The Korea Herald

Finance minister nominee mulls relaxing mortgage rules

Jul 7, 2014

President Park Geun-hye’s Finance Minister nominee Choi Kyung-hwan on Monday reiterated that he may seek to ease the nation’s housing market regulations in a move to help prop up the sluggish local property market.In a written answer to questions from lawmakers ahead of a confirmation hearing scheduled for Tuesday, Choi Kyung-hwan also said that he was not considering a supplementary budget at the moment, but that it would be an option if the economy falls into a recession. President Park tapped
Japanese funds eye Korean savings banks

Jul 7, 2014

Payday lender Apro launches savings banks
Firms optimistic on won-yuan trading deal

Jul 7, 2014

South Korea’s banks and securities firms are pinning high hopes on the recent agreement with China facilitating a direct trading deal between the won and the yuan to improve cross-border transactions and help them find new sources of revenue. The Korean and Chinese central banks agreed last week to launch the direct won-yuan trading market in Seoul as early as this year on the sidelines of the bilateral summit between presidents Park Geun-hye and Xi Jinping last week. Experts say the deal will h
Shares edge down ahead of Samsung’s earnings guidance

Jul 7, 2014

South Korean stocks closed 0.23 percent lower on Monday as investor sentiment was curbed by a gloomy prospect for Samsung Electronics’ second-quarter earnings guidance due the next day, analysts said. The local currency lost ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 4.54 points to 2,005.12. Trading volume was moderate at 224.1 million shares worth 2.98 trillion won ($2.95 billion), with losers outpacing winners 460 to 358.Analysts said investors stayed v
Bank of Korea expected to hold rate steady

Jul 7, 2014

South Korea’s central bank is expected to hold the key rate for the 14th straight month in July despite market anticipation of a rate cut in line with the nomination of a pro-growth finance minister, a poll showed Monday.A majority of 21 of 22 analysts surveyed by Yonhap Infomax, the financial news arm of Yonhap News Agency, projected the Bank of Korea to freeze the benchmark seven-day repo rate at 2.5 percent at a monthly rate-setting meeting scheduled for Thursday. One analyst projected a 0.25
KDB chief emphasizes role of finance in Korea reunification

Jul 6, 2014

The state-run Korea Development Bank chairman and president Hong Ky-ttack spoke about the outlook for Korea’s reunification and the role of finance at an international meeting of development bank chiefs.“One of the key agendas that lays ahead for Korea is a peaceful reunification and shared prosperity,” Hong said at the D20 Club Roundtable, which was held in Rome on July 4.“This goal may be achieved through an organic combination of South Korea’s capital and technology with North Korea’s natural
BOK likely to cut economic growth forecast

Jul 6, 2014

The nation’s central bank is expected to lower its economic growth forecast this week as tepid domestic consumption and a strong local currency fuel fears over the economic turnaround.Market watchers said the Bank of Korea may trim down its gross domestic product growth outlook by 0.2 to 0.4 percentage point from its early projection of 4 percent at a scheduled policy meeting on Thursday.“The Korean economy exhibited a delayed economic recovery with ongoing impacts of the Sewol ferry tragedy,” t
Outlook for rate cut looms ahead of hearing, July meeting

Jul 6, 2014

An upcoming confirmation hearing for a pro-growth finance minister nominee, scheduled ahead of the monthly rate-setting meeting, is adding to speculation that the central bank may take action to boost growth in Asia's fourth-largest economy.On Tuesday, the National Assembly is scheduled to hear from three-term ruling party lawmaker Choi Kyung-hwan. Two days later, the Bank of Korea (BOK) is set to vote on the key rate and release its revised economic growth outlook.Choi's nomination lent a hand
Hana chief may push on with bank merger

Jul 4, 2014

When Hana Financial Group incorporated Korea Exchange Bank under its umbrella back in 2012, it gave its word to the KEB’s labor union that it would guarantee the bank’s managerial independence for the ensuing five years.But it looks like the promise may be broken as Hana Financial chairman Kim Jung-tae ― pressed by a combination of the ongoing market slump and rising competitors ― may attempt to merge KEB with Hana Bank ahead of schedule.“It may now be time to start discussing the integration (o
Financial chiefs face turbulent second half

Jul 3, 2014

KB and Hana leadership most hard-pressed; Woori, Shinhan, and NH chiefs eye reappointment
Chief of Standard Chartered optimistic on Korean business

Jul 3, 2014

Standard Chartered Group head Peter Sands emphasized the importance of South Korea in the British banking group’s global strategy, brushing off speculation that it will downsize its business here as the local banking sector struggles with low profitability and heightening competition.“We are absolutely committed to Korea, to use the phrase, our brand promise, ‘We are here for good.’ What we are doing is reshaping the business to play more to our strength as an international bank,” Sands said in
Hana, Western Union in money transfer tie-up

Jul 3, 2014

Hana Bank is offering a more convenient overseas remittance system for outbound users such as members of the foreign community or parents with children studying abroad, bank spokespeople said on Friday.Earlier this year, the bank kicked off the Hana-Western Union Automatic Remittance system together with the global money transfer service company in a move to facilitate easier money transfers. “We will continue to develop financial services especially focusing on those that assist customers who a
China invites Korea to join Asian Infrastructure Investment Bank

Jul 3, 2014

Two leaders agree to set up yuan clearing bank in Seoul
FSS sanctions lose steam on FSC intervention

Jul 2, 2014

When the Financial Supervisory Service’s disciplinary committee session ended flat with no conclusion on the scope and degree of sanctions on key financial company executives last Friday, the financial watchdog cited caution as the reason behind its slower-than-expected progress.But it is widely accepted that the FSS, which earlier had eagerly pounced on the firms, has lost its resolve. Due to its change in attitude, the watchdog is now facing a fierce backlash not only from the industry but als
Banks forecast higher corporate credit risks in Q3

Jul 2, 2014

South Korean banks projected the credit risks of South Korean companies to rise in the third quarter due to sluggish domestic demand and the strengthening of the South Korean won, central bank data showed Wednesday.An index measuring larger companies’ credit risks came in at 19 for the July-September period, the highest level since the first quarter of 2009, when it reached 19 in the aftermath of the global financial crisis, according to the quarterly survey of 16 local banks conducted by the Ba