The Fair Trade Commission said Tuesday that it has levied Celltrion Holdings fines of 270 million won ($236,000) for breaching the law on holding firms that own subsidiaries.Celltrion Holdings ― whose flagship unit is biopharmaceutical firm Celltrion Inc. ― violated the law which bans a holding company from reaching a debt-to-equity ratio above 200 percent, said the FTC.According to the antitrust regulator, Celltrion Holdings posted a 217.7 percent ratio of debt to equity at the end of 2011.The

Industry April 9, 2013

Moody’s Investors Service on Monday raised the possibility that it could downgrade South Korea’s sovereign rating due to escalating tension on the Korean Peninsula.Casting a sort of warning over the nation’s sovereign risk, the U.S.-based rating agency said North Korea’s relaunch of nuclear plant operations is negatively affecting the South’s credit standing.“North Korea’s belligerent actions are credit negative for South Korea because they have increased the chance of a serious military clash,”

April 8, 2013

The National Tax Service said Thursday that it has launched a full-fledged investigation into 224 figures including private moneylenders on allegations of tax evasion.The 224 targets are composed of 117 private moneylenders, 51 entrepreneurs in the conglomerate sector, 48 individuals on suspicion of offshore tax-dodging and eight purchasing agents of overseas goods.The tax agency clarified that the probe is aimed at securing a base to levy taxes on dubious profit-makers in the underground econom

April 4, 2013

Commercial banks are cutting interest rates on deposit products, reportedly betting that the Bank of Korea will cut the monthly benchmark rate by 25 basis points to 2.5 percent next week.Amid their recent rush to lower the rates, there are few savings products that offer rates of 3 percent or more to depositors.The nation’s two largest banks ― KB Kookmin and Woori ― decided to conduct the policy starting April 1.Woori Bank has lowered the rates on 16 deposit products by 0.1 percentage point. As

April 2, 2013

Samsung Electronics is expected to post the record-high earnings of about 10 trillion won ($9.17 billion) during the second quarter this year, according to a financial information provider.The Korean tech giant is projected to see its operating profit come to 9.8 trillion won in the April-June period of 2013, up 53.4 percent from the same period last year, according to FnGuide.It cited the currency market stabilization and the government’s package of measures to boost the economy for its rosy ou

Industry April 1, 2013

Financial authorities plan to bolster supervision of unfair stock trading practices via social networking services.The regulatory policy comes amid groundless rumors that have been rampant lately on social networks including Facebook, Twitter and smartphone applications.To crack down on cyber-based stock manipulation, the Financial Supervisory Service plans to closely coordinate with the Financial Services Commission and the Korea Exchange.An official of the Korea Exchange said the main bourse o

March 31, 2013

Four conglomerate chiefs have quit their posts as chief executive in the past month, raising speculation about the motives behind the series of apparently unrelated events.Doosan Infracore chairman Park Yong-maan, Hanjin Heavy Industries & Construction chairman Cho Nam-ho, Lotte Group chairman Shin Dong-bin and Shinsegae Group vice chairman Chung Yong-jin have stepped down from their posts, although they intend to retain their positions as “board members.”The business groups shared the view that

Industry March 31, 2013

State-controlled Korea Deposit Insurance Corp. is facing a lawsuit from consumers who suffered losses on locked deposits in the wake of the 2011-12 savings bank debacle, industry sources said Thursday.Many customers were unable to withdraw their deposits when financial authorities suspended the operation of 26 mutual savings banks from January 2011 to February 2013.The disgruntled depositors for the 26 secondary banks nationwide are poised to file a joint claim against the KDIC with Seoul Admini

March 28, 2013

The state-controlled Korea Deposit Insurance Corp. is facing a lawsuit from a group of consumers who suffered losses on locked deposits in the wake of the 2011-12 savings bank woes, industry sources said Thursday.A great number of consumers were unable to withdraw their deposits as financial authorities suspended operations of 26 mutual savings banks from January 2011 to February 2013.The disgruntled depositors for the 26 secondary banks nationwide are poised to file a joint claim against the KD

March 28, 2013

GS Caltex is aiming to commercialize biobutanol as a renewable fuel for cars that could be used as a substitute for gasoline later this year, market insiders in the oil refinery industry said Wednesday.The company has reportedly set the launch for the fourth quarter of 2013. It is operating a factory which has the capacity to produce biobutanol from sugar or wood under a joint research project with the Korea Advanced Institute of Science and Technology.The launch of the factory’s commercial oper

Industry March 27, 2013

Signs of a feud between the Bank of Korea and the Finance Ministry are emerging as their chiefs are taking different stances over monetary policy.Hyun Oh-seok, the first deputy prime minister and finance minister, stressed the need to lower the benchmark interest rate in a bid boost the sagging economy.In contrast, BOK Gov. Kim Choong-soo immediately reiterated that side effects from low interest rates could undermine Korea’s economic fundamentals.Kim, one of the seven-member panel for the BOK’s

March 26, 2013