The Korea Herald

KRX probes sudden spike in Codes Combine shares

Mar 15, 2016

Bourse operator Korea Exchange is investigating a seemingly unexplainable rally of Codes Combine shares, suspecting a stock price manipulation. “The Market Oversight Commission is looking into transactions on related accounts,” the KRX said. Buy orders for the stock were found to have been concentrated on seven accounts of foreign brokerage firms, including UBS, Goldman Sachs, Morgan Stanley and Nomura. Shares in Codes Combine jumped 30 percent to 151,100 won ($127) on Tuesday, rising by the dai
Korean stocks down ahead of FOMC meeting

Mar 15, 2016

Korean shares fell 0.12 percent Tuesday, ending a four-day winning streak, as investors took a wait-and-see stance ahead of the U.S policy rate-setting meeting later this week. The local currency fell against the U.S. dollar.After swerving in and out of positive terrain, the benchmark Korea Composite Stock Price Index (KOSPI) lost 2.30 points to finish at 1,969.97. Investors found more reasons to stay cautious than continuing to add risky assets to their portfolios although a recovery in oil p
Creditors of Kumho Tire exploring stake sale

Mar 15, 2016

As creditors of Kumho Tire are considering selling stakes in the world‘s 12th-largest tire maker by sales, global and local firms seeking to expand their business across Asia may eagerly look forward to the deal hitting the market. The Korea Development Bank and other creditors of Kumho Tire, which hold a combined 42.1 percent stake in the tire maker, have begun a feasibility study with an advisory group comprised of Credit Suisse, Deloitte Anjin and Lee & Ko, according to sources Tuesday. For t
Foreign banks fined for bid rigging in FX swap deals

Mar 15, 2016

South Korea’s antitrust watchdog said Tuesday that it has issued fines worth 59 million won ($49,700) to two foreign banks for rigging bids for foreign currency swap deals.The Seoul branch of Germany’s Deutsche Bank was fined for 13 million won, while that of HSBC was hit with a fine for 46 million won. The two banks were accused of rigging four bidding processes for foreign currency swap transactions that took place between January 2011 and February 2012, according to the Fair Trade Commission.
Mirae Asset to cut purchase price of Daewoo Securities by W55b

Mar 15, 2016

Mirae Asset Financial Group has cut its purchase price of KDB Daewoo Securities by 55 billion won ($46.3 million) to 2.33 trillion won, local reports said Tuesday. Mirae Asset will sign Friday a final contract with Korea Development Bank to take over a controlling 43 percent stake in KDB Daewoo, they said. The company is said to have demanded the price cut after a closer look at Daewoo’s overseas network and real-estate assets in Korea.KDB Daewoo is the country’s second-largest brokerage house,
Shinhan Financial names 4 new CEOs

Mar 15, 2016

Shinhan Financial Group is replacing heads at four subsidiaries, while retaining current chiefs at three other units, the group said Tuesday. At Shinhan Life Insurance, Lee Byung-chan, a veteran insurance expert who was previously standing auditor of BNP Paribas Cardif Korea, will replace Lee Sung-rack, whose three-year term expires this month. The incoming CEO will serve three years until March 2019. Lee Byung-chan, new CEO of Shinhan Life (Shinhan Financial Group)Seol Yeong-o, the CEO of fund
SMEs to be put under creditor-led debt workout

Mar 15, 2016

Small and medium enterprises that are unable to meet their debt obligations worth more than 3 billion won ($2.5 billion) and fail to meet adequate credit standards will need to go through creditor-led workout programs, the top financial regulator announced Tuesday. The Financial Services Commission said that an enforcement ordinance to the Corporate Restructuring Promotion Act has been submitted to a Cabinet council for legislation.“The ordinance is expected to be enacted next month after furthe
Korean shares rise ahead of FOMC meeting

Mar 15, 2016

Korean shares opened slightly higher Tuesday, tracking overnight gains on Wall Street, with investors remaining cautious ahead of the Federal Open Market Committee meeting later this week. The benchmark Korea Composite Stock Price Index (KOSPI) gained 2.56 points, or 0.13 percent, to hit 1,974.83 in the first 15 minutes of trading. On Monday, the Dow Jones industrial average inched up 0.09 percent to 17,229.13 and the tech-heavy Nasdaq gained 0.04 percent to 4,750.28. Technology, chemical an
Growing private equity funds to accelerate corporate restructuring in Korea

Mar 15, 2016

Leading private equity managers share investment experiences, market prospects
Korean shares up for 4th session in row

Mar 14, 2016

South Korean share prices rose for a fourth consecutive session Monday, bolstered by gains in techs and financials.Investors, however, remain cautious ahead of a U.S. rate-setting meeting scheduled for later this week, according to analysts. Meanwhile, the local currency rose to the highest level of the year. The won climbed to a nine-week high as rising stocks and recovering oil prices pushed up demand for risky assets. The local currency closed at 1,186.10 won against the U.S. dollar, up 7.00
Tax-efficient ISA savings account launched

Mar 14, 2016

The Korean version of tax-efficient savings account, which benchmarked a U.K. scheme, went on sale Monday as the government hopes it will boost household wealth amid a rise in floating money prompted by low interest rates and uncertainties in the investment market.A total of 33 financial companies, including banks, securities firms and insurers, have begun introducing their first tax-exempt Individual Savings Account, or ISA, which allows customers to hold a wide range of retail investment vehic
CJ E&M at vanguard of Korean culture boom

Mar 14, 2016

This is the fourth in a series of articles analyzing the top 10 companies by market capitalization traded on the tech-heavy KOSDAQ market. --Ed.For investors looking to take a bet on Korea’s hot pop culture scene, CJ E&M deserves a close look. The Seoul-based firm is arguably Korea’s most prominent provider of cultural content now, churning out one mega hit after another. From “Grandpas Over Flowers (2013,) “Incomplete Life (2014),” to “Reply 1988” last year, many of its TV productions aired on
Daewoo Shipbuilding to issue new shares worth W600b to improve finances

Mar 14, 2016

Daewoo Shipbuilding & Marine Engineering is expected to issue additional new shares worth 600 billion won ($507 million) this year, as part of efforts to improve its capital base, according to the listed shipbuilder’s main creditor Korea Development Bank on Monday.The new share issuances will most likely be allotted to the state-run creditor bank and the company’s employees, much like the last time the shipbuilder issued new shares worth 460 billion won to KDB and employees of Daewoo Shipbuildin
KRX to adopt English disclosure system

Mar 14, 2016

The Korea Exchange is seeking to encourage local listed companies to disclose their mandatory financial information in English by the end of this year, officials of the country’s stock market operator said Monday. Korea Exchange's headquarters in Seoul (Yonhap)This plan is in line with efforts for the Korean stock market to be classified as an “advanced market” in the Morgan Stanley Capital Investment’s global stock indices, officials said.The KRX noted that during investor relations roadshows o
Daewoo Shipbuilding to issue new shares worth 600b won to improve finances

Mar 14, 2016

Daewoo Shipbuilding & Marine Engineering is expected to issue additional new shares worth 600 billion won ($507 million) this year, as part of efforts to improve its capital base, according to the listed shipbuilder’s main creditor Korea Development Bank on Monday.Shipyard of Daewoo Shipbuilding (Yonhap)The new share issuances will most likely be allotted to the state-run creditor bank and the company’s employees, much like the last time the shipbuilder issued new shares worth 460 billion won to