The Korea Herald

Credit card firms brace for debit card campaign

Jul 28, 2014

The government’s recent decision to temporarily expand the scope of tax deductions for users of check cash cards is expected to hit the local credit card industry, according to sources close to the matter. Credit card issuers that are unaffiliated with local banks argue that the government policy favors bank-based financial groups that are able to promote their bank accounts ― through which most customers pay their credit card bills ― and their cash cards together. “The government’s move (to pro
BOK report warns of ‘Japan-like aged society’

Jul 28, 2014

South Korea’s aging population will become a significant financial burden to the country’s younger generation, a study showed on Monday.People in their 20s and 30s will pay an average 100 million won ($97,400) more than the actual public benefits they will receive as a result of the government’s growing fiscal deficit resulting from the rising costs of supporting the country’s growing elderly population. That is compared with those currently in their 60s, who in 2011 received an average 40 milli
Government, central bank on same page on economy: Choi

Jul 28, 2014

The government and the Bank of Korea have “no difference” in their assessment of the latest economic situation, the finance minister said Monday, adding that he expects both to seek “expansionary” measures aimed at bolstering the economic recovery.The remarks by Choi Kyung-hwan came in response to a question over whether the BOK needs to lower its interest rate to help prop up the economic recovery. Choi was speaking at a TV event with journalists.“It’s up to the (BOK’s) monetary policy committe
Lax supervision behind massive leak of data of cardholders

Jul 28, 2014

The financial watchdog's lax supervision led to a massive leak of customer information from the nation's three major financial institutions that came to light early this year, the state auditor said Monday. In January, an employee of the Korea Credit Bureau (KCB), a credit reference agency, was found to have stolen sensitive personal information, including resident registration numbers, bank account numbers and credit scores from Kookmin Card Co., Lotte Card Co. and Nonghyup Bank.The three compa
[Herald Interview] ‘Hana should gain KEB’s trust before merger’

Jul 27, 2014

Hana Financial Group executives should first gain the trust of Korea Exchange Bank employees before taking steps to merge KEB with Hana Bank, KEB union spokesman Kim Bo-heon said.“The 2012 agreement with Hana, which guaranteed KEB’s managerial independence for the following five years, basically embodies our hopes to secure KEB’s identity and competency. Breaking that promise means breaking the trust of the union and management,” Kim recently told The Korea Herald. Kim Bo-heon. ( Ahn Hoon/The Ko
Conglomerates increase cashable assets amid economic slump

Jul 27, 2014

South Korea’s top conglomerates have expanded their holdings of cashable assets over the past five years, data showed Sunday, due mainly to their reluctance to increase investment amid a prolonged economic slump.The combined amount of cashable assets held by 76 listed companies owned by the country’s top 10 conglomerates came to 148.52 trillion won ($144.61 billion) as of end-March, up 56.1 percent from the 95.1 trillion won five years earlier, the data compiled by conglomerate researcher CEO Sc
Seoul shares hit yearly high on bold stimulus package

Jul 25, 2014

South Korean stocks on Friday reached a new high for 2014, bolstered by expectations that government stimulus measures may boost the local economy, analysts said.Starting the day in positive territory, the benchmark Korea Composite Stock Price Index rose to 2,036.20 at one point during the trading session before finishing at 2,033.85, up 0.36 percent, or 7.23 points, from Thursday’s close.Trading volume was modest at 264.51 million shares worth 3.85 trillion won ($3.73 billion), with advancers o
KB Financial net doubles in Q2

Jul 25, 2014

South Korean financial group KB Financial Group said Friday its second-quarter earnings more than doubled from a year ago after last year’s one-off profit-loss factor was removed.The financial group’s net profit in the April-June period came in at 398.4 billion won ($388.2 million), soaring from 165.3 billion won in the previous year, the group said in a regulatory filing.Shares of KB Financial rose about 1 percent to 36,750 won, lifted by the second quarter performance. The on-year jump came as
Seoul to push tax on corporate cash reserves

Jul 24, 2014

Ministry unveils W40.7tr stimulus to boost domestic spending
BOK to issue coins honoring pope's visit

Jul 24, 2014

South Korea's central bank said Thursday it will release a set of commemorative coins to celebrate Pope Francis' upcoming visit to the country next month.The pope is scheduled to visit South Korea on Aug. 14-18, during which he will conduct four Masses, including one for the beatification of 124 Korean Catholic martyrs and another for a gathering of Catholic youths in Asia.He is also expected to console families of those who died in the mid-April Sewol ferry disaster. It is his first visit to As
Govt's major economic measures unveiled in economy management plan

Jul 24, 2014

The following are key measures from the government's economy management plan to be carried out by newly inaugurated Finance Minister Choi Kyung-hwan. The plan mostly focuses on boosting domestic demand, stabilizing people's livelihoods and reforming the country's economic structure. Expansionary macroeconomic policy - Injects 40.7 trillion won in fiscal and financial support to boost economic recovery - Strengthens fiscal support by 11.7 trillion won during the second half - Expands poli
S. Korea to inject 40.7 tln won for economic recovery

Jul 24, 2014

South Korea plans to implement a macroeconomic policy package worth about 40.7 trillion won (US$39.7 billion) to kick-start an economic recovery beset by anemic domestic demand, slowing exports growth and deepening uncertainties at home and abroad, the finance ministry said Thursday.The government will also execute its macroeconomic policy in an "expansionary" manner until its intended impact materializes, the ministry added. The stance will be maintained when drawing up a budget for next year a
Naver to offer easier access to financial information

Jul 23, 2014

Portal, FSC agree to disclose government policy documents
Korea faces growth challenges: SC Bank

Jul 23, 2014

The Korean economy is facing increasing long-term growth challenges, including high household debt and an aging population, according to a report by Standard Chartered Bank.Strong exports and record-high foreign exchange reserves may bring about short- and mid-term growth, but slow domestic consumption, rising household debt and falling employment quality pose a risk to the economy’s future, the bank said in the report.“South Korea’s economy is like a glass that’s half empty or half full,” it sa
Pension service holds over 5% stake in 83 chaebol affiliates

Jul 23, 2014

The National Pension Service holds more than a 5 percent share in firms affiliated with the nation’s top 30 conglomerates, data showed Wednesday. South Korea’s state-run pension fund held such stakes in more than 83 conglomerate affiliates as of Monday that together were worth 55.15 trillion won ($53.88 billion), according to information compiled by local research firm CEO Score.It holds stakes worth 20.63 trillion won in 13 Samsung Group affiliates. The NPS holds over 10 percent in stakes in Sa