The Korea Herald

KDB faces multiple sanctions for STX, Dongbu Group crises

The country’s financial regulators are set to punish the state-run Korea Development Bank by holding it responsible for poor loan management as the main creditor of STX Group and Dongbu Group, according to local reports.The Financial Supervisory Service and Financial Services Commission have recently launched a special audit into the KDB on allegations that the bank fabricated STX Offshore & Shipbuilding’s credit rating and raised the shipbuilder’s credit limit by 300 billion won ($294.6 million

July 14, 2014

KDB faces multiple sanctions for STX, Dongbu Group crises

‘KEB, Hana merger is a bonanza’

Hana Financial Group chairman Kim Jung-tae has reiterated his support for speeding up the merger between Hana and Korea Exchange Bank, stressing that the synergy from the integration would be worth up to 1 trillion won ($980 million).“The KEB, Hana merger is a bonanza,” Kim said during an executive workshop over the weekend. “The early merger will serve as a critical opportunity to make a breakthrough in the internal and external crises and prepare for future growth.” Hana Financial Group chair

July 13, 2014

Diageo Korea muscles into Japanese beverage market

TOKYO ― Diageo Korea, the Korean branch of the world’s largest distiller, is poised to enter the neighboring Japanese ready-to-drink market, leveraging its production line in Icheon, Gyeonggi Province.“Riding on the fast-growing demand for bottled alcoholic beverages in Japan, we debuted Smirnoff Ice Green Apple, produced on the Icheon production line, in Japan last week,” Diageo Korea CEO Cho Kil-soo said in a press meeting held in Tokyo on Thursday.“We expect to rake in about $15 million in sa

Industry July 6, 2014

Diageo Korea muscles into Japanese beverage market

[Weekender] Distinctive culture adds color to Seoul’s nightlife

In the latest music video by K-pop sensation Psy, the rapper and his right-hand man Snoop Dogg drink round-the-clock at different venues, imitating the nightlife in South Korea. They down soju, beer and whatever comes their way.But drinking a copious amount of booze is not what all night activities are about here.From a pub equipped with a digital dating system to chimaek fiesta, new forms of night culture have become fresh recreation for Koreans and once-in-a-lifetime experiences for foreign vi

Culture July 4, 2014

[Weekender] Distinctive culture adds color to Seoul’s nightlife

Average card transaction value drops to lowest level

The average amount of credit card spending per purchase plunged to the lowest level in history last month, indicating a change in patterns of credit card usage among South Korean consumers.South Koreans spent an average of 45,319 won ($44.80) per purchase last month, down 9.5 percent on-year, the Credit Finance Association of Korea said on Tuesday.The decreased credit card spending was driven by a change in the way consumers use their cards ― spending less per transaction with debit cards, the C

July 1, 2014

KB signs stock buying deal with LIG Insurance

KB Financial Group said on Friday it had signed a contract with LIG Insurance to take over a controlling stake in the country’s fourth-largest nonlife insurer.The banking group reportedly paid about 640 billion won ($630 million) to buy a 19.83 percent stake in LIG Insurance.‘‘The company has sought the deal to diversify its banking-centric business portfolios into the nonbanking business,” KB Financial said in a press release. The stake acquisition still needs approval from the financial author

June 27, 2014

KB signs stock buying deal with LIG Insurance

KT&G releases new Raison Sun Presso cigarette

KT&G’s Raison Sun PressoKT&G, the country’s largest tobacco manufacturer, has launched capsule-type Raison Sun Presso, the company announced Monday.Raison Sun Presso is the latest edition to KT&G’s Raison Presso lineup launched in 2012. Company officials said consumers will now be able to choose from four different products in the series. According to the firm, each cigarette contains a capsule in the filter that when popped, releases two flavors.The new package contains an image of waves under

Industry June 23, 2014

KT&G releases new Raison Sun Presso cigarette

[Herald Interview] ‘Imperial Tobacco is here to stay’

When it comes to marketing in Asia, time is irrelevant, says Roberto Ascoli, division director of the British multinational company Imperial Tobacco Group.“We’re not here for one year or two years. We’re here for 20 years, 30 years, 50 years and so on. The progress has been initially slow, but we’re satisfied with what we have done. But we want to do more,” Ascoli said in an interview with The Korea Herald on June 12.Ascoli’s remarks came during a short visit here to discuss the imminent launch

Industry June 23, 2014

[Herald Interview] ‘Imperial Tobacco is here to stay’

Coffee market still brewing

South Korea’s coffee market is forecast to continue to grow, despite growing concerns over market saturation. The country’s coffee imports marked 52,660 tons from January-May this year, up 13.6 percent from the same period a year ago, according to the Korea Agro-Fisheries & Food Trade Corp. Coffee imports have continued double-digit growth for the past five years, it added. Industry watchers say that there is more room to grow in the coffee market, seeing new pockets of consumption from the fast

Industry June 22, 2014

Woori to buy Cambodian microfinance institution

Woori Bank has decided to acquire Cambodia’s microfinance institution Malis Finance for 5 billion won ($4.9 million) to accelerate its global expansion. The Financial Services Commission approved Woori Bank’s acquisition of Malis on Wednesday, according to bank officials. The purchase of the Cambodia-based firm marks the bank’s second attempt at making inroads into the Southeast Asian country after its failure in 2008 due to the global financial crisis.“It’s difficult to develop a (stable) busin

June 19, 2014

Brokerages downsize number of analysts by 20%

The number of stock analysts in South Korea decreased by nearly 20 percent over the last three years as the bearish stock market has worsened earnings of many brokerages, leading them to let their analysts go.Local brokerages had 1,276 analysts as of last month, down 19.2 percent from an all-time high of 1,580 in February 2011, according to the Korea Financial Investment Association.The report showed that the findings provide the starkest evidence yet of the market’s sluggish performance in rece

June 17, 2014

Seoul shares edge up on hopes of Europe stimulus

South Korean stocks inched up 0.14 percent on Monday on hopes of Europe’s stimulus measures, with investors taking a wait-and-see stance against unrest in Iraq, analysts said. The South Korean won fell sharply against the U.S. dollar.The benchmark Korea Composite Stock Price Index climbed 2.74 points to 1,993.59. The trading volume was moderate at 227.9 million shares worth 1.19 trillion won ($1.17 billion), with losers outpacing gainers 440 to 368.The KOSPI started a tad lower, following a shar

June 16, 2014

NongHyup to launch merged brokerage unit in Dec.

NongHyup Financial Group on Thursday announced that its new brokerage arm created by a merger between NongHyup Investment & Securities and Woori Investment & Securities would be launched on Dec. 31. It also said that Woori Aviva Life Insurance will merge with NongHyup Life Insurance in the first half of 2015, while Woori FG Savings Bank will be placed under NongHyup Financial as of this month. With the package deal involving the three Woori units, NongHyup Financial Group will be reborn as the c

June 12, 2014

NongHyup to launch merged brokerage unit in Dec.

Hana chief faces double whammy of sanctions

Financial regulators are expected to soon announce additional penalties for Hana Bank CEO Kim Jong-jun in a move that is expected to apply further pressure on Kim to step down from his post.“We are not yet permitted to discuss the result (of an ongoing probe into Hana Bank) but given the seriousness of the Hana Bank case, the CEO is most likely to be subject to penalties,” an FSS official said Tuesday.In July, the Financial Supervisory Service will hold a disciplinary committee to decide on the

June 11, 2014

NTS raids LG Hausys, LG Chem in tax probes

NTS raids LG Hausys, LG Chem in tax probesTax investigators on Tuesday raided LG Hausys in part of what could be a group-wide tax audit on LG.In an unprecedented move, National Tax Service officials entered the headquarters of LG Hausys, LG Group’s subsidiary specializing in construction materials, according to sources. The surprise investigation was known to have been made at the same time as an LG Chem raid around 10:30 a.m., when the NTS officials rushed into the chemical company’s headquarte

Industry June 10, 2014

Articles by Suk Gee-hyun