The Korea Herald

BOK freezes key rate for 2nd month

Sept 13, 2012

South Korea's central bank unexpectedly froze the key interest rate for the second straight month on Thursday in an apparent bid to save ammunition for any worsening of economic conditions.Bank of Korea (BOK) Gov. Kim Choong-soo and his fellow policymakers unanimously left unchanged the benchmark 7-day repo rate at 3 percent for September. The decision surprised the market as most analysts had pre
Seoul shares open lower ahead of Fed announcement

Sept 13, 2012

South Korean stocks started lower Thursday as investors sat on the sidelines ahead of a key decision by the U.S. central bank, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) lost 9.96 points, or 0.51 percent, to 1,940.07 in the first 15 minutes of trading.Most shares traded bearish, with top shipyard Hyundai Heavy Industries falling 0.61 percent and steelmaker POSCO sliding
Income gap between farmers, urban workers hits record high

Sept 13, 2012

The income gap between the country‘s farm workers and non-farm workers widened to a record high last year, with earnings of farmers shrinking due to a rise in costs, the government said Thursday.The average income of farmers stood at 59.1 percent of that of urban households in 2011, according to the Ministry of Food, Agriculture, Forestry and Fisheries. It is the first time that the ratio fell below the 60 percent mark.Up until the mid-1980s, the average income of farm workers exceeded that of c
Apple unveils thinner and lighter iPhone 5

TechnologySept 13, 2012

Apple CEO Tim Cook speaks in front of an image of the iPhone 5 during an Apple event in San Francisco, Wednesday. (AP-Yonhap)For the first time, the iPhone is growing even as it slims down. After sticking for five years to the same screen size, Apple on Wednesday revealed a new phone that's taller, with a bigger display.The iPhone 5 will go on sale in the U.S. and eight other countries next Friday
No compromise with Apple, Samsung CEO says

TechnologySept 12, 2012

Sales of Galaxy Note 2 projected to reach 20m units, Galaxy S3 to exceed 30m this yearSamsung Electronics has no intention to form a compromise with Apple in the near future over the ongoing patent lawsuit between the two sides involving smartphone technology and designs, a top Samsung executive said on Wednesday.“Though the two sides have held a series of negotiations on instruction from the court, it was in vain,” Samsung CEO Shin Jong-kyun of the mobile devices division told reporters.“It wil
Fewer firms seek listing on KOSDAQ

Sept 12, 2012

The number of KOSDAQ-listed companies is decreasing as the world economic slowdown drags on. A total of 1,011 companies are listed on the KOSDAQ as of Tuesday, according to the Korea Exchange on Wednesday, which is a decrease of 20 compared to the same period the previous year. The number of categories also decreased by 20, to 1,016. KOSDAQ did not throw out more companies but less companies sought to be listed, said market insiders. Korea Exchange said that 13 companies were newly listed or rel
Korea’s job creation slows in August

Sept 12, 2012

South Korea’s jobless rate edged down in August from a month earlier but job creation slowed markedly amid worries the overall economic conditions are toughening at home and abroad, a government report showed Wednesday.According to the report by Statistics Korea, the jobless rate stood at 3 percent last month, down from 3.1 percent tallied in the previous month. This is the lowest level for this year. The number of jobs added to payrolls, however, slumped. About 364,000 more jobs were created la
KT goes digital with social contributions

IndustrySept 12, 2012

Following is the sixth in a series of articles about companies’ social contribution activities at home and abroad. ― Ed.With its expertise in telecommunications, KT is moving to minimize the digital divide within the country, going forward with several social contribution projects.The nation’s top fixed-line service provider’s projects include its organization called IT Supporters, Olleh Smart Academy, and giving out smart devices serviced by the firm to underprivileged families.The company also
BOK likely to cut key rate to 2.75% in September: poll

Sept 12, 2012

South Korea’s central bank is tipped to make another rate cut in September following its July rate reduction in a bid to prop up the local economy hit by the eurozone debt crisis, a poll showed Wednesday.Eighteen out of 21 analysts forecast that the Bank of Korea will lower the benchmark seven-day repo rate by a quarter percentage point to 2.75 percent on Thursday, according to the survey by Yonhap Infomax, the financial news arm of Yonhap News Agency.The BOK froze the rate at 3 percent last mon
NTS recoups W863.3b from rich tax evaders

Sept 12, 2012

Korea’s tax agency said Wednesday that it has secured 863.3 billion won ($765.7 million) in unpaid taxes from high-income tax evaders during the first seven months of this year. The National Tax Service said it cracked down on tax evaders among wealthy citizens in the January-July period, finding that 1,420 high-income earners have engaged in dodging taxes through diverse tactics.As a result, the NTS said that it has ordered them to pay 510.3 billion won in cash for unpaid taxes and seized 224.4
Shinhan Bank sells $95m of yuan-denominated bonds

IndustrySept 12, 2012

HONG KONG (Yonhap News) ― Shinhan Bank, South Korea’s third-largest commercial bank, said Wednesday it has raised 600 million yuan ($95 million) in so-called dimsum bonds to diversify funding sources amid the prolonged global downturn. The yuan-denominated bonds were priced to yield 3.5 percent and will mature in two years, the lender said. Dimsum bonds refer to bonds that are denominated in the yuan and issued in Hong Kong. The latest debt sale comes amid its efforts to diversify funding source
Banks’ household loan growth picks up in Aug.

IndustrySept 12, 2012

South Korean banks’ household loans grew at a faster pace in August than the previous month due to marginal gains in home-backed lending and a seasonal factor, the central bank said Wednesday.Local banks’ household loans, including home-backed and credit loans, amounted to 459.3 trillion won ($407.8 billion) as of the end of August, up 1.5 trillion won from the previous month, according to the Bank of Korea.The August growth accelerated from a 700 billion won gain tallied in July, when the month
Samsung to build TV plant in Egypt

IndustrySept 12, 2012

CAIRO (Yonhap News) ― Samsung Electronics Co., South Korea’s leading tech firm, on Tuesday signed an investment agreement with the Egyptian government to build its first TV plant in the country as part of efforts to bank on booming demand in Africa and the Middle East.Under the memorandum of understanding, Samsung will build a TV and monitor plant at Beni Suef Governorate, 90 kilometers south of Cairo. The Egyptian government agreed to provide the site free of charge, according to the company.Sa
Shares close 1.56 percent up on U.S. optimism

Sept 12, 2012

Korean stocks jumped 1.56 percent Wednesday as investors scooped up local shares on hopes for U.S. stimulus measures and eased eurozone woes, analysts said. The local currency climbed against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 30.03 points to 1,950.03, snapping a two-session losing streak.Trading volume was heavy at 693.3 million shares worth 5.17 trillion won ($4.59 billion), with gainers far outstripping losers 541 to 278.“Led by optimism about a possible U.
More rich kids own stocks

Sept 12, 2012

Stocks owned by minors reached nearly 4 trillion won ($3.6 billion) as of last year, Korea Exchange and the National Tax Service reported on Wednesday. The total amount increased by fourfold over the previous year’s 1.12 trillion won. Among shareholders in South Korea, about 1.8 percent, or over 92,000, were minors under 19 years of age, according to the institutions. The under-19 shareholders owned on average 42.95 million won each. The number of minor shareholders has been on a steady rise sin