Lenders see combined profit reach 12 trillion won, up 29.2% from a year beforeKorean banks posted a robust combined profit last year on the back of their record-high earnings from service charges.According to the Financial Supervisory Service, banks’ 2011 earnings came to about 12 trillion won ($10.5 billion), up 29.2 percent from 9.3 trillion won a year earlier.Noticeably, their earnings from service fees, including those on transactions via automated teller machines, marked an all-time high of

Jan. 31, 2012

Board of Audit and Inspection to examine FSC, FSS until Feb. 24The Board of Audit and Inspection launched an intensive investigation into the nation’s two financial regulators on Monday.The state auditor, which completed its preliminary audit earlier this month, will carry out an intensive audit on the Financial Services Commission and the Financial Supervisory Service between Jan. 30 and Feb. 24.The audit comes after the FSC endorsed Hana Financial Group’s application to take over Korea Exchang

Jan. 30, 2012

U.S. luxury cars manufacturers like Cadillac and Lincoln, respectively run by GM and Ford, are struggling to win back a share of the expanding luxury car market, largely controlled by Japanese and German automakers.These brands, which once embodied the very essence of luxury cars, saw quality decline in the years before the industry crisis, and drivers abandoned them in their droves.Now they must recover their former glory by improving entry-level models, which was not their strong suit, but whi

Mobility Jan. 29, 2012

Financial regulators endorsed the deal between Hana Financial Group and Lone Star Funds to trade shares of Korea Exchange Bank.Hana Financial has been allowed to take over KEB, which has been owned by the U.S.-based fund since 2003, the Financial Services Commission said Friday.The FSC ultimately has not accepted the opinion among a group of lawmakers and the KEB union that Lone Star has been ineligible to own the bank and the merger deal is invalid.In a statement, the regulator reaffirmed its e

Jan. 27, 2012

Regulators took disciplinary action against Samsung Life Insurance for its irregular business practices.The Financial Supervisory Service said Friday that it has decided to impose on Samsung Life 335 million won ($293,000) in fines and issue a "caution" against the company.The life insurance firm was negligent in controlling the outsourcing business for the information technology sector, the FSS said in a statement."Samsung Life also opened several cash management accounts without the consent of

Jan. 27, 2012

Kia Motors Corp. reported record-high earnings last year on the back of its upgraded brand image and robust sales growth in overseas markets.The automaker posted about 3.5 trillion won ($3 billion) in net profit in 2011, up 30 percent from a year earlier.Its vehicle sales reached 43.2 trillion won last year, up 20.6 percent from a year before. Its operating profit also jumped 41.6 percent to 3.5 trillion won.Kia’s outstanding performance is attributable to the brisk sales of its automobiles base

Mobility Jan. 27, 2012

Financial regulators endorsed the deal between Hana Financial Group and Lone Star Funds to trade shares of Korea Exchange Bank.Hana Financial has been allowed to take over KEB, which was owned by the U.S.-based fund since 2003, the Financial Services Commission said Friday.The FSC ultimately has not accepted the opinion among a group of lawmakers and the KEB union that Lone Star has been ineligible to own the bank and the merger deal is invalid.There have been continuous speculations that Lone S

Jan. 27, 2012

Financial regulators are close to ruling on Lone Star Funds’ eligibility as the biggest shareholder of Korea Exchange Bank.“Inspectors have been in the last-minute review on the issue as to whether Lone Star has been a non-financial investor (which is banned from owning a local bank),” Financial Services Commission chairman Kim Seok-dong told reporters Thursday.But Kim said the FSC has yet to decide whether to announce its stance on the U.S.-based equity fund at the panel discussion, slated for

Jan. 26, 2012

Shinhan conducts early retirement program for first time since 2009The nation’s banking sector has been striving to cut workforces amid growing worries over low cost-efficiency from the lackluster earnings outlook.Among the banks are Kookmin, Shinhan, Hana, Standard Chartered Korea and the National Agricultural Cooperative Federation. Others such as Woori and Citi will possibly follow suit.Shinhan Bank, which conducted a large-scale personnel reshuffle on Thursday, said about 250 employees will

Jan. 26, 2012

Financial regulators are been in the last stage before their ruling on Lone Star Funds’ eligibility as the biggest shareholder of Korea Exchange Bank.“Inspectors are finally reviewing the issue as to whether Lone Star has been a non-financial investor (which is banned from owning a local bank),” Financial Services Commission chairman Kim Seok-dong told reporters Thursday.But Kim said the FSC has yet to decide whether to announce its stance on the U.S.-based equity fund at the panel discussion, s

Jan. 26, 2012