The Korea Herald

Shinhan included in DJSI for 2nd time

Sept 25, 2014

Shinhan Financial Group, the nation’s largest financial holding firm by assets, has been included in the Dow Jones Sustainability World Index for the second consecutive year, officials said on Thursday.Shinhan was recognized for its long-standing efforts in creating shared value, or CSV, to become the first South Korean financial firm to be included on the list two years in a row. The DJSI is a global indicator tracking the financial performance of companies in all industries that outperform in
‘KB shareholders must use rights’

Sept 25, 2014

Management mess shows need for minority shareholders to have their say: civic group
Hyundai Logistics sales to streamline ownership structure of Hyundai Group

Sept 25, 2014

Hyundai Group is expected to be able to streamline its cyclical ownership structure with the sale of its logistics unit to be completed next week, raising market confidence in the cash-strapped conglomerate, corporate sources said Thursday. Insiders said the money generated by the sale of Hyundai Logistics to Japanese private equity fund Orix Corp. will be used by Hyundai chairwoman Hyun Chung-eun and her family to purchase a100 percent stake in Hyundai Global, the holding company for the ent
Finance chief supports pardoning convicted biz leaders

Sept 25, 2014

South Korea's top economic policymaker on Thursday expressed his full support for the justice minister's recent controversial remark that the government needs to consider pardoning business leaders convicted of crimes in order to help boost the persistently slowing economy.On Wednesday, Justice Minister Hwang Kyo-ahn said in an interview with a local newspaper that the government needs to seriously think about freeing or pardoning convicted CEOs if it can help turn the economy around. After his
Hanjin picks InterContinental as L.A. hotel operator

Sept 24, 2014

Hanjin Group, owner of South Korea’s flag carrier Korean Air, selected InterContinental Hotel Group as the service operator of its incoming premium hotel in the U.S. The group on Tuesday signed a consignment contract with InterContinental, entrusting the management of the $1.2 billion Wilshire Grand Hotel to open in Los Angeles in 2017. “InterContinental is the right kind of brand which may realize the high-class service on behalf of Wilshire Grand Hotel,” said Cho Hyun-ah, chief of KAL Hotel Ne
Seoul shares end lower on key exporters’ losses

Sept 23, 2014

South Korean stocks closed lower Tuesday as top exporters on the main bourse marked losses amid mixed Chinese industrial data for the month, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 10.36 points, or 0.51 percent, to 2,028.91. Trading volume was high at 421 million shares worth 4.59 trillion won ($4.4 billion), with losers outpacing gainers 505 to 299.Analysts said Seoul shares closed lower as top exporters, such as Sams
Hana, KEB to announce merger of card units

Sept 23, 2014

Hana Financial Group, the nation’s second-largest financial holding firm by assets, will hold a board meeting on Wednesday to announce the merger of its card unit with the Korea Exchange Bank’s credit card division, officials said.Hana is planning to ask for the Financial Services Commission’s approval for the integration this month, which will lead the merged entity to become the sixth-largest card company in South Korea with a combined market share of 7.8 percent.Hana is eyeing to introduce th
Bank employment rate rises despite low profit

Sept 23, 2014

South Korean banks’ employment rate is expected to jump nearly 19 percent from last year, largely driven by the government’s job creation policies, data showed Tuesday.Five major local banks are planning to hire a total of 1,080 people in the second half of this year, up 18.68 percent from 910 people in the same period in 2013.KB Kookmin Bank is set to hire the most, with 290 new hires, followed by Woori Bank’s 250, Shinhan Bank’s 200, Industrial Bank of Korea’s 200 and NongHyup Bank’s 140. Expe
Insurers mull lawsuit against policy payments for suicides

Sept 23, 2014

South Korea’s financial watchdog has ramped up pressure on local life insurers to pay contracted money to the families of policyholders who commit suicide, but insurance companies are weighing taking the case to court, industry sources said Tuesday.More than 10 life insurers were ordered by the Financial Supervisory Service to pay the insurance money in arrears by the end of the month, according to the sources.The insurers had sold policies for accidents that cover disaster-caused deaths as well
Institutional portfolios: Where ETFs currently leave futures trailing

Sept 23, 2014

Jane Leung, head of iShares Asia PacificAmong institutional investors, financial futures have long been considered an effective way of representing beta in their own portfolios quickly and in a targeted manner. Such deployments as funded futures do not constitute leveraging, but instead aim to exclusively establish market exposure in an extremely efficient way.In today’s investment world, however, it is precisely in this function that exchange-trade funds have been outstripping futures in many e
NH Financial chairman stresses ‘chemistry’ in brokerage merger

Sept 22, 2014

NH Financial Group chairman Yim Jong-yong (front row, fourth from right) poses with NH executives at a workshop held at its headquarters in Seoul on Friday. (NH Financial Group)Developing a new corporate culture in which people can share value and growth is the key to a successful merger between NH Financial’s brokerage units of NongHyup Investment & Securities and Woori Investment & Securities, said NH chairman Yim Jong-yong.“A successful merger between the two brokerages depends on having chem
KB, Woori last to stick to IBM mainframes

Sept 22, 2014

As most commercial banks here have undergone the transition from the conventional IBM-monopolized mainframe system to a Unix-based system, KB Kookmin Bank has now become one of the few remaining banks batting against the change. Once the state-run Industrial Bank of Korea completes its system replacement early next month, only KB and Woori Bank will be left using IBM.IBK recently announced that it would temporarily halt operations for three days early next month as it installs its new Unix-based
Chaebol owners under probe for suspicious FX transactions

Sept 22, 2014

Some 20 wealthy people, mostly conglomerate owners, have been under investigation by the country's financial watchdog for their suspected illegal foreign exchange transactions, industry sources said Monday.According to the sources, they had received a combined $50 million in their bank accounts between 2011 and 2014, which they claimed were investment returns, proceeds from asset sales made overseas, and wage income.But some of them had not reported such cases to the concerned authorities before
Trade Ministry launches English SNS channels

Sept 21, 2014

The Ministry of Trade, Industry and Energy kicked off the English version of its social media service on Monday in a move reflecting its pledges to actively promote the government’s trade and economic policies.By using global social media channels such as Facebook, Twitter and Flickr, the ministry plans to offer frequent updates on the nation’s economic trends and policies to those at both home and abroad, according to officials.“Welcome! I hope our new English social network service pages help
Shares expected to trade flat

Sept 21, 2014

The South Korean stock market is likely to trade flat this week despite abated woes from Scotland and the U.S. Federal Reserve, due to lack of growth momentum compounded by Hyundai Motor’s plunge on the main bourse, analysts said.The benchmark Korea Composite Stock Price Index climbed 0.58 percent from the previous week to close at 2,053.82 on Friday.Seoul shares lost ground earlier last week on weak economic data from China, the country’s No. 1 trading partner. Beijing’s data showed the country