South Korea has decided to cut the discretionary spending of government agencies by 10 percent next year in a bid to focus its fiscal policy on job creation, the finance ministry said Tuesday.The 2017 budget guidelines, which passed the Cabinet on Tuesday, call for a thorough examination of spending earmarked for public works projects and welfare outlays.Out of the nearly 380 trillion won (US$326.2 billion) of the state budget last year, some 53 percent, or 200 trillion won, is discretionary spe

Facing a liquidity shortage and high debt ratio, Hanjin Shipping, a listed subsidiary of Korean Air, has sold its London office building to an undisclosed real estate investment company, according to a regulatory filing.Hanjin Shipping Seoul office (Hanjin Shipping)The shipping company said that it would use the proceeds from the sale worth about 66.7 billion won ($57.4 million) to improve finances. Industry sources say this means that Hanjin Shipping would use the cash it secured from the sale

Korea has recovered less than 70 percent of the public funds spent since the 1997 Asian financial crisis to bail out ailing firms, government data showed Tuesday.From November 1997 to December 2015, the government extended a total of 168.7 trillion won ($145 billion) in public funds to financially troubled companies hit by the 1997 and the 2008 financial crises, the Financial Services Commission said in a statement.   Financial Supervisory Service headquarters in Seoul (Yonhap)As of Dec. 31, the

Korean shares opened higher Tuesday after lackluster U.S. economic data lowered expectations of a near-term interest rate raise by the Federal Reserve.The benchmark Korea Composite Stock Price Index (KOSPI) added 6.07 points, or 0.31 percent, to 1,988.61 in the first 15 minutes of trading. Foreigners turned to net buyers following weaker-than-expected March jobs report from the U.S., while keeping an eye on a speech from Fed Chair Janet Yellen scheduled later in the day Securities and banks led

The takeover battle for Tong Yang Inc. took a dramatic turn Monday with its two largest stakeholders and former rivals for control of the building materials maker deciding to form a coalition against the current management ahead of a crucial shareholders meeting.Eugene Corp., the country’s top ready-mix concrete-maker, and Pine Tree Investment & Management, an asset management company specializing in nonperforming loans, agreed to wield their voting power though a combined 20.04 percent stake in

Korean stocks closed slightly lower Monday as investors took to the sidelines ahead of the Fed chair's speech that could provide clues to the U.S. central bank's monetary policy, analysts said. The local currency gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 1.27 points, or 0.06 percent, to close at 1,982.54. Trade volume was moderate at 405.98 million shares, with losers beating winners 479 to 330.The market opened higher, but the gains were

The Export-Import Bank of Korea and the Center for Creative Economy and Innovation in Seoul have joined forces to support start-ups to become global exporters in the fields of cosmetics, biotechnology, fashion and food.The state-run export financing bank said in a press statement Monday that it would provide financial consulting to Korean start-ups developing their businesses in those fields. The innovation center will do its part, and help and recommend start-ups to the Korea Eximbank for finan

To hold or not to hold Korea’s monetary stabilization bonds? -- this will be the question the local capital market will be asking foreign asset manager Franklin Templeton Investments this week.Korea’s MSBs worth 1 trillion won ($860 million) held by Franklin Templeton will mature on April 2, and it remains to be seen whether the asset manager will roll over, or redeem and exit its investment. The Bank of Korea issues MSBs to control market liquidity as part of its open market operations.Citing p

Korea’s top Botox maker eyes global expansion, momentum for further growth

Outback Steakhouse, the Australian-themed U.S. restaurant chain that led the American-style dining boom in Korea in the mid-1990s, is seeking an exit from Korea after 19 years of business here, local reports said. The U.S. Nasdaq-listed Bloomin‘ Brands, which owns the chain, will open preliminary bids for Outback Steakhouse Korea, with HSBC as its deal advisor. Outback Steakhouse Korea in 2014 ran nearly 110 restaurants across Korea, but the store count has now reduced to less than 70, suffering

This is the ninth in a monthly series contributed by executive members of the Financial Supervisory Service to address key ongoing financial issues. ― Ed.In 2015, financial reforms and risk management emerged as a major issue in Korea’s financial industry.Most said that Korea’s real economic sector has significantly expanded, but the financial sector does not have the corresponding scale and capacity. And it has been pointed out that competitiveness of the financial sector should improve for sus

Korea’s state-run utility firm Korea Electric Power Corp. and top cosmetics-maker AmorePacific saw their rankings of market capitalization shoot up among listed companies on the KOSPI this year, on the back of lowered costs on cheap oil and the global popularity of “K-Beauty” products, industry data showed Monday.According to data by the Korea Exchange, KEPCO’s market cap gained 17.8 percent on-year to 37.81 trillion won ($32.27 billion) as of March 23, rising to No. 2 in the KOSPI ranking from

E-Land Group has chosen U.S. private equity giant KKR as the preferred bidder for Kim’s Club, a 37-branch hypermarket franchise with annual revenue of around 1 trillion won ($860 million), it said Monday. “KKR was most willing to invest in Kim’s Club,” the Korean retail group said. The two sides aim to sign a final contract in early May, the group said. KKR, one of the world’s biggest buyout funds, is to commence due diligence on Kim’s Club.The deal, if sealed, would mark the second major takeov

The won-dollar exchange rate has taken a roller-coaster ride this year, with uncertainty high over its future course. This increasing volatility -- which reflects a complex set of external and internal conditions affecting the country’s economy -- makes it tougher for policymakers to mobilize means to boost growth and for companies to draw up business plans.The rate rose to 1,238.8 won per dollar on Feb. 25, up 66.3 won from where it was at the start of the year, marking the highest level in fiv

The financial regulator on Monday extended the advisory period on loans by youths for another year as high-running unemployment in the age group exacerbates their debt loads from non-banking institutions that charge heavier interest rates.The Financial Supervisory Service (FSS) in February last year had reined in on savings banks that provide loans to college students and other youths by requiring the lenders to inform the borrowers of alternatives from state-run institutions and to set the cred