South Korea's domestic credit card spending by individuals dropped in May for the second consecutive month due to April's deadly ferry sinking that hurt consumer sentiment, central bank data showed Tuesday. Credit card spending by individuals fell 1.6 percent to 30.5 trillion won (US$29.7 billion) in May, from 31 trillion won a year earlier, according to the Bank of Korea. The data does not include cash services and overseas spending. It is the first time that the amount contracted year-on-year

South Korea’s financial industry is more than ready to see some new blood at the Financial Services Commission ― the decision-making body at the nation’s financial watchdog ― but it seems like the personnel vacuum won’t be filled for some time. The biggest reason is the sheer lack of candidates, industry watchers say. The government is pressed to select professionals with ample expertise, but there are actually few left to choose from when excluding officials who have served at key ministries, n

South Korean investors are pouring money into funds that invest in dividend-paying stocks on hopes that a series of measures under review by the country‘s new finance minister will push local companies to increase dividend payouts, data showed Monday.Dividend funds have received a net 302 billion won ($293 million) this year as of Wednesday, while other stock funds suffered cash outflows during the cited period, according to data compiled by fund evaluator KG Zeroin.Local stock funds suffered an

The South Korean stock market is expected to come under selling pressure this week as uncertainties stemming from the crash of a Malaysian passenger jet weigh on investor sentiment, but hopes for market-friendly policies and economic recovery may curtail a sharp fall, analysts said Saturday.The benchmark Korea Composite Stock Price Index finished at 2,019.42 points on Friday, up 1.2 percent from a week earlier.Fueled by growing expectations of a rate cut and economic stimulus measures, the main

The Financial Supervisory Service said Sunday it has given credit risk ratings to 34 companies including 21 construction firms, subjecting them to restructuring programs. The country's top financial regulator and creditors regularly inspect companies with debts of 50 billion won ($48.54 million) or more to assess their risk levels. This year, 34 companies were given the bottom two ratings of "C" and "D," they said.Eleven companies, including four construction companies, a shipbuilder and a steel

South Korea's stock exchange operator will adopt incentives within this year to encourage companies to increase their dividend payout ratio, its chief said, one of the main demands of the incoming top economic policymaker.Finance Minister Choi Kyung-hwan, who took office last week, berated the country's conglomerates for stocking up on cash and thereby disrupting money flow into households that need to spend more to prop up domestic consumption. "South Korea's dividend payout ratio and dividend

Market liberalization to start in January with heavy tariffs

South Korea's planned sale of part of its stakes in the Industrial Bank of Korea (IBK) fell apart recently, sources said Friday.The government planned to sell about 23 million shares of its stake in the IBK through a block deal on Thursday in after-hours trading, according to the sources. The deal was estimated at around 300 billion won (US$290.3 million).The government confirmed that the deal fell apart but did not elaborate on reasons. A finance ministry official told Yonhap that it was natura

South Korea's third-largest banking group Hana Financial Group Inc. said Thursday it will merge Hana Bank with previously purchased Korea Exchange Bank (KEB) in the near future, saying the move will boost competitiveness."In order to cope with worsening conditions in the financial market, and to continue growth, we decided to merge (Hana Bank) with KEB," Hana Financial said in a regulatory filing, adding that it will continue talks with Hana Bank's labor union on conditions including employment

The intraday volatility of the South Korean currency declined in the second quarter compared with three months earlier as the won’s appreciation stoked caution among investors, central bank data showed Thursday.The average intraday change in the Korean won came in at 3.7 won in the April-June period, compared with 4.9 won in the previous quarter, according to the Bank of KoreaThe day-on-day change also fell to 2.5 won in the second quarter from 3.8 won three months earlier, with the average day-