South Korea's exports posted their biggest drop in almost six years in May, though its trade surplus expanded as imports shrank at a faster pace, the government said Monday.In May, the country's overall outbound shipments came to $42.39 billion, down 10.9 percent from the same month last year.It was the largest on-year decline since a 20.9 percent plunge in August 2009.May marked the fifth consecutive month of an on-year drop in exports. Imports also plunged 15.3 percent on-year to $36.07 billio

The ratio of South Korea's short-term foreign debt to its foreign reserves fell to the lowest level in a decade in the first quarter, bolstering the country's buffer against possible capital outflow, central bank data showed Monday.The country's short-term external debt totaled US$112.8 billion as of the end of March, down $2.5 billion from the end of last year, according to the data compiled by the Bank of Korea.Korea's total external debt reached $418.9 billion as of end-March, also down $6.5

South Korean asset management companies saw their net profits edge down in the first quarter of this year from a year earlier due to a rise in operating and non-operating expenses, the financial watchdog said Sunday.A total of 87 asset managers posted a combined 89.3 billion won ($80.6 million) in net income in the January-March period, compared with 89.5 billion won a year earlier, according to the Financial Supervisory Service.The slight decline came as their selling and administrative expense

The size of shadow banking in South Korea is estimated to have grown to more than 1,500 trillion won($1.35 trillion) last year, data showed Sunday.The data submitted by the central bank to Justice Party Rep.Park Won-suk showed that the size of the country's shadow banking sector expanded 11.6 percent on-year to 1,503 trillion won as of the end of last year.Shadow banking refers to financial activities through non-banking channels, including hedge funds, real estate trust funds and off-balance sh

South Korean stocks rose Thursday, snapping their two-day losing streak, on eased concerns over Greece's debt talks with its creditors, analysts said. The local currency dropped against the U.S. dollar. The benchmark Korea Composite Stock Price Index gained 3.39 points, or 0.16 percent, to 2110.89. Trading volume was moderate at 410.7 million shares worth 6.72 trillion won ($6.07 billion), with gainers surpassing losers 455 to 370.Analysts said positive progress in talks between Greece and its c

Bank lending rates for new loans in South Korea fell for a fourth straight month in April following a surprise rate cut in the previous month that sent the base rate to a record low, central bank data showed Thursday.In a surprise move, the Bank of Korea slashed its policy rate by a quarter percentage point to 1.75 percent in March as part of wider policy efforts to spur growth in Asia's fourth-largest economy.The average rate for new loans to households, companies and other organizations came i

A majority of South Korea's largest companies remain pessimistic about their business outlooks for June on worries about weak exports and other unfavorable market conditions at home and abroad, a poll showed Thursday.According to the survey by the Federation of Korean Industries of the country's top 600 companies by sales, the business survey index for June stood at 96.4, down from the May outlook of 99.4. This marks the lowest BSI in three months. A BSI reading below 100 means pessimists outnum

South Korea is unlikely to be hit hard by a possible U.S. interest rate hike, former Federal Reserve chairman Ben Bernanke said, dismissing concerns it could spark a massive capital outflow from Asia's fourth-largest economy.The U.S. central bank is widely expected to raise its key rate as early as June, the first time in almost a decade, as the world's No. 1 economy is showing signs of recovery. The forecast has raised concerns it could trigger a sudden outflow of capital from emerging markets,

South Korea's currency fell to the lowest level against the U.S. dollar in two months on Wednesday, moving in tandem with major counterparts' descent against the greenback on rising speculation that the U.S. Federal Reserve will hike borrowing costs, analysts said.The Korean won was changing hands at 1,107.30 per dollar as of 1:37 p.m., down 6.3 won from the previous session's close.The local currency's drop came as the U.S. dollar has spiked on data showing that the world's largest economy is o

South Korea's outside directors should become more independent in order for them to better control management and protect the rights of all shareholders, a state-run think tank said Wednesday.The report by the Korea Development Institute showed under the prevailing practice of outside directors being chosen because they know the CEO of a company or major shareholders, there will always be a risk of people failing to check management in an effective manner."Many outside directors are from the sam

Household credit in South Korea soared to an all-time high in the first quarter, data showed Wednesday, adding to growing concerns over the country's already fast-growing household debt.Household credit totaled 1,099.3 trillion won ($992.1 billion) as of end-March, up 11.6 trillion won from a revised 1,087.7 trillion won at the end of last year, according to the data compiled by the Bank of Korea.Household credit refers to credit purchases and loans extended by financial institutions, including

South Korea's outbound shipments, a main growth engine for Asia's fourth-largest economy, are likely to remain weak into the third quarter largely due to slowing growth in China and unfavorable currency circumstances, a central bank report forecast Wednesday."A fall in prices of key export products, weakening price competitiveness stemming from a weakening yen and euro as well as slowing growth in China are likely to limit export growth," the report by the Bank of Korea said.The regional economi

Cargo processed at South Korean seaports inched down from a year earlier last month, the government said Wednesday, apparently reflecting a recent drop in the country's exports.In April, cargo handled at the country's seaports came to 117.68 million tons, down 0.6 percent from the same month last year, according to the Ministry of Oceans and Fisheries.The drop was caused by a fall in both trade and domestic cargo.Import-export cargo slipped 0.25 percent on-year to 97.91 million tons last month w

Prices of imported farm products hit the lowest level in more than seven years in April mainly due to a drop in international grain and vegetable costs, government data showed Wednesday.According to the data by the Korea Customs Service, the price index for imported farm produce stood at 95.1, down 1.9 percent from 96.9 the month before and 98.1 tallied a year earlier.It was the lowest reading since 89.9 reached in December 2007. The service said the drop was mostly due to weaker prices for key

The value of foreign securities held by South Korean institutions soared to the highest level in more than seven years as major local asset managers and insurers beefed up their buying of foreign assets and overseas stock markets continued to rise, data showed Wednesday.The outstanding value of foreign securities held by local institutional investors reached US$105.7 billion as of the end of March, the highest level since the $116.5 billion in the second quarter of 2007, according to the prelimi