The Korea Herald

[Newsmaker] FSS governor rings changes

Mar 27, 2014

According to its usual protocol, the Financial Supervisory Service should have made its regular personnel appointment in March. But this year, the troubled regulator was far too preoccupied. FSS Gov. Choi Soo-hyun, weighed down by an endless string of scandals in the financial industry, decided that the only way out was by changing everything, especially his staff.As such, the financial regulator has agreed to name Park Young-joon, assistant deputy director of financial investment, as new vice g
Seoul shares rise on recovery hopes

Mar 27, 2014

Stocks listed on the local markets closed higher Thursday on the back of rising hopes of an economic recovery in advanced nations, analysts said. The optimism more or less overshadowed concerns of political instability in Ukraine, and also of a slowdown in the Chinese economy.The South Korean won closed slightly stronger against the greenback.The benchmark Korea Composite Stock Price Index moved up 13.66 points, or 0.7 percent, to 1,977.97. Trading volume was low at 212 million shares worth 3.88
Shinhan beefs up support for small businesses

Mar 27, 2014

CO-Tech, a small manufacturer specializing in coating equipment, faced a severe cash shortage in 2012. The company’s CEO said he visited several commercial banks to seek loans, only to be turned down again and again. “No one would lend money because of our rather unfavorable balance sheet and low credit rating,” Kim Young-bae, the CEO of CO-Tech recalled. That was when he discovered Shinhan Bank’s loan service aimed at small and medium-sized businesses.The country’s second-largest lender has les
Banks’ loan delinquency rate rises in February

Mar 27, 2014

The delinquency rate on loans extended by South Korean banks inched up in February as more loans turned sour than in the previous month, the financial watchdog said Thursday.The average delinquency rate of bank loans came to 1.05 percent at the end of February, up 0.07 percentage point from the previous month, according to the Financial Supervisory Service.It marks a 0.21 percentage point drop from the same month a year ago. The rate is measured based on principals of loans overdue for more than
BOK to use MBS for open market operation

Mar 27, 2014

South Korea’s central bank said Thursday that it will include mortgage-backed securities issued by the state-run housing financing agency in the scope of its open market operations from June.The Bank of Korea said earlier in the day the monetary policy committee approved a motion to use MBS issued by the Korea Housing Finance Corp. as collateral for its repurchasing agreement operations in a bid to help tackle household debt problems.The decision will help increase investors’ demand for such deb
Korea’s GDP grows 3 percent in 2013

Mar 26, 2014

The Korean economy expanded at its fastest clip in two years in 2013, due largely to brisk exports and steady consumer spending, the central bank announced on Wednesday. The country’s gross domestic product advanced 3 percent on year at the end of 2013, up 2.8 percent from its earlier estimate in January. A recovery of investment in the construction industry also helped push up the rate, the Bank of Korea said. “Investment on infrastructure was sluggish (in 2013) but overall the country saw stea
KRX union, DP oppose extending stock trading hours

Mar 26, 2014

Plans from local bourse operator Korea Exchange to extend the local stock market’s trading hours are facing resistance from unionized workers and opposition party lawmakers.The Korean Finance & Service Workers’ Union on Wednesday called for the exchange to scrap its plan for a trading hours extension of one hour per day. The daily opening time will stay at 9 a.m., but the main bourse is seeking to change the closing time from 3 p.m. to 4 p.m.“Korea has the longest trading hours (six per day) com
HSBC appoints new head of payments and cash management

Mar 26, 2014

HSBC Korea said Wednesday that Brian Ford had been appointed head of payments and cash management of the local unit of the U.K-based banking giant. Prior to the appointment, Ford served as head of sales for HSBC’s payments and cash management business in Canada. He will be responsible for managing the local cash management business and further building HSBC’s ties with local companies, the bank said.“I am confident that his expertise and established track record for driving business growth in Ca
4 firms dominate audit services for top 10 conglomerates

Mar 26, 2014

The country’s top four accountancy firms were found to be monopolizing the external audit services for Korea’s top 10 conglomerates in 2013, data showed Wednesday.Of the 83 firms affiliated with the top 10 business groups, 96.4 percent appointed Samil PwC, Samjong KPMG, Hanyoung Ernst & Young and Deloitte Anjin as their external auditors in 2013, according to the regulatory filings.The comparable figures for 2011 and 2012 were 96.4 percent, the data showed, indicating that conglomerates have not
KRX to complete IT system for Uzbek stock market by 2015

Mar 26, 2014

Korea’s bourse operator said Wednesday that it had signed a deal to complete an information technology system for Uzbekistan’s stock market by 2015.In 2011, the Korea Exchange inked a deal with the State Property Committee of Uzbekistan to provide and assist the Uzbek stock market with an operating system that covers trading, payment and brokering. The process was initially scheduled to be completed by 2013 but was delayed due to procedural matters and differences over the terms of the deal.The
KOSDAQ firms' investment edges up in 2013

Mar 26, 2014

Despite economic uncertainties, local firms listed on the tech-heavy KOSDAQ market appeared to have increased their investment in 2013, according to government data on Wednesday.A total of 241 KOSDAQ-listed firms spent a combined 3.87 trillion won ($3.59 billion) last year, compared with 3.76 trillion won a year earlier, according to the data compiled by the KOSDAQ-Listed Companies Association.The tallied firms spent a combined 2.17 trillion won buying stakes in other firms last year, up 17.1 pe
KRX aims to complete IT system for Uzbek bourse by 2015

Mar 26, 2014

Korea Exchange, the country's bourse operator said Wednesday that it had signed a deal to complete an information technology system for Uzbekistan’s stock market by 2015.In 2011, the Korea Exchange inked a deal with the State Property Committee of Uzbekistan to provide and assist the Uzbek stock market with an operating system that covers trading, payment and brokering. The process was initially scheduled to be completed by 2013 but was delayed due to procedural matters and differences over the
Korea takes aim at ‘reckless’ tax benefits

Mar 25, 2014

Mounting government debt invites stricter review of relief targets
Seoul shares close lower on weak U.S., Chinese data

Mar 25, 2014

South Korean stocks closed lower Tuesday as investors sat on the sidelines amid the weaker-than-expected industry data from the United States and China, analysts said. The South Korean won closed lower against the greenback.The benchmark Korea Composite Stock Price Index moved down 4.3 points, or 0.22 percent, to 1,941.25. Trading volume was low at 222 million shares worth 3.72 trillion won ($3.45 billion), with losers outpacing gainers 425 to 376.Analysts said Seoul shares closed lower due to w
S. Korea to toughen standards for tax expenditure

Mar 25, 2014

South Korea said Tuesday that it will toughen its criteria used to determine whether to provide tax exemptions and other benefits as part of efforts to reduce excessive tax expenditure.Under the 2014 tax expenditure plan, which was approved by a Cabinet meeting, the finance ministry said that it will not approve any new tax exemption or cut whose value exceeds about 10 billion won ($9.29 million) if it fails to pass a feasibility test. The exact threshold will be decided later.The ministry will