Foreign investors have targeted the South Korean stock market in their recent capitalization of equities amid concern over some developed countries exiting monetary easing.Amid predictions of weaker growth for emerging economies due advanced countries’ tighter monetary policy, foreigners net-sold stocks worth $3.22 billion on the Korean bourse over the past week.A certain portion of research analysts, however, are betting on longer-than-expected monetary easing in the U.S. and other major countr

June 18, 2013

Korean financial authorities on Friday dismissed the possibility of foreign exchange rate manipulation in the local financial market, saying it has no plans to investigate.But critics said Korea’s authorities are taking a lukewarm stance toward the rate-rigging scandal that is snowballing abroad.They argued Korean authorities’ stance appears passive compared to major regulatory agencies in Europe and the United States that are poised to investigate alleged rule-breakers or similar cases.Accordin

June 14, 2013

Ssangyong Engineering & Construction has averted delisting from the stock market or liquidation after its creditors finally agreed to bail out the debt-saddled builder.Following the decision of KB Kookmin Bank a day earlier, Shinhan Bank on Thursday approved the proposition to help Ssangyong E&C’s management normalization by launching a debt rescheduling program under creditors’ control.Hana Bank and the state-run Korea Development Bank also gave the nod to the rescue plan on the same day.Some r

June 13, 2013

The government-led project to retrieve taxpayers’ money injected into Woori Financial Group will officially start on Friday when the new chief of the state-funded financial service firm is scheduled to take office.One day before the coming inauguration of Woori Financial chairman nominee Lee Soon-woo, the nation’s chief financial regulator Shin Je-yoon said the Financial Services Commission would unveil detailed measures to sell the group late this month.FSC chairman Shin told a group of researc

June 13, 2013

Deputy Prime Minister and Finance Minister Hyun Oh-seok hinted that policymakers may devise measures to set up a special government agency in charge of attracting foreign investment.During his policy briefing to the National Assembly on Wednesday, Hyun said he did not believe the nation “has yet to establish a superb environment for foreign investment even though policymakers have put forth much effort.”Asked by lawmakers about the necessity of launching the foreign investment promotion-oriented

June 12, 2013

The Fair Trade Commission said Tuesday that it launched a full-fledged probe into 23 companies in a bid to reveal some of their headquarters’ alleged bullying of retail stores.The 23 firms belong to eight industry sectors ― automobile, dairy, liquor, cosmetics, beverages, bakeries, ice cream and ramen.While the antitrust regulator said it had been conducting written-based inquiries into the companies since June 3, it hinted that it would widen the scope of the probe by dispatching a group of ins

June 11, 2013

The Korean government on Tuesday issued a caution to the nation’s trading companies over possible financial damage from the U.S. government’s new sanctions against Iran.The alarm comes as the U.S.-led enhanced military and administrative sanctions against the Middle East country are due to take effect on July 1.Raising the alarm level for trading with the Muslim republic, Seoul said in a statement that “some 2,300 small and mid-sized enterprises are likely to severely be hit by the U.S. action.”

June 11, 2013

The Finance Ministry is considering selling some of its dominant stake in the Industrial Bank of Korea in an apparent bid to raise state funds for President Park Geun-hye’s policy agenda, government officials said Monday.While the ministry holds a 65.1 percent stake in IBK, it is seeking to dispose of about 15 percent and maintain its position as majority shareholder with a controlling stake of about 50.1 percent, according to officials.To attract investors, the state-funded IBK, in coordination

June 10, 2013

The Finance Ministry is reportedly considering revising its outlook for 2013 GDP growth up from the current projection of 2.3 percent in reflection of possibly positive effects from the supplementary budget and a cut in the benchmark interest rate.While the ministry lowered the economic growth projection from 3 percent to 2.3 percent in March, government officials have worried that the state-led gloomy stance is hampering investor and consumer sentiment.“In late June, contemplating policy effect

June 9, 2013

Financial authorities are poised to put the state-funded Daewoo Shipbuilding & Marine Engineering up for auction, following their recent policy to privatize Woori Financial Group.To recoup taxpayers’ money injected into Daewoo Shipbuilding, the Financial Services Commission has launched a process to sell its 17.1 percent stake in the company, regulatory officials at the FSC said Sunday.According to officials, the FSC’s initial goal is to reduce the government’s shares in the shipbuilding giant b

June 9, 2013

The import automobile industry has broken its all-time sales record for the second consecutive month this year.After attaining record figures in April, foreign carmakers saw their combined sales come to a fresh high of 13,411 units in May, the Korea Automobile Importers and Distributors Association said Thursday.Data from the foreign automakers’ lobby KAIDA showed that the import brands’ May sales surpassed the April tally of 13,320 units. Their sales have continued to climb since January ― to 1

Industry June 6, 2013

The financially distressed STX Pan Ocean will hold an extraordinary board meeting on Friday to select an alternative to a stake auction to normalize the company’s management.The scheduled board meeting is to convene as the nation’s largest bulk carrier operator ― as a shipping unit of the ailing STX Group ― has reportedly failed to find an acquirer for the past six months.STX Pan Ocean has been in M&A talks with the state-run Korea Development Bank, which holds a 14.99 percent stake in the compa

June 6, 2013