Authorities look to stem risks from currency speculationThe nation’s financial regulator and the central bank said Tuesday they would increase the number of banks dealing with foreign currency trading, which would be subject to their ongoing joint probe.The period of their joint inquiry into the foreign exchange banks will also be extended, according to the Financial Supervisory Service and the Ba

May 3, 2011

Regulators plan to select preferred bidders in JuneThe nation’s top financial watchdog decided Friday to put seven debt-saddled savings banks up for auction to find preferred bidders among bigger financial companies.“After conducting due diligence on them and launching the bidding process in May, we plan to pick preferred bidders in June,” the Financial Services Commission said in a statement.The

April 29, 2011

The dollar slid to 1,071.2 won on Thursday, posting its lowest level in 32 months against the Korean currency.The Korean currency’s value rose by 8.3 won from a day earlier, bringing it to its highest point since Aug. 22, 2008, when it stood at 1,062.5 won per dollar.Economists attributed the won’s rise in value to U.S. policymakers’ stance which hinted at easing ― or a wait-and-see approach towar

April 28, 2011

Budget spending focused on investment in new growth enginesThe Ministry of Strategy and Finance on Thursday unveiled its policy to improve the nation’s fiscal soundness next year by slashing unnecessary expenditure.The government is aiming to minimize the 2012 fiscal deficit by curbing the growth of total expenditure, ministry officials said citing its report to the Cabinet meeting held earlier in

April 28, 2011

By Kim Yon-seKorean consumers’ purchasing power has weakened on average even though the economy sustained its pace of growth during the first quarter, a Bank of Korea report showed Wednesday.The central bank said the country saw its growth rate of gross domestic product post 4.2 percent in the first quarter on a year-on-year basis and 1.4 percent on a quarter-to-quarter basis.But the gross domesti

April 27, 2011

Ruling on Lone Star’s eligibility as KEB owner postponedThe Financial Services Commission decided to delay its ruling on the issue of Lone Star Funds’ eligibility as the majority shareholder of KEB.The decision marks a shift from its earlier stance to rule on whether the U.S. fund was a financial investor in 2003 in its scheduled panel meeting Wednesday.Though the issue has come into the spotlight

April 27, 2011

FSC approved fund’s buyout of KEB, but consensus is that decision was wrongThe long-standing issue involving U.S. Lone Star Funds is embarrassing financial regulators again this year.The Financial Services Commission and the Financial Supervisory Service have recently shown off regulatory power by taking urgent countermeasures against several accidents including cyber system breakdown and hacking

April 26, 2011

The Financial Supervisory Service is facing allegations that it failed to prevent its internal information from being leaked concerning the regulatory policies on savings banks.Among the allegations are that several customers of Busan Savings Bank withdrew large deposits a day before regulators suspended operations of the distressed bank in February.It has been alleged that key staffers of Busan S

April 25, 2011

Combined debts of Samsung, Hyundai Motor grow by 89 trillion wonThe nation’s 30 biggest business groups saw their combined debts snowball over the past three years, which could undermine their financial soundness, the Fair Trade Commission said on Sunday.According to the antitrust regulator, debts held by the top 30 groups came to 1.03 quadrillion won ($925 billion) as of March 2011, up 51.2 perce

April 24, 2011

South Korea pledged an additional $500,000 to help refugees in and near strife-torn Libya, the foreign ministry said Thursday.The aid will bring Seoul's total assistance for Libyan refugees to $1 million, including $500,000 provided in March. The new assistance will be used via the International Organization for Migration and the United Nations High Commissioner for Refugees, the ministry said.Tho

Defense April 21, 2011