The Korea Herald

Structural approach needed to boost domestic consumption

Oct 26, 2015

A strong rebound in domestic consumption was cited as a major driving force behind the Korean economy’s growth at its steepest pace in five years during the latest quarter. Norayngjin Fish Market (Yonhap)The country’s gross domestic product grew by 1.2 percent from the previous quarter in the July-September period, the highest rate since it peaked at 1.7 percent in the second quarter of 2010, according to data released by the Bank of Korea last week.Sluggish local spending, coupled with slumpi
Won’s weakness likely to continue

Oct 26, 2015

The won gained against the U.S. dollar amid expectations of a delay in the U.S. Federal Reserve’s interest rate hikes, but the South Korean currency is showing signs of weakening again after the Chinese central bank cut its benchmark rates to jumpstart the country’s sagging economy.On Monday, the greenback rose by 9.1 won from a trading session before to finish at 1,133.8 won, as the U.S. currency was strong against most Asian counterparts from China’s monetary easing once more.Local currency de
Seoul shares end 0.38% higher on China hopes

Oct 26, 2015

South Korean stocks closed higher Monday on hopes that China may come up with new stimulus measures to prop up its slowing economy, following its rate cut late last week. The local currency dropped sharply against the U.S. dollar. The benchmark Korea Composite Stock Price Index gained 7.68 points, or 0.38 percent, to finish at 2,048.08. Trading volume was moderate at 449.8 million shares worth 4.26 trillion won ($3.76 billion) with advancers outstripping decliners 425 to 375. Analysts said inves
Regulator set to overhaul 'zombie firms' by year-end

Oct 25, 2015

South Korea's financial regulator will make utmost efforts to complete the restructuring of unprofitable and highly indebted companies within the year to cushion any fallout on the economy from their sudden collapse, officials said Sunday.The number of "zombie companies," which can't generate enough operating profit to pay taxes and interest payments or require constant bailouts, reached 3,295 as of end-2014, up from 2,698 in 2009, according to recent data compiled by the Bank of Korea.The porti
Korean banks' overseas earnings edge up 1.1 pct in H1

Oct 25, 2015

South Korean banks saw their combined net profit from overseas operations inched up 1.1 percent in the first six months of the year from a year earlier, the financial watchdog said Sunday.Earnings by 163 overseas units and branches of South Korean lenders totaled $377.6 million in the January-June, compared to $373.4 million the previous year, according to the Financial Supervisory Service.The overseas income accounted for 10.6 percent of the banks' total profit over the cited period, it added.E
Hana Financial's Q3 net drops 8.2 % on merger cost

Oct 23, 2015

Hana Financial Group Inc., a major South Korean banking group, said Friday its third-quarter net profit fell 8.2 percent from a year earlier due mainly to one-off costs from the recent merger of its key units.Net income amounted to 253.5 billion won ($223.6 million) in the July-September period, compared with 276 billion won the previous year, the financial firm said in a regulatory filing. The third-quarter net profit also marks a 32.4 percent tumble from three months earlier. The weaker bottom
Seoul stocks, won sharply up on ECB stimulus hope, upbeat data

Oct 23, 2015

South Korean stocks jumped 0.86 percent Friday as hopes for additional stimulus measures in Europe and better-than-expected domestic growth data boosted appetites for riskier assets, analysts said. The South Korean won sharply rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index leaped 17.39 points to 2.040.39. Trading volume was moderate at 641.85 million shares worth 5.23 trillion won ($4.65 billion), with winners beating losers 481 to 332.Analysts said ECB's dovish st
Korean bourse operator signs MOU with Iran

Oct 23, 2015

South Korea's bourse operator said Friday it has agreed with the Iranian financial regulator to enhance bilateral cooperation in the financial sector, following a landmark nuclear deal to open a potential market in the Middle Eastern country.The Korea Exchange said it signed a memorandum of understanding with the Securities and Exchange Organization of Iran in Tehran on Thursday to share each others' experience and information and collaborate in building related infrastructure.The SEO is Iran's
Hyundai Card offers self-restricted spending

Oct 22, 2015

Hyundai Card on Thursday launched a customer-oriented digital service allowing smartphone users to have a spending-limit on purchases and cash advance on their credit cards.The service, dubbed “Lock & Limit,” will be available through the “Digital Hyundai Card” on customers’ mobile apps. Applicable to both online and off-line payments, it allows customers to renew their payment and cash-borrowing ceilings once a day, according to the company. Hyundai Card’s “Lock & Limit” service allows custo
Regulator to expand bad bank's role in corporate restructuring

Oct 22, 2015

South Korea's financial regulator said Thursday that it will expand the role of a leading bad asset management firm in overhauling debt-laden companies next month, in an effort to speed up the country's corporate restructuring.United Asset Management Company will take charge of leading debt workout programs through debt-for-equity swaps worth up to 28 trillion won ($24.6 billion), the Financial Services Commission said.UAMCO, co-owned by six major banks including Shinhan Bank and Kookmin Bank, i
Seoul shares edge up on steelmakers, tech stocks

Oct 21, 2015

South Korean stocks closed higher Wednesday as investors scooped up steelmakers and some tech stocks on expectations that their earnings have bottomed out, analysts said. The South Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index soared 3.61 points, or 0.18 percent, to 2,042.97. Trading volume was moderate at 660.79 million shares worth 5.09 trillion won ($4.49 billion), with losers outnumbering gainers 455 to 348.Analysts said the market sentiment remains
Korean won high performer among major currencies: data

Oct 21, 2015

South Korea's won has logged the sixth-highest gain among 38 major currencies over the past five years, data by the Bank for International Settlements showed Wednesday, undermining the competitiveness of the country's exports.In terms of the real effective exchange rate, the South Korean won has only underperformed five other currencies -- the Chinese yuan, the Icelandic krona, the U.S. dollar, the British pound and the Swiss franc, according to the data.The BIS has been checking the REER of dif
U.K. firm to offer real-time regulation on Korean fintech

Oct 20, 2015

ENTIQ cofounder and managing director Eric Van Der Kleij (second from left) and senior development executive Jae-won Peter Chun (third from left) attend the company’s press luncheon in central Seoul, Tuesday. (British Embassy Seoul)ENTIQ, a U.K.-based accelerator and incubator, vowed to bring some of the state-of-the-art financial technologies, including real-time regulation technologies, to Korea for its prospective financial technology market.“Real-time regulation is an emerging technology and
Bank workers enraged by Choi’s remark on ‘short’ operating hours

Oct 19, 2015

(123RF)Bank industry workers voiced criticism over Finance Minister Choi Kyung-hwan’s remark that Korea’s bank operating hours are too short.　The controversy has showed no signs of abating since Oct. 11 when Choi, who doubles as deputy prime minister, told reporters during his Peru visit for the G20 meeting that the country’s financial industry gets overpaid despite its short operating hours, undermining the global ratings on competitiveness of Korea’s financial sector. 　Typical Korean bank bran
Currency volatility frustrates Korean exporters, investors

Oct 19, 2015

The Korean currency has been extremely volatile against the U.S. dollar and Japanese yen over the past few months, confusing local exporters and investors, according to analysts.They note that the won-dollar exchange rate appears to have lost direction at the current stage amid the ambiguous stance of the U.S. Federal Reserve on hiking the key base rate.The dollar, which rose from 1,120 won in early July to about 1,200 won in early September, or 6.6 percent, has returned to the 1,120 level agai