BOK expects Fed to raise rates 2 or 3 times in 2018

South Korea's central bank expects the U.S. Federal Reserve to raise its key interest rates two or three times next year, in line with a broader expectation on Wall Street, according to a report by the Bank of Korea on Saturday. The Fed is widely expected to raise rates during its policy meeting next week, as it has begun increasing borrowing costs from record lows set in the wake of the 2008-09 global financial crisis. On Dec. 1, the Bank of Korea increased its key rate by a quarter percen

Dec. 9, 2017

South Korea mulling ways to curb craze for bitcoins

South Korea is studying ways to regulate speculative trading in crypto currencies as the latest surge in prices stokes a craze over bitcoins. The country's financial regulator said Friday that it has ruled out using bitcoin for derivative products. The decision effectively bans investing in bitcoin futures that will start trading on the Chicago Board Options Exchange this weekend. It's part of a backlash against digital currencies in some Asian countries, even as Japan embraces their use. I

Dec. 8, 2017

Seoul slams EU inclusion on tax haven blacklist

The government on Wednesday lashed back at the European Union’s decision to list South Korea as a tax haven, claiming the inclusion infringes on international standards and poses the risk of violating the country‘s taxation sovereignty.“We have violated none of the standards suggested by the Organization for Economic Cooperation and Development or other international regulations,” Deputy Prime Minister and Finance Minister Kim Dong-yeon told reporters. On the previou

Dec. 6, 2017

Seoul stocks close sharply lower on foreign sell-off

South Korea's main stock index tumbled Wednesday as foreign investors remained net sellers of stocks, with sentiment soured over geopolitical worries in the Middle East. The Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 35.75 points, or 1.42 percent, to close at 2,474.37. Trade volume was moderate at 503 million shares worth 6.56 trillion won ($6 billion). The local stock market opened lower as investors took their cues from overnight declines on Wa

Dec. 6, 2017

South Korea out of bitcoin futures race

South Korea, an emerging market for cryptocurrency trade, is likely to remain out of the global race to sell bitcoin futures to investors.Securities firms in Korea withdrew plans to draw investments through foreign bitcoin-related derivatives, upon the Financial Services Commission’s order to ban the trade. The direction was sent through the Korea Financial Investment Association on Tuesday.As a result, securities firms such as eBest Investment & Securities and Shinhan Financial Invest

Dec. 6, 2017

Cryptocurrency transactions with bank accounts to be restricted from next year

A private association of cryptocurrency exchanges in South Korea said Wednesday that it will voluntarily restrict cryptocurrency transactions with bank accounts starting next year, in a bid to prevent such transactions from being used for money laundering and other crimes. The Blockchain Association, an industry group of some 30 cryptocurrency exchanges, including Bithumb and Korbit, said it will encourage customers just one bank account in the selling and buying of cryptocurrencies. Under the v

Dec. 6, 2017

NPS stakes in listed firms jump over 4 years

South Korea's state pension operator has sharply increased its stakes in major firms over the past four years on eased investment rules, a market tracker said Wednesday.The National Pension Service had stakes of 10 percent or more in 84 listed companies as of the end of September, double the number at the end of 2013, according to CEO Score.The surge was attributed to the easing in September 2013 of a rule banning the NPS from holding 10 percent or more in each listed company. The combined marke

Dec. 6, 2017

BOK forecast to conduct another rate hike in July

South Korea's central bank is expected to carry out another rate raise in July next year in light of its guarded stance and the country's mild inflation, a private think tank said Wednesday.In a monthly policy meeting last week, the Bank of Korea hiked the so-called base rate by a quarter percentage point to 1.5 percent amid clear signs of an economic recovery, snapping the 16-month run of its wait-and-see stance."Some watchers project the BOK to jack up the key rate in the first half of ne

Dec. 6, 2017

[Herald Interview] Coinplug pioneers blockchain-powered security

The Korea Herald is publishing a series of interviews on promising startups in the fintech industry. This is the fifth installment. -- Ed. When it launched a bitcoin exchange in January 2014, blockchain startup Coinplug was well aware of the volatility of the cryptocurrency market. Bitcoin had hit $1,000 for the first time in history a few months earlier, and the price had risen by tenfold in the span of less than a year. The company also witnessed Mt. Gox, then a bitcoin exchange powerhous

Dec. 5, 2017

Toss to fill in financial service industry void in Korea: CEO

South Korea‘s top financial technology mobile app Toss is poised to fill in “a void in the financial service industry” in the nation, providing users various services ranging from cash management accounts, credit score reviews, peer-to-peer investment and even bitcoin, according to app operator Viva Republica’s chief executive on Tuesday.“Korea has long suffered a void in the financial service industry,” CEO Lee Seung-gun said in the fintech startup’s fi

Dec. 5, 2017

Seoul stocks inch up on institutional buying

South Korean stocks rose Tuesday on the back of net purchases by local institutional investors. The Korean won rose against the US dollar.The benchmark Korea Composite Stock Price Index moved up 8.45 points, or 0.34 percent, to close at 2,510.12. Trade volume was moderate at 387 million shares worth 5.82 trillion won ($5.37 billion).The local stock market opened lower, following a overnight sell-off in the US tech stocks. But the KOSPI turned positive as local institutional investors continued t

Dec. 5, 2017

Experts split on widening or tightening digital currency rules

In the wake of recent controversies concerning digital currencies, ranging from overheated speculation to cyberattacks on exchange systems, experts here locked horns and engaged in intense discussion on how to protect users from financial damages.The parliamentary National Policy Committee on Monday held a public hearing to look into the revision bill of the Electronic Financial Transactions Act, earlier submitted by Rep. Park Yong-jin of the ruling Democratic Party of Korea.While the lawmaker c

Dec. 4, 2017

[Global Finance Awards] SC Bank Korea leads as global wealth manager in Korea

SC Bank Korea, the Seoul subsidiary of London-based Standard Chartered Group, is putting asset management at the center of its retail finance business. In order to provide universal wealth management services to a wider range of consumers, the bank has secured about 30 additional specialists to the wealth management sector this year. The traditional profit structure of Korean banks is nearly 90 percent reliant on interest margins, but SC aims to break that structure by making 40 percent of its p

Dec. 4, 2017

[Global Finance Awards] Securing competitiveness in finance industry key for success in 4th industrial era

The Korea Herald has organized the first Global Finance Awards, recognizing that strengthening competitiveness in South Korea’s finance industry and establishing an ecosystem on par with global standards are required for the nation’s economy to make a new leap forward in the era of the “fourth industrial revolution.” This award is meant to acknowledge outstanding individuals and companies that have pioneered the global market and provided convenient financial services wit

Dec. 4, 2017

[Global Finance Awards] KEB Hana Bank’s PB track record under global spotlight

KEB Hana Bank, one of four major South Korean commercial banks, has attracted global attention through its private banking prowess mainly by taking advantage of artificial intelligence. By adopting a private banking service -- designed to manage wealth of the affluent through insurance, succession planning and investments in funds and properties -- for the first time among Korean banks in 1995, KEB Hana Bank has long been recognized as a leader in the sector in Korea. The bank‘s private ba

Dec. 4, 2017

[Global Finance Awards] Mirae Asset continues to expand global network

As an independent investment entity consisting of asset management, securities, insurance and real estate, Mirae Asset currently operates a global network in 12 countries, including 11 overseas subsidiaries. As of the end of October, it was operating roughly 130 trillion won ($119.33 billion) through its global networks, according to the company.　Stepping up its pace to strengthen its growth engine, Mire Asset has been expanding further into overseas markets, strengthening operational competitiv

Dec. 4, 2017

[Global Finance Awards] KB Financial Group chair Yoon Jong-kyoo’s aggressive M&As bear fruit

Since taking office in November 2014, Yoon Jong-kyoo, chairman of KB Financial Group, has turned KB Financial Group -- then reeling from a massive information leak -- into a top integrated financial services provider in South Korea, both in size and quality. Yoon’s aggressive takeovers following his pledge to strengthen non-banking units’ performance have since proven successful. KB Financial Group‘s net profit has increased 50 percent in two years, to 2.1 trillion won ($1.93 b

Dec. 4, 2017

[Global Finance Awards] Hanwha Life Insurance builds strong presence in global market

Hanwha Life Insurance is solidifying its position as a global financial company by expanding its reach into Vietnam, China and Indonesia with localization strategies. “We are improving our global competitiveness by hiring the bulk of the staff as local employees who have good knowledge of the local insurance and financial market, along with better communication skills and stronger bonds with local life planners,” said a Hanwha Life Insurance spokesperson. Since the first launch

Dec. 4, 2017

[Global Finance Awards] Kakao Bank makes waves as convenient mobile bank

Kakao Bank, South Korea’s second internet-only bank, has emerged as a cost-effective, convenient and user-friendly banking service for the smartphone-savvy population.Led by Korea’s mobile messaging giant Kakao, Kakao Bank has secured more than 4.35 million accounts as of the end of October, three months after it opened to the public. Of them, around 73 percent have registered for debit cards linked to the accounts.Among 1,500 Kakao Bank users aged 20 to 59 that were surveyed, 76.5 p

Dec. 4, 2017

Market boom dwarfs price boost from share buyback

The boom in the stock market this year was so large that it has overshadowed the boost in share prices that occurred when listed firms bought back their shares, data showed Monday.The 54 share buybacks from 33 listed firms on the first-tier Kospi this year led to a 3.4 percent jump in firms’ share price on average. The Kospi, however, rose 5.4 percent on average over the cited period, according to data compiled by the Korea Exchange as of Nov. 29. Excluding four share repurchases of market

Dec. 4, 2017