The Korea Herald

Money inflows continue into high-yield funds with tax favors

Jan 8, 2015

South Korean investors are putting more money into funds that invest in low-grade bonds amid low market interest rates, data showed Thursday.Inflows to such funds amounted to 3.19 trillion won (US$2.9 billion) as of the end of December, just nine months after their market debut in early April last year, according to the data compiled by the Korea Financial Investment Association (KOFIA). In March last year, the country's regulator allowed local financial firms to sell a new type of high-yield fu
S. Korean banks closing down ATMs on mobile banking trend

Jan 8, 2015

Local banks have been closing down their automated teller machines (ATMs), pulling out of the high-cost service to transfer resources to more promising mobile banking, industry watchers said Thursday.The top seven commercial banks led by market No. 1 Shinhan Bank and Kookmin Bank ran a combined 32,256 ATMs nationwide as of September last year, down 3.6 percent from 33,459 at the end of 2013, according to data from the industry. The other five banks are Woori Bank, Hana Bank, Foreign Exchange Ban
Corporate bill default rate hits 13-year high

Jan 7, 2015

The default rate of corporate bills in South Korea worsened to the highest level in 13 years last year due mainly to cash-squeezed conglomerates and sluggish economic conditions for local companies.The average annual corporate bill default rate reached 0.19 percent last year, hitting the highest level since 0.38 percent in 2001, according to the data by the Bank of Korea and the Korea Financial Telecommunications & Clearings Institute. The figure had soared to 0.52 percent in 1997 from 0.17 perc
Finance sector loses most jobs in 5 years

Jan 7, 2015

The country’s finance industry suffered its largest job losses in five years last year, state researchers said in a report released Wednesday. In last year’s January-November period, the average number of jobs in the finance industry fell to 840,000, down 2.8 percent from a year ago, according to the report by Statistics Korea.About 24,000 jobs vanished from the financial sector, dragging its share of the nations jobs to down 3.13 percent. This is the largest job loss since 2009, when about 55,0
Diageo, customs office strike deal on massive tax fine

Jan 7, 2015

The yearslong tax dispute between Diageo Korea and Korea Customs Service finally ended Wednesday after the Korean branch of the world’s largest distiller decided to accept a court’s mediation.Under the deal, the liquor company is expected to pay a fine of around 200 billion won ($184 million), a sharp reduction from the fine of about 400 billion won initially imposed by the agency on charges of tax evasion.The mediation court had suggested a partial exemption on the fine in return for Diagio Kor
Hana-KEB merger could face delay

Jan 7, 2015

Hana Financial Group’s ambitious plan to merge its two flagship banks ― Hana Bank and Korea Exchange Bank ― is likely to face another delay due to their discord on how to convert the banks’ contract workers into regular employees.A news report said the management-labor talks had gone astray and the plan to promote some 3,400 contract workers returned to square one. The number includes 2,000 KEB employees and 1,400 Hana employees.But the financial group denied the report, calling it groundless.“H
Shares rebound on auto, tech gains

Jan 7, 2015

Korean stocks slightly rebounded from their 16-month low on Wednesday, aided by gains in autos, utility and tech shares as investors saw recent sell-offs on the local bourse as excessive, analysts said. The Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index rose 1.38 points, or 0.07 percent, to 1,883.83, snapping a seven day loss. Trading volume was moderate at 277 million shares worth 3.69 trillion won ($3.36 billion), with losers beating gainers 482 to 326.
Job loss in finance industry hits 5-year high

Jan 7, 2015

As low inflation and growth pummeled profit, South Korea's finance industry has shed the largest number of jobs in five years, a statistics agency said Wednesday.There were 840,000 jobs on a monthly average in the local finance and insurance sectors in the January-November period, down 2.8 percent from the same period a year earlier, according to Statistics Korea.The figure translates to a loss of 24,000 jobs over the one-year period, marking the steepest fall since 55,000 jobs were erased off t
Auto recalls down 27% in Korea: data

Jan 6, 2015

The number of automobile recalls in South Korea shrank 27.2 percent in 2014 from a year earlier, a car safety agency said Tuesday, on the back of a decline for local carmakers.A total of 755,501 vehicles registered here were recalled for safety reasons last year, down from 1.04 million units in 2013, according to the data compiled by the Korea Transportation Safety Authority. The number of models affected, however, jumped 80.5 percent on-year to 352 from the previous 195.There were fewer recalls
Emission rights trading to kick off next week

Jan 6, 2015

Korea’s emission rights trading system will launch next week at the Busan headquarters of the Korea Exchange, the state-run bourse said Tuesday. The carbon derivative market will open Jan. 12, with the trading and payment service operated by the KRX. The trading hours will be from 10 a.m. to noon. Only the 525 companies approved by the Ministry of Environment are entitled to engage in trading. During the initial stage from 2015 to 2017, companies under the emission target will receive carbon all
Korean fund inflows up 14% in 2014: data

Jan 6, 2015

South Korean funds saw a sharp rise in net inflows last year as investors turned to indirect instruments amid record-low interest rates, while stock funds stayed weak from the tedious equity market, data showed Tuesday. The net asset value of stocks, bonds and real estate-related funds reached a combined 385.16 trillion won ($346.7 billion) at the end of 2014, up 13.93 percent from a year earlier, according to data by the Korea Financial Investment Association. The net asset value refers to the
Legal battle looms over Moneual loan fraud

Jan 6, 2015

State insurer moves to reject insurance claims of banks that offered loans to Moneual
Shares dip 2% on oil slump, eurozone woes

Jan 6, 2015

South Korean stocks dropped almost 2 percent Tuesday as a prolonged slump in oil prices and revived woes over the eurozone economy prompted broad market sell-offs, analysts said. The South Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 33.3 points, or 1.74 percent, to 1,882.45. Trading volume was moderate at 299 million shares worth 4.66 trillion won ($4.24 billion), with losers beating gainers 577 to 233. Major market heavyweights remained in negati
Korea to invest $400m to develop new growth engines

Jan 6, 2015

Korea will invest over $400 million this year to help develop new and indigenous products and technologies that will help boost the country’s economy and exports, the government said Tuesday.The Ministry of Trade, Industry and Energy said the government seeks to develop 13 new industrial growth engines that include smart wearable devices, self-driving vehicles and a high-speed unmanned aerial vehicle that can take off and land vertically.For their development, the government will invest 254.8 bi
Combined sales of Hyundai, Kia in U.S. hit record high

Jan 6, 2015

LOS ANGELES (Yonhap) ― Hyundai Motor Group, the world’s fifth-largest automaker, said Monday that its U.S. sales reached an all-time high in 2014 despite lingering worries over slowing global economic recovery and intensifying competition from Japanese rivals supported by the weak yen.Hyundai Motor America and Kia Motors America, the distribution and marketing arms of the group’s flagship companies, said that they sold 725,718 cars and 580,234 vehicles last year, up 0.7 percent and 8.4 percent f