The Korea Herald

Banks rush to expand global footing

Jan 10, 2016

In stark contrast to restructuring their workforce and branch operations at home, major South Korean banks plan to expand their business across Asia as they seek to bolster foreign presence to drive growth amid a slowing economy and record low interest rates, industry data showed Sunday.The country’s top five lenders ― Woori Bank, KEB Hana Bank, Shinhan Bank, KB Kookmin Bank and NH Nonghyup Bank ― are stepping up efforts to increase their global operations by adding 120 locations, including bran
[Graphic News] Korea ranks 31st in trustworthy GDP data

Jan 10, 2016

Korea ranked 31st in the world in terms of quality on gross domestic product data, according to a report released by World Economics, a U.K.-based economic information provider.The Data Quality Index developed by the consulting firm to show which countries data can be trusted covered five factors, including national accounting standards used and the size of the informal economy.Korea gained 75 points in the 100 possible score. Switzerland topped the list with 97.2 points, followed by the United
Seoul shares bounce back from 4-month low, China risks still persist

Jan 8, 2016

South Korean stocks pared early losses to close 0.7 percent higher on Friday, rebounding from their 4-month low, as China tried to attempt to ease concerns over the devaluation of its currency. The Korean won gathered ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) added13.29 points to end at 1,917.62. Trade volume was moderate at 401 million shares worth 4.99 trillion won ($4.17 billion), with losers beating winners 454 to 360.The index opened sharply lowe
KOSPI bounces back on China gains

Jan 8, 2016

The benchmark Korea Composite Stock Price Index managed to close in gain on strong institutional buying Friday, after moving either side of the 1900-point mark in the wake of a stock crash in China.　Korean traders gave a sigh of relief after the KOSPI rose 13.29 points to 1,917.62, despite pessimistic expectations throughout morning trading. Trading volume was at 400.6 million shares worth 5.00 trillion won ($4.2 billion), with 454 firms falling and 360 gaining. (123RF)　The KOSPI opened at a fou
S. Korea's mortgage growth likely to slow down

Jan 8, 2016

Growth of mortgage loans in South Korea will likely slow down sharply in 2016 from last year as the government tightens its grip on fast-rising home-back lending, a report showed Friday.Local banks' mortgage loans are expected to grow at a rate of 5 to 6 percent in 2016, according to the report by the Korea Center for International Finance, citing a global investment bank, JP Morgan.The growth pace has been accelerating in recent years, hitting11 percent in 2014 and 10 percent for the first 10 m
Mortgages grow most since 2011

Jan 7, 2016

South Korean home-backed loans extended by major local banks saw the sharpest increase in 2015 in five years, surging by over 60 trillion won ($50 billion) on-year due to a rise in housing transactions and a spike in home rental fees, industry data showed Thursday.According to data by six major banks, including KB Kookmin Bank and Shinhan Bank, outstanding home-backed loans from the banks grew by 60.4 trillion won last year from a year earlier, the biggest net increase since 2011.The amount incl
Markets take another hit from China

Jan 7, 2016

Won-dollar rate crashes through 1,200 level
Korea's central bank chief to attend BIS meeting

Jan 7, 2016

South Korea's central bank head will attend a bimonthly meeting of central bank governors from around the world, where they will exchange views on the latest financial market conditions, the Bank of Korea said Thursday.BOK Gov. Lee Ju-yeol will head to Basel, Switzerland, on Friday for the two-day meeting of the Bank for International Settlements over the weekend.BIS currently has 60 member countries, including Japan, China and the United States.The upcoming meeting will be the first of its kind
Gov't tobacco tax revenue jumps 51.4% on price hike

Jan 7, 2016

South Korea's tobacco tax revenue shot up more than 50 percent in 2015 from a year earlier on a spike in cigarette prices, despite weaker sales, the finance ministry said Thursday.The cigarette tax revenue reached 10.5 trillion won ($8.7 billion) last year, up 51.4 percent from 7 trillion won tallied a year ago, according to the Ministry of Strategy and Finance.Seoul marked up taxes levied on cigarettes by 2,000 won, starting in January last year, to raise the price to 4,500 won per pack, citing
Seoul shares, currency shrink

Jan 7, 2016

South Korean stocks traded 0.88 percent lower late Thursday morning due to a Chinese stock market crash coupled with new North Korean risks.The local currency was trading at 1,201.70 won against the U.S. dollar as of 11:20 a.m., down 3.80 won from the previous session's close.The benchmark Korea Composite Stock Price Index (KOSPI) lost 16.92 points to 1,908.51 as of 11:20 a.m.Shares lost ground across the board, with Samsung Electronics plunging 1.02 percent and No. 1 carmaker Hyundai Motor losi
FSC head urges thorough risk management for financial stability

Jan 7, 2016

South Korea's top financial regulator on Thursday stressed the need for careful risk management to maintain financial stability in the face of resurfacing geopolitical risks and external uncertainties.Financial Services Commission Chairman Yim Jong-yong made the remarks at a meeting held with officials from relevant government agencies and experts to check economic and financial risk factors and to explore ways to cope with them."Risk management for financial stability has become more important
Interest rate hike may pose challenges for households: BOK

Jan 7, 2016

An interest rate hike of just 0.25 percentage points will likely cause the household debt service burden to rise by 1.9 trillion won ($1.6 billion) per year, hurting consumer spending and affecting overall growth, the central bank said Thursday.In a report submitted to Rep. Park Won-suk of the minor opposition Justice Party, the Bank of Korea said if a quarter percentage point hike takes place, the biggest impact will be felt by households that make up the top 20 percent of the country's income
Home-backed bank loans rise at fast clip in 2015

Jan 7, 2016

Home-backed loans from major local banks increased at the fastest clip in five years in 2015 amid a surge in home transactions and home rental fees, market data showed Thursday.According to the data from local lenders, outstanding home-backed loans extended by six major banks here came to 349.5 trillion won ($291.3 billion) at the end of 2015, up 32.6 trillion won from a year earlier.In reality, however, the total grew by 60.4 trillion won on-year when considering 27.8 trillion won worth of bank
Brokerage staff fear job losses

Jan 6, 2016

Hit by a sluggish stock market, securities companies here have cut nearly 8,000 jobs over the past four years and more layoffs are expected this year, industry sources said Wednesday. Falling earnings and upcoming takeover deals among local brokerage houses will push them to undertake restructuring measures this year, according to experts. The financial district of Yeouido in Seoul (Yonhap)Especially, sales staff at small branches are on the verge of losing jobs as a growing number of people op
Shares, currency fall on N.K. bomb test

Jan 6, 2016

North Korea’s purported hydrogen bomb test rocked financial markets in South Korea on Wednesday, bringing down local stocks and currency and putting Seoul authorities on emergency footing again just two days after China’s stock market crash triggered a global market rout.The South’s benchmark stock index KOSPI dipped 0.26 percent to close at 1,925.43. In the morning, shortly after the news broke, the gauge slid to as low as 1,911.61, but recovered some of the losses in the afternoon. Foreigners