A major state-run think tank in South Korea will likely lower its growth projection for the country as worsening market situations at home and abroad are clouding the outlook for Asia's fourth-largest economy, sources said Friday.As the Korea Development Institute (KDI) is to announce its growth projection for South Korea in mid-May, sources close to the matter said that the think tank could lower its growth forecast to the 2 percent range for this year. In its December outlook, it revised down

Major commercial lenders in Korea are tightening standards on new loans for large conglomerates over fears of rising bad loans amid the ongoing corporate restructuring of ailing industries. Outstanding loans extended by Shinhan Bank, Kookmin Bank and three other major lenders to big companies reached 90.8 trillion won ($78 billion) as of end-April, down 4.8 trillion won from 95.6 trillion won a year earlier, according to industry data.  Lending section at a commercial bank branch in Seoul (Yonha

With international oil prices forecast to rise in the long-term and the effects of monetary easing waning in advanced economies, foreign investors are expected to soon become net-sellers of Korean stocks from net-buyers, according to the Korean Center for International Finance on Thursday. Several external risks are looming that will eventually lead foreign investors to offload their Korean stock holdings.The continued deadlock in talks on production between OPEC and non-OPEC oil producing econo

Korea’s household debt has recently been increasing in tandem with rising mortgages on the back of relaxed regulations on borrowings and recovery in the housing market, the International Monetary Fund said.In its regional report assessing Korea’s household debt and housing market, the IMF noted that Korea’s high household debt does not pose a downside risk to the Korean economy, with financial authorities tightening their monitoring of nonbank loans and management of debtors’ repayment capabilit

Creditors of ailing Hanjin Shipping, the country’s largest shipper by capacity, have agreed to offer financial assistance to the company and initiate a corporate rehabilitation program with conditions attached. Seven creditor banks, led by state-run Korea Development Bank, gave a nod to Hanjin Shipping’s proposal to restructure its debt and provide an aid package in return for self-rescue efforts, at a meeting Wednesday. The conditions for bailout include a cut in charter rates that Hanjin pays

Niblo Barracks, home to U.S. military personnel stationed in the Yongsan base, has been sold for 624.2 billion won ($540 million), Korea Land & Housing Corp. announced Wednesday. Daishin F&I, a local financial firm specializing in investment in distressed assets, is the buyer of the property which consists of more than 500 apartment units and 60,677 square meters of land, the state-run LH housing developer said.  Located in Hannam-dong, central Seoul, Niblo Barracks has been home to U.S. militar

Chey Chang-won, vice chairman of SK Chemicals, has sold his entire stake in SK Engineering and Construction, the builder said Wednesday.SK E&C said in a regulatory filing that Chey sold off 156.9 million shares of the company, or 4.45 percent of all shares. The sale is worth 52 billion won ($45 million) given the share price of 33,000 won.SK Holdings is the largest shareholder of SK E&C with a 44.48 percent stake, followed by SK Chemicals with a 28.25 percent stake.Chey sold his shares in SK E&C

Korean construction machinery manufacturer Doosan Infracore said that its subsidiary Doosan Bobcat has decided to offer 1,354 new shares worth 617.2 billion won ($535 million) to affiliate Doosan Engine.The proceeds from share issuances will be used to improve Bobcat’s finances, Doosan Infracore said in a public disclosure.Doosan Bobcat, a construction equipment maker, is wholly owned subsidiary of Doosan Infracore. Doosan Heavy Industries & Construction, an infrastructure giant, is the biggest

Korea is moving to recapitalize the Korea Development Bank to help it lead debt structuring of distressed shipping lines and shipyards, but data shows a bigger problem may be brewing inside the policy bank’s own jurisdiction. KDB’s own shipbuilding subsidiary Daewoo Shipbuilding & Marine Engineering has liabilities 730 times larger than its equity capital as of Dec. 31, 2015. According to data compiled by data provider CEO Score, the world’s No. 2 shipyard that is 49.7 percent owned by KDB was a

Korean stocks closed lower Wednesday as investors sat on the sidelines ahead of the country's four-day holiday, analysts said. The local currency dropped against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 9.7 points, or 0.49 percent, to 1,976.71. Trade volume came to 348.5 million shares worth 4.97 trillion won ($4.3 billion), with losers outpacing gainers 611 to 185.Analysts said Seoul shares lost ground as investors refrained from making purchases as the count

The Finance Ministry and the Bank of Korea have agreed to increase the capital base of policy banks through a mix of fiscal and monetary policies to ensure that corporate restructuring is carried out as planned, according to ministry officials Wednesday.In their first task force meeting presided over by Vice Finance Minister Choi Sang-mok with officials from the central bank, the Financial Services Commission, the state-run Korea Development Bank and the Export-Import Bank of Korea, the Finance

Chinese auto parts manufacturer Rothwell International is set to be listed on the Korean stock exchange next month. The company seeks to raise as much as 68.2 billion won ($59 million) through an initial public offering in Korea, according to a preliminary IPO prospectus.The firm, which will kick off a two-day bookbuilding session starting May 24, has set its price range at 2,400 won to 3,600 won per share for the upcoming IPO. It will give Rothwell a market capitalization of up to 280 billion w

The chief of the Korean banks' association said on Wednesday that the ongoing industrial restructuring will have little impact on local commercial banks, citing their minor exposure to financially troubled companies. In a press conference held in Germany on the sidelines of the 49th Asia Development Bank annual meeting which ends on May 5 (local time), Korea Federation of Banks (KFB) Chairman Ha Yung-ku said, "In the past, commercial banks carried a bigger exposure ratio of 60 percent to compani

Ready-mix concrete and other construction materials maker Tongyang Inc. said Wednesday that it has failed to acquire construction materials manufacturer Sambu Construction Industrial.The company said in a public filing that “the main bid to purchase shares of Sambu Construction Industrial failed.”Sambu Construction Industrial is 99 percent owned by Sambu Construction Co., which is currently under court receivership. Earlier in March, Tongyang had submitted a letter of intent to take over Sambu C

Korea's foreign exchange reserves continued to increase in April on a rise in overseas securities and deposits, the central bank said Wednesday.As of the end of last month, the country's foreign exchange reserves came to $372.48 billion, up $2.64 billion from the previous month, according to the Bank of Korea (BOK). Bank of Korea (Yonhap)April marked the second consecutive month the country posted on-month growth in its foreign exchange reserves, following four consecutive months of decline.Fore