South Korea’s top financial watchdog said Monday that the local banking giants should seek more transparency in how they elect their chief executives, a week after the Financial Supervisory Service’s disciplinary move against one of the chiefs over “junk funds.” The chief of Woori Financial Group -- one of the five biggest banking groups -- is now banned from holding a job in finance for up to five years as part of punishment for having sold funds the regulator says shoul

Economy Nov. 14, 2022

South Korea will ease lending rules for those looking to buy their first home in the capital and in the greater Seoul area starting Dec. 1 to prevent a property market slowdown prompted by higher interest rates from hurting economic growth. According to an interagency government meeting led by the Finance Ministry on Thursday, such home buyers will be able to borrow up to 50 percent of the property value, up from as low as 20 percent currently approved, and take out mortgage loans on properties

Economy Nov. 10, 2022

South Korea’s top financial regulator on Wednesday eased capital rules for banks seeking to contribute to the government-led fund aimed at stabilizing the local bond and stock markets, in a bid to contain the spillover of liquidity stress. A local insurer’s decision two days ago to reverse its postponement of redeeming its dollar bonds worth $500 billion after being pressured to meet the original deadline had added to growing volatility gripping the bond and short-term money markets.

Market Nov. 9, 2022

Hanwha Life Insurance said Tuesday that Hannah -- the insurer’s latest ‘virtual human’ that will engage customers from now on -- will be the face of the company’s digital efforts to make the metaverse a reality. The latest 3D graphics technology and artificial intelligence played a crucial role behind the debut of the character, the company said, describing it as a virtual financial planner that will help out not only customers seeking a more tailored service but workers

Industry Nov. 8, 2022

South Korea’s financial watchdog said Monday preparations are underway to deal with shrinking liquidity but the recent signs of credit strains are not a prelude to a full-blown crisis, such as the 1997 Asian financial crisis or the 2008 global financial crisis. A default reported by a state-backed local developer in early October had led to signs of a decline in liquidity in the bond and short-term money markets, prompting the government to inject at least 50 trillion won ($35.8 billion) i

Market Nov. 7, 2022

올해 5월 개장한 레고랜드코리아리조트(이하 ‘레고랜드’)의 모회사인 영국 멀린엔터테인먼트는 일각에서 제기되고 있는 레고랜드 부도설은 억측에 불과하고 앞으로 모든 신규투자는 본사에서 자체적으로 진행하겠다는 입장을 밝혔다. 6일 코리아헤럴드의 취재를 종합하면, 멀린은 레고랜드 사업을 맡고 있는 강원중도개발공사(GJC)가 특수목적회사(SPC) 아이원제일차를 통해 발행한 2천50억원 규모의 자산유동화기업어음(ABCP)이 최종 부도처리된 것은 맞지만, 레고랜드 운영에는 전혀 문제가 없다고 강조했다. 다만 채무보증을 선 강원도청을 상대로 ‘계약파기’로 소송을 진행할지 여부에 대해선 ‘기밀유지조항’을 근거로 즉답을 피했다. 또한 내년 1월부터 3월 23일까지 동절기 임시휴장과 관련해, 멀린은 “파크 전체 휴장은 실외 테마파크 특성상 주 이용객인 어린이들과 그 가족의 안전을 보장하고자 지난 55년간 지켜온 약속&rdqu

한국어판 Nov. 6, 2022

Legoland Korea Resort, a theme park in Chuncheon, Gangwon Province that opened in May in partnership with a local developer, does not plan to cut back on its operations and will fund any further expansion itself, regardless of the developer’s recent default, the UK-based attractions operator Merlin Entertainments told The Korea Herald last week. “Any plans Merlin has for future investment are wholly financed by itself,” a spokesperson for Merlin said in an email. But whether th

Industry Nov. 6, 2022

South Korea’s financial authorities said Thursday they would closely monitor for any signs of increasing volatility in the financial markets following a big US rate hike -- the fourth consecutive 75-point increase since June amid persistent inflation. “Uncertainties are certainly growing and we’ll be extra vigilant in our response to what may come in our way,” Finance Minister Choo Kyung-ho said at a meeting he called to discuss Wednesday’s rate increase with the co

Economy Nov. 3, 2022

The leaders of South Korea’s five banking giants on Tuesday agreed to provide 95 trillion won ($67 billion) in liquidity by year-end to shore up local financial markets, rocked by a recent credit default, in what many see as a response to the government’s request for the financial groups’ support. Early in October, a state-backed local developer missed a bond payment, freezing bond and short-term money markets in a blow to market expectations for a government guarantee. The gov

Economy Nov. 1, 2022

Loans taken out by South Korean companies this month from major local banks increased by 8.8 trillion won ($6.18 billion), the biggest monthly rise in 13 months, sparking concerns over fresh liquidity strains amid global headwinds sapping business confidence. Data from the five lenders -- KB Kookmin, Shinhan, Hana, Woori and NongHyup -- showed conglomerates or large companies holding at least 10 trillion won in assets accounted for 66 percent of the 8.8 trillion won surge in borrowing as of Thur

Economy Oct. 31, 2022

The South Korean economy grew at its slowest pace in a year in the third quarter despite beating market expectations, as poor net exports offset consumption and investment, the Bank of Korea’s advance estimate showed Thursday. The country’s gross domestic product -- the value of all goods and services created -- grew 0.3 percent in July-September from the previous quarter, slowing from a 0.7 percent gain in April-June. Annually, the economic output posted a 3.1 percent increase in Ju

Economy Oct. 27, 2022

South Korea is well positioned to fight off any economic shock because it maintains “strong economic fundamentals and ample buffers,” a senior official at the International Monetary Fund said Tuesday, amid growing recession worries prompted by surging borrowing costs seen globally to corral inflation. Krishna Srinivasan, director of the Washington-based lender’s Asia and Pacific department, said that the country’s current account surplus and net foreign assets -- which ac

Economy Oct. 26, 2022

A liquidity crunch South Korea is currently facing has to do with multiple factors, mainly led by uncertainties about where the economy is headed amid soaring interest rates and the rapidly depreciating local currency, the country’s top financial policymaker said Monday. “We had prepared the contingencies but the market conditions were worse than what we had expected,” Kim Joo-hyun, chairman of the Financial Services Commission, said at a National Assembly audit. Kim referred t

Market Oct. 24, 2022

South Korea’s economic policy chiefs, led by Finance Minister Choo Kyung-ho, said Sunday the government would expand liquidity facilities to buy corporate bonds and commercial paper to stop a recent credit default from spilling over into the wider financial market. “The government will earmark 50 trillion won ($34 billion), at the least, to avoid a liquidity crunch,” Choo said, noting the fund will be used starting Monday to calm growing worries over the corporate debt markets.

Economy Oct. 23, 2022

Advanced technologies empower humanity in the long run because they lead to greater freedoms to shape identity, reduce labor and fight diseases, as blockchain, artificial intelligence, robots and mRNA vaccines deliver the means to enhance life in the digital age, experts said Wednesday. “We need a new social contract for the digital age,” keynote speaker Don Tapscott, executive chairman of the Toronto-based Blockchain Research Institute, said at The Korea Herald Biz Forum held at the

Industry Oct. 19, 2022