The Korea Herald

[Graphic News] Shadow banking sector doubles in 5 years

Jan 5, 2015

The size of shadow banking in Korea doubled in five years, according to data released by the Swiss-based global monitoring body Financial Stability Board on Monday.The value of the shadow banking industry, which mainly refers to nonbank financial intermediaries that provide services similar to traditional banks under less strict regulatory oversight, reached about $1.47 trillion in 2013, or 113.4 percent of the country’s GDP, the FSB said. Following the subprime meltdown in 2008 and the global f
Shares shed 0.55% on dim economic outlook

Jan 5, 2015

South Korean stocks ended lower Monday as investors were spooked by a series of economic data from Europe and Asia pointing to sagging growth momentum, analysts said.The South Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 10.69 points, or 0.55 percent, to 1,915.75. Trading volume was moderate at 311 million shares worth 4.66 trillion won ($4.22 billion), with losers beating gainers 461 to 348. Major market heavyweights remained in negative terrain w
KB eyes integration under new chief

Jan 5, 2015

Troubled financial group to move into bank unit building to make fresh start
‘Demand for bank loans to ease in Q1’

Jan 5, 2015

South Korean banks forecast demand for loans to decline in the first quarter from three months earlier in line with weakening demand for mortgage loans, a survey showed Monday.An index forecasting demand for loans by small and medium-size enterprises, large corporations and households came in at 20, down from a projection of 24 for the fourth quarter last year, according to the survey of 16 local banks conducted by the Bank of Korea. It marks the lowest level since 20 in the second quarter of 20
FSC seeks to cut insurance industry entry barriers

Jan 5, 2015

The South Korean financial regulator is expected to lower entry barriers for small specialized insurance firms to meet diversified demand and boost competition in the already-saturated industry, industry sources said Monday.The Financial Services Commission is considering revising local rules to ease the current minimum capital requirements for the establishment of a non-life insurance company in a bid to encourage smaller financial firms to sell travel, bicycle or glasses insurance policies, th
New employment reaches 12-year high in 2014

Jan 5, 2015

The number of new jobs in South Korea is estimated to have reached a 12-year high in 2014 but mostly on an increase in part-time and irregular jobs for seniors, the statistics office said Monday.According to Statistics Korea, the number of new hires reached a monthly average of 543,000 in the first 11 months of 2014. Once December figures are factored in, the average may fall but is likely to remain above 530,000.The estimated number marks a 21 percent rise from 438,000 in 2013. It would also be
Korea foresees slow start in emission rights trading

Jan 5, 2015

The Korea Exchange estimated on Monday that emission rights trading would struggle in the first quarter of 2016 and start picking up in the following quarter.“The trading will gain vigor in March next year, the deadline for the assessment of emission rates, and will stay heated until late June, the deadline for the submission of emission rights,” Korea Exchange Vice President Yoon Suk-yoon said at a joint news conference of the state-run bourse and the Ministry of Environment.The derivative mark
Seoul shares shed 0.55 pct on dim economic outlook

Jan 5, 2015

South Korean stocks ended lower Monday as investors were spooked by a series of economic data from Europe and Asia pointing to sagging growth momentum, analysts said.The South Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed 10.69 points, or 0.55 percent, to 1,915.75. Trading volume was moderate at 311 million shares worth 4.66 trillion won (US$4.22 billion), with losers beating gainers 461 to 348. Major market heavyweights remained in negative
Financial market volatility to rise this year: BOK chief

Jan 5, 2015

Bank of Korea Gov. Lee Ju-yeol on Monday projected more volatility in the global financial market this year amid mixed policy directions in major economies.Lee also said the country needs to brace for a possible financial risk as economies around the world are becoming increasingly connected, making them more susceptible to unexpected danger.The top central banker's remarks come as the Fed is expected to start hiking its key interest rate while Japan and the eurozone stay with accommodative rate
Demand for bank loans to ease in Q1: poll

Jan 5, 2015

South Korean banks forecast demand for loans to decline in the first quarter from three months earlier in line with weakening demand for mortgage loans, a survey showed Monday.An index forecasting demand for loans by small and medium enterprises, large corporations and households came in at 20, down from a projection of 24 for the fourth quarter last year, according to the survey of 16 local banks conducted by the Bank of Korea. It marks the lowest level since 20 in the second quarter of 2014.Th
Foreign direct investment in S. Korea reaches record high in 2014

Jan 5, 2015

New foreign direct investment (FDI) pledged to South Korea surged over 30 percent from a year earlier to a record high in 2014, with the amount that has arrived also climbing to a new high, the government said Monday.The new FDI committed to the country came to US$19 billion last year, up 30.6 percent from 2013, according to the Ministry of Trade, Industry and Energy. The 2014 figure also marked a 16.6 percent spike from the previous record of $16.29 billion in 2012."Posting a record amount of F
Regulator to lower entry barriers in insurance industry

Jan 5, 2015

The South Korean financial regulator is expected to lower entry barriers for small specialized insurance firms to meet diversified demand and boost competition in the already-saturated industry, industry sources said Monday.The Financial Services Commission (FSC) is considering revising local rules to ease the current minimum capital requirements for the establishment of a non-life insurance company in a bid to encourage smaller financial firms to sell travel, bicycle or glasses insurance polici
Credit card spending expected to exceed W700tr this year

Jan 5, 2015

Korea’s credit card spending is expected to post a record high of 700 trillion won ($632 billion) this year, data showed Sunday.Despite the expected spending increase, card issuers are likely to eke out a meager profit due to a sharp decline in the number of individual card holders, according to data released by KB Financial Group. Credit card spending in South Korea has continued to rise since it topped the 600 trillion won mark in 2011, when the government encouraged credit card use to reduce
Shares forecast to rise

Jan 4, 2015

South Korean stocks likely will move upward in the first full week of 2015 on the back of not-so-bad fourth-quarter earnings of Samsung Electronics, analysts said Saturday.The benchmark Korea Composite Stock Price Index ended at 1,926.44 on Friday, down 21.72 points, or 1.11 percent, from the previous week.The KOSPI plunged 20.20 points on Monday as stocks traded ex-dividends, coupled with political instability in Greece, and lost another 12 points on Tuesday before the two-day New Year’s holida
Korean cosmetics brand Missha closes outlets in H.K.

Jan 4, 2015

BEIJING (Yonhap) ― South Korean budget cosmetics brand Missha has closed all of its 20 outlets in Hong Kong, a Hong Kong newspaper reported Saturday, citing notices posted by two of the Missha outlets.One of the notices posted by a Missha store at Queensway Plaza in Admiralty district was quoted by the South China Morning Post as saying, “Missha is not available to serve you and we apologize for any inconvenience caused.” Public relations officials at Seoul-based Able C&C, which owns the Missha