The Korea Herald

Household loan growth hits record high in Oct.

Dec 9, 2014

Household loans extended by South Korean financial institutions grew at a record pace in October as mortgage loans sharply rose, data showed Tuesday, following government measures to jolt the ailing property market.Outstanding household lending by local lenders and non-banking institutions increased 7.8 trillion won (US$7 billion) in October from a month earlier to 730.6 trillion won, according to the Bank of Korea (BOK).The October growth, compared with a 5.6 trillion won gain in the previous m
Household debt triggers concerns

Dec 8, 2014

South Korea’s soaring household debt, boosted by low borrowing costs and eased mortgage lending, is touching off concerns on the ability of the borrowers to repay it, according to experts. “It is the soundness of the debt that matters the most,” said Lee Geun-tae, economist at LG Economic Research Institute on Monday.Depending on economic circumstances, household debts are not always considered negative, as they may promote consumption and activate the market, he explained.“But recently, there h
(Photo News) Deeper into winter

Dec 8, 2014

Citizens walk the snow-covered streets lined with trees in Daejeon on Monday. Heavy snow fell across the nation over the weekend and Daejeon saw 8 centimeters of snowfall overnight. (Yonhap)
Korean won hits 15-month low vs dollar

Dec 8, 2014

The South Korean won dropped to the lowest level in 15 months on Monday, following other currencies’ moves against the greenback as upbeat job data in the U.S. fueled speculation of a hike in borrowing costs in the world’s largest economy.The local currency closed at 1,117.7 per dollar, down 3.6 won from Friday’s close, after falling to as low as 1,121.70 at one point.The closing price marks the lowest since Aug. 22, when the comparable figure was 1,123.00 won.Data released Friday showed that th
Political mafia occupy key finance posts

Dec 8, 2014

‘Jeongfia’ rises to top despite lack of qualifications, expertise
S. Korean stocks lag behind Asian peers: data

Dec 7, 2014

South Korea's stock market has been in a relatively sharper slump compared with other regional rivals as local companies, undercut by a weak Japanese yen and a slowdown in economic growth, suffered a steep drop in their earnings, industry data showed on Sunday.South Korea's key stock index, the KOSPI, declined 1.23 percent this year through Friday, ranking 12th among 14 regional stock indices, according to the data compiled by the Korea Exchange. The Shanghai Composite Index posted the biggest g
Foreign investors become net buyers of Korean stocks

Dec 5, 2014

Foreign investors turned to net buyers of South Korean stocks last month, ending their two-month selling streak as monetary stimulus in Europe and China spurred appetite for risky assets, the financial watchdog said Friday.Offshore investors bought a net 2 trillion won ($1.8 billion) worth of local stocks in November, a turnaround from a net sell-off of 2.1 trillion won a month earlier, according to the Financial Supervisory Service.The total value of their shareholdings came to 438.5 trillion w
Lagging S. Korean brokers poised for M&A splash

Dec 5, 2014

A growing number of money-losing local brokerage houses are poised to merge with bigger rivals or go out of business as underdogs are grappling with low commission fees amid the prolonged slump in the South Korean equity market, according to company officials Friday. Calls have grown for active mergers and acquisitions (M&A) to restructure the crowded financial market as the securities firms are competing with similar business models that heavily rely on trading commissions, while the tepid loca
Gov't sells part of stake in IBK

Dec 5, 2014

The government said Friday that it has sold a 3.8 percent stake, or 21 million shares, in the Industrial Bank of Korea (IBK) as part of efforts to raise money needed to meet growing fiscal spending.The sale was held before the opening of the stock market on Friday at 14,800 won (US$13.3) apiece, which was 2.3 percent lower than the previous day's closing price. The government raised 310.8 billion won in the process, according to the finance ministry. As a result, the government's stake in the IB
Korea to set up consumer financial protection agency

Dec 4, 2014

The Korean financial regulator said Thursday that it would establish an independent state-run agency responsible for consumer protection in the financial sector next year, as part of the government’s plan to revamp the financial regulatory system and beef up consumer protection functions.The financial consumer protection body will enforce rules for the entire process of financial consumption, including the sale of financial products and remedies for financial losses, according to the Financial S
Standard Chartered to pay out disputed dividends

Dec 4, 2014

Standard Chartered Korea is set to pay out 150 billion won ($134 million) as interim dividends to its overseas shareholders notwithstanding allegations that it is attempting to exit Korea on declining profits. “We will be submitting to the (Standard Chartered) board of directors the plans for paying out an interim dividend within the limit of 150 billion won as a reasonable return for shareholders,” said a spokesperson for SC Korea.Since 2005, Standard Chartered has invested 4.6 trillion won in
KB Financial chief vows to win back trust

Dec 4, 2014

KB Financial Group chairman Yoon Jong-kyoo is a man with a mission. As the chief was selected after a months-long crisis involving internal feuding, data leaks and loan fraud, Yoon has a lot on his plate, and he knows it. This is why the new chairman has made it clear that he will make winning back consumer trust and boosting employee morale his top priorities. On Nov. 21, Yoon said at his inauguration ceremony that KB would “continue to enforce stringent internal control systems and reinforce c
Woori vice president expected to become CEO

Dec 2, 2014

Woori Bank vice president Lee Kwang-goo was expected to become president of the bank following an abrupt decision by the incumbent head to step down.Lee was among the three candidates that the bank’s presidential nomination committee revealed, but industry watchers believe he has the biggest shot at the presidency, citing his connection to the government and high-ranking officials in the financial sector from his alma mater ― Sogang University. Rumors have been mushrooming that Sogang graduates
KOSPI to hit 2,300 next year: Goldman Sachs

Dec 2, 2014

Global investment bank Goldman Sachs predicted that South Korea’s benchmark stock index KOSPI would fluctuate between 1,900 and 2,300 next year, with the earnings per share in the 6.6-28.8 percent range.“In 2015, Korea will see an export growth of 7 percent on-year, backed by the strong won,” said Kwon Goo-hoon, the company’s managing director and chief economist for Northeast Asia.As the five most promising industries, he picked information technology, banking, securities, construction and util
Won-yuan trading market ‘high potential’ startup

Dec 1, 2014

South Korea’s finance minister called the newly-launched won-yuan trading market a startup with “high potential” on Monday, promising to provide necessary support for its successful operation.South Korea held a ceremony earlier in the day to mark the launch of the won-yuan trading market at the headquarters of Korea Exchange Bank in central Seoul. The market, which opens at 9 a.m. and closes at 3 p.m. every business day, is expected to help reduce overall exchange costs in exchanging between the