The Korea Herald

[Herald Interview] Rise of IT firms may spur banks: KIF chief

Aug 11, 2014

The entry of highly competitive tech firms in the local financial sector may be an opportunity, rather than a threat, for conventional financial institutions, according to a state-run think tank chief.“The entry of these IT firms will eventually push banks to establish their own digital businesses, which will consequentially create new sources of income,” Yun Chang-hyun, president of the Korea Institute of Finance told The Korea Herald in an interview.His remarks came amid rising concerns within
BOK likely to cut rate this month: poll

Aug 11, 2014

South Korea’s central bank is expected to cut the base rate in August after a 14-month pause as the government is drumming up support for its 41 trillion won ($40 billion) stimulus aimed at boosting flagging consumption, a poll showed Monday.A clear majority of 21 out of 23 analysts surveyed by Yonhap Infomax, the financial news arm of Yonhap News Agency, forecast the Bank of Korea would cut the policy rate to 2.25 percent from 2.5 percent at an upcoming policy board meeting on Thursday. Two ana
[Graphic News] RMB deposits hit record high

Aug 10, 2014

Chinese yuan-denominated deposits at banks in South Korea hit a record high as banks offered higher interest rates on savings accounts for consumers, according to Korea’s central bank. Meanwhile, those of the U.S. dollar fell sharply last month, the Bank of Korea data showed.Renmibi deposits amounted to $16.2 billion, accounting for almost 26 percent of the total foreign currency deposits as of the end of July.The portion of dollar deposits fell to 64.5 percent, down 4.5 percent from the previou
Regulators to punish KB Financial executives this week

Aug 10, 2014

The financial watchdog is expected to wrap up its delayed punishment of top executives at KB Financial Group that have been held responsible for a string of irregularities and scandals as early as this week, an official said Sunday.“The punishment against 95 executives and employees at KB Financial Group and Kookmin Bank is expected to be complete this month. The level of the punishment may be determined at an upcoming meeting on Thursday,” said an official at the Financial Supervisory Service.G
Investors’ demand for low-grade corporate debt rising

Aug 8, 2014

Sales of low-grade corporate bonds, once shunned by investors over high-rated corporate debts and safer government debts, rose sharply last month, showing signs of emerging good investment tools, data indicated Friday. A total of 5.9 trillion won ($5.69 billion) worth of corporate bonds were sold in July, up 2.2 trillion won from a month earlier, according to the data compiled by the Korea Financial Investment Association. The sales of corporate bonds rated “AA” or above totaled 4.45 trillion wo
Foreigners net buy Korean stocks for 4th month in July

Aug 8, 2014

Foreign investors continued to pour into South Korean stocks last month, extending their fourth straight month of net buying, with their investment jumping more than fivefold from a month earlier, the country’s financial watchdog said Friday.Offshore investors snapped up a net 3.6 trillion won ($3.49 billion) worth of local shares in July, compared with a net purchase of 714 billion won in the previous month, according to the Financial Supervisory Service.The value of their shareholdings came to
NH Financial evolves as high-profile group

Aug 7, 2014

Agriculture-backed financial group seeks to make it to the top
Kakao ― boon or bane to finance?

Aug 7, 2014

South Korean financial companies such as banks and credit card firms will have to come up with a new business model to counter Kakao’s soon-to-launch financial transaction service, Woori Finance Research Institute said.The most-used mobile messenger’s Bank Wallet Kakao, or KaTalk Bank, which is expected to launch in September, will have a limited impact on the financial services sector as it only allows users to transfer money or purchase online goods of up to 100,000 won ($97) a day.However, Ka
Choi denies eased dividend income tax will only benefit chaebol owners

Aug 7, 2014

Finance Minister Choi Kyung-hwan dismissed claims that easing taxes on dividend income would only benefit the owners of large conglomerates, saying that it would be helpful for the overall economy.The government proposed a set of tax code revisions on Wednesday, including lowering the tax rates on dividend income from 14 percent to 9 percent. The move is intended to encourage companies to increase dividend payouts and induce money flows from companies to small shareholders. But critics charge th
Tax rate on big firms’ cash holdings set at 10%

Aug 6, 2014

Conglomerates or individual companies with 50 billion won ($48 million) or more in total equity will face new taxes if they fail to spend enough on new investment and salaries, the Finance Ministry said Wednesday as it announced a set of tax reforms designed to funnel more corporate funds into households and ultimately stimulate the economy. The ministry also said it would lower the tax rates on dividend income in efforts to inflate the amount of disposable income for local households. These rev
Revised privacy law to take effect amid concerns

Aug 6, 2014

A revised privacy law prohibiting all public institutions and companies from collecting citizens’ resident numbers is coming into effect on Thursday as planned, but concerns linger as to its effectiveness. Earlier this year, the government announced that it will ban firms from requesting resident registration numbers ― the most generally used form of identification here ― for commercial and financial transactions. Credit cards, banks and other financial institutions must also wipe resident numbe
Seoul shares down 0.27% on Ukraine woes

Aug 6, 2014

South Korean stocks ended 0.27 percent lower Wednesday as investor sentiment turned sour on concerns over turmoil in Ukraine amid profit-taking from recent gains, analysts said. The South Korean won lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 5.53 points to 2,060.73. Trading volume was moderate at 363.1 million shares worth 5.06 trillion won ($4.89 billion), with decliners beating gainers 463 to 346.“External factors weighed on investor sentiment. Inv
Cuckoo Electronics shares soar on first day of trading

Aug 6, 2014

Investors loaded up on shares of Korea’s top rice cooker producer Cuckoo Electronics Wednesday, pushing the price up by the daily limit of 15 percent on its first day on the benchmark KOSPI.Fueled by high expectations for expansion in China, Cuckoo Electronics’ shares rose by the daily ceiling of 15 percent within 30 minutes of trading, going from 180,000 won ($174) to 207,000 won. The company’s initial public offering was priced at 104,000 won.Cuckoo's market value soared to 2.02 trillion won
Textile business pioneer dies at 99

Aug 5, 2014

Park Yong-hakPark Yong-hak, honorary chairman and founder of the now defunct textile-maker Dainong Group, died on Saturday of a chronic illness. He was 99. Born in 1915 in Gangwon Province, Park established Daehan Nongsan ― a grain and fertilizer exporter ― in 1955. After acquiring Midopa Department Store in 1971, Park changed the name of his business to Dainong Group before handing it over to his son in 1989. The group expanded under the junior Park’s helm but was liquidated in 1998 amid the As
Counterfeit $100 bills on rise in Korea

Aug 5, 2014

South Korean lenders have seen a rise in counterfeit $100 bills in the first seven months of the year following the release of the redesigned denomination with bolstered security features, data showed Tuesday.The value of fake U.S. notes found at seven local banks reached $73,143 in the January-July period, compared with $47,576 the previous year, according to industry data. Most of the counterfeit bills in circulation were $100 bills, which are the highest denomination in the U.S. currency syst