Foreign investors have net purchased nearly 3 trillion won ($2.66 billion) worth of South Korean stocks on the main bourse this month so far, data showed Sunday, adding fuel to a bear market rally. The foreign net purchase volume on the Kospi through Jan. 25 amounted to 2.9 trillion won, climbing to a 15-month high.  The recent buying spree helped lift the Kospi, which closed at 2,177.73 Friday, rising 136.69 points or 6.7 percent overall since the beginning of the year. It was the highest

Market Jan. 27, 2019

South Korean discount chain operator Homeplus has joined Europe’s largest retail alliance, the firm said Thursday, in a first for an Asian retailer. As a member of the European Marketing Distribution, Homeplus aims to deliver goods imported from the EU to Korean consumers at affordable prices while aiding Korean manufacturers in entering the European market, the company said in a statement.  Homeplus CEO Im Il-soon (left) and European Marketing Distribution Managing Director Philippe Gruyters (r

Industry Jan. 24, 2019

Amid South Korea’s efforts to revitalize the economy, debate over whether to lift the securities transaction tax has been rekindled, with the government, lawmakers, and the financial sector divided over the consequences.The issue regained attention after ruling Democratic Party Chairman Lee Hae-chan said, “It is time we take it up as an agenda item,” in response to a request to either lift or cut the tax in a rare meeting with financial firm representatives on Jan. 15. “There are various factors

Industry Jan. 23, 2019

Financial institutions including Kyobo Life Insurance, SBI Holdings and Kiwoom Savings Bank are mulling jumping into South Korea’s internet-only bank business amid the state’s efforts to foster the sector, reports said Wednesday. The companies attended a briefing session Wednesday, co-hosted by the Financial Services Commission and Financial Supervisory Service to discuss the formation of the country’s third internet-only bank. The institutions admitted they had been eyeing the

Market Jan. 23, 2019

Fueled by the government’s road map to build a “hydrogen economy,” South Korea’s top automaker and hydrogen-powered car parts firms continued a two-day gaining streak.Hyundai Motor, which launched the fuel cell electric vehicle Nexo early last year, closed at 131,000 won ($116.80) per share Friday, up 1.16 percentage point from the previous close and hitting a 16-week high. Companies that manufacture or supply hydrogen electric vehicle parts also marked sharp gains.

Market Jan. 18, 2019

A global asset management firm on Wednesday suggested diversified overseas investments in US and European high-yield bonds this year to reduce risk or volatility.“The point of this is to say that there can be technically driven differences in the markets that cause one market to outperform or underperform another market … again this is all corporate credit,” said David Mihalick, head of Barings’ US High Yield Investments Group, during a press conference in Yeouido, Seoul

Market Jan. 16, 2019

Holdings by South Koreans of securities in foreign currencies grew rapidly last year, data from the Korea Securities Depository showed, with local securities firms expanding relevant services for local investors. The volume of the holdings jumped 43.4 percent to $32.5 billion in 2018, from the previous year’s $22.7 billion, according to the data. It represented an almost sixfold increase over five years, as the corresponding figure for 2013 was $5.2 billion.Overall, local investors’

Market Jan. 16, 2019

Shares of a South Korean engineering firm skyrocketed on Tuesday on recent reports that it could handle engineering design for projects to reconnect and modernize inter-Korean railways.Shares of Yooshin Engineering, which specializes in railway design and construction, soared 29.92 percent from the previous trading in the morning, hitting a 52-week high. It was being traded at 25,400 won ($22.67) per share on the country’s tech-heavy Kosdaq bourse as of midday. Among several engineeri

Market Jan. 15, 2019

Samsung Securities has set up a special desk devoted to dollar-denominated bonds, reflecting South Korea’s growing interest in dollar assets over the US Federal Reserve’s continuing rate hike, the firm said Monday. It aims to provide better guidance to its customers by providing relevant information on the price and currency, the company said. It added that it will help investors to determine the “right timing” to purchase bonds at the market price.  The brokerage ho

Market Jan. 14, 2019

Public concerns over heavy fine dust concentration in recent days have lifted stock prices of local personal care product manufacturers and home appliance makers Monday. Personal care products company Monalisa, which manufactures and distributes face masks for fine dust, jumped 11.39 percent from the previous trading day. It was traded at an opening price of 4,060 won ($3.61) per share.Firms listed on the tech-heavy Kosdaq such as Welcron and Okong, also manufacturers of protective masks al

Market Jan. 14, 2019

Trading of South Korean shares is projected to take place within a narrow range this week amid growing concerns about a prolonged US government shutdown and the impending Brexit vote in the UK, which are dampening investor sentiment. The two political risks, combined with lackluster fourth-quarter earnings projected for US and Korean firms, will likely push the main Kospi bourse into a “boxpi” situation, according to analysts. “Boxpi,” a combination of the words “Ko

Market Jan. 13, 2019

After the recent Billboard debut of megahit South Korean version of children’s song “Baby Shark,” shares rose Thursday in anticipation of further success in related merchandise. Share prices of Samsung Publishing, the second-largest shareholder of SmartStudy, the local education startup behind the “Baby Shark” phenomenon, rose by more than 20 percent from the previous trading day. Shares of the publishing company, which holds 25.03 percent of SmartStudy, closed at 1

Market Jan. 10, 2019

Drama production firms and content providers are projected to stand out among stocks this year, security firms said, citing the hefty number of shows to be produced in 2019, coupled with Korean companies’ growing partnership with dominant streaming service Netflix.“It would be recommendable to invest in firms that hold a ‘captive’ or their own broadcasting platform, and have already inked a distribution deal with Netflix,” Kim Hyun-yong, an analyst at eBest Investme

Market Jan. 9, 2019

South Korea’s initial public offering market is expected to rebound this year on the back of large companies’ plans to debut shares, after its size sank to a five-year low in 2018, industry watchers said Monday.Among those expected to issue IPOs this year are major firms in their respective fields, Hyundai Oilbank and Kyobo Life Insurance, both of which are likely to make big waves in the market.  With the two, the market is forecast to gain up to about 4 trillion won ($3.6 bill

Market Jan. 7, 2019

The ratio of household debt to gross domestic product in South Korea increased at the second fastest pace in the world last year, only outranked by China, despite the Seoul government’s tightened lending rules, data showed Wednesday. According to data compiled by the Bank for International Settlements, Seoul’s household debt accounted for 96 percent of the GDP at the end of the second quarter in 2018, up 2.4 percentage points from the previous year. The growth rate marked the se

Economy Jan. 6, 2019