Korea's four major banks earn W16.76tr through interest in 2018

South Korea's top four banks pocketed 16.76 trillion won ($14.67 billion) from interest earnings alone until the third quarter of 2018, up 10.4 percent compared with the year before, market data showed Sunday.According to regulatory data released by lenders, KB Kookmin Bank, Shinhan Bank, Woori Bank and KEB Hana Bank combined to earn 1.57 trillion won more in interest than last year.Of the four, KB Kookmin reported hauling in 4.51 trillion won from its borrowers, followed by 4.2 trillion won for

Oct. 28, 2018

Korean stock markets in free fall, downward pressure to persist

Stock markets in South Korea continued to slide for a fourth consecutive trading day, setting a new low for 2018 yet again, amid persisting downward pressure on markets at home and abroad. Analysts noted the unhindered pace of monetary tightening in the United States, Korea’s sluggish economic growth prospect and an escalating trade war between the US and China bode ill for a momentum for a swift rebound in stock index performance and a turnaround from foreign investor outflow.  The t

Oct. 26, 2018

Seoul stocks again drop to one-year low on tech, bio losses

South Korean stocks went further south Wednesday after reaching a yearly low in the previous session as foreigners and individuals dumped large-cap tech and bio shares.The local currency rose against the US dollar.The benchmark Korea Composite Stock Price Index dropped 8.52 points, or 0.4 percent, to close at 2,097.58. Trading volume was moderate at 373.7 million shares worth 5.89 trillion won ($5.2 billion), with losers overwhelming winners 607 to 242. The local stock market started higher

Oct. 24, 2018

Credit-card processing fees for small merchants to be cut by W1tr next year

Financial authorities plan to cut credit-card processing fees for small merchants by as much as 1 trillion won ($880 million) next year, an industry source said Wednesday. Financial authorities are expected to announce the plan next week after consultations with the ruling Democratic Party, according to the source. Last year, the nation's eight credit card firms reported an income of 11.6 trillion won from commission fees.In July, credit-card processing fees for small merchants with an annu

Oct. 24, 2018

[Kosdaq Star] New MMORPG heralds Gamevil’s Q4 earnings surprise

This is the 62nd in a series of articles analyzing major companies traded on the tech-heavy Kosdaq market. -- Ed.There is growing anticipation for a turnaround in at Gamevil, a developer and publisher of mobile games, after the global market reacted positively to its recent releases and news of releases slated for the fourth quarter.On Friday, Gamevil’s stock price jumped sharply, closing 14.9 percent up from Thursday. Its market cap came to 361.4 billion won ($319.2 million), ranking 121s

Oct. 21, 2018

BOK pessimistic on outlook for Korean economic growth next year

South Korea’s economic growth is likely to slow next year, in line with the global economic sluggishness caused by rising protectionism and instability in emerging markets, the Bank of Korea and global financial organizations said Sunday. The Bank of Korea has lowered the outlook for the nation’s economic growth this year and next year from the early expectations of 2.9 percent and 2.8 percent each to 2.7 percent. This is the lowest since 2012, when the nation had a 2.3 percent econo

Oct. 21, 2018

BOK freezes key rate at 1.5% for Oct.

South Korea's central bank on Thursday held its policy rate untouched for October on worsening economic data and low inflation pressure.The monetary policy board of the Bank of Korea voted to freeze the policy rate at 1.5 percent for the 11th straight month.The BOK has taken a wait-and-see stance since November last year, when it adjusted up the key rate for the first time in more than six years, citing the economic recovery.Gov. Lee said two members of the seven-member board voted against the r

Oct. 18, 2018

Watchdog to tighten compliance regulations for financial firms

Stricter compliance regulations are to be adopted for financial institutions within the watchdog’s jurisdiction to enforce stricter internal control and prevent errors and fraud, according to the market watchdog Financial Supervisory Service.According to a preliminary set of measures unveiled Wednesday, at least 1 percent of the entire staff and executives in a financial institution should be assigned to compliance operations, while compliance officers must be executives of the company wit

Oct. 17, 2018

[Herald Interview] Former forensic technician creates new biometric standard

The Korea Herald is publishing a series of interviews on promising startups in the financial technology industry. This is the 23rd installment. -- Ed.For about a decade before Chung Woo-young founded mobile biometrics developer startup Winningi in 2015, he was a forensic technician who worked for the National Police Agency in South Korea. He was engaged in the nation’s project to collect and manage some 56 million fingerprint records of residents in the nation with a population of 51.2 mil

Oct. 16, 2018

Financial firms urged to consider environment, society: regulator

The head of the financial watchdog on Tuesday called on financial firms to think about environmental and social issues in their investment decisions. Financial Supervisory Service Gov. Yoon Suk-heun made the remarks at a conference to discuss ways for Seoul to become a city of sustainable finance. Sustainable finance is a new watchword for investors that integrate environmental, social and governance issues into their investment decisions. Yoon said the South Korean government is playing a bigge

Oct. 16, 2018

Tougher loan screening to help better manage household debt: regulator

Banks will be required to implement a stricter screening rule for mortgage loans starting this month so as to better manage growing household debt, according to the head of the financial regulator Tuesday. Banks have applied for the so-called debt service ratio to almost all household loans on a pilot basis since earlier this year. The new rule will become mandatory later this month.DSR measures how much a borrower has to pay in principal and interest payments in proportion to his or her yearly

Oct. 16, 2018

‘New Southern Policy’ encourages financial companies to look to Southeast Asia

For South Korean financial companies looking out for new growth momentum, the “New Southern Policy” -- the key foreign economic policy of the Moon Jae-in administration -- came as a timely opportunity to create synergy with the fast-growing Southeast Asian market.The overseas net profit of domestic financial companies last year totaled $934 million, up 42 percent from a year earlier and exceeding 1 trillion won in Korean currency for the first time, the Financial Supervisory Service

Oct. 15, 2018

Report cites signs of excessive financing in loans

South Korea's financial sector overall is not excessive in its size but it has grown to above adequate levels in terms of lending, a report said Monday.The research paper titled "Adequacy and Growth Effect of Finance in Korea," carried in the latest periodical from the Korea Institute of Finance, called attention to heavily concentrated loans to households compared to those for companies.Data from 2002 to 2016 shows an 8.1 percent yearly average rise in household loans, compared with a

Oct. 15, 2018

Corporate watchdog to focus on chaebol reform, foster fairer biz practice

South Korea's corporate watchdog said Monday that it will focus on reforming family-controlled business groups and promoting fair business practices.In a report to the National Assembly, the Fair Trade Commission said it aims to help foster innovation-led growth, as well as expand consumers' rights. The FTC said it plans to carry out probes into the practices which are blamed for allowing founding families of private conglomerates, called chaebol, to easily net large profits by having subsidiari

Oct. 15, 2018

Seoul shares expected to move higher on big events next week

South Korean stocks will likely move upward next week as big global events may ease the uncertainties that have bothered the financial market, analysts said Saturday.The benchmark Korea Composite Stock Price Index closed at 2,161.85 on Friday, down 105.67 points, or 4.7 percent, from the previous week. Seoul shares started weaker on the first day of the week on a foreign selling binge. Investors were worried about lingering trade tensions between the United States and China and a faster-tha

Oct. 13, 2018

Seoul emphasizes Korea is not a currency manipulator

South Korea‘s finance minister said Friday that his country should not be regarded as a currency manipulator as it strives to enhance transparency in its currency market.Kim Dong-yeon made the argument during a meeting with US Treasury Secretary Steven Mnuchin on the Indonesian resort island of Bali on the sidelines of G-20 meeting of finance ministers and central bankers, according to the finance ministry.Kim cited latest trends in the foreign currency market, efforts by the Seoul governm

Oct. 12, 2018

Regulator to conduct more inspections into accounting practices at big firms

The financial regulator said Friday it will conduct more inspections into accounting practices at big companies as part of its efforts to toughen rules on corporate accounting standards.In a report for a parliamentary audit, the Financial Supervisory Service said big firms with assets worth more than 1 trillion won ($880 million) accounted for 7 percent of the watchdog's annual inspections into accounting practices last year.The ratio rose to 20 percent this year, the FSS said. In the first eigh

Oct. 12, 2018

Korean stock markets take largest loss in 7 years on Wall Street plunge

South Korea’s stock markets were routed Thursday following a plunge in stocks at Wall Street amid surfacing doubts about current tech stock valuations in the United States and fears on lingering US-China trade war threats.Analysts said the market correction in the US triggered a ripple effect on Korean stock markets along with other Asian stocks, drawing concerns about what they call “the biggest external market risk.”Both the top-tier Kospi and the second-tier Kosdaq suffered

Oct. 11, 2018

Govt. plans to cut maximum legal lending rate to 20%

The government plans to gradually cut the maximum interest rate that private lenders can charge to 20 percent per annum, the financial regulator said Thursday. In a parliamentary audit meeting, Financial Services Commission Chairman Choi Jong-ku said the plan is aimed at further easing the financial burdens on people.  Choi said the government will review market interest rates and other economic factors before it cuts the maximum legal lending rate. In February this year, the government low

Oct. 11, 2018

P2P lender 8Percent receives W6b investment

The South Korean startup 8Percent, dedicated to peer-to-peer financing to individuals and small-sized business owners, announced Wednesday it had drawn a combined 6 billion won ($5.3 million) in investments from three venture capital firms. The investments will be used to develop new credit analysis models, advance banking system and improve the profitability of lenders -- or investors into notes of borrowers -- the company said. One of the venture capital firms involved was DSC Investment, whil

Oct. 10, 2018