South Korea’s tax agency said Tuesday that the amount of taxes declared by individuals involved in “intra-group trading” has reached nearly 190 billion won ($177.4 million). Intra-group business deals have been cited as a secret measure employed by owners of conglomerates to transfer their wealth to their family without paying due taxes by awarding them business contracts with favorable terms. Many conglomerates in the country are family owned, with many affiliates of a group headed by family me

South Korean stocks closed 0.42 percent higher Tuesday on the back of foreign buying amid the prolonged partial shutdown of the United States government, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) gained 8.34 points to finish at 2,002.75. Trading volume was moderate at 325.4 million shares worth 4.15 trillion won ($3.86 billion) with losers outpacing gainers 479 to 327.Analysts said foreigners led the market gain by purc

South Korean stocks traded 0.45 percent lower late Tuesday morning amid the prolonged concerns over the extended United States government shutdown, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) moved down 9.04 points to 1,985.38 as of 11:20 a.m.Tech shares traded lower, with market behemoth Samsung Electronics falling 0.77 percent and top chipmaker SK hynix decreasing 0.76 percent. Local handset maker LG Electronics shed 1.61 percent.Builders also traded bearish, with Dae

South Korean stocks opened lower Tuesday amid the rising concerns that the United States government is moving closer to the possibility of the first-ever default on its debt, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) moved down 8.57 points, or 0.43 percent, to 1,985.85 in the first 15 minutes of trading.Shares lost ground across the board, with market behemoth Samsung Electronics falling 0.35 percent and top steelmaker POSCO losing 0.32 percent. Leading auto parts mak

Credit spending on pets increased sharply last year due to purchases by people living alone without kids, the Credit Finance Association said Monday.There were more than 10 million Koreans living with an animal companion as of the end of August this year.Their spending via credit cards for pet products such as food and veterinary products amounted to more than 83.1 billion won in August this year, up about 12 percent from July this year.Their credit spending increased about 21 percent year-on-ye

Ex-President Chun’s son faces prosecution probe for dubious investment in offshore tax haven

The financial regulator said Monday it will ask the prosecution to investigate the chairman of Tong Yang Group for allegations that he sold his company debts to investors even though he knew about their default risks stemming from the group’s liquidity shortage. “We found that there is a need for an investigation on (Tong Yang’s) controlling stakeholders in relation to their financial transactions between the group’s affiliates,” Kim Gun-sop, the deputy governor of the Financial Supervisory Serv

South Korean stocks closed 0.13 percent lower Monday as investors sat on the sidelines amid the political impasse in the United States, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 2.56 points to finish at 1,994.42. Trading volume was low at 245.7 million shares worth 4.05 trillion won ($3.16 billion) with losers outpacing gainers 552 to 264.Analysts said Seoul shares lost ground as Washington declared a partial halt to its g

Household loans extended by South Korean financial institutions grew at a faster pace in August than in the previous month on a seasonal factor, the central bank said Monday.Outstanding household lending by local banks and non-bank institutions totaled a record 670.8 trillion won ($626.7 billion) as of end-August, up 3.3 trillion won from the previous month, according to the Bank of Korea.The August monthly gain compared with a 1.1 trillion won on-month increase in July. The BOK said that the lo

China, the biggest foreign owner of U.S. debt, on Monday urged Washington to take measures to pass a debt-ceiling increase, as the U.S. is moving closer to the possibility of the first-ever default on its debt.U.S. Treasury Secretary Jack Lew warned Sunday that the government will default unless America's US$16.7 trillion debt limit is raised by Oct. 17. The partial U.S. government shutdown forced President Barack Obama to cancel his four-nation tour to Asia and miss APEC as well as the East Asi

The Seoul prosecution on Monday obtained a local tax office's probe data on Hyosung Group for further investigation into allegations that the country's 26thlargest conglomerate evaded a massive amount of taxes, prosecutors said.The Seoul Central District Prosecutors' Office has been looking into the case since the Seoul Regional Tax Office filed a charge last month against the group's chairman, Cho Suck-rai, 79, for allegedly leading the tax evasion scheme through various illegal methods."We too

South Korea's central bank said Monday that it has decided not to file a lawsuit to nullify Hana Financial Group Inc.'s share-swap move, through which the banking group took full control of Korea Exchange Bank (KEB).The Bank of Korea (BOK), which was previously the second-largest shareholder in KEB, in April exercised its right to request Hana Financial Group to buy its KEB stake because it had to sell it by law, as Hana made attempts to raise its shares in KEB to 100 percent.But some KEB minori

South Korean stocks closed 0.13 percent lower Monday as investors sat on the sidelines amid the political impasse in the United States, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.56 points to finish at 1,994.42. Trading volume was low at 245.7 million shares worth 4.05 trillion won ($3.16 billion) with losers outpacing gainers 552 to 264.Analysts said Seoul shares lost ground as Washington declared a partial halt

South Korea's central bank is widely expected to freeze the key interest rate for the fifth straight month in October amid downside risks from a partial U.S. government shutdown and debt ceiling talks, a poll showed Monday.All 16 analysts forecast that the Bank of Korea (BOK) will freeze the benchmark seven-day repo rate at 2.5 percent on Thursday, according to the survey by Yonhap Infomax, the financial news arm of Yonhap News Agency.Analysts said that the BOK is likely to take a wait-and-see s