South Korea's central bank head forecast additional difficulties for the economy Friday, saying uncertainties in the global financial market were increasing more than ever before."Since the beginning of the year, uncertainties in the global financial market have increased due to the instability in the Chinese market, additional drops in global oil prices and the introduction of a negative interest rate by the Bank of Japan," Bank of Korea Gov. Lee Ju-yeol said in a meeting with top financial off

Profits of local banks last year plunged to their lowest in more than a decade with their margins from lending hitting a fresh low. According to the regulator Financial Supervisory Service on Thursday, the combined net profit of the country’s 18 commercial and state-run banks dropped 42.6 percent on-year to 3.5 trillion won ($2.85 billion). This is the lowest level since 2003, the height of a crippling credit card lending crisis.  (The Korea Herald)“While the net interest margin continued to dec

KB Kookmin Bank CEO Yoon Jong-kyu (left) and Korea International Cooperation Agency chief Kim Young-mok pose for photos at the state-run aid body’s headquarters in southern Seoul, on Thursday after they signed an agreement to boost business cooperation. The pact envisions KB Kookmin providing financial advice on the KOICA’s overseas aid projects, such as infrastructure construction.  (KB Kookmin Bank)

Warnings have been repeatedly raised on the danger mounting household and government debts are posing to the country’s sluggish economy.Corporate debt problems have been considered less severe. A recent report from a local research institute, however, showed that this perception was far from reality.Korean companies’ debt-servicing capacity was near the bottom among those in the 41 nations surveyed in the report released by the LG Economic Research Institute earlier this month. Their cash flow c

Daily foreign exchange turnover by Korean banks reached a seven-year high in 2015 due largely to proactive won-yuan transactions, the central bank said Thursday.The daily FX turnover came to $48.43 billion last year, up 8 percent from the previous year's $44.84 billion, according to the Bank of Korea (BOK). Bank of Korea (Yonhap)The 2015 figure marks the highest since 2008 when the volume stood at $48.65 billion won, it noted."The growth was largely attributable to growth in trading between the

Korean banks saw their earnings almost halve in 2015 from the previous year as they earned less interest income and had to set aside more loan-loss reserves, the financial watchdog said Thursday.The combined net income of 18 commercial and state-run banks stood at 3.5 trillion won ($2.85 billion) last year, down 42.6 percent from 6 trillion won the previous year, according to the Financial Supervisory Service (FSS). Financial Supervisory Service in Seoul (Yonhap)The 2015 figure was their weakest

The new chief of Korea’s sovereign wealth fund on Wednesday stressed risk control in an era of global financial volatility, saying its return on investment this year could remain negative after a near 3 percent loss last year. “The outlook for our investment returns is not bright this year in light of the weakness in global markets, with the New York Stock Exchange down nearly 10 percent,” Eun Sung-soo, CEO of Korea Investment Corp. told reporters at its head office in Seoul. The former World Ba

Bearish stock market could take a toll on planned offerings

Korean stocks lost 0.24 percent Wednesday as investors moved to lock in profits from earlier gains amid rising hopes for a recovery in major economies.The local currency dropped sharply against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 4.49 points to close at 1,883.81, ending its two-day winning streak. Trading volume was moderate at 333.89 million shares worth 5.06 trillion won ($4.13 billion), with losers outnumbering winners 499 to 318.The local shares start

Foreign currency deposits at banks in South Korea dropped to the lowest level in over 20 months in January, central bank data showed Wednesday, amid a mass outflow of foreign capital.Outstanding foreign currency deposits held by local residents came to $55.6 billion as of end-January, down $2.93 billion from the previous month, according to the data from the Bank of Korea.The January tally marks the lowest reading since $51.1 billion posted in March 2014. From a year earlier, it marks a 12 perce

Korea's short-term floating funds soared to a new all-time high in 2015, data showed Wednesday, as low interest rates and growing economic uncertainties left investors in a dither. Short-term floating money reached a record 931.3 trillion won ($764 billion) as of the end of last year, up 17.2 percent from a year earlier, according to the data compiled by the Bank of Korea and the Korea Financial Investment Association.Short-term floating funds refer to money moving in and out of investments in s

Korean share prices opened slightly in the positive Wednesday following overnight gains on Wall Street.The benchmark Korea Composite Stock Price Index rose 0.9 point, or 0.05 percent, to 1,889.20 in the first 15 minutes of trading. An electronic board at the Korea Exchange displays Korean share prices. (Yonhap)The index was trading 0.32 percent higher at 1894.31 points as of 10:23 a.m. Overnight, the Dow Jones industrial average advanced 1.39 percent, while the tech-heavy Nasdaq rose 2.27 percen

Korean stocks soared 1.4 percent Tuesday as foreigners and institutions loaded up on shares on rising hopes for a global economic recovery. The local currency closed lower against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) added 26.10 points to close at 1,888.30. Trading volume was moderate at 380.9 million shares worth 4.21 trillion won ($3.46 billion), with winners far outnumbering losers 672 to 162.Analysts said Seoul shares gained sharp ground amid growing hopes

South Korea’s central bank on Tuesday left the key interest rate unchanged at a record-low level, citing economic concerns at both home and abroad. In a widely expected decision, the Bank of Korea held the base rate steady at 1.5 percent for February for the eighth consecutive month. Bank of Korea Gov. Lee Ju-yeol presides over a rate policy meeting on Tuesday at the central bank headquarters in downtown Seoul. (Yonhap)The bank has kept the rate unchanged since July last year after four rate cut

Korean share prices rose more than a 1 percent higher on Tuesday morning as investor sentiment was boosted by the possibility that the eurozone may roll out fresh stimulus measures in March.The benchmark Korea Composite Stock Price Index traded 1.21 percent higher at 1884.71 as of 11:37 a.m. Seoul shares trade higher in morning trading (Yonhap)The index was led by rising tech shares, with Samsung Electronics adding nearly 1.5 percent and LG Electronics moving up more than 3 percent. LG Display i