Lawmakers of the National Assembly’s Strategy and Finance Committee decided Tuesday to postpone the legislation of an amendment that involves levying income taxes on religious groups.Twelve committee lawmakers tentatively reached a consensus to impose income taxes on priests and Buddhist monks, but they still needed further discussion over the matter.The committee said it would try to put the revision into legislation during the next session of the National Assembly in February 2014.The governme

Dec. 24, 2013

The Ministry of Strategy and Finance said Monday that the government would consider re-designating KDB Financial, Korea Development Bank and the Industrial Bank of Korea as “public institutions.”The Finance Ministry said that it planned to look into the possibility of including the state-controlled banks in its category of public-sector enterprises during its regular meeting next month.“The government will consider the option of reclassifying KDB Financial, KDB Bank and IBK as public institution

Dec. 23, 2013

KB Kookmin Bank is currently seeking the China Banking Regulatory Commission’s approval for the Korean bank’s appointments of its executives at its Beijing unit.A KB spokesperson said that KB Kookmin Bank has taken “normal steps” with Chinese financial regulators for its executive appointments in Beijing.The Korean bank in Seoul said it filed a request for the CBRC’s approval in mid-November this year, and expected it would take about two to three months.“The process normally takes about that ti

Dec. 20, 2013

Korea’s financial policymakers and regulators have tightened their vigilance over the financial market following the U.S. Federal Open Market Committee’s decision to cut back its monthly bond purchases.Although the U.S. tapering of its quantitative easing would have minimum impact on Korea given its sound fundamentals and macroeconomic policies, financial authorities have called for increased monitoring and contingency measures against capital-flow volatility.“There is a potential for the financ

Dec. 19, 2013

The won is expected to further strengthen against the dollar as Korea will continue to achieve current account surpluses on the back of a global economic recovery, analysts said.The exchange rate fell 0.4 won to 1,051.1 won Tuesday, near this year’s low of 1,051 won.The general market outlook for the Korean won seemed that it will gain a lot faster against major global currencies such as the U.S. dollar, the euro and the Japanese yen.Analysts have noted that the won-dollar rate could potentially

Dec. 17, 2013

Trading of Korean stocks, bonds and currency could become volatile as the U.S. Federal Open Market Committee is expected to lean toward monetary stimulus cuts due to improved data in the world’s largest economy, analysts said Monday.Asia’s fourth-largest economy will need to brace for further possible foreign selloffs as the FOMC holds meeting from Dec. 17-18. Many economists believe that FOMC members may vote for an early start of its quantitative easing tapering.The global markets are expected

Dec. 16, 2013

The Ministry of Strategy and Finance said Monday that it will jointly host the G20 Seoul Conference with Australia’s Department of Finance, the Korea Institute of Finance and the Korea Development Institute on Dec. 18-19.The Seoul Conference will invite finance vice ministers, deputies, professors, researchers and analysts of G20 economies to discuss global financial market systems.Some 200 dignitaries from G20 countries and international financial institutions, including central banks, will gat

Dec. 16, 2013

KT Corp. said Sunday that it has shortlisted four candidates for the chief executive post of Korea’s second biggest mobile operator.The company’s CEO nomination committee plans to hold interviews for the four candidates on Dec. 16 and finalize its selection.KT said that it will evaluate the candidates’ management and IT acumen and test their ability to see whether they can carry out global projects and businesses.The company will also look closely at their organization and entrepreneurial skills

Industry Dec. 15, 2013

Financial authorities are about to further deregulate laws governing the capital market as a last resort to save the declining securities sector, but industry watchers see the measures as less than satisfactory. The Financial Services Commission on Sunday unveiled a set of deregulatory measures to encourage brokerage houses that were able to stay afloat in the troubled environment to either take over or merge with their ailing peers.Those that pursue mergers and acquisitions in the industry with

Dec. 15, 2013

The full-scale debt restructuring of Korea’s state-run enterprises, including 12 companies under tight government scrutiny, would likely lead them to increase public utility, transportation and other service fees, analysts said.This comes as state-run companies will be required to wind down by 2017 their debts that have ballooned due to overexpansion and overspending. Should companies show a lack of progress in debt reduction in their midterm evaluation, the government would remove their chief e

Dec. 12, 2013

Deputy Prime Minister and Finance Minister Hyun Oh-seok said Wednesday that the government would require state-run enterprises ― especially the 12 companies whose debt has increased most ― to reduce their borrowing and executive bonuses.He said that state-owned enterprises would have to reduce their debt ratios to less than 200 percent by 2017, with the current average at 220 percent. Hyun added that he would strengthen monitoring of the 12 public companies’ finances over the next four years.The

Dec. 11, 2013

Korean financial authorities said Tuesday that they have decided not to recognize Bitcoin, or cyber currency, as a real legal currency.The conclusion came after a week of debate among officials of the Ministry of Strategy and Finance, the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service.Officials said Bitcoin, which can be traded between individuals online without going through financial institutions such as banks, does not meet standard regulations governin

Dec. 10, 2013

The government is bearing fruit from its plan to normalize the underground economy in an effort to secure tax revenue to finance its welfare pledges.In a report to the National Assembly’s Strategy and Finance Committee on Monday, the Korea Customs Service and the National Tax Service said they secured tax revenue amounting to around 1.99 trillion won ($1.9 billion) as of the end of September this year.This accounted for 72.8 percent of the initial target set early this year when the two tax and

Dec. 9, 2013