The Korea Herald

Companies still reluctant to increase dividends

Sept 4, 2014

Dividend payments to shareholders by South Korean companies decreased, despite the government’s persistent efforts to increase benefits for investors.The total amount of dividend of listed companies in the first half of this year was 455 billion won ($448 million), down 15.4 percent a year earlier, according to the Corporate Governance Service.The corresponding figure includes not only quarterly dividends but also interim dividends, which were paid out in July, after the corporates’ half-year se
Minister blames financial sector for risk-averse culture

Sept 4, 2014

Finance Minister Choi Kyung-hwan on Thursday criticized the financial sector for its excessive risk-averse culture, saying that such self-protection may be dragging down the overall financial community.“It is quite worrisome that the whole financial industry is shrinking with signs of money flows being almost clogged,” Choi told financial industry leaders in Seoul. “The reason for the contraction is that it is focused too much on protecting itself from risks and engaging in passive business tact
Kookmin Bank president offers to resign after watchdog toughens punishment

Sept 4, 2014

The president of Kookmin Bank stepped down on Thursday soon after the financial watchdog imposed heavier punishment against him and the chairman of the bank's parent, KB Financial Group, for management failures over an expensive computer system change."I've done what I have to do as a bank president. I believe that the watchdog has made the right decision on my conduct," said Lee Kun-ho, the bank's president.Just before his resignation, Financial Supervisory Service Gov. Choi Soo-hyun overturned
[Graphic News] South Korea’s ranks 26th in global competitiveness: report

Sept 3, 2014

South Korea’s national competitiveness ranking this year fell to 26th, down one notch from last year, according to the Global Competitiveness Report released by the World Economic Forum on Wednesday.Korea’s highest placing was 11th in 2007 and the lowest was 29th in 2004.Among the competitiveness factors, the country’s ranking in efficiency fell from 23rd to 25th and its innovation ranking fell from 20th to 22nd.“The mass personal information leaks, North Korea’s missile launches, and the Sewol
Finance union goes on first strike in 14 years

Sept 3, 2014

South Korean financial workers staged their first strike in 14 years on Wednesday to protest the government’s pressure on the local finance sector to cut welfare and restructure.Clad in raincoats to weather the occasional drizzle, tens of thousands of workers at banks, bank-owned card companies and public companies sat down at Mokdong Sports Complex in western Seoul for the one-day strike.“We have demanded that the government stop its pressure on financial workers,” said Kim Moon-ho, who heads t
Won trades at 6-year high against yen

Sept 3, 2014

The South Korean currency traded near a six-year high against the Japanese yen on Wednesday, raising worries that it could hurt the competitiveness of domestic firms, particularly in the steel, tech and auto sectors.The local currency rose to the highest it‘s been against the yen on Tuesday since 964.23 won on Aug. 25, 2008. The won pared some of the earlier gains to fall to 971.70 won per 100 yen as of 3:08 p.m., down 2.84 won from Tuesday’s close, on concerns about the currency authorities’ in
Tax agency begins probe into property-rich celebrities

Sept 3, 2014

The National Tax Service has launched a thorough investigation into several Korean celebrities for possible tax evasion, a local paper said Wednesday.The NTS’ Gangnam office is looking over at least seven wealthy celebrities’ income reports for tax loophole exploitation, the report said. Speculations rose that the large-scale probe was targeting stars who own properties in Seoul’s posh Gangnam district. (JTBC Twitter)“Tax investigation into celebrities is nothing new. It’s part of a bigger probe
State auditor launches inspection on financial regulator for allowing gathering of medical data

Sept 3, 2014

South Korea's state audit agency has launched an inspection on the financial regulator for its decision giving local life insurers access to personal health records for use as credit information, financial sources said Wednesday.According to the sources, a team of inspectors from the Board of Audit and Inspection has been at the Financial Services Commission (FSC) since Monday for a probe expected to continue up to 15 days.The BAI sees the FSC's decision as somewhat problematic, the sources said
Local brokers cut estimate for Samsung's Q3 profit

Sept 3, 2014

Local brokerage houses have sharply revised down their estimate for the third-quarter operating income of Samsung Electronics Co., citing weak performance in the smartphone sector, an online financial information provider said Wednesday. South Korea's 27 brokerage houses estimated Samsung's operating profit for the July-September period at 6.98 trillion won ($6.85 billion), hovering far below the 8.6 trillion won outlook made in July, the data compiled by FnGuide showed. The figure is also 31.2
Korea mulls public ferry services

Sept 2, 2014

The Maritime Ministry said Tuesday it would ban any remodeling of ships that could jeopardize their safety, the first concrete reform taken by the government in response to the tragic sinking of a passenger ferry in April that left more than 300 people dead or missing.The government will limit the maximum age of passenger ferries to 20 years and allow an extension of a maximum five years, with intensive safety inspections every year, Minister of Oceans and Fisheries Lee Ju-young said.“In additio
Financial industry union set to strike

Sept 2, 2014

Tens of thousands of South Korean financial workers are expected to go on strike for the first time in 14 years this week to protest what they call government interference in the local financial sector, dismissing repeated appeals by authorities to cancel the walkout.“We expect some 50,000 of around 100,000 union members at local banks and state-run financial firms to take part in the strike,” Lee Ji-seop, a public relations official of the umbrella labor group Korea Finance Industry Union, said
Korea’s consumer prices grow 1.4% in August

Sept 2, 2014

South Korea’s consumer prices grew at the slowest pace in four months in August due in part to the stabilization of farming goods prices, a government report showed Tuesday. The country’s consumer price index rose 1.4 percent last month from a year earlier, decelerating from July’s 1.6 percent gain. This marked the slowest growth pace since April, when consumer prices rose 1.5 percent. The price increase has remained in the 1 percent range since November, when it gained 1.2 percent from a year e
Korea’s investments in foreign securities hit record in Q2

Sept 2, 2014

South Korea’s institutional investments in foreign securities surged to $90.3 billion as of end-June as asset managers and insurers increased their net buying, central bank data showed Tuesday.The outstanding value of foreign securities held by institutional investors rose by $10 billion in the April-June period, logging the biggest quarterly growth since the global financial crisis, according to the preliminary data by the Bank of Korea.Foreign securities include stocks, bonds and so-called Kor
Financial industry union set to strike

Sept 2, 2014

Tens of thousands of South Korean financial workers are expected to go on strike for the first time in 14 years this week to protest what they call government interference in the local financial sector, dismissing repeated appeals by authorities to cancel the walkout."We expect some 50,000 of around 100,000 union members at local banks and state-run financial firms to take part in the strike," Lee Ji-seop, a public relations official of the umbrella labor group Korea Finance Industry Union, said
KB bank chief holds group chairman responsible for feud

Sept 1, 2014

KB Kookmin Bank president Lee Kun-ho said Monday that KB Financial Group chairman Lim Young-rok had illegitimately interfered in the bank’s internal affairs, including the much-disputed replacement of its main computing system.“(Lim’s interference) was included in the indictment, but we decided it would be more rational to rule his name out,” Lee told reporters in an urgent press conference held at the bank’s headquarters in Seoul on Monday.Last week, KB Kookmin Bank indicted the chief informati