The Korea Herald

BOK keeps key rate at record-low of 1.50%

Jan 14, 2016

The Bank of Korea’s monetary policy board on Thursday froze the base interest rate at a record-low of 1.5 percent, citing soaring household debt, volatility in China market and low crude prices. The central bank said it decided to keep the key rate unchanged largely due to the nation’s skyrocketing household debt. 　As of Sept. 30, South Korea’s total household debt soared to 1,166 trillion won ($962.8 billion), growing at an accelerated pace of 10.4 percent in 2015 from 8.7 percent in 2011. Ban
Oil money exit from Korean stocks likely to continue: brokerage

Jan 13, 2016

South Korea is facing an increasing level of oil money exit risks in its stock markets, with the crude-producing economies bracing against falling global oil prices and struggling Chinese economy, a Korean brokerage house said on Wednesday. According to a recent report compiled by Shinhan Investment Corp., the oil producing economies’ total investment in Korean stocks on Nov. 30, 2015, slipped to 30.7 trillion won, down 10.6 trillion won or 25.7 percent from July 31, 2014. “The biggest exit came
New finance minister stresses sweeping structural reforms

Jan 13, 2016

South Korea's new finance minister said Wednesday that the country should mobilize all resources to carry out structural reforms in order to put the economy back on a growth path and make it stronger."It's urgent to complete reforms in the education, labor, public and financial sectors in order to make a breakthrough in the low-growth trap," Finance Minister Yoo Il-ho said in his inauguration ceremony. "All resources should be funneled into the task.""There is no tomorrow unless we revamp the ri
India’s largest bank kicks off Seoul branch

Jan 13, 2016

India’s largest lender started operations of its first branch in Korea on Wednesday, as trade between the two Asian economies flourishes.B. Sriram, managing director of State Bank of India, speaks during a press conference in Seoul on Wednesday.“SBI Seoul branch will supplement existing channels of financial intermediation between India and Korea, partnering growth in bilateral trade between the two countries and also the flow of investments from one to the other,” B. Sriram, managing director o
India‘s top bank SBI opens branch in Seoul

Jan 13, 2016

The State Bank of India, the southern Asian country's No. 1 commercial bank, said Wednesday it opened a branch in Seoul in line with growing exchanges between the two nations.The branch, located in downtown Seoul, is the Indian bank's first in South Korea, though the institution set up a representative office in Seoul in 2013.The Seoul branch is to provide a wide range of services, with the focus on corporate financing for Indian companies planning to come here and for Korean firms operating in
New finance minister, BOK chief to discuss pending issues

Jan 13, 2016

South Korea's new finance minister and the central bank chief will have their first meeting later this week to share their views on the economy in the face of falling oil prices and a Chinese rout, the Bank of Korea said Wednesday.Finance Minister Yoo Il-ho, who took office Wednesday, will meet with BOK Gov. Lee Ju-yeol on Friday in Seoul to discuss ways to tide over issues facing the Korean economy through fiscal and monetary policies.In the recent few years, the meeting of the two economic lea
IRIS-SCANNING ATM

Jan 13, 2016

Woori Bank CEO Lee Kwang-goo tests an iris-scanning automated teller machine at its headquarters building in Seoul on Wednesday. Woori rolled out the biometric ATMs using iris scanning to identify customers at five branches in Seoul, the first among local banks. Woori Bank
Seoul stocks open on bullish note

Jan 13, 2016

South Korean share prices opened in the positive on Wednesday to make a rebound from the four-month low they fell to in the previous session. The benchmark Korea Composite Stock Price Index gained 11.74 points, or 0.62 percent, to 1,902.60 in the first 15 minutes of trading.The index was up more than 1 percent as of 11 a.m., trading at around 1913 points. On Tuesday, the index sank 0.21 percent to 1,890.86, the lowest since Sept. 8, 2015.Most large caps were trading higher in the morning session
Korea's M2 money supply grows at fast rate in Nov.

Jan 13, 2016

South Korea's M2 money supply grew at a faster rate from a month earlier in November, central bank data showed Wednesday.The M2 gained 0.4 percent from a month earlier to reach 2,244.3 trillion won in November, quickening from a 0.1 percent on-month growth in the previous month, according to preliminary data from the Bank of Korea.From a year earlier, the November figure marks a 7.7 percent increase.The M2 refers to currency in circulation including bank debentures and deposits with a maturity o
More credit card firms adopting wage peak system

Jan 13, 2016

More credit card companies in South Korea are adopting the so-called wage peak system this year to keep in line with related government policies, industry sources said on Wednesday.Samsung Card, Hyundai Card and Lotte Card have begun implementing the wage peak system this year after KB Kookmin Card became the first credit card firm in the country to adopt it. KEB Hana Card is also planning to adopt the system within this year. The law calls for public companies and big businesses with 300 or mor
Overseas direct purchases dip on strong dollar in 2015

Jan 13, 2016

South Koreans' direct purchases from foreign countries fell on-year for the first time in 2015 due to unfavorable exchange rates and efforts to stimulate domestic consumption through large promotional sales events, the government said Wednesday.According to the Korea Customs Service, direct purchases of foreign goods reached $1.52 billion last year, down 1.4 percent from over $1.54 billion tallied in 2014.The drop is noteworthy because direct purchases of goods by South Koreans have been growing
More credit card firms adopt wage peak system this year

Jan 13, 2016

A growing number of credit card companies are adopting the so-called wage peak system this year in line with the government's push as part of broader labor reforms, sources said Wednesday.Samsung Card, Hyundai Card and Lotte Card implemented the new wage system starting this year following the suit of KB Kookmin Card Co., which last year became the first credit card firm in South Korea to adopt the system.The public sector and big businesses with 300 or more employees will extend the retirement
U.S. dollar deposits at major Korean banks jump in 2015

Jan 13, 2016

U.S. dollar-denominated deposits at South Korea's five mainstream banks surged nearly 25 percent last year as investors flocked to safer assets amid lingering market uncertainties and ahead of a U.S. rate hike, analysts said Wednesday.Local residents' U.S. dollar deposits at KB Kookmin, Shinhan, Woori, KEB Hana and NH Nonghyup Banks came to a combined $31.02 billion as of the end of last year, a 24.3 percent spike from 24.96 billion won logged at the end of January 2015, according to the banks'
Korean equities on recovery track in 2016: Barings

Jan 12, 2016

Helped by low interest, low oil prices and the weak won, the Korean stock market is expected to recover this year despite negative market consensus, Baring Asset Management said Tuesday.“Taking account of the weak won, KOSPI (the main bourse) has room to rally. Capital outflows will ease at a faster pace in Korea than any other emerging markets,” John Park, chief investment officer at Barings, said during a press conference in Seoul. However, he noted that the equity market would not enter an up
Market volatility unlikely to get excessive: FSC

Jan 12, 2016

Financial Services Commission chairman Yim Jong-yong (Yonhap)Korea’s financial markets can expect more volatility as global risks persist, but chances of the gyrations hitting excessive levels are not high, the top financial regulator said Tuesday. “The latest spurt of volatility in local markets was to a degree unavoidable, as it stemmed from external factors. But according to experts, Korea is unlikely to see the volatility spike to an excessive level,” Yim Jong-yong, chief of the Financial Se