Debt-ridden Hyundai Heavy Industries is expected to put up stake in Hi Investment & Securities for sale but industry experts are skeptical about a successful M&A. Lack of specialization of the mid-sized Hi investment & securities may lead to failure in attracting a takeover bid from other peer brokerages.“Many people have taken a dim view on the deal as Hi investment & securities is not specialized in any business compared to other mid-sized securities companies,” an official at a local brokerag

Three or four big business groups may be asked by their creditor banks to take voluntary balance sheet improvement measures, local reports said Thursday. Korea’s large banks are currently reviewing the financial soundness of 39 big business groups, chosen late last year by the Financial Supervisory Service, and may push a financial rehab for three or four of them, the reports said.  Financial Supervisory Service headquarters (Yonhap)“The check on the financial health of big business groups by cr

South Korea's household debt jumped 11 percent in the first quarter despite stricter lending rules at banks, its central bank said Thursday. The country's overall household debt climbed to 1,223.7 trillion won ($1.035 trillion) in the January-March period from 1,098.3 trillion won a year earlier, the Bank of Korea said in a statement.Quarter-on-quarter, household debt, which includes credit-card spending, rose 1.7 percent, it said.  "As banks have adopted a stricter evaluation system before exte

Samra Midas Group, or SM Group, has no intention to acquire part of midsized shipyard SPP Shipbuilding from its creditors, a local news report said Thursday.The business group, which owns listed shipper Korea Line and builder Woobang Construction, could not narrow differences in the price negotiation for SPP’s shipyard in Sacheon, Yonhap said. “We had estimated that additional 140 billion won ($118 million) would be needed for SPP Shipbuilding based on the result of due diligence. But creditors

South Korean insurance companies posted a 6.3 percent gain in combined first-quarter net profit helped by an increase in insurance premium income, government data showed Thursday. For the three months ending March 31, the country's 25 life insurers and 32 non-life insurers posted 2.235 trillion won ($1.89 billion) in combined net profit from 2.103 trillion won a year earlier, the Financial Supervisory Service said in a statement."In the first quarter, the insurers' insurance premium income excee

As the specter of bankruptcy rises for Korea’s shipbuilders, concern is growing over local banks’ exposure to the ailing sector. According to industry sources Wednesday, local banks’ exposure to the shipbuilding sector exceeds 70 trillion won ($59.3 billion) in total, which is far larger than to shipping, another troubled sector with high default risks.  Korea Development Bank headquarters in Seoul (Yonhap)The high exposure stems partly from ship financing, which typically involves shipbuilders’

Creditor banks said they have begun discussing whether to put Korea’s midsized shipbuilder STX Offshore & Shipbuilding under court receivership, as their years of financial aid have failed to improve the shipyard’s business prospects.Leading creditor Korea Development Bank said Wednesday the creditors agreed to put an end to the shipyard’s self-rescue plan and to decide on whether to put the company into the hands of a court by the end of this month. STX Offshore and Shipbuilding workers leave t

Contingent liabilities in Korean securities companies jumped 22 percent in 2015 compared to a year earlier, raising worries about their financial soundness, government data showed Wednesday. Contingent liabilities in local securities firms reached 24.226 trillion won ($20.38 billion) last year, up from 19.891 trillion won a year earlier. A contingent liability is a potential liability. It depends on a future event occurring or not occurring. For example, if a brokerage company guarantees an asse

Corporate executives now seem as jittery as government officials about a controversial bill that will allow lawmakers to hold hearings more frequently.The revision to the National Assembly Act, which was passed by the outgoing parliament last week, gives parliamentary committees the right to hold hearings on all “pending” issues. Existing law stipulates that the hearings can be held if necessary for the deliberation of important matters and parliamentary audit or investigation.Speculation has be

The imminent overhaul of the shipbuilding industry is shaking up local banks, which will have to raise their reserves once the loans to companies are reclassified as risky, financial officials said Wednesday.The majority of the loans to the troubled shipbuilders -- Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries and Samsung Heavy Industries -- are categorized as "normal" in risk ratings, a far cry from the firms' abysmal financial standings.  Local banks' exposure to the three

Korean stocks started higher Wednesday, following overnight gains on Wall Street.The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.99 points, or 0.83 percent, to 1,953.67 in the first 15 minutes of trading. (Yonhap)Top market cap Samsung Electronics gained 0.24 percent, and industry leader Hyundai Motor was up 0.37 percent. The state-run Korea Electric Power Corp. also rose 1.34 percent.In New York on Tuesday (local time), the Dow Jones industrial average jumped 213.12 points, or 1

Korea’s stock market operator will extend trading hours of the stock and derivatives markets by 30 minutes from August, in a bid to synchronize them with other Asian markets, Korea Exchange said Tuesday. The bourse operator said the markets will be open from 9 a.m. to 3:30 p.m., aiming to invigorate the sluggish equity market. Kim won-dae, the head of the securities market division at KRX, speaks during a press conference, held in Seoul, Tuesday. (KRX)“The Korean equity market is increasingly ex

The state-run Korea Development Bank has once again failed to sell its subsidiary KDB Capital. KDB said in a statement that only one bidder participated in the final bidding for KDB Capital that closed at noon Tuesday, which did not result in a binding competition. Korea Development Bank headquarters (Yonhap)In the preliminary bidding in March, U.S. private equity giant Carlyle, a private equity firm set up by SK Securities and a non-financial company based in Korea were selected as the three su

Korean stocks closed 0.9 percent lower Tuesday as concerns about a potential U.S. rate hike weighed on market sentiment here. The local currency sharply fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) dropped 17.57 points to 1,937.68, the lowest since late February. A total of 511 million shares were traded, worth 4.9 trillion won ($4.2 billion), with losers outnumbering gainers 582 to 247. (Yonhap)Foreigners and institutional investors sold a net 120 billion

ING Life Insurance will be extending its sales offer by the end of this week to fuel more potential bids for the insurer owned by Korean private equity MBK Partners following lower-than-expected buyout interests, according to news media citing investment banking sources.MBK and ING could not be reached for comments. Morgan Stanley is the sales manager of MBK’s ING Life Insurance.Only about three companies at home and abroad submitted their letters of intent for the insurer on Monday. MBK seeks t