The Korea Herald

[Graphic News] Tourists on cruise ships top 1 million

Nov 13, 2014

The number of foreigners visiting South Korea on cruises is expected to exceed 1.05 million by the end of this year, according to the Ministry of Oceans and Fisheries.The ministry said Wednesday that it welcomed the millionth visitor at the International Cruise Terminal in Busan.Only about 280,000 inbound visitors came in by cruise ship in 2012, but the number soared to 790,000 last year and passed 1 million this year.Industry watchers attributed the rise to Chinese tourists’ increasing interest
Cash inflows continue into high-yield funds with tax favors

Nov 13, 2014

Investors are parking more money in funds that invest in low-grade bonds and that also offer tax favors amid low market interest rates, data showed Thursday.Cash flows into such funds amounted to 2.35 trillion won (US$2.14 billion) as of end of October in just seven months after their market debut in early April, according to the data compiled by the Korea Financial Investment Association (KOFIA). In March, the country's financial regulator allowed local financial firms to sell a new type of hig
Won hits 1-year low

Nov 12, 2014

The Korean won fell sharply against the U.S. dollar Wednesday, hitting a fresh over one-year low and moving in sync with the Japanese yen’s sharp slide against the greenback.The won closed at 1,096.00 to the greenback, down 4.4 won from the previous session’s close, marking the lowest level since Sept. 5, 2013, when the comparable figure was 1,098.40 won. The local currency hit an intra-day low of 1,102.90 won at one point.The Japanese yen hit a new seven-year low against the greenback in London
Economic slowdown causes companies to cut back on social contribution

Nov 12, 2014

The economic slowdown in 2013 led South Korean companies to decrease their social contribution outlays, a report by the lobbying group of large businesses said Wednesday.According to the Federation of Korean Industries (FKI), local businesses spent little over 2.81 trillion won on various commitments, down a sharp 13.6 percent from 3.25 trillion won the year before.The findings were based on a survey carried out on 234 leading companies that engaged in corporate social responsibility (CRS) progr
Korea’s inflation to remain low in 2015: reports

Nov 11, 2014

Foreign investment banks forecast inflation in South Korea to stay low next year amid tepid domestic demand and falling global oil prices, a report showed Tuesday.Nomura projected that inflation would reach 1.3 percent this year and 2 percent next year, both below the inflation target band by the Bank of Korea of 2.5-3.5 percent. The investment bank, however, forecast inflation would reach 3 percent in 2016. “We now expect CPI inflation to remain low for a long time due to lower commodity prices
Korea's inflation to remain low in 2015: reports

Nov 11, 2014

Foreign investment banks forecast inflation in South Korea to stay low next year amid tepid domestic demand and falling global oil prices, a report showed Tuesday.Nomura projected inflation to reach 1.3 percent this year and 2 percent next year, both below the inflation target band by the Bank of Korea (BOK) of 2.5-3.5 percent. The investment bank, however, forecast inflation to reach 3 percent in 2016."We now expect CPI inflation to remain low for a long time due to lower commodity prices, an e
S. Korean big biz dependence on Chinese market grows: report

Nov 11, 2014

South Korean conglomerates are becoming more dependent on the Chinese market for sales growth and the reliance is likely to deepen from a recent trade pact, a report by a local corporate research firm showed Tuesday.According to CEO Score, an online corporate productivity evaluation firm, an analysis of 38 out of 200 top companies that reported their overseas earnings showed sales to China last year reached 145.15 trillion won, up 34.6 percent from around 108 trillion won in 2011.The growth rate
Korean won rises most in a month as U.S. jobs data weakens dollar

Nov 10, 2014

South Korea’s won rose the most in a month as below-forecast U.S. jobs data weighed on the dollar. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, posted its biggest loss in three weeks on Nov. 7 after the U.S. labor department said employers added 214,000 workers in October. That was less than the 235,000 estimated in a Bloomberg survey. Bank of Korea Governor Lee Ju-yeol said last week that while authorities face constraints in dealing with a weakening
Korean banks’ bad loan ratio drops in Q3

Nov 10, 2014

The bad loan ratio of South Korean banks dropped in the third quarter of this year from three months earlier on reduced fresh bad debts, the financial watchdog said Monday.The combined bad loan ratio stood at 1.72 percent at the end of September, down 0.01 percentage point from the previous quarter, according to the Financial Supervisory Service. The bad loan ratio refers to the proportion of a bank’s non-performing loans to their total lending. A debt that has been in arrears for more than 90 d
GDP to rise up to 3% on FTA with China

Nov 10, 2014

Korea’s free trade territory to cover 72% of world GDP
S. Korea's biz community "welcomes" FTA with China

Nov 10, 2014

A group representing the South Korean business community said Monday it "welcomes" the country's bilateral free trade agreement (FTA) with top trade partner China, but industry watchers forecast the tentatively reached deal may still face opposition from sectors deemed to suffer losses from the latest partnership. "The FTA with China, the No. 1 country in terms of trade volume and the second-largest economy in the world, is expected to provide a new driving force of growth for our industries and
Securities funds see money inflow amid dull stock market

Nov 10, 2014

Investors brought money into South Korean stock funds last month despite the equity market slump, data showed Monday, posting the longest daily buying streak since 2007.Local stock funds, excluding index funds, saw a net inflow of 2.01 trillion won (US$1.84 billion) for 31 consecutive days from Sept. 23, according to the Korea Financial Investment Association (KFIA).The longest unbroken run of net buying lasted for 66 days between May and August in 2007 when stock funds in Asia's fourth-largest
Yen fear to weigh on Seoul shares this week

Nov 9, 2014

South Korean stocks are likely to face growing volatility this week as fears over a weakening yen grip investors amid a lack of upward momentum, analysts said Saturday.The benchmark Korea Composite Stock Price Index closed at 1,939.87 on last Friday, down 24.56 points from 1,964.43 the previous week.Seoul shares started the week on a weak note after the Bank of Japan’s surprise move for additional monetary easing spurred concerns about the weakening yen and pummeled shares of exporters that comp
State-run companies to increase dividends

Nov 9, 2014

The South Korean government is expecting an 11 percent on-year increase in dividends next year from state-controlled companies that have improved their earnings, a parliamentary report showed Sunday.A budget plan submitted to the National Assembly showed the government has included 361.6 billion won ($330.6 million) as income from dividends from state-controlled companies next year, an 11.2 percent rise from this year’s 325.6 billion won. South Korea’s fiscal year ends on Dec. 31, and companies
Debt by self-employed on rapid surge amid economic slowdown

Nov 9, 2014

The amount of debt owed by the self-employed in South Korea has snowballed in the past four years, far surpassing the growth pace of corporate and mortgage loans amid an economic slowdown, industry data showed Sunday. The combined loans to the self-employed by Korea's five largest commercial banks amounted to 134 trillion won (US$122.5 billion) as of end-October, adding 40 trillion won from the end of 2010, according to the data.Loan totals were provided by Kookmin Bank, Shinhan Bank, Woori Ban