The Korea Herald

KRX celebrates 20th year of KOSPI 200

Jun 17, 2014

The Korea Exchange on Tuesday celebrated 20 years of success that the Korea Composite Stock Price Index 200 (KOSPI 200), the compressed version of the nation’s benchmark index KOSPI, has enjoyed. While KOSPI will continue to remain the key indicator for the nation’s stock market, other over-the-counter indexes such as KOSDAQ and KONEX will also be expanded for the sake of market diversification, according to the KRX. The KRX on Tuesday held the Index Conference 2014 in celebration of the 20th an
Seoul shares inch up on auto firm gains

Jun 17, 2014

South Korean stocks closed slightly higher Tuesday on gains in autos like Hyundai Motor and Kia Motors that were helped by foreign buying, amid easing concerns over the political unrest in Iraq, analysts said. The South Korean won fell sharply against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) edged up 7.96 points, or 0.4 percent, to 2,001.55. Trading volume was moderate at 232.79 million shares worth 3.46 trillion won (US$3.39 billion), with gainers outpacing losers
Brokerages downsize number of analysts by 20%

Jun 17, 2014

The number of stock analysts in South Korea decreased by nearly 20 percent over the last three years as the bearish stock market has worsened earnings of many brokerages, leading them to let their analysts go.Local brokerages had 1,276 analysts as of last month, down 19.2 percent from an all-time high of 1,580 in February 2011, according to the Korea Financial Investment Association.The report showed that the findings provide the starkest evidence yet of the market’s sluggish performance in rece
Watchdog to tighten monitoring of stock trading by paper firms

Jun 17, 2014

The South Korean financial watchdog said Tuesday it will closely monitor stock trading by paper companies set up in tax havens to ferret out local nationals disguised as foreign investors to dodge domestic law and engage in illegal activities.The Financial Supervisory Service said out of 38,437 foreign corporations investing in the country, 7,626, or 20 percent, are offshore companies based in 62 tax haven-designated countries including the Cayman Islands, the Virgin Islands, Bermuda, Barbados,
Korea’s financial hub plan held back by regulations

Jun 17, 2014

South Korea’s decade-long effort to become a regional financial hub has been held back by excessive regulations and oversight not found in other markets, a report by the lobbying group for large businesses said Tuesday.The Federation of Korean Industries (FKI) report, based on input from 15 large and medium-sized foreign financial firms operating in the country, list complaints that largely berate inconsistencies, focus on irrelevant details and excessive regulatory filings.South Korea has set o
SC Korea to sell capital, savings bank units to Japanese firm

Jun 17, 2014

U.K.-based bank dismisses rumors about withdrawal from the Korean market
SC Korea agrees to sell capital unit to Japanese firm

Jun 16, 2014

Standard Chartered Korea has agreed to sell its capital and savings unit to Japan-based finance company J Trust, the firm announced Monday.The 100 percent stake in two of its affiliates -- SC Savings Bank and SC Capital -- will be sold for 151 billion won ($148 million), the bank said in a statement.The deal still requires approval from financial regulators from both South Korea and Japan but is expected to go through at the end of 2014. If it does, it would be the first time a Japanese lender h
FSS pledges to get down to root of KB Financial feud

Jun 16, 2014

Watchdog plans thorough inspections as warning to entire financial sector
Seoul shares edge up on hopes of Europe stimulus

Jun 16, 2014

South Korean stocks inched up 0.14 percent on Monday on hopes of Europe’s stimulus measures, with investors taking a wait-and-see stance against unrest in Iraq, analysts said. The South Korean won fell sharply against the U.S. dollar.The benchmark Korea Composite Stock Price Index climbed 2.74 points to 1,993.59. The trading volume was moderate at 227.9 million shares worth 1.19 trillion won ($1.17 billion), with losers outpacing gainers 440 to 368.The KOSPI started a tad lower, following a shar
Koreans’ excess cash holdings up in Q1

Jun 16, 2014

Excess funds held by South Korean households and nonprofit agencies gained in the first three months of the year as consumption growth lagged behind income, central bank data showed Monday.Their excess funds totaled 25.3 trillion won ($24.8 billion) in the January-March period, compared with 15.6 trillion won three months earlier, according to the data from the Bank of Korea.Excess funds are the volume of money that remains on the balance sheets of households after deposits and stock investments
Banks see profits from overseas businesses soar

Jun 15, 2014

Korean banks’ foreign expansions thrive despite challenges
Seoul shares predicted to gain ground this week

Jun 15, 2014

Seoul shares are expected to bounce back slightly this week following a big drop Friday due to fears that Iraq could be sliding toward civil war, which are likely to be a one-off factor, analysts.The benchmark Korea Composite Stock Price Index closed down 0.23 percent, or 4.63 points, to 1,990.85 on Friday from a week earlier. Compared with Thursday’s session, the KOSPI nosedived 1.03 percent, or 20.80 points last Friday, as foreign investors were spooked by news of unrest in Iraq. They went on
Central bank, Finance Ministry need mutual respect: BOK chief

Jun 15, 2014

The head of South Korea’s central bank reiterated the importance of mutual respect between the bank and the Finance Ministry following the nomination of a new minister.“The Finance Ministry and the central bank each have their roles. Therefore, it is important for the two to respect each other’s role while narrowing the gap in their economic views through talks and information sharing,” Bank of Korea Gov. Lee Ju-yeol told reporters on Friday, restating his earlier remarks on the Finance Ministry
Lone Star wins tax refund case

Jun 13, 2014

A Seoul court ruled Friday that the state tax office refund Lone Star Funds 119 billion won ($117 million) in taxes collected from the U.S. buyout fund in its sale of a stake in Korea Exchange Bank.In June 2007, Lone Star, which bought KEB in 2003, sold part of its stake in the lender for 1.19 trillion won via a block sale.Local tax authorities withheld 10 percent of the sale proceeds in capital gains taxes. Challenging the taxation, LSF-KEB Holdings, Lone Star's subsidiary, filed a lawsuit.The
Won on course to breach W1,000 level vs. dollar

Jun 12, 2014

The South Korean currency will continue to rise against the U.S. dollar, possibly breaching the psychologically sensitive 1,000 won level within this year, backed by a steady current account surplus and improving economic outlook for Asia’s fourth-largest economy, analysts said Thursday.But the pace of its appreciation will be curbed in part by limited intervention by the currency authorities, they said.The local currency gained some 12 percent against the greenback in the past year, and the gai