The Korea Herald

[Newsmaker] Samsung Financial arms face restructuring

Apr 13, 2014

It had long been obvious that the hard-pressed financial companies suffering from a continued fall in profits would drastically downsize at some point, and it was Samsung Group that triggered the restructuring tide in the financial sector. A rumor has been circulating that the nation’s top conglomerate is trying to slim down its financial sectors for the sake of heir apparent Lee Jay-yong, who is expected to take over the group’s financial affiliates, as well as the lucrative electronics busines
Hyun sees rising rates as global risk

Apr 13, 2014

Rising interest rates pose a risk to the global economy, said Finance Minister Hyun Oh-seok, whose country is grappling with record household debt.The speed and degree at which major economies taper monetary stimulus and the “interest rate increases that will follow should always be monitored,” Hyun, 63, said in an interview in Washington D.C., where finance and central bank officials from Group of 20 nations are meeting. Foreign-exchange rates are set by economic fundamentals and capital flows,
BOK likely to launch team to study reunification issues

Apr 13, 2014

The nation’s top central banker said Saturday that the Bank of Korea is considering setting up a team to deal with currency and economic integration related to inter-Korean unification.BOK Gov. Lee Ju-yeol, speaking to reporters during his visit to Washington, D.C., said the central bank needs to play a role in studying unification issues from the economic perspective. Lee is visiting the U.S. capital to participate in a meeting of finance ministers and central bankers from the Group of 20. “A v
Gov't pours W14t into covering pension funds deficit over past 5 years

Apr 13, 2014

The government has poured almost 14 trillion won ($13.5 billion) into the pension funds for public servants and soldiers over the last five years to cover their deficit, data showed Sunday.The government pumped a combined 13.9 trillion won to plug losses by the pension funds from 2009-2013, according to the finance ministry, and around 3.8 trillion won may go to covering the two pension funds' deficit this year, up from 3.3 trillion won tallied for last year.The growing deficit threatens to weig
New massive data leak found at card companies

Apr 11, 2014

The personal information of more than 100,000 customers was once again found to have been stolen from leading credit card companies.This time, the theft also involved Shinhan Card, which had previously been left out from information leak scandals.Watchdog Financial Supervisory Service discovered that the corresponding data had been leaked from Shinhan, KB Kookmin, NH NongHyup cards, as well as from Kwangju Bank, officials said Friday.KB Kookmin and NH NongHyup cards were punished earlier for oth
Regulator to unveil plan to promote initial public offerings

Apr 11, 2014

South Korea’s financial regulator will remove hurdles for initial public offerings on the country’s stock market in a bid to invigorate a sector that has been on a downward spiral, sources said Friday.The Financial Services Commission will unveil a plan next week to revive the IPO market, which is expected to include measures on enhancing the independence of KOSDAQ, South Korea’s secondary bourse, reviewing stock listing regulations and promoting venture-focused KONEX market, according to the so
Hyun meets Australian, Canadian counterparts

Apr 11, 2014

Korea and Australia agreed to further bolster the economic ties between their two nations and work toward an early implementation of the free trade agreement they signed earlier this week, the Finance Ministry said Friday. In a meeting held on the sidelines of the Group of 20 meetings in Washington, Finance Minister Hyun Oh-seok and Joe Hockey, treasurer of Australia, discussed such issues, stressing that the FTA would contribute significantly to the mutual development of their countries.The FTA
Banks’ foreign currency deposits fall in March

Apr 11, 2014

Foreign currency deposits in South Korean banks declined in March from a record high in the previous month as companies tapped the deposits to pay import bills, the central bank said Friday.Outstanding foreign currency-denominated deposits held by residents reached $51.1 billion as of end-March, down $1.58 billion from the previous month, according to the Bank of Korea.Residents include local citizens, foreigners staying here for more than six months and foreign companies. The data excludes inte
New governor pledges bigger central bank role

Apr 10, 2014

Lee Ju-yeol, the new head of Korea’s central bank on Thursday called for the bank to take on a greater role in ensuring sustainable economic growth.“The central bank should change its role (on economic growth),” the Bank of Korea’s governor said at a news conference.The BOK’s primary objective is price stability, but the public is calling for a more active role on economic stimulus, Lee said. “We need to make sure that our monetary strategy contributes to the growth of the country as well as ens
Shares rise to 4-month high

Apr 10, 2014

South Korean stocks closed higher Thursday, led by gains in tech and some defensive shares with the pace of the Korean won’s ascent to the U.S. dollar slowing on verbal intervention by foreign exchange authorities, analysts said. The won closed at a near six-year high.The benchmark Korea Composite Stock Price Index rose 9.66 points, or 0.48 percent, to 2,008.61. Trading volume was moderate at 219 million shares worth 4.1 trillion won ($3.94 billion), with gainers outpacing losers 492 to 310.The
Why we should all have Africa on our minds

Apr 10, 2014

As finance leaders head to this week’s IMF spring meetings in Washington, D.C., sentiment in emerging markets is likely to be at the top of their minds. But slower growth in parts of Asia and political discord in some emerging economies should not be allowed to obscure the strong economic potential of these markets. Businesses, banks and investors from around the world are turning to Africa in search of the next frontier. The opportunities are huge, with an estimated $38 billion needed each year
Data leaked at Citi, Standard Chartered

Apr 10, 2014

An additional personal data leak was detected at two major foreign banks here, and this time, the stolen information was circulated and led to actual financial damages, according to financial authorities.The Financial Supervisory Service said Thursday that the data of some 50,000 clients were stolen from Citibank Korea and Standard Chartered Bank Korea late last year.Together with the 130,000 cases confirmed leaked earlier, a combined 190,000 clients’ personal information were stolen from the tw
Seoul shares end at 4-month high, won's rise to dollar eases

Apr 10, 2014

South Korean stocks closed higher Thursday, led by gains in tech and some defensive shares with the pace of the Korean won's ascent to the U.S. dollar slowing on verbal intervention by foreign exchange authorities, analysts said. The won closed at a near six-year high.The benchmark Korea Composite Stock Price Index rose 9.66 points, or 0.48 percent, to 2,008.61. Trading volume was moderate at 219 million shares worth 4.1 trillion won ($3.94 billion), with gainers outpacing losers 492 to 310.The
BOK freezes key rate at new chief's first policy meeting

Apr 10, 2014

South Korea's central bank could discuss raising the key interest rate in a pre-emptive manner if demand-pull inflationary pressure rises, its new chief said Thursday.Bank of Korea (BOK) Gov. Lee Ju-yeol presided over his first rate-setting meeting, in which the monetary policy committee unanimously held the benchmark seven-day repo rate, called the base rate, at 2.5 percent for the 11th straight month.Lee, a former senior deputy governor at the BOK, replaced his predecessor Kim Choong-soo on Ap
Finance Ministry closely watching currency market on won's sharp rise

Apr 10, 2014

The country's authorities are closely monitoring the financial market, the finance ministry said Thursday.The ministry also said it is "undesirable" to see an excessive one-sided movement in currency exchange rates."It is not desirable for market volatility to intensify due to a short-term one-sided movement in any direction," the ministry said in a memo to reporters."Therefore, we are closely monitoring foreign capital flows and transactions situations in the financial markets at home and abroa