Four major commercial banks were found to have paid their executives higher salaries in the first half compared to the previous year despite a sharp drop in their profit figures. According to the Financial Supervisory Service on Tuesday, the per capita salary for the four banks’ 37 executives reached 79.45 million won ($69,100) during the first six months of 2013.The figure reflected a 3 percent rise from the 76.85 million won posted during the same period last year. The collective payment given

Aug. 20, 2013

A leading consumer advocate has reiterated its determination to reveal past irregularities involving loan interest rates in the first-tier banking industry by resorting to “judicial authorities.”Following its receiving applications from borrowers for a joint suit against banks during the first half, the Korea Consumer Agency said Sunday that the victimized bank consumers were allowed to join the class action until the end of September as an extension.Its move comes after financial authorities re

Aug. 18, 2013

An independent U.S. trade panel said Friday that there is evidence that South Korean manufacturers are selling steel pipe used by oil and natural gas producers at unfairly low prices in the U.S. market.The U.S. International Trade Commission said it determined that “there is a reasonable indication that a U.S. industry is materially injured by reason of imports of certain oil country tubular goods” from South Korea, India, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine and Viet

Industry Aug. 18, 2013

The state-funded Woori Financial Group will convene a board of directors’ meeting on Wednesday to support policymakers’ plan to sell Woori Investment & Securities.After the board meeting, the nation’s largest financial group ― which holds a 38.85 percent stake in Woori Investment ― is scheduled to make an official announcement in August on the sale of the stock brokerage unit.Though the government has the authority to sell Woori Bank and provincial lenders, the brokerage unit sale is to be initi

July 30, 2013

A financial consumer advocate on Friday criticized financial authorities for glossing over some commercial banks’ alleged rigging of interest rates.“Regulators such as the Financial Services Commission and the Financial Supervisory Service are neglecting their duties,” said a spokeswoman for the Korea Consumer Agency.Her remarks came after the special board, which comprises regulatory officials and lawyers, earlier in the day rejected some 200 borrowers’ call, led by KCA, for the FSS to launch a

July 26, 2013

The number of private moneylenders operating in South Korea fell 6.9 percent in the second half of last year amid tighter business rules and a long streak of low rates, the financial watchdog said Friday.The number of registered private moneylenders and brokers reached 10,895 as of end-2012, compared with 11,702 six months earlier, according to the Financial Services Commission.The fall in such lenders came as the government has toughened rules on the ceiling on interest rates that such money le

July 26, 2013

Economic policymakers are considering introducing a fresh recruiting process for some state-funded agencies, which would not take previously-sought requirements, such as educational background and English proficiency test scores, into consideration.The so-called “spec-free” recruitment system has been adopted by several conglomerates that officially place little significance on applicants’ credentials in their assessment.According to officials at the Finance Ministry, the recruitment process cou

July 25, 2013

Koreans’ spending on coffee and tea fell for the first time in more than five years.According to statistics held by the financial investment industry, the average household’s consumption of coffee and tea products stood at 8,500 won in the first quarter of 2013, down 1.4 percent from 8,624 won over the same period last year.This marked the first fall since the figure reported a 1.3 percent drop in the fourth quarter of 2007.From 2008 to 2012, household spending on coffee and tea posted 10.5 perc

July 24, 2013

Financial regulators have decided to spin off the consumer protection board from the Financial Supervisory Service, officials said Tuesday.The Financial Services Commission, whose executive arm is the FSS, announced that an independent consumer protection entity could be set up during the second quarter of next year.Concerning uncertainty over policy efficacy following a separation, FSC Chairman Shin Je-yoon told The Korea Herald that “the policy reflects the strong determination of President Pa

July 23, 2013

Financial authorities plan to put a brake on major banks’ dividends to their shareholders as a way to secure soundness.Despite a series of cautions from the Financial Supervisory Service, the first-tier banking sector has continued to pay out high dividends to their “largest shareholders, foreign investors, overseas headquarters and chief executives” over the past few years, the national financial regulator said.They included KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woo

July 23, 2013

Financial regulators said Monday they had mapped out a plan under which gold would be publicly traded on a dedicated exchange from the first half of 2014.As part of economic policymakers’ efforts to bring gold prices into the open, a state-controlled spot gold exchange will be set up next year as a sub-entity of the Korea Exchange, the nation’s main securities trading bourse.According to the Financial Services Commission, the policy has been finalized after a series of talks between the ruling S

July 22, 2013