The Korea Herald

KB Financial chief set on LIG takeover

Nov 21, 2014

KB Financial’s new chief Yoon Jong-kyoo wasted no time in voicing his determination to take over LIG Insurance. “(The takeover of LIG Insurance) is an indispensable part of our plans for creating synergy,” Yoon said Friday at a general shareholders’ meeting, where he was unanimously voted as the head of the financial group.With the comments, he effectively dismissed suggestions from the Financial Services Commission to reconsider the acquisition of the ailing insurer.“Considering phenomena such
Seoul shares buoyed by U.S. data, institutional buying

Nov 21, 2014

South Korean stocks rebounded Friday after backtracking for two sessions, buoyed by encouraging economic data from the United States and net buying by foreign investors and institutions. The local currency rose against the U.S. dollar. Starting the day in positive territory, the benchmark Korea Composite Stock Price Index pared some early gains but ended the day at 1,964.84, up 0.35 percent, or 6.80 points, from Thursday’s close. Trading volume was moderate at 338.78 million shares worth 4.23 tr
Audi Korea issues voluntary recall campaign

Nov 21, 2014

Audi Korea has issued a voluntary recall campaign for more than 9,000 of its 2013-2015 model A4 and S4 vehicles for faulty frontal airbags, the carmaker said Friday.The recall models are the A4 2.0 TDI (8,055 units), A4 2.0 TFSI (977 units) and S4 3.0 TFSI (59 units) that were manufactured from March 2013 to mid-October 2014, adding up to 9,091 vehicles. The voluntary recall campaign comes after the discovery that the airbags were not properly inflating during accidents due to an error in the ai
Korean won rebounds from 15-month trough

Nov 21, 2014

South Korea’s currency rebounded from a 15-month low on Friday, snapping a three-day losing streak as it paralleled the Japanese yen’s ascent to the greenback.The Korean won closed at 1,113.80 per U.S. dollar, up 1.3 won from the previous session’s close, after rising as high as to 1,106.60 at one point.The Japanese yen rose against the dollar in Tokyo earlier in the day after Japan’s Finance Minister Taro Aso said the pace of the currency’s depreciation was too fast.Analysts said dealers are in
OB welcomes Brazilian beer expert as new CEO

Nov 20, 2014

Frederico Freire, the new CEO of Oriental Brewery. (OB)South Korea’s top beer company, Oriental Brewery, said Thursday that it had appointed Frederico Freire, vice president of Anheuser-Busch InBev APAC, as its new CEO.Freire replaced Chang In-soo, who was promoted to vice chairman of the firm. “The establishment of the new leadership reflects an aggressive move to defend our position as the leader in the domestic beer market,” an OB spokesperson said.Freire joined AB InBev in 1996 and has worke
Banks pay nearly W3tr in dividends to foreign investors

Nov 20, 2014

South Korean banks’ dividend payouts to foreign shareholders have reached nearly 3 trillion won ($2.7 billion) in the past four years, accounting for 10 percent of their net income, industry data showed Thursday.A total of 4.5 trillion won was paid out as dividend to their stakeholders by six major financial groups, led by No. 1 Shinhan Financial Group Co. and KB Financial Group Co., from 2010 to 2013, according to the data.The figure is 15.7 percent of their combined net profit of 28.5 trillion
Financial tech market hindered by regulations

Nov 20, 2014

As shown by Apple Pay, Ali Pay and Bank Wallet Kakao, the mobile payment market is one of the very few sectors that is continuing to achieve a fast and steady growth ― a phenomenon that has led to the coining of the term “fintech,” a combination of “finance” and “technology.” However, experts said that excessive red tape is holding back the potential of the business in South Korea.The mobile payment market here is growing at an average of 18 percent per year. The total market size is expected to
MSCI adds Samsung SDS to emerging market index

Nov 19, 2014

Global index provider MSCI has added Samsung SDS Co., a key IT unit of Samsung Group, and three other Korean stocks to its emerging market index in its latest quarterly review, which will take effect later this month, according to its website Wednesday.The U.S.-based provider of investment research and indices included Samsung SDS, which was listed on the Seoul bourse Friday, immediately becoming the nation’s sixth-largest company by market capitalization. MSCI also added Daum Kakao Corp., CJ Ko
Finance minister sees recovery in housing market

Nov 19, 2014

South Korea's property market is recovering from a long slump with home transactions picking up recently, the finance minister said Wednesday, rebuffing media reports that the market conditions remain harsh for many people."Thanks to the government's policy support, the volume of home transactions came to 109,000 last month, the most in eight years,"Finance Minister Choi Kyung-hwan told a meeting with other policymakers in Seoul. "The housing market is returning to normal like this but media rep
Korea Finance CEO tapped to head FSS

Nov 18, 2014

Financial Supervisory Service Gov. Choi Soo-hyun offered to step down Tuesday under pressure that had been mounting since the beginning of the year in the wake of a string of scandals in the local financial sector. Korea Finance Corporation CEO Zhin Woong-seob was nominated by the Financial Services Commission, the supervising arm of the financial watchdog, to replace Choi. “Our efforts to eradicate irrational practices and to establish a legitimate financial culture also triggered complaints an
Seoul shares rebound to end 3-day fall

Nov 18, 2014

South Korean stocks rebounded on Tuesday, helped by massive buying by foreign investors and institutions. The local currency fell against the U.S. dollar. Starting the day positively, the benchmark Korea Composite Stock Price Index (KOSPI) ended at 1,967.01, up a meaningful 1.20 percent, or 23.38 points from Monday’s close. The gain ended the three-day losing streak that caused the bourse to fall below the 1,950 mark.Trading volume was light at 241.41 million shares worth 4.09 trillion won ($3.7
State policy financing agency chief named new financial watchdog head

Nov 18, 2014

The state policy financing agency chief on Tuesday was named the new head of the financial watchdog, who apparently resigned after a series of recent financial scandals, officials said.The Financial Services Commission (FSC), the top financial regulatory body, picked Zhin Woong-seop, president of the Korea Finance Corp., as the new governor of the Financial Supervisory Service (FSS).FSS Gov. Choi Soo-hyun, who took office in March last year for a three-year term, has offered his resignation to t
Financial watchdog head offers resignation

Nov 18, 2014

The head of the South Korean financial watchdog has offered his resignation, its officials said Tuesday, in an apparent move to take responsibility for recent financial scandals.Financial Supervisory Service (FSS) Gov. Choi Soo-hyun has submitted the resignation letter to the Financial Services Commission (FSC), the top financial regulatory body, citing personal reasons, according to the FSS.Choi took office in March last year for a three-year term. Financial Supervisory Service (FSS) Gov. Choi
[Newsmaker] Shanghai-H.K. link leaves KOSPI intact

Nov 17, 2014

The Shanghai-Hong Kong stock connect scheme ― touted as a milestone in the liberalization of China’s capital markets ― launched Monday, with very little impact on the Korean bourse. Korea’s stock market dipped only slightly as investors appeared to be taking a wait-and-see attitude. The government too said it would watch for further developments before taking any actions.“As we do not expect the trading scheme to lead to an immediate surge in capital outflows from Korea’s stock market in the sho
[Herald Interview] ‘Korea, Japan more reliable than China’

Nov 16, 2014

French credit insurer says China’s rating may be downgraded in future