The government’s 21 trillion won ($17.4 billion) fiscal stimulus for the first quarter of the year will be insufficient to offset the growing downside pressure on the economy, analysts said Thursday.  Finance Minister Yoo Il-ho speaks at a meeting with economy-related ministers in Seoul on Wednesday. (Yonhap)Following a spate of disappointing economic data, the government unveiled Wednesday a new stimulus package which includes an extra 6 trillion won in public spending on top of the original 13

The financial regulator plans to set up a task force to handle the investigation of accounting fraud cases amid calls for tougher measures against such practices, officials said Thursday.The task force to be composed of around six experts will be established under the accounting investigation bureau of the Financial Supervisory Service, the FSS said. The move is in line with the government’s pledge to strengthen monitoring and punishment in the wake of a series of fraudulent cases at several loc

Korean share prices opened in the positive on Thursday, edging up 0.58 percent despite a sharp rebound in crude oil prices.The benchmark Korea Composite Stock Price Index rose 10.98 points to 1,901.65 in the first 15 minutes of trading. Traders monitor Korea share prices at a local branch on Thursday. (Yonhap)The index was trading 0.73 percent higher at 1904.39 points as of 9:38 a.m. Refiners, however, were bullish after oil prices jumped 8 percent on Wednesday when Russia’s foreign minister rev

The daily volatility of the won-dollar exchange rate hit a five-month high in January as concerns rise about the stability of the Korean economy, central bank data showed Thursday.The average gap between the intraday high and low of the won-dollar exchange rate came to 7.9 won in January, the highest since 8.6 won in August, the Bank of Korea said. The January reading is also higher than the annual average for 2015.And the average daily variation, indicating fluctuations from the previous sessio

Despite the dark clouds gathering over Korea’s economy, its sovereign ratings are at the highest levels on record, data shows. Standard & Poor’s, one of the world’s big three credit ratings agencies, on Wednesday decided to maintain Korea’s rating at AA-, the fourth highest level in its evaluation scheme, with an outlook of “stable.” A stable outlook means the rating is most likely to stay at the same level for the time being. An AA-, the highest rating given to Korea, is where the country was b

More than half of South Korea’s major listed firms have suffered earnings shocks as they missed profit forecasts for the fourth quarter of 2015, stoking concerns that the country’s sluggish economy may further deteriorate amid the protracted global slowdown.  (Yonhap)According to FnGuide, a financial information provider, out of 75 major companies listed on the KOSPI and KOSDAQ indexes, 38 firms logged earnings shocks. An earnings shock occurs when a company reports quarterly or annual profits b

Iran is considering investing some 3 trillion won ($2.49 billion) in its current won-based bank accounts in the Korean capital market, according to Seoul officials Wednesday. The Korean government is examining possible measures to enable Iran to use the money in the accounts, owned by Iran’s central bank, for capital transactions, such as purchases of Korean stocks, bonds and derivative products, they said.“We are considering other options to use the won-based banks accounts which have been only

The head of a South Korean policy lender has been appointed a vice president of the China-led Asian Infrastructure Investment Bank (AIIB), the finance ministry here said Wednesday.Hong Ky-ttack, the president of state-run Korea Development Bank, will serve as the chief risk officer of the AIIB. The new bank has five vice presidents. Hong Ky-ttackHe will start his three-year tenure after the AIIB sets the exact inauguration schedule, according to the ministry.It is the first time in 13 years for

Local banks’ lending rates on home-backed loans have regained the 3 percent level despite record low key interest rates, data showed Wednesday.The lending rates at 14 out of 16 local lenders were over 3 percent for home-backed loans with a maturity of 10 years or longer, according to data from the Korea Federation of Banks as of the end of 2015. Customers consult for loans at a bank in Seoul.(Yonhap)Banks’ lending rates had dropped steadily since the Bank of Korea put its key policy rate to a re

South Korean shares opened 0.68 percent lower on Wednesday following a decline in New York triggered by sliding oil prices. The benchmark Korea Composite Stock Price Index shed 12.91 points to 1,893.69 in the first 15 minutes of trading. Traders monitor South Korean share prices at a local bank. (Yonhap)The index was trading 1.22 percent lower at 1883.37 points as of 9:45 a.m.Overnight, the Dow Jones industrial average fell 1.8 percent and the NASDAQ lost 2.24 percent after oil prices fell sharp

From news reportsSouth Korea and Iran reached an agreement to maintain the won-based settlement system used for years for bilateral trade while seeking an alternative payment method that can expand economic ties between the two countries, Seoul officials said Tuesday.“We agreed that the current won-based settlement system has no problem in continuing to operate. The existing accounts will remain,” a Finance Ministry official said.The agreement came after a Korean delegation comprised of finance

It would be an understatement to say China is off to a rocky start this year. The stock market in the world’s second-largest economy has been suffering weeks of volatility and downbeat sentiment as fears continue to grow over its overall stability. China’s economic growth rate slowed to a 25-year low of 6.9 percent in 2015. Many economists believe the actual growth rate -- something the Chinese authorities may be shielding from the international community -- was probably even lower.In the words

The Korea Herald is publishing a series of articles looking at the performance of various sectors on Korea’s main bourse KOSPI. The following is the second installment. -- Ed.Visitors look at a small-scale model of Xi Apartment built by GS E&C, during a promotion event held in Seoul. (Yonhap)Shares in South Korean builders are on an upward trajectory on the back of improved 2015 earnings and market expectations for more overseas projects with the reopening of the Iranian market and the launch of

Expectations that the Bank of Korea may soon lower the country’ key interest rate from the current record-low level are growing after Japan last week surprised global markets by adopting negative interest rates and weaker-than-expected export data strengthened the case for new stimulus. “Foreigners are buying futures on Korean government bonds, betting on a rate cut,” said Seo Hyang-mi, fixed-income analyst at Hi Investment & Securities.  Bank of Korea Gov. Lee Ju-yeol (Yonhap)On Monday, yields

Embattled credit card companies may face stiff competition from online-only banks that are fast seeking ways to infiltrate the market, according to industry sources. 　One such entity is Kakao Bank, a consortium of three firms Kakao, Korea Investment & Securities and Kookmin Bank.  　“Our plan is to launch credit cards linked to our services and win the approval (from the government) within this year,” a Kakao Bank official told a local paper, although it has not revealed the details. 　If Kakao Ba