The Korea Herald

[Ferry Disaster] Sunken ferry insured for up to W350 million per passenger

Apr 17, 2014

Passenger-related insurance coverage for the sunken ferry Sewol is estimated at up to 450 million won ($433,000) per passenger, industry sources said. Chonghaejin Marine Co., the owner and operator of the ferry, holds passenger accident insurance from the Korea Shipping Association for liability coverage of up to 350 million won per passenger, the Financial Supervisory Services confirmed Thursday.All students on the ferry were also covered by additional travel insurance by Dongbu Insurance, whic
Shares end little changed

Apr 17, 2014

After moving in a tight range, South Korean stocks finished slightly lower on Thursday as investors took to the sidelines on a lack of leads prodding them to buy, analysts said. The South Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 0.16 points, or 0.01 percent, to 1,992.05. Trading volume was light at 195.69 million shares worth 2.86 trillion won ($2.8 billion), with gainers leading losers 400 to 377.The market started higher on the back of strong
S. Korean financial firms vulnerable to security breaches: regulator

Apr 16, 2014

Some South Korean financial firms may be vulnerable to security breaches because they use an open source operating protocol that can expose customers' passwords and encryption keys, local regulators said Wednesday. The Financial Information Sharing and Analysis Center (ISAC), which assesses the security systems of local firms, said it found weaknesses in 12 of the 142 financial institutions assessed. Of the 12, 10 reported taking steps to rectify the problem, with two vowing to fix the we
Arrest warrant sought for former Lotte Homeshopping chief

Apr 16, 2014

Prosecutors sought an arrest warrant Wednesday for a former head of television-based retailer Lotte Homeshopping Co. on charges of receiving kickbacks from suppliers. After summoning Shin Heon for questioning earlier in the week, the Seoul Central District Prosecutors' Office asked a Seoul court to issue the warrant for further questioning. Shin, who headed the retailer from 2008 to 2012, now serves as chief executive of the country's largest department store chain, Lotte Shopping. The p
Government to speed up spending to stimulate economy

Apr 16, 2014

The South Korean government will speed up its scheduled spending in the first half of 2014 as part of efforts to revitalize the country’s economy, the finance minister said Wednesday.In a meeting with economy-related ministers in Seoul, Hyun Oh-seok said the government will front-load 60 percent of its annual spending in the first half.“We need to make continuous efforts (to revamp the economy) as the economic recovery in the private sector, such as investment, has yet to reach its full speed,”
Eximbank opens center to study inter-Korean economic development

Apr 16, 2014

The state-run Export-Import Bank of Korea said Wednesday it has opened a center to study inter-Korean economic development and integration to support the government policy on national unification.Eximbank said the center will study issues related to North Korean economic development and provide its views on North Korea policy. It will also research ways to revive inter-Korean economic cooperation and help the North serve as a member of the international community, the bank said.Eximbank is entru
FSS warns of zero tolerance

Apr 15, 2014

Regulator issues ultimatum to bank chiefs on malpractice
Finance Ministry calls for ‘no extra spending’ in next year’s budget

Apr 15, 2014

The Finance Ministry appeared to be seeking to improve the nation’s fiscal balance next year by slashing unnecessary expenditure and reducing the number of government projects.The Ministry of Strategy and Finance on Tuesday called upon government agencies and ministries to follow the principles of pay as you go, also known as “paygo” budgeting rules, to help counter worsening fiscal deficits and debt ratios. The guidelines were approved on the same day at a Cabinet meeting in which the 2015 gove
Seoul shares end down on bearish investor sentiment

Apr 15, 2014

South Korean stocks ended lower Tuesday as investors sat on their hands ahead of an announcement of China’s gross domestic product and earnings of U.S. big tech caps while institutional investors dumped their shares, analysts said. The South Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 4.75 points, or 0.24 percent, to 1,992.27. Trading volume totaled 191,446 million shares worth 3.49 trillion won ($3.4 billion), with gainers leading losers 406 to 3
Eight investors join Korean gold bourse

Apr 15, 2014

Eight more members have joined Korea’s gold trading platform, an indication that the newly launched gold bourse is gaining investors’ attention, the Korea Exchange said Tuesday. With the new members, a total of nine securities firms and 56 dealers, importers and wholesalers will be registered as members of the bourse.In late March, the KRX opened the country’s first spot gold bourse, for immediate transactions, to help bring transparency to the largely unregulated gold trading market.Futures fir
Financial regulator to ease IPO requirements

Apr 15, 2014

The Financial Services Commission on Tuesday unveiled plans to improve the corporate financing environment by easing the regulations on initial public offerings and devising ways for invigorating the moribund local capital market.The regulator said as the first step toward easier IPOs, it will remove hurdles to stock listings and relax the rules on filing and disclosing corporate financial information to the extent that it does not hurt the interests of investors."In order to create a virtuous c
Regulator resumes probe into Woori Bank

Apr 14, 2014

The financial regulator has resumed its scrutiny into Woori Bank’s Tokyo branch over its alleged illicit lending in exchange for kickbacks or the possible creation of slush funds.The probe will continue despite the recent weeklong suspension after a former executive of the overseas branch was found dead in an apparent suicide during the inspection process, officials at the Financial Supervisory Service said Monday.The FSS has been looking into whether former senior executives at the Tokyo branch
Chaebol profit from unlisted firms

Apr 14, 2014

In clear contrast to Korean stockholders, who get the smallest of dividends in the OECD, conglomerate chiefs and their family members received huge dividends last year from their unlisted affiliates.The amount includes dividends from money-losing operations, and this has once again aroused skepticism about the integrity of Korea’s family-owned conglomerates.According to a corporate audit report submitted to the Financial Supervisory Service on Monday, Booyoung Group’s chairman Lee Joong-keun and
Data leaks discovered at IBK, Citi capital firms

Apr 14, 2014

Up to 30,000 pieces of customer information at two capital firms were leaked and likely circulated in the market, the nation’s financial regulators said Monday. The Financial Supervisory Service, which has been cooperating with the prosecution in combing the financial sector for more data breaches following other cases earlier this year, found that data involving some 34,000 clients at IBK Capital and Citi Capital were leaked to illegal brokers. The bulk of the leaked data files were illegally c
Seoul shares end little changed on lack of leads

Apr 14, 2014

South Korean stocks finished nearly flat Monday on lack of upward momentum, with foreign investors dumping their shares, analysts said. The South Korea won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 0.42 points, or 0.02 percent, to 1,997.02. Trading volume was 201.42 million shares worth 2.82 trillion won ($2.7 billion), with gainers leading losers 409 to 307.“Advanced markets such as the U.S. fell in recent days, with emerging markets like Brazil rising on