The Korea Herald

Korea's financial market stable yet burden grows: BOK

Dec 27, 2016

South Korea's financial market has maintained stability in general this year, but it's coming under growing pressure from massive household debt and troubles in the corporate sector, the nation's central bank said Tuesday.The Bank of Korea raised the possibility going forward that "financial system stability could decline," citing the household debt problem. A scene of household loan services at a South Korean bank in this file photo. (Yonhap)Household credit here jumped 11.2 percent on-year to
[Graphic News] Mobile payment on the rise

Dec 26, 2016

The use of mobile payment is on the rise with 25.2 percent of South Koreans having used the service within the past six months, the Bank of Korea said.The survey on 2,500 adults conducted between June and July showed that the number of mobile payment users surged by 9.4 percentage points from the same period last year.Mobile payment refers to paying for merchandise at stores or online using one’s mobile phone or other mobile devices.By age, 41.8 percent of those in their 30s said they used mobil
[KOSDAQ STAR] Wisol grows with evolving telecommunication technology

Dec 26, 2016

This is the 33rd in a series of articles analyzing major companies by market capitalization traded on the tech-heavy Kosdaq market. -- EdAs the single largest surface acoustic wave filter manufacturer in Korea, Wisol is growing not only at a fast rate, but also with stability in line with rising global demand for the smartphone component. The SAW filter used in mobile phones sifts necessary communications signals that are detected by the mobile phone antenna. Developing the filter involves high
BOK issues mixed outlook for leading economies

Dec 25, 2016

The US and Japan are expected to continue their economic recovery in 2017, while China and the eurozone will likely post slower growth than this year, South Korea's central bank said Sunday.The "Big Four" economies accounted for 61.1 percent of the world's gross domestic product last year, according to the International Monetary Fund. And, 40.7 percent of global trade came from the four."The key to the recovery of the global economy is growth momentum of the Big Four economies," the Bank of Kore
With eased listing rules, Kosdaq aims to attract 10 new foreign firms in 2017

Dec 25, 2016

South Korea’s tech-laden stock trading board will curtail regulatory barriers for overseas businesses next year, with the goal of listing at least 10 foreign firms deemed to have growth potential. (Yonhap)By opening its door to fledgling foreign firms that are still unprofitable but have promising technologies, staring January, the Kosdaq market will try to attract a variety of overseas businesses, with the aim of becoming a global capital market for tech firms. “We are seeking a handful of mea
[Herald Interview] ‘Investors will turn to logistics property for higher profits in 2017’

Dec 25, 2016

The office market in Seoul saw a boom this year with foreign investment behemoths buying up two landmark office buildings in Seoul -- the International Financial Center in Yeouido and Capital Tower in Gangnam. But in 2017, expected interest rate hikes and more fierce competition will drive foreign investors to look for riskier, but possibly more profitable, real estate assets such as logistics centers rather than offices, the head of Savills Korea said.Jeon Kyoung-don, president and CEO of the K
S. Korea keeps close eye on won's weakness against US dollar

Dec 25, 2016

The South Korean government is keeping a close eye on the won's weakness against the US dollar amid fears of capital flight in the face of a gradual rise in US interest rates. The won closed at 1,203 won against the US dollar Friday, down 3.9 won from a day earlier. It marked the Korean currency's weakest closing since March 10 this year. The won's value against the US dollar declined by 3.1 percent since Dec. 14, a day before the US Federal Reserve raised interest rates and hinted at a faster p
Seoul shares to remain range-bound next week

Dec 24, 2016

South Korean stocks will likely remain in a tight range next week as investors are forecast to take the sidelines ahead of events such as the announcement of next year's economy policy plan, analysts said Saturday.The benchmark Korea Composite Stock Price Index lost 0.31 percent this week to end at 2,035.90 points on Friday."The KOSPI is expected to stay between 2,020 and 2,060 points next week," said Kim Yong-koo, a Hana Financial Investment analyst. Next Friday marks this year's last session o
FSC recommends new IBK CEO

Dec 23, 2016

The Financial Services Commission said Friday it has recommended Kim Do-jin, vice president of management strategy division at the Industrial Bank of Korea as the new CEO for the state-run bank supportive of small and mid-sized enterprises.However, when Kim will take over the leadership is unclear because the FSC’s recommendation needs an approval from Cheong Wa Dae. Kim Do-jin, vice president of management strategy division at the Industrial Bank of Korea (IBK)Prime Minister Hwang Kyo-ahn has
Kookmin Bank carries out voluntary retirement program

Dec 23, 2016

South Korea’s major commercial lender Kookmin Bank said Friday a total of 2,800 employees applied for the company’s voluntary retirement program. Those who worked for the bank for more than 10 years were eligible for the program and the company received applications from Monday to Thursday.The number is the largest since 2010 when 3,244 employees left the bank under a similar voluntary retirement program. If applications are all received, the total workforce at Kookmin Bank will be reduced to ab
Debt in public sector exceeds W1,000tr in 2015

Dec 23, 2016

South Korea’s debt in the public sector, including borrowing by the government and state-run enterprises, exceeded 1,000 trillion won ($832 billion) as of the end of 2015, a government report showed Friday.However, its rate to gross domestic product slightly fell by 0.1 percentage point to 64.4 percent in 2015 from a year earlier, the report by the Ministry of Strategy and Finance.According to the government tally, the public sector debt, called D3 and which takes into account both general gover
Kookmin Bank to carry out voluntary retirement program

Dec 23, 2016

Kookmin Bank, one of South Korea's biggest retail banks, said Friday it plans to cut about 13 percent of its workforce in a voluntary retirement program next month as part of its efforts to improve productivity.The bank has offered to pay the equivalent of up to three years' salary to those who are eligible for the retirement program.So far, about 2,800 employees -- who have worked for the company for more than 10 years -- applied for the program.The retirement program is set to take effect Jan.
Financial watchdog to closely monitor accounting of derivative products

Dec 23, 2016

South Korea's financial watchdog said Friday it will pay special heed to malpractices by companies here in their accounting of derivative products and others.It's one of four "key issues" to be closely monitored by the Financial Supervisory Service (FSS) in the accounting and audit sector next year. The FSS plans to place an emphasis on the four fields, instead of conducting a "full-scope" inspection of corporate financial statements.The other ones include the evaluation of unlisted shares and o
Main bourse volatility lowest in world in 2016

Dec 23, 2016

The volatility of South Korea's main stock index has ranked the lowest among major economies this year, data showed Friday, as the market remains range-bound due to a cavalcade of negatives at home and abroad.The volatility of the benchmark KOSPI's monthly rate of return came to 1.87 this year, the lowest level among the stock indexes of 17 major countries, according to the data by the Korea Exchange and Shinhan Investment Corp.South Korea lagged far behind other emerging markets, with the numbe
S. Korea to sell 7.3 tln won worth of state bonds in Jan.

Dec 22, 2016

South Korea plans to sell 7.3 trillion won ($6.1 billion) worth of state bonds next month, the finance ministry said Thursday. The government will issue 1.75 trillion won worth of bonds with a maturity of three years and 1.65 trillion won worth of five-year bonds.It also plans to sell 1.95 trillion won worth 10-year Treasurys and a combined 1.95 trillion won of bonds with a maturity of between 20 and 30 years.The ministry added that it sold 4.64 trillion won worth of Treasurys in December.Earlie