The Korea Herald

KRX aims to become world’s No. 7 exchange-traded fund operator by 2020

Mar 21, 2013

The Korea Exchange is closely competing with bourses in major countries in the “exchange-traded fund” market.According to the nation’s main bourse operator, also called the KRX, Seoul ranked 10th in the world’s ETF market last year as the net asset value of the funds hovered around 14 trillion won ($12.8 billion).An ETF, or exchange-traded fund, refers to an investment fund traded on stock exchanges and represents a basket of stocks that reflect an index. It provides small and institutional inve
FSS urges ‘caution’ in financial sector

Mar 20, 2013

Shinhan, Nonghyup banks under FSS probe for network glitch
BOK will not test Korean market: governor

Mar 20, 2013

The Bank of Korea will not test how the Korean economy performs and responds to its monetary policy, Governor Kim Choong-soo said in a meeting with economic researchers and professors on Wednesday.Kim’s remarks came in defense of the central bank’s decision to freeze its key base rate at 2.75 percent this month for the fifth straight month, reiterating that the global economy, albeit slowly, is heading for recovery.There has been consensus in the market that the central bank may move to lower it
Shares down on Cyprus woes

Mar 20, 2013

South Korean stocks dropped 0.97 percent on Wednesday as investors stepped to the sidelines on an aborted bailout plan for Cyprus, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 19.15 points to 1,959.41. Trading volume was moderate at 322.4 million shares worth 3.7 trillion won ($3.3 billion), with decliners outnumbering gainers 562 to 251.“The Cyprus rejection raised concerns on the eurozone region and foreigners continued to
KB Financial chief strives to settle conflict

Mar 20, 2013

KB Financial Group chairman Euh Yoon-dae has seemingly been successful in resolving the recent conflict between management and outside directors.Euh was tackling a false allegation ― raised by a KB Financial senior executive ― that some outside directors dispatched by financial authorities sought to block KB Financial from taking over ING Life Korea.Foreign investors were informed of the allegation, which had not been verified, via a report by the U.S.-based Institutional Shareholder Services In
Seoul shares down 0.97 pct on Cyprus woes

Mar 20, 2013

South Korean stocks dropped 0.97 percent on Wednesday as investors stepped to the sidelines on an aborted bailout plan for Cyprus, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) fell19.15 points to 1,959.41. Trading volume was moderate at 322.4 million shares worth 3.7 trillion won (US$3.3 billion), with decliners outnumbering gainers 562 to 251."The Cyprus rejection raised concerns on the eurozone region and foreigners cont
Seoul shares down 0.32 pct in late-morning trade

Mar 20, 2013

South Korean stocks traded 0.32 percent lower late Wednesday morning, led by losses in foodmakers and brokerage houses, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) fell6.39 points to 1,972.17 as of 11:20 a.m.Blue-chip confectionery maker Orion slumped 3 percent with major brokerage house Mirae Asset Securities tumbling 3.5 percent. In contrast, large-cap auto-related stocks gathered ground. No.1 player Hyundai Motor edged up 0.2 percent with its auto-parts making affil
Shares rise on exporter gains

Mar 19, 2013

South Korean stocks closed 0.53 percent higher Tuesday as local exporters rebounded from their recent losses sparked by concerns over the eurozone economy, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index rose 10.38 points to 1978.56. Trading volume was low at 313.3 million shares worth 3.62 trillion won ($3.26 billion), with gainers outnumbering decliners 471 to 318.“The increase came as the market recouped excessive losses made in
Heungkuk Life sanctioned for irregular practice

Mar 19, 2013

The Financial Supervisory Service on Tuesday issued an “institutional caution” against Heungkuk Life Insurance for glossing over irregular practices at a sales branch.“While the Heungkuk branch attracted policyholders via unauthorized practices, the headquarters did not take any disciplinary action despite internal detection,” an FSS official said.Ultimately, the headquarters suffered losses worth 1.22 billion won ($1.1 million) ― as extra costs for resolving unfair contracts between the branch
No. of female execs to rise in Korean firms: poll

Mar 19, 2013

More than four in 10 South Korean companies predict the number of female executives will increase in the future as young women with purchasing power are emerging as their core clients, a poll showed Tuesday. According to the survey of 304 local companies taken by the Korea Chamber of Commerce and Industry, 43.8 percent of the respondents said that they will likely have more women in the C-suites.While 53.9 percent of the companies polled said the number of female executives will remain at the cu
Builders’ net borrowing up 69% in 3 years

Mar 19, 2013

South Korean construction companies’ net borrowing has jumped 69.2 percent over the past three years, data showed Tuesday, pointing to growing risks of a liquidity crisis amid the country’s protracted slump in the property market.The combined net borrowing of the 23 builders hit 18.1 trillion won ($16.3 billion) as of last September, compared with 10.7 trillion won by the end of 2009, according to the data compiled by the local financial industry and credit appraisers. Net borrowing refers to th
BNP Paribas Cardif Life Insurance wins award

Mar 19, 2013

BNP Paribas Cardif Life Insurance came out on top in the environmental preservation sector at the state-sponsored 2013 Adding Happiness Social Contribution Award Ceremony, the company said on Tuesday. The corporate social sharing award is presented in recognition of BNP’s unique social sharing project, “Happy Forest for Sharing,” as well as other “different but professional” social sharing projects in partnership with NGOs and experts, the Korean subsidiary of European insurance firm BNP Paribas
Prosecutors raid KEB in rate-rigging probe

Mar 19, 2013

Prosecutors raided the Korea Exchange Bank’s main office Tuesday as part of an investigation into allegations that the nation’s fifth-largest lender took profits by illegally raising interest rates on loans to small and medium-sized firms.The Financial Supervisory Service requested the investigation on March 5 claiming that the bank gained some 18.1 billion won ($16.2 million) through rate manipulations between 2006 and 2009. The prosecutors seized computer hard drives and data from CEO Yun Yong
Shin indicates replacement of financial executives

Mar 18, 2013

Top executives at state-owned financial institutions, organizations and companies are expected to be replaced soon as Shin Je-yoon, the Financial Services Commission chairman-nominee, heralded sweeping changes of top financial posts. At a confirmation hearing on Monday, the nominee for Korea’s financial regulatory body said that he would suggest and recommend the replacement of incumbent executives to President Park Geun-hye, despite their terms. He added that he would replace them, if necessary
1 in 3 new chaebol auditors is ex-government official

Mar 18, 2013

One in 3 outside auditors at major conglomerates and their subsidiaries are former government officials, thought to be used mainly as lobbyists for those companies rather than being independent monitors of management.Data by the Korea Exchange and the Financial Supervisory Service showed that more than 30 percent of 81 outside auditors selected or expected to be appointed as auditors this year at 66 listed subsidiaries and affiliates of Korea’s top 10 conglomerates were former high-ranking gover