Korea plans to tighten supervision of savings banks after the government was forced to suspend eight lenders this year because they were unable to meet depositors’ withdrawal demands. The Financial Services Commission will stop setting favorable lending limits for savings banks that have a capital-adequacy ratio of more than 8 percent and a bad-loan ratio below 8 percent, the regulator said in a r

March 9, 2011

Korea Electric Power Corp., Korea’s biggest electricity producer, plans to invest 2 trillion won ($1.8 billion) over the next five years in a smart grid as part of the government’s efforts to reduce carbon emissions. Adding two-way communications and other enhancements to the nation’s current power-transmission grid nationwide by 2030 may cut about 10 percent of Korea’s annual power consumption, w

Industry March 9, 2011

Korean lenders’ average capital adequacy ratio fell in the fourth quarter after Hana Bank helped finance its parent company’s purchase of Korea Exchange Bank. The ratio, a measure of capital reserves against assets at risk under the Basel II standard, slipped to 14.6 percent at the end of December from 14.62 percent three months earlier, the Financial Supervisory Service said in a statement. The a

March 9, 2011

The delinquency rate of Korean financial companies‘ household loans gained in 2010 from a year earlier, a report showed Tuesday, adding concerns over worsening loan repayment ability.The default rate stood at 1.09 percent of their total lending as of the end of 2010, up 0.06 percentage point from end-2009, the Financial Supervisory Service said in the report to the National Assembly.Out of the tot

March 8, 2011

Korea’s exports of used vehicles dropped in 2010 from a year earlier, a local trade body said Tuesday, despite a large boost in overseas sales of new Korean cars last year.The country shipped 239,556 pre-owned vehicles to overseas countries last year, down 9.4 percent from 264,742 units a year earlier, according to the Korea Trade-Investment Promotion Agency (KOTRA).Revenue from overseas sales of

Industry March 8, 2011

Korea’s KOSPI Index, which posted its biggest monthly decline in two years last month, had its mid-year target cut at Citigroup Inc. on concern higher oil prices will hurt corporate profits.The mid-year estimate for the benchmark stock gauge was reduced to 2,050-2,150 from 2,200-2,300, Citigroup analysts led by Michael Chung wrote in a report dated yesterday. The brokerage increased its Brent crud

Industry March 8, 2011

Korea’s Finance Ministry said on Tuesday in a closely watched monthly report that economic uncertainty has increased globally and that domestic demand in Asia’s fourth-largest economy showed signs of softening. “Recovery in the world economy is improving but uncertainty has increased due to such factors as the political unrest in the Middle East, possible monetary policy tightening in emerging eco

March 8, 2011

Output of five automakers in Korea rose 6.4 percent on-year in February with strong demand at home and abroad also keeping their sales humming, an industry group said Monday.Led by industry leader Hyundai Motor Co. and its affiliate Kia Motors Corp., the automakers produced 297,350 vehicles last month, compared with 279,368 units a year earlier, according to the Korea Automobile Manufacturers Asso

Industry March 7, 2011

Korea is seeking to sell bonds to a broader range of investors, especially within Asia, to limit the risk of large, swift investment outflows triggering a crisis, a finance ministry official said.“We would like to broaden our bond buyers overseas so that we can avoid a financial crisis caused by the sudden flight by a few,” Woo Hae-young, director of the Government Bond Policy Division at the Mini

March 7, 2011