The Korea Herald

Banks to expand online services to counter Internet-only rivals

Nov 30, 2015

South Korea’s banking industry is expecting its largest shake-up in decades as two Internet-only banks are to launch next year, becoming not only the first of their kind, but also the first new entries into the market since 1993.The government’s decision to license two consortiums for the new business field triggered mixed reactions from conventional financial companies ― depending on whether or not they were part of the incoming picture.The Financial Services Commission gave its preliminary app
Seoul shares plunge 1.82% on China rout

Nov 30, 2015

South Korean stocks plunged 1.82 percent Monday as investors dumped techs, brokerages and other large caps, dismayed by extended losses in China, analysts said.The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 37.02 points to 1,991.97. Trade volume was moderate at 438.6 million shares worth 6.37 trillion won ($5.5 billion), with losers outpacing gainers 623 to 204.The drop is the sharpest since Sept. 23, when the index fell 1.89 percent. "An ext
Kyobo Life chairman donates W2b to youth job fund

Nov 30, 2015

Kyobo Life Insurance chairman Shin Chang-jae (Kyobo Life Insurance)Kyobo Life Insurance chairman Shin Chang-jae vowed to donate 2 billion won ($1.7 million) out of his own pocket to a government-led youth job fund, the company said on Monday.　Shin’s donation comes after 1,824 Kyobo Life Insurance officials collected about 200 million won for the Youth Hope Fund. 　“The officials joined hands to help the young job seekers, the future of this nation, to overc
Korea to float yuan-based FX bonds in China within the year

Nov 30, 2015

South Korea will issue yuan-denominated foreign exchange stabilization bonds in China within the year to better meet rising demand for the Chinese currency and help local firms do business in the world's No. 2 economy, a government source said Monday.According to the finance ministry source, the government expects to get permission from the People's Bank of China so it can sell the bonds in December."The government is weighing the time for the sale, by checking financial market conditions," the
Rise in industrial lending quickens in Q3

Nov 30, 2015

South Korean banks' industrial loans continued to rise in the third quarter with their growth pace also quickening from three months earlier, central bank data showed Monday.Outstanding bank loans to local companies came to 931.8 trillion won ($804.87 billion) at the end of September, up 6.8 percent from a year earlier, according to the data from the Bank of Korea.From three months earlier, the amount increased by 20 trillion won, quickening from a 12.3 trillion won rise in the April-June period
Korean won to further fall against greenback in 2016: experts

Nov 30, 2015

The South Korean currency is likely to further lose ground against the U.S. dollar next year should the Fed raise interest rates in December as expected, experts said Monday.But the dollar may not be as strong as it is this year as the effects of the potential rate hike would fade away soon, they noted.Five major brokerage houses have forecast the South Korean currency to trade at an average of 1,192.60 won to the greenback in 2016. The local currency ended at 1,153 won against the U.S. dollar a
Seoul shares down on China shock

Nov 30, 2015

South Korean stocks traded sharply lower late Monday morning as investors were spooked by a plunge in the Chinese market late last week. The benchmark Korea Composite Stock Price Index dropped 31.05 points, or 1.53 percent, to 1,997.94 as of 11:20 a.m.Most blue chips traded lower, with tech and brokerage companies among marked decliners. Samsung Electronics fell nearly 3 percent, while panel maker LG Display lost 1.75 percent. Samsung Securities also shed 2.2 percent. On Friday, the Shanghai Com
Seoul shares open lower on tech, brokerage losses

Nov 30, 2015

South Korean stocks opened lower Monday as tech firms, brokerages and other large-cap issues lost ground.The benchmark Korea Composite Stock Price Index fell 16.18 points, or 0.8 percent, to 2,012.81 in the first 15 minutes of trading.Market bellwether Samsung Electronics dropped nearly 1 percent, while panel maker LG Display plunged about 4 percent. Major brokerage firms also started lower.The local currency was trading at 1,158.95 won against the U.S. dollar as of 9:15 a.m., down 5.95 won from
Listed firms' debt ratio inches down in Q3

Nov 30, 2015

The financial stability of South Korea's listed firms has improved in the third quarter as their equity capital grew faster than liabilities, the main bourse operator said Monday.The average debt-to-equity ratio for 611 companies listed on the main KOSPI market came to 122.03 percent at the end of September, down 3.32 percentage points from the end of 2014, to sit at 1.19 quadrillion won ($1.03 trillion), according to the data compiled by the Korea Exchange.The debt ratio is calculated by dividi
Key economic indexes to slip this year

Nov 29, 2015

South Korea faces a weak economic growth forecast this year as most of its key indexes are likely to end low, affected by the Middle East respiratory syndrome in the second quarter and the overall slowdown in China’s economy.The country’s growth rate is expected to sink back into the 2 percent range, the trade volume to drop below 1 trillion won ($865 million), and the inflation rate to hit a record low since the Asian financial crisis in the late 1990s.Leading economic institutes have revised t
KDB signs Singapore deal in strategic expansion

Nov 29, 2015

The Korea Development Bank is focusing on expanding its overseas business in strategic regions including Singapore, Hong Kong and London in its pursuit of renewed growth momentum.As part of such efforts, the leading state-run bank has recently signed a memorandum of understanding with the Development Bank of Singapore, the biggest bank in Southeast Asia by assets, officials said.DBS was selected by the Global Finance journal earlier this year as the 11th-safest bank in the world and the safest o
Kakao, KT win licenses for first Internet bank

Nov 29, 2015

Consortiums led by information technology service giants Kakao Corp. and KT Corp. won a preliminary license to launch South Korea's first Internet-only bank Sunday, the financial regulator said, opening the new business market in the long-slumping banking industry.The Financial Services Commission said it gave approval to Kakao Bank and K-Bank after a two-month review of their qualifications, including their financial stability, shareholdings structure and customer service plan. It had accepted
Seoul shares forecast to extend gains on eurozone hope

Nov 28, 2015

South Korean shares are expected to extend their gains next week getting a boost from a widely expected stimulus step by the European Central Bank, analysts said Saturday.The benchmark Korea Composite Stock Price Index closed at 2,028.99 points on Friday, up 2 percent from a week ago.Earlier this week, Seoul shares started higher as investors' concerns over the U.S. Fed's rate policy eased following the release of its Federal Open Market Committee's minutes.But the gains were limited later after
[Weekender] Adding a human touch to commercial imagination

Nov 27, 2015

When a government institution or ministry airs an advertisement, the point is to convey a message of public interest ― usually on a tight budget and under numerous regulatory restrictions. No wonder that these “public” ads mostly fail to appeal to the public.But this year, a video campaign on the importance of recycling overturned such prejudice. Earlier this month, Korea Advertising Awards 2015 selected the Environment Ministry’s public advertisement “I Am Your Father” as the best overall video
FSC pushes ‘mid-rate’ loans for low-incomers

Nov 27, 2015

By Kim Yon-seRuling party lawmakers and the government reached a consensus on relieving a large portion of households of their loan interest burden during discussions to revamp the financial services sector Friday.The Financial Services Commission said that the 10 core reform plans for financial consumers were confirmed during its chairman Yim Jong-ryong’s meeting with lawmakers from the Saenuri Party at the National Assembly in Seoul.They have agreed to promote the launch of lending products th