South Korea’s credit card spending in restaurants fell 0.3 percent on-year in September 2018, marking the first on-year decline in nearly seven years, data from the Bank of Korea showed Wednesday.The decline reflects a deterioration in consumer sentiment which plunged to a two-year low in August, a month before the latest drop observed in credit card spending. According to the nation’s central bank, the combined credit card spending for eating out here came to nearly 4.7 trillio

Economy Jan. 1, 2020

Woori Financial Group Chairman and Woori Bank CEO Sohn Tae-seung is likely to pursue a second term as head of the financial holdings company. On Monday, a group of outside directors responsible for selecting leadership candidates recommended Sohn as the sole candidate for the group’s next chairman position, citing the stability of its operations as a holding company. If the recommendation is approved at the shareholders meeting in March 2020, Sohn will serve another three years as the grou

Market Dec. 30, 2019

South Korea’s financial watchdog on Monday fined KEB Hana Bank, one of four major commercial banks here, nearly 3.2 billion won ($2.7 million) for selling exchange-traded notes without providing sufficient information to customers. According to the Financial Supervisory Service, KEB Hana violated the Financial Investment Services and Capital Markets Act by allowing its 140 local branches to recommend and sell high-risk exchange-traded notes through bank trusts to its clients who were unawa

Market Dec. 30, 2019

Hyundai Capital’s car-sharing service Deal Car has partnered with local small and medium-sized rental firms to help them digitalize their operations and platforms. According to the consumer financial service providing unit of Hyundai Motor Group, Deal Car has noticed key hurdles that traditional rental businesses now face in the digital age, including the struggle to find a digital alternative to face-to-face interactions for booking and passing of car keys. Through the partnership, Deal C

Market Dec. 29, 2019

South Korea’s central bank said Friday that it plans to keep its monetary easing stance next year in a bid to support economic recovery. “We plan to maintain a monetary easing stance to support recovery in economic growth and stabilize inflation at the target level of 2 percent,” the Bank of Korea said in its report outlining the direction of its monetary policy for 2020.  “We expect South Korea’s economic growth rate to fall short of the potential growth rate

Economy Dec. 27, 2019

South Korea’s monetary authorities on Thursday reiterated their warning against increasing household debt especially for the elderly as the heated real estate market continues to attract liquidity.According to a report released by the Bank of Korea, the outstanding household debt, including credit spending, came to 1,572.7 trillion won ($1.35 trillion) as of end-September. The figure, which has gained 3.9 percent on-year, marks the lowest growth since the second quarter of 2004, when the h

Economy Dec. 26, 2019

With unresolved problems set to drag into the new year, South Korean commercial lenders face a number of burdens that will keep them occupied throughout 2020. One of the major issues that drew public flak earlier this year was the misselling of derivatives products worth a combined 800 billion won ($688 million) by Woori Bank and KEB Hana Bank, putting its customers at risk of losing large sums. The banks failed to provide customers with adequate information about the high-risk nature of the pro

Market Dec. 24, 2019

The average number of companies that suffered credit rating downgrades hit a three-year high this year, as they have been struggling to cope with the risks stemming from the US-China trade war and global economic slowdown, latest data showed Monday. According to separate evaluations by three major credit rating agencies here, the average number of firms that were downgraded so far this year increased to 55 firms, 15 more than last year. The corresponding figure stood at 37 in 2018 and 45 in

Market Dec. 23, 2019

The head of Woori Bank on Monday urged employees to do their best to compensate clients who faced losses from derivative options based on their recommendation, in an apparent move to heed the financial watchdog’s reccomendation.“I ask that you actively listen to what customers have to say and draw up additional measures that could minimize their damages,” Woori Financial Group Chairman and Woori Bank CEO Sohn Tae-seung told his employees in a meeting. The meeting was attended b

Market Dec. 23, 2019

South Korea’s semiconductor industry is projected to walk the road to recovery next year, which will propel the local stock market in turn, recent reports by global investment banks said.Most financial institutions upgraded their ratings of the stock market by one or two notches, and said the benchmark Kospi will trade at an average 2,300 points, higher than the corresponding figure of 2,100 points this year. France-based financial institution BNP Paribas adjusted its rating on the South K

Market Dec. 22, 2019

Different forms of leadership have shaped nations and companies for centuries.And for the coming decade, “transformation” would be the keyword for leadership, Eugene Kim, the managing partner of leadership advisory firm Egon Zehnder’s Seoul office told The Korea Herald in an interview earlier this month.“The ability to generate profit is no longer the key skill that companies expect from their leaders -- it’s the ability to define and bring about transformation,&rdq

Industry Dec. 22, 2019

Since the end of the 1950-53 Korean War, South Korea’s gross national income per capita had increased nearly 500-fold as of 2018, data provided by the nation’s central bank showed Thursday. The figure is part of the Bank of Korea’s latest data, as it changed its reference year from 2010 to 2015. According to the updated data, the nation’s GNI per capita stood at $33,434 in 2018, which was 503 times more than the corresponding figure in 1953 of $76. Before the BOK adopted

Economy Dec. 19, 2019

With a healthy pipeline of companies seeking initial public offerings next year, industry watchers say the proceeds raised could exceed 10 trillion won ($.8.9 billion) for the first time since 2010. According to corporate announcements made so far, the first major IPO of 2020 is expected to be South Korean drug development firm SK Biopharmaceuticals. The drug unit of South Korea’s telecom-to-energy conglomerate SK Group submitted a preliminary application for an IPO to the Korea Exchange i

Market Dec. 18, 2019

South Korean investments in the European office market increased 152 percent as of November on-year, buoyed by a currency-swap premium, but is projected to decline and diversify next year, commercial real estate services company Cushman & Wakefield said Wednesday. “Around 18 trillion won ($16.5 billion) was invested in the overseas office building market so far this year and European properties accounted for 86 percent of the total volume,” Philip Jin, head of research at the Kor

Market Dec. 18, 2019

Housing prices are widely expected to soar despite the stringent regulations enforced by the South Korean government, according to market analysts Tuesday.The government in a surprise move recently unveiled new measures to curb rising home prices, which push for tighter mortgage rules.A report released by local brokerage Mirae Asset Daewoo warned local investors that if the new measures fail to rein in soaring housing prices, even stronger measures are likely to be adopted next year. It recommen

Economy Dec. 17, 2019