The Korea Herald

BOK lowers interest rate to 2.75 percent

Oct 11, 2012

Central bank cuts 2012 growth outlook to 2.4%Korea’s central bank cut the nation’s economic growth forecast for this year to 2.4 percent and slashed its key interest rate to 2.75 percent, as exports and consumption showed no signs of recovery.The Bank of Korea’s monetary policy committee announced on Thursday it decided to cut the key interest rate by 0.25 percentage point after freezing it at 3 percent for two consecutive months. The last time the nation’s key interest rate was in the 2-percent
Shares down 0.78% as global woes nag

Oct 11, 2012

South Korean stocks closed 0.78 percent lower on Thursday as investors remained antsy about China’s slowing growth and lingering issues in the eurozone, analysts said.The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 15.13 points to 1,933.09. Trading volume was moderate at 456.7 million shares worth 4.61 trillion won ($4.14 billion), with decliners outnumbering gainers 479 to 342.“Continued concerns on the fate of the global economy are weighi
Banks overcharge borrowers on faulty interest rate

Oct 11, 2012

The erroneous disclosure of an index has been linked to overpriced loan interest rates for more than 40,000 borrowers in the local financial market.The cost of funds index, a barometer for the benchmark interest rate, published on Sept. 17 was based on miscalculated data, and major banks have been charging borrowers higher interest rates over the past few weeks, market insiders said Thursday.As a result, interest was miscalculated for about 40,800 loans issued by seven banks ― KB Kookmin, Woori,
Seoul shares start lower on U.S. losses

Oct 11, 2012

South Korean stocks got off to a weak start Thursday as investor sentiment was dampened by overnight losses on Wall Street, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) lost 13.49 points, or 0.69 percent, to trade at 1934.73 in the first 15 minutes of trading.Shares lost ground across the board, with market bellwether Samsung Electronics falling 1.28 percent and chipmaker
Shares down 1.56% on foreign, institutional selling

Oct 10, 2012

South Korean stocks slumped 1.56 percent on Wednesday as foreigners and institutions scaled back their holdings amid nagging concerns over the global economy, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 30.82 points to 1,948.22, declining for the third straight session.Trading volume was moderate at 442.6 million shares worth 4.66 trillion won ($4.18 billion), with decliners outnumbering gainers 595 to 223. “With foreigners
Korea, Japan to reduce size of currency swap

Oct 9, 2012

Seoul cites improved external resilience and financial stability for the lapseThe country will not be renewing an expanded currency swap contract with Japan, citing Korea’s improved financial market stability, the Finance Ministry said on Tuesday. “(The two countries) have decided to let the contract lapse as scheduled after considering Korea’s improved resilience to external risks and the increased stability in domestic and international financial markets,” said Deputy Finance Minister Choi Jon
KT, NTT DoCoMo team up for mobile payment

Oct 9, 2012

South Korean telecom giant KT Corp. said Tuesday it has signed an agreement with Japan’s NTT DoCoMo Inc. to step up cooperation on mobile payments through near field communication technology.Under the memorandum of understanding signed on Monday, the two companies will ramp up joint efforts to provide NFC-based financial services and customer benefits to subscribers in South Korea and Japan, KT said in a press release.NFC technology, which allows wireless data exchanges between two devices withi
Shares down on economic woes

Oct 9, 2012

South Korean stocks closed 0.14 percent lower on Tuesday as global economic concerns continued to drag on investor sentiment, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index slipped 2.85 points to 1,979.04. Trading volume was moderate at 501.1 million shares worth 3.56 trillion won ($3.2 billion), with gainers outnumbering decliners 420 to 379.“Foreigners were selling and investors were reluctant to snap up shares amid persistent g
Hanwha Life Insurance new name for oldest firm in the industry

Oct 9, 2012

Korea Life Insurance Co., an insurance unit of South Korea’s Hanwha Group, said Tuesday that it officially changed the corporate name to Hanwha Life Insurance Co.The life insurer, established in 1946 as the country’s first life insurer, was acquired by local conglomerate Hanwha Group in 2002.Hanwha Life is South Korea’s No. 2 life insurer with net assets valued at 70.2 trillion won ($63.1 billion) as of end-June, the corporate data showed.Hanwha Life also said it plans to expand its business ove
Glass ceiling still thick in public sector

Oct 8, 2012

The glass ceiling most certainly exists in corporate Korea, particularly in the financial sector, recent figures showed.Out of 61 registered executives at the nation’s 10 publicly run financial companies, director Roh Jeong-ran of the Korea Asset Management Corp. was singled out as the only woman, according to a government-run data system on publicly-operated firms on Monday. Further, since 2008, these 10 companies had hired 356 female executives, just one-quarter of the total. In comparison, th
Seoul shares open higher on tech gains

Oct 5, 2012

South Korean stocks opened higher on Friday, fueled by firm gains in technology shares, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) climbed 7.39 points, or 0.37 percent, to 2000.07 in the first 15 minutes of trading.Big-cap tech firms drove up shares, with market bellwether Samsung Electronics rising 0.51 percent and SK hynix gaining 1.08 percent.Samsung Electronics, the
Overdue loan payments reach W8.5tr

Oct 4, 2012

Overdue loan payments from local companies marked 8.5 trillion won ($7.6 billion) as of August, an increase of 13.1 percent compared to the previous month, according to Bank of Korea’s report submitted to the Democratic United Party’s Rep. Jeong Seong-ho on Thursday. BOK analyzed firms’ overdue repayment at 10 local banks and four specialized lenders including Korea Development Bank. The arrearage per month rose to 8-10 trillion won in 2009 right after the financial crisis, but fell to 5-7 trill
Shares inch down on investor caution

Oct 4, 2012

South Korean stocks slipped 0.17 percent on Thursday as investors remained cautious following mixed economic data from global economies, analysts said. The local currency fell against the U.S. dollar.After rangebound trading, the benchmark Korea Composite Stock Price Index slipped 3.35 points to 1,992.68. Trading volume was moderate at 577.8 million shares worth 4.8 trillion won ($4.3 billion), with decliners outnumbering gainers 410 to 399.The South Korean stock market was closed Wednesday for
Korea to host conference on African cooperation

Oct 4, 2012

Economic leaders of dozens of African countries will gather in South Korea this month to discuss cooperation and joint business opportunities, the Finance Ministry said Thursday.The Korea Africa Economic Cooperation Conference will be held in Seoul from Oct. 15-18, bringing in economic ministers and heads of 39 African countries and international organizations, according to the ministry.Jointly organized by the African Development Bank and the Export-Import Bank of Korea along with the finance m
Banks give out too much in dividends: lawmaker

Oct 4, 2012

Thirteen local banks last year recorded a total net profit of 8.4 trillion won ($7.5 billion) and paid out 3.4 trillion won in dividends in March, said Rep. Kim Young-hwan of the opposition Democratic United Party on Wednesday. Kim, a member of the National Policy Committee, said that, based on the reports he received from the Financial Supervisory Service, greed was prevailing among the banks that paid record-high dividends despite the shaky economy and high household debt. The payout ratio of