The Korea Herald

[Newsmaker] FSS chief will let consumers request probes

Mar 18, 2013

Consumers will likely be entitled to call for the Financial Supervisory Service to conduct probes into financial firms such as commercial banks and insurance firms.Choi Soo-hyun, who took office as governor of the FSS on Monday, pledged to introduce consumer-initiated investigations in the financial market.The new chief regulator’s policy reflects his strong commitment to bolstering the protection of consumers, as the number of irregular business practices has continued to grow in the financial
Lotte Tour hit hard by Yongsan plan default

Mar 18, 2013

Company applies for debt restructuring under court’s watch
KB Financial executive removed for spreading false information

Mar 18, 2013

KB Financial Group decided to deposition its deputy president and chief strategy officer Park Dong-chang, a close aide to chairman Euh Yoon-dae, for spreading groundless information to shareholders, the company said Monday.Park came under hot water as he is suspected of leaking “false” insider information to a U.S.-based proxy advisory firm, Institutional Shareholder Services Inc. and shareholders. Park allegedly told ISS that three of KB’s outside directors ― and former high-ranking state offic
GS Caltex completes 4th heavy oil cracker

Mar 18, 2013

GS Caltex Co., South Korea’s second-largest oil refinery, said Sunday that it has started commercial operation of its fourth heavy oil processing plant. GS Caltex spent 1.3 trillion won ($1.2 billion) to build the plant in Yeosu, 455 kilometers south of Seoul, that converts heavy oil into transportation fuels like gasoline and diesel, the company said in a statement.The plant processes 53,000 barrels of heavy oil per day, boosting the company’s daily heavy oil processing capacity to 268,000 barr
Non-bank lenders’ household loans surge

Mar 18, 2013

Household loans extended by non-bank financial institutions in South Korea have surged in the past few years as low-credit borrowers scurried to seek loans from such lenders that do less tight credit evaluations, data showed Monday.The outstanding amount of household loans extended by non-banking firms reached 192.4 trillion won ($173.3 billion) at the end of January, up 74 percent from 110.4 trillion won tallied in 2007, according to the data by the Bank of Korea. The tally is in stark contrast
Shares down on global risks

Mar 18, 2013

South Korean stocks closed 0.92 percent lower on Monday as investors sat on the sidelines due to economic risks from the eurozone and the United States, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index shed 18.32 points to 1968.18. Trading volume was low at 265.2 million shares worth 3.83 trillion won ($3.44 billion), with decliners outnumbering gainers 565 to 258.“The decline came as the financial crisis of Cyprus weighed down on inv
Seoul shares down 0.92 pct on global risks

Mar 18, 2013

South Korean stocks closed 0.92 percent lower on Monday as investors sat on the sidelines due to economic risks from the eurozone and the United States, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed18.32 points to 1968.18. Trading volume was low at 265.2 million shares worth 3.83 trillion won (US$3.44 billion), with decliners outnumbering gainers 565 to 258."The decline came as the financial crisis of Cyprus weighed do
Nominee: M&A is alternative to Woori Finance privatization

Mar 17, 2013

The nominee to lead South Korea’s financial regulator has said that a merger and acquisition of state-owned Woori Finance Holdings Co. is an option to privatize the country’s top banking group by assets.Shin Je-yoon, President Park Geun-hye’s choice to lead the Financial Services Commission, said all investors should be allowed to place bids for Woori Finance and it would be better to quickly privatize financial firms that received public funds, according to a written answer to lawmakers as part
FSS to investigate ‘false’ leaks from KB Financial Group

Mar 17, 2013

Financial regulators pledged Sunday that they would take stern punitive measures against unidentified whistle-blowers at KB Financial Group, who leaked reportedly “skewed” insider information.One or more ranking figures of KB Financial have been suspected of spreading groundless allegations involving the financial group’s M&A strategies, said an official of the Financial Supervisory Service.A key unverified allegation is that “the financial group had to scrap its takeover bid for the Korean insu
Financial firms brace for customer protection report

Mar 17, 2013

The Financial Supervisory Service plans to publicize its yearly assessment of about 70 financial firms’ consumer protection, involving cases of customers’ complaints and dispute arbitration, next month.Attention is being paid to whether Kiwoom Securities in the brokerage industry and Chartis in the nonlife insurance industry will be given the lowest grade of “class 5 (or poor)” for the 10th consecutive year.Between 2004 (for the 2003 assessment) and 2012 (for the 2011 assessment), the two financ
Nominee to lead financial regulator says M&A is alternative to Woori Finance privatization

Mar 17, 2013

SEOUL -- The nominee to lead South Korea's financial regulator has said that a merger and acquisition of state-owned Woori Finance Holdings Co. is an option to privatize the country's top banking group by assets.Shin Je-yoon, President Park Geun-hye's choice to lead the Financial Services Commission, said all investors should be allowed to place bids for Woori Finance and it would be better to quickly privatize financial firms that received public funds, according to a written answer to lawmaker
SC Bank warns of excessive competition in savings market

Mar 15, 2013

SC Bank Korea warned that the banking sector’s provision of high initial interest on savings, such as those offered for the disputed long-term property formation savings, may end up eroding their profit margins. The property formation savings is a long-term savings plan that is designed to support low-salary earners. They guarantee high, fixed amount of interest rates in the first three years and lower them significantly afterwards. The bank has given up aggressive promotions of this savings pla
Choi Soo-hyun promoted to take over FSS

Mar 15, 2013

Deputy Financial Supervisory Service Gov. Choi Soo-hyun is expected to succeed Kwon Hyouk-se, the current chief, who offered to step down from his post on Friday, the watchdog said, amid a personnel shake-up of government agencies by the presidential office.Kwon’s resignation came after President Park named Vice Finance Minister Shin Je-yoon as the nominee for Financial Services Commission chairman early this month.The FSS is the executive body of the policy-making FSC, and the head of the FSS i
Hana to gain complete control of KEB

Mar 15, 2013

Hana Financial Group is on track to take compete control of Korea Exchange Bank as the majority of its shareholders approved a plan to swap Hana shares with remaining KEB shares owned by minority stakeholders at Hana’s extraordinary general meeting on Friday.The share swap scheme was also approved at KEB’s meeting, but is expected to face growing opposition from KEB minority shareholders and union workers.The plan, not only to gain 100 percent ownership in Korea’s leading foreign exchange bank b
Seoul shares down 0.78 pct on lack of leads

Mar 15, 2013

South Korean stocks closed 0.78 percent lower on Friday amid a lack of positive leads, analysts said. The local currency edged down against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) shed15.63 points to 1986.50. Trading volume was low at 301.4 million shares worth 5.18 trillion won (US$4.66 billion), with gainers outnumbering decliners 461 to 355."Despite positive factors from abroad, shares finished lower as investors were unnerved by the weak yen and the central ba