The government’s recent financial reform plan which focuses on reinforcing the competitiveness of banking groups triggered a backlash from the secondary market, including private lenders and mutual savings banks.Loan companies reacted against lowering the interest rate ceiling, while small-sized savings banks claimed to be discriminated against bigger units affiliated with a holding company.The Financial Services Commission said earlier this week that it will lower the maximum interest rate for

June 26, 2015

Shinhan Financial Group, the nation’s largest banking group by assets and profits, said Thursday it began issuing a contingent convertible bond, or CoCo Bond, which combines debt and equity.Despite its relatively long maturity of 30 years, the bond attracted a number of institutional investors, pushing the group to up the issue limit from 200 billion won ($180 million) to 282 billion won, according to officials.It offers an interest rate of 4.38 percent (at 190 basis points over a 10-year Treasu

June 25, 2015

The imminent kick-off of the Shenzhen-Hong Kong stock connect is seen as a favorable outbound investment opportunity, but is also raising concerns of capital outflow into the more profitable Chinese market, analysts said Wednesday.South Korea’s current strategy is to move in step with China and seek shared growth, instead of competing directly with the giant market.The nation’s stock operator Korea Exchange initiated an exclusive task force to respond preemptively to China’s stock market growth.

June 24, 2015

A key aide of South Gyeongsang Province Gov. Hong Joon-pyo will be summoned for questioning this week over allegations of bribery involving the high-profile politician, the prosecution said Monday.Hong is suspected of taking 100 million won (US$93,000) from late businessman Sung Wan-jong in 2011 through one of Hong's close aides when he ran for ruling party chief.Before hanging himself last month, Sung claimed in a memo that he gave hundreds of millions of won to eight politicians, including for

Social Affairs May 4, 2015

South Korea's finance minister called on Asia Monday to better meet regional demand for infrastructure development by attracting more outside investment and strengthening ties between regional economic institutions, Seoul's finance ministry said.Choi Kyung-hwan, who doubles as deputy prime minister for economic affairs, made the call in a speech to the board of governors session of the Asian Development Bank's annual meeting held in Baku, the capital of Azerbaijan."Asian countries need to speed

May 4, 2015

President Park Geun-hye's job approval rating has edged up slightly, a poll showed Friday, despite a bribery scandal involving some of her key aides.A poll conducted by polling agency Gallup Korea put Park's approval rating at 39 percent this week, up four percentage points from a week earlier.Park's job approval rating has been on the rise since mid-April, when the country was engulfed in the scandal sparked by a "bribery list" left behind by a businessman who committed suicide.The memo listed

Politics May 1, 2015

BEIJING -- China's state-run media Friday stepped up criticism against Japanese Prime Minister Shinzo Abe, who stopped short of apologizing for Japan's wartime atrocities in a speech to the U.S. Congress.  In the landmark speech to a joint session of the U.S. Congress on Wednesday, Abe expressed "deep remorse" about World War II but failed to issue his own apology demanded by many over the Japanese military's sexual enslavement of Asian women during the war.  The Chinese state news agency, Xinhu

World May 1, 2015

South Korea said Friday it will help spur civilian exchanges with North Korea to mark the 70th anniversary of their liberation from Japan's colonial rule.The Ministry of Unification said it will encourage civilian groups to boost inter-Korean exchanges in such areas as culture, sports and history to help "restore national unity and open channels for cooperation.""Seoul expects that more exchanges and cooperation will pave the way for broadening mutual understanding and improving inter-Korean rel

North Korea May 1, 2015

President Park Geun-hye's chief of staff said Friday that he will quit immediately if his bribery allegations turn out to be true. Lee Byung-kee's name was written along with seven other high-profile politicians on a "bribery list" left behind by businessman Sung Wan-jong, who hanged himself last month.The memo shows sums of money written next to the names of six out of eight politicians, indicating that they were bribed.No won figures appear next to former Prime Minister Lee Wan-koo's name or t

Politics May 1, 2015

South Korea's exports shrank for the fourth consecutive month in April but its trade surplus hit a new high as imports dropped at a faster clip than exports, the government said Friday.The country's overall outbound shipments came to US$46.22 billion last month, down 8.1 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.Still, the country posted a record trade surplus of $8.49 billion as imports plunged 17.8 percent on-year to $37.73 billion.April als

May 1, 2015