securities in foreign currencies grew rapidly last year, data from the Korea Securities Depository showed, with local securities firms expanding relevant services for local investors. The volume of the holdings jumped 43.4 percent to $32.5 billion in 2018, from the previous year’s $22.7 billion, according to the data. It represented an almost sixfold increase over five years, as the corresponding figure for 2013 was $5.2 billion.Overall, local investors’

Jan. 16, 2019

With regulatory change, Korea’s internet-only banks to see ownership shift, new players

South Korea’s internet-only banking sector is set to undergo a series of ownership changes and to see new market players, as a new regulatory change allowing nonfinancial institutions to own and operate online banks takes effect from Thursday.　The new law, designed to ease ownership rules for internet-only banks, enables information and communication technology companies to own up to 34 percent of an internet-only bank, up from the 4 percent (10 percent without voting rights) threshold sti

Jan. 16, 2019

SoftBank Ventures Asia hires Lee Seung-hoon as new CFO

SoftBank Ventures Asia, the venture investment arm of Japan’s SoftBank Group, announced Wednesday that it has hired Lee Seung-hoon as its new chief financial officer.Lee will be responsible for the management of global funds and limited partners of SoftBank Ventures Asia. He will also oversee financial initiatives of global offices, including Beijing, Singapore and Silicon Valley, the firm said. The new Softbank Ventures Asia CFO has 15 years of experience in advising on mergers and acquis

Jan. 16, 2019

Regulator vows more support for fintech firms

The head of the financial regulator on Wednesday vowed to lend more support to financial technology firms, with the aim of turning small fintech firms into "unicorns" ith higher market capitalization. Choi Jong-ku, chairman of the Financial Services Commission, made the remarks at a meeting with executives at fintech firms.  The government "will help create unicorns that compete in the global market by continuing to ease regulations," Choi told the meeting, referring to

Jan. 16, 2019

Growth of outstanding state bonds slows in 2018

South Korea saw growth in the value of outstanding state and special bonds slow down in 2018 due to increased tax revenue and public agencies' asset restructuring efforts, data showed Wednesday.The outstanding amount of government bonds and debt issued by public institutions came to 969.2 trillion won ($864 billion) at the end of last year, up 1.7 percent from a year earlier, according to the data from Koscom Corp., the system manager of the South Korean bourse operator Korea Exchange. It was th

Jan. 16, 2019

Korea’s mortgage-backed lending rate hits three-year high, raising household debt burden

South Korea’s mortgage-backed lending rates have hit a three-year high, affected by the central bank’s latest key interest rate hike. As local banks mark up their loans accordingly, the country’s household debt burden is expected to face new pressures.The Korea Federation of Banks said Tuesday that the Cost of Funds Index -- a benchmark lending rate for mortgage loans also known as Cofix -- for new loans was set at 2.04 percent for December, up 0.08 percenta

Jan. 15, 2019

KB Kookmin Bank management-labor union conflict deepens

Conflict over salaries between the management and labor union of KB Kookmin Bank, South Korea’s biggest commercial bank by profits, is being prolonged, raising concerns that labor-management disputes could dampen the company’s growth momentum and operations.　After the bank’s labor union staged a nationwide strike last week -- the first in 19 years -- the management and the union appeared to have made some headway in negotiations by striking an agreement on the conditions for ea

Jan. 15, 2019

Yooshin stocks rise on possible role in inter-Korean railway project

Shares of a South Korean engineering firm skyrocketed on Tuesday on recent reports that it could handle engineering design for projects to reconnect and modernize inter-Korean railways.Shares of Yooshin Engineering, which specializes in railway design and construction, soared 29.92 percent from the previous trading in the morning, hitting a 52-week high. It was being traded at 25,400 won ($22.67) per share on the country’s tech-heavy Kosdaq bourse as of midday. Among several engineeri

Jan. 15, 2019

Korea vows efforts to adopt global rules on bank capital in 2022

South Korea's financial watchdog said Tuesday it will step up efforts to help local banks adopt new global rules on bank capital standards in 2022. Global financial regulators agreed on the new banking regulations, known as Basel III, in 2017 but finally endorsed a revision of some rules earlier this week at a meeting of the Basel's oversight body attended by governors and heads of supervisory bodies, the Financial Supervisory Service said. Basel said the revision will "result in a weighted

Jan. 15, 2019

Samsung Securities installs desk on dollar-denominated bonds

Samsung Securities has set up a special desk devoted to dollar-denominated bonds, reflecting South Korea’s growing interest in dollar assets over the US Federal Reserve’s continuing rate hike, the firm said Monday. It aims to provide better guidance to its customers by providing relevant information on the price and currency, the company said. It added that it will help investors to determine the “right timing” to purchase bonds at the market price.  The brokerage ho

Jan. 14, 2019

Nonbank lending raises volatility in real estate market: Think tank

Amid a low interest rate trend and real estate market boom, an increasing number of property purchasers here have turned to nonbank lending over recent years to dodge regulations, increasing volatility in the market, according to the latest report by the Korea Institute of Finance.“About 80 trillion won ($71.3 billion) of the domestic shadow banking market is highly subject to volatility, likely to face insolvency depending on the real estate market situation,” Shin Yong-sang, senior

Jan. 14, 2019

Fine dust pollution boost home appliance, personal cares stocks

Public concerns over heavy fine dust concentration in recent days have lifted stock prices of local personal care product manufacturers and home appliance makers Monday. Personal care products company Monalisa, which manufactures and distributes face masks for fine dust, jumped 11.39 percent from the previous trading day. It was traded at an opening price of 4,060 won ($3.61) per share.Firms listed on the tech-heavy Kosdaq such as Welcron and Okong, also manufacturers of protective masks al

Jan. 14, 2019

New Woori Financial Holdings to expand nonbanking segment with M&As

Woori Bank, South Korea’s third-largest commercial lender, officially adopted a financial holding company structure on Monday, pledging to actively pursue strategic mergers and acquisitions to expand its nonbanking business under its new status.　“Woori has held a strong banking business, but its nonbanking segment has remained weak until now,” said Sohn Tae-seung, chairman of Woori Financial Holdings and Woori Bank, during a press conference at Woori Bank’s headquarters i

Jan. 14, 2019

[Stock Preview] Prolonged US government shutdown, Brexit loom over Kospi

Trading of South Korean shares is projected to take place within a narrow range this week amid growing concerns about a prolonged US government shutdown and the impending Brexit vote in the UK, which are dampening investor sentiment. The two political risks, combined with lackluster fourth-quarter earnings projected for US and Korean firms, will likely push the main Kospi bourse into a “boxpi” situation, according to analysts. “Boxpi,” a combination of the words “Ko

Jan. 13, 2019

‘Baby Shark’-related stocks soar on Billboard debut

After the recent Billboard debut of megahit South Korean version of children’s song “Baby Shark,” shares rose Thursday in anticipation of further success in related merchandise. Share prices of Samsung Publishing, the second-largest shareholder of SmartStudy, the local education startup behind the “Baby Shark” phenomenon, rose by more than 20 percent from the previous trading day. Shares of the publishing company, which holds 25.03 percent of SmartStudy, closed at 1

Jan. 10, 2019

Despite slowing growth, global recession unlikely in 2019: AB Asset Management

Despite the widespread anxiety due to slowing growth momentum, the global economy is unlikely to face a recession this year, and high yield opportunities continue to exist in the US equity market and emerging markets, according to a US-based asset management company on Wednesday. “Growth momentum is certainly slowing down but when it comes to the question (of) whether such slowdown means a possible recession, our answer is no,” said David Wong, a senior investment strategist at Allia

Jan. 10, 2019

Riding on Netflix bandwagon, drama production firms to shine this year

Drama production firms and content providers are projected to stand out among stocks this year, security firms said, citing the hefty number of shows to be produced in 2019, coupled with Korean companies’ growing partnership with dominant streaming service Netflix.“It would be recommendable to invest in firms that hold a ‘captive’ or their own broadcasting platform, and have already inked a distribution deal with Netflix,” Kim Hyun-yong, an analyst at eBest Investme

Jan. 9, 2019

Financial authorities reverse decision to delist Kyung Nam Pharm

South Korea’s Kosdaq Market Committee on Tuesday scrapped Korea Exchange’s plan to delist local pharmaceuticals company Kyung Nam Pharm from the second-tier Kosdaq market, instead giving the company a one-year grace period to improve transparency. A panel led by the Korea Exchange, the nation’s sole market operator, last week suggested Kyung Nam Pharm be pulled from the Kosdaq market over accounting errors that occurred between financial years 2008 and 2013.Due to the erro

Jan. 8, 2019