Korean financial firms, hit by the economic slowdown, are tightening their belts through job cuts and asset sales to shore up their falling profitability and put their balance sheets in better shape, market watchers said Thursday.Local brokerage houses are leading the way in reducing workforces and streamlining businesses.The total number of employees at 63 local brokerage firms reached 42,388 at end-March this year, down 0.7 percent from three months earlier, the first decrease since the second

Financial authorities seek to curb card debt rolled over past due dateAbout 1 million credit cardholders with low credit are facing further credit downgrades due to potential defaults on their revolving credit, prompting financial authorities to revise related rules.The revolving credit system allows cardholders to pay only between 5 and 10 percent of their monthly credit card bills and have the rest rolled over to the following month until it is fully paid off. Credit card firms charge consumer

Korean banks’ household loans grew at the slowest pace in four months in July as the growth of mortgage lending eased amid a tepid property market, the central bank said Wednesday.Local banks’ household loans, including home-backed and credit loans, amounted to 457.8 trillion won ($405.9 billion) as of the end of July, up 695.3 billion won from the previous month, according to the Bank of Korea.The July growth contrasted with a 1.3 trillion won expansion in June and marked the slowest expansion

Most banks ready emergency backup system and staffMajor banks and brokerage houses are preparing against possible power blackouts as electricity consumption soars due to high temperatures.Unexpected power outages struck Seoul and many other parts of the country in September last year, raising concerns that similar accidents may recur at times of high electricity demand. The Korea Power Exchange issued a power shortage alert Tuesday after the nation’s electricity reserve dropped to below 4,000 me

Korean stocks closed up 0.87 percent Wednesday as investor sentiment got a boost from heightened optimism over stimulus efforts in the United States and Europe, analysts said. The local currency inched up against the U.S. dollar. The benchmark Korea Composite Stock Price Index rose 16.43 points to finish at 1,903.23, extending its winning streak to a third consecutive session and restoring the 1,900 mark in seven weeks. Trading volume was moderate at 477.2 million shares worth 5.34 trillion won

Government plans to raise 1.7 trillion won in additional tax revenue by 2021The government turned its focus for its tax revision bill on expanding the overall tax revenue base by finding hidden income sources and streamlining related laws rather than hiking tax rates, the finance minister said Wednesday.“Our tax bill this time is focused on legalizing (hidden) tax sources, expanding the overall revenue base, which is deemed to be less transparent than other advanced countries, and reducing the s

Korea’s corporate debt rose sharply in the first quarter of this year, data showed Tuesday, spawning concerns that the high indebtedness is feared to weigh on the already weakening economic growth.Local companies’ debt reached 107 percent of the country’s gross domestic product as of end-March, well hovering above a tipping point of 90 percent, according to the Korea Insurance Research Institute. In 2010, the ratio came in at 104 percent.The corporate debt ratio fell to 78 percent in 2004 after

Korean stocks closed marginally higher on Tuesday as investors took a pause after recent rallies amid eased concern over the eurozone debt crisis, analysts said.The local currency inched up against the U.S. dollar. The benchmark Korea Composite Stock Price Index added 0.92 points, or 0.05 percent, to finish at 1,886.80. Trading volume was moderate at 320.6 million shares worth 3.47 trillion won ($3.07 billion), with gainers outstripping losers 502 to 317. “Investors took a breather as signals fr

Korea’s monthly stock trading volume has remained below the 100 trillion won ($88.6 billion) mark for four straight months this year as global uncertainties arising from the debt-ridden eurozone are sapping investor appetites, data showed Tuesday. The monthly trading turnover of stocks listed on the main bourse stood at 90.5 trillion won as of the end of July, according to the data by the Korea Exchange and the Korea Financial Investment Association. Trading turnover figures had stood above the

Korean stocks jumped 2.01 percent on Monday as unexpected improvement in U.S. employment data and renewed hopes over the troubled eurozone boosted investor confidence, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index climbed 37.20 points to finish at 1,885.88. Trading volume was moderate at 242.6 million shares worth 4.13 trillion won ($3.66 billion) with advancers outpacing decliners 562 to 242. “Good news from the U.S. and Europe a

Local brokerages are reducing their staff amid continued stagnation in the stock market, according to reports. Staff sizes at 63 brokerages in Korea dropped by 0.6 percent from 42,682 at the end of last year to 42,388 in the first quarter, the Financial Supervisory Service and Korea Financial Investment Association said Monday. It is the first time brokerages have reduced employees since 2009, in the wake of the collapse of Lehman Brothers Holdings. “The continued market stagnation resulted in a

Major shareholders of nine mutual savings banks with assets of more than 500 billion won ($444 million) were found to have interfered with management in an unlawful manner, the nation’s top financial regulator said Monday.The nine savings banks are Hyundai Swiss, Hyundai Swiss 2, Shilla, Gongpyung, Seram, Pureun, Shinana, Moa and W, the Financial Supervisory Service said.While wielding control over the secondary lenders, the major stockholders or their family members did not give any business ap

Korean companies suffer deficit or drop in Q2 earnings amid eurozone crisisHalf of the listed companies in South Korea that have reported second quarter earnings marked a deficit or decrease, according to a report released Sunday. About a quarter of firms seriously underperformed expectations. Among 69 companies that announced second-quarter earnings as of Friday, five marked a deficit and 29 reported a drop in operating profit, said Fn Guide, online stock information provider. Most of those who

South Korean stocks will likely move within a tight range next week as they will continue to be influenced by the eurozone economic woes, local analysts said Saturday.The country’s key stock index, the Korea Composite Stock Price Index, closed at 1,848.68, up 1.06 percent or 19.52 points higher from a week earlier.Foreign and institutional investors scooped up a net 1.53 trillion won ($1.35 billion) worth of shares with individuals offloading a net 1.95 trillion won worth of shares.The KOSPI onc