KB Financial aims to stretch lead with shareholder-friendly approach

KB Financial Group has solidified its position as South Korea‘s top banking group in terms of earnings and market cap, on the back of higher-than-expected earnings in the fourth quarter of 2017 that led to a record-high yearly net income last year.Stock analysts have said the financial giant’s capability to carry out shareholder-friendly actions driven by its increase in capital, will stretch its lead in the domestic banking industry, ahead of Shinhan Financial Group that topped in 2

March 8, 2018

Corporate bond volume surges amid rate hike signs

The amount of corporate bond issuance here took a drastic upturn last month as companies took pre-emptive actions to secure funds ahead of the central bank’s impending key interest rate hike, according to the Korea Financial Investment Association.The total amount of bonds issued in February stood at 53.31 trillion won ($49.87 billion), up 1.6 trillion won from a month earlier, on the back of corporate bonds and asset-backed securities, data showed Wednesday.Of the total, the corporate bon

March 7, 2018

Stocks dip despite easing inter-Korea tension

South Korean stock markets had a roller coaster day on Wednesday on foreign sell-offs, despite signs of inter-Korean rapprochement in the wake of South Korean envoys‘ meeting with North Korean leader Kim Jong-un the previous day. Market watchers remained mixed on whether the North Korean momentum would lead to a long-term upward drive in the local stock markets,  On Wednesday, the top-tier stock market Kospi and the second-tier Kosdaq both fluctuated. Opening lower, both Kospi and Kos

March 7, 2018

Temasek sells shares worth W1.1tr in Korea’s Celltrion, Celltrion Healthcare

Ion Investments, which is controlled by Singapore’s sovereign wealth fund Temasek Holdings, has sold a part of its stake in South Korean biopharma company Celltrion and its distribution unit Celltrion Healthcare in a block deal worth around 1.1 trillion won ($1.03 billion).　News of the deal, which was made after the market’s close on Tuesday, led to the price of Celltrion and Celltrion Healthcare plunging by more than 10 percent Wednesday.According to news reports, Temasek on Tuesday

March 7, 2018

20-somethings most active in virtual currency investment: survey

Those in their 20s are most active in investing in cryptocurrencies in South Korea, a survey showed Wednesday, as state regulators move to rein in the virtual currency frenzy in Asia's fourth-largest economy.Amid concerns over a bubble, the government banned the opening of new virtual accounts for cryptocurrency investors and requires those that bought and sold the currency to use real-name accounts, and not the virtual system favored in the past.Bitcoin, ethereum and other cryptocurrencies have

March 7, 2018

[Herald Interview] Tera Funding sets out to hedge risks of P2P project finance

The Korea Herald is publishing a series of interviews on promising startups in the financial technology industry. This is the 11th installment. - Ed.Since last year, South Korea’s financial watchdogs warned retail investors about crowdsourcing funds for peer-to-peer project finance, saying that their repayment capabilities could only be determined on projected cash flow without collateral.The high return -- often at above 10 percent -- that the instrument promises to the lenders, triggered

March 6, 2018

SK decides to hand over controlling shares of SK Securities to J&W Partners

SK Holdings decided in a board meeting Monday to hand over the controlling stakes of its brokerage arm worth 51.5 billion won ($47.9 million), or 10 percent of the firm, to Seoul-based private equity firm J&W Partners.If the deal gets the nod from the Financial Services Commission and J&W Partners manages to acquire all the shares until February 2019, SK Group will be free of regulatory drag for failing to divest itself of a financial arm. SK Holdings, a major shareholder of SK Securitie

March 6, 2018

Korea's current account surplus narrows to $2.68b for January

Korea's current account surplus narrowed in January from a month earlier due mainly to a jump in the deficit of the service account, central bank data showed Tuesday. The country's current account surplus reached $2.68 billion in January, down from a surplus of $4.09 billion a month earlier, according to the preliminary data from the Bank of Korea.It marked the 71st consecutive month of a current account surplus, which started in March 2012. The services account deficit widened to $4.49 billion

March 6, 2018

BOK chief reappointment likely to speed up key rate hike

The recent reappointment of South Korea’s chief monetary policymaker is expected to encourage hawkishness at the Bank of Korea, possibly bringing forward a key interest rate hike to as early as April, despite sluggish consumption and snowballing household debt.BOK Gov. Lee Ju-yeol met with Deputy Prime Minister and Finance Minister Kim Dong-yeon met for lunch on Monday, their first one-on-one encounter after Lee’s reappointment on Friday.The two top officials agreed that Seoul should

March 5, 2018

Prosecutors drop case against KEB Hana Bank on allegedly favoring Chung Yoo-ra: report

Prosecutors in South Korea have decided not to indict commercial bank KEB Hana Bank for offering preferential loans to Chung Yoo-ra, according to a news report Monday.Chung, 22, is a daughter of Choi Soon-sil, ex-president Park Geun-hye’s longtime confidante who was sentenced to 20 years behind bars in February for a corruption scandal which led to the impeachment of Park last March. KEB Hana Bank issued a standby letter of credit worth 386,600 euro ($476,200) to Chung in 2014, when she wa

March 5, 2018

Finance minister, BOK chief vow to cooperate to manage risk factors

Korea's top economic and monetary policymakers agreed on Monday to cooperate to reduce any fallout from a much expected rate hike in the United States and from growing trade protectionism, Seoul's finance ministry said.In a meeting held earlier in the day, Finance Minister Kim Dong-yeon and Bank of Korea Gov. Lee Ju-yeol shared the view that current economic recovery trends can be maintained but that there are a slew of external risk factors as well. "(The two) shared the view that the US F

March 5, 2018

Finance ministry to deal swiftly with low birthrate

Ranking officials of the finance ministry held a meeting Sunday to come up with measures on tackling the country's chronic low birthrate in order to bolster growth potential.Finance Minister Kim Dong-yeon, vice ministers and ranking officials gathered to discuss measures to deal with the impending issue after the number of newborns in South Korea dropped to a new record low last year.The number of babies born in 2017 reached 357,700, down 11.9 percent, or 48,500, from a year earlier, according t

March 4, 2018

Samsung’s stock split pushes bourse to minimize trading suspension

South Korea’s bourse operator is expected to ease regulations on stock split processes in the wake of market top cap Samsung Electronics’ latest decision to implement a first-ever stock split.Korea Exchange is expected to announce a revised set of plans later this week to shorten the trading suspension period caused by stock splits, according to the benchmark Kospi operating headquarters Sunday. Under current regulations, stock trading is to be banned for 10-15 days after the gi

March 4, 2018

[Kosdaq Star] Netflix behind Studio Dragon’s upbeat Q1 forecast

This is the 51st in a series of articles analyzing major companies traded on the tech-heavy Kosdaq market. -- Ed.An upbeat forecast for the first quarter of this year appears to have catalyzed the bull run of Studio Dragon, the creator of South Korean megahit series such as “Misaeng,” “Guardian,” “Signal,” and most recently, “A Korean Odyssey.”Behind the forecast is the projected income from rights sales of latest hit series to global internet ente

March 4, 2018

Foreigners receive record high dividends from top 10 conglomerates in 2017

Foreigners received an all-time high of dividend payouts from South Korea's 10 largest business groups last year, with the amount surpassing 7 trillion won ($6.46 billion) for the first time, industry data showed Sunday. Among the 15.3 trillion won of dividends paid by companies affiliated with the top 10 conglomerates last year, foreigners received 7.11 trillion won, according to the Seoul-based corporate tracker Chaebul.com. The ratio of foreign dividend payouts rose from 43.7 percent of the t

March 4, 2018

Seoul shares expected to move in tight range next week

South Korean shares are expected to move up and down in a tight range as investors remain cautious on lingering uncertainty over US monetary policy, analysts here said Saturday.   The benchmark Korea Composite Stock Price Index closed at 2,402.16 on Friday, down 2.01 percent from a week ago.   Investors are likely to adopt a wait-and-see attitude over US monetary policy.    Earlier this week, Federal Reserve Chairman Jerome Powell offered an optimistic assessment of

March 3, 2018

S. Korea's stock loans flirt with record high

Local investors are borrowing a large amount in loans to buy local stocks as the country's bourse has maintained a generally upward trajectory, despite a slump in the pace of growth, market data showed Saturday.   The amount of money borrowed to buy stocks, the so-called margin debt, reached 11.24 trillion won ($10.4 billion) as of Tuesday, slightly down from an all-time high of 11.42 trillion won tallied on Feb. 2, according to the data compiled by the Korea Financial Investment Assoc

March 3, 2018

[Newsmaker] Moon Jae-in retains central bank head

President Moon Jae-in retained on Friday Lee Ju-yeol, the incumbent Bank of Korea Gov. and the head of Monetary Policy Committee, to serve another four-years for the nation‘s central bank, sending the market a sign that it will not pursue a drastic change in its monetary policy.Cheong Wa Dae said the decision to reinstate Lee as the BOK chief signifies Moon’s willingness to “ensure neutrality and independence” of the central bank.The reappointment came amid the South Kore

March 2, 2018

Kospi tumbles on renewed US protectionism threats

South Korea‘s top-tier stock market Kospi retreated 1 percent on Friday, while the local currency strengthened, in part on fears over heightening tariff threats by US President Donald Trump triggering a possible trade war.On Friday, the Kospi came close to breaching 2,400 mark by closed at 2,402.16, down 1 percent compared to the previous trading day. The market maintained a losing streak for three consecutive trading days since Tuesday. Korean stock markets closed on Thursday for a nation

March 2, 2018

Korean steel exports to take hit on proposed US tariffs

Korea avoided the worst case scenario of being slapped with duties of up to 53 percent on steel exports to the United States, but it will invariably take a hit if fresh duties are put in place, industry experts said Friday.US President Donald Trump said on Thursday that he would impose uniform 25 percent duties on imported steel to protect US producers, with a formal decision due next week.The announcement could not have come at a worse time for Korean steel mills already struggling with rising

March 2, 2018