Korea’s economic growth rate could drop to the 1-percent range this year if worsening external market conditions make a dent in its exports, a report indicated Thursday.Bank of America Merrill Lynch forecast that Asia’s fourth-largest economy could expand 1.8 percent this year, according to the report compiled by the Korea Center for International Finance. This is much lower than the government’s estimate of 3.3 percent and the Bank of Korea’s 3 percent growth projections. The government and the

Korean stocks closed 1.56 percent higher Thursday as signs of recovery in the U.S. housing market prompted investors to snap up shares following a sharp fall in the previous session, analysts said. The local currency climbed against the U.S. dollar.The benchmark Korea Composite Stock Price Index jumped 28.05 points to 1,822.96, rebounding from a 1.48 percent decline on Wednesday. Trading volume was moderate at 482.3 million shares worth 4.6 trillion won ($4 billion), with gainers outnumbering de

Antitrust watchdog sends investigators to Shinhan, Woori, Hana, KB KookminThe Fair Trade Commission has expanded its probe on the alleged collusion in setting certificate of deposit rates to major banks. The antitrust watchdog sent investigation teams on Wednesday to four banks ― Shinhan Bank, Woori Bank, Hana Bank and KB Kookmin Bank ― on suspicions that they fixed interest rates of three-month certificates of deposit. The move is a follow-up of the investigation into local brokerage firms on T

Sluggish demand at home and abroad, slowing money flow add to deflation fears amid euro crisisKorea is facing rising deflationary concerns, experts said, as worsening external economic conditions weigh on the export-dependent economy and the property market slump draws out. Deflation, a decrease in the general price level of goods and services, is caused by many factors including a deflationary gap, in which total spending in an economy is insufficient to buy all the output that can be produced

Korean stocks closed 1.48 percent lower on Wednesday as investor sentiment took a blow from U.S. Fed Chairman Ben Bernanke’s bleak economic outlook, analysts said. The local currency climbed against the U.S. dollar.The benchmark Korea Composite Stock Price Index slumped 27.05 points to 1,794.91. Trading volume was moderate at 448.5 million shares worth 4.4 trillion won ($3.9 billion), with decliners outnumbering gainers 658 to 169.“Bernanke’s gloomy economic outlook as well as weakening hopes ov

Korean banks’ daily foreign exchange trading volume rose to the highest level in more than four years in the second quarter amid a continued current account surplus, the central bank said Wednesday.The daily foreign exchange trading volume among banks averaged $22.72 billion in the April-June period, up 1.2 percent from three months earlier, according to the Bank of Korea. The reading marked the highest level since $23.37 billion in the first quarter of 2008.Daily transactions of foreign exchang

Korean financial holdings companies were lukewarm about expanding their overseas operations in the first half of the year due to jitters over the eurozone debt crisis and a slowing world economy, the financial regulator said Wednesday. The country’s 10 financial holding companies had 150 overseas branches, representative offices and wholly-owned subsidiaries as of June, compared with 151 six months earlier, according to the Financial Supervisory Service.The FSS said worsening global market condi

South Korean stocks got off to a weak start on Wednesday but swung to positive territory on hopes for the U.S. Fed's further quantitative easing, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.44 points, or 0.02 percent, to 1,822.4 in the first 15 minutes of trading.Blue-chip exporters led the gains, with Samsung Electronics adding 1.11 percent and top automaker Hyund

Delinquent borrowers from South Korean non-bank financial companies are growing at a fast clip, data showed Tuesday, raising concern over the worsening of the country's household debt problem. The number of delinquent borrowers, who are more than 30 days behind in their repayments, accounted for 5.6 percent of the entire credit card loan users as of May, up from 4.5 percent in January, according to the data from local credit appraiser NICE Information Service. The corresponding figure for financ

Korean nonlife insurers saw their operating profit shrink for two straight fiscal years, largely due to hefty damage payouts from overseas businesses, the financial regulator said Tuesday. The combined insurance operating profit of 16 local nonlife insurers reached 147.6 billion won ($128.2 million) in fiscal 2011, slightly down from 155.0 billion won a year earlier, according to the Financial Supervisory Service. The tallied insurance firms close their books on March 31. Fire insurance saw thei

Korean credit card companies saw their net profits nearly double in the first quarter from three months earlier, as more people favored cards for their transaction convenience and benefits, data showed Tuesday.The combined net profits of seven credit card firms reached 921 billion won ($804 million) in the January-March period, compared with 481 billion won in the previous quarter, according to industry data. No. 2 player Samsung Card Co. logged a profit of 509 billion, followed by industry lead

Last week’s surprise interest rate cut by South Korea’s central bank will unlikely erode local lenders’ interest income significantly and will instead help improve their asset quality, a report said Tuesday.Beating market expectations, the Bank of Korea unexpectedly lowered the July level of the benchmark 7-day repo rate by a quarter point to 3 percent on Thursday, marking the first rate cut since February 2009.According to the report by Switzerland-based brokerage Credit Suisse, the rate reduct

Korean Finance Minister Bahk Jae-wan ruled out additional fiscal stimulus for now, saying it could do more harm than good because the global economy is too weak to make it meaningful. “You don’t plant a tree in winter,” Bahk said in an interview with Bloomberg on Monday. While Asia’s fourth-largest economy retains room to boost growth both through monetary and fiscal measures, 3 percent growth “is not bad, given the global economy,” he said. Gross domestic product rose 2.8 percent in the first q

Korean stocks closed 0.23 percent higher on Tuesday as hopes for further stimulus measures outweighed concerns over slowing growth in major economies, analysts said. The local currency gained against the U.S. dollar.After opening lower, the benchmark Korea Composite Stock Price Index climbed 4.17 points to 1,821.96. Trading volume was moderate at 406.5 million shares worth 4.7 trillion won ($4.1 billion), with decliners outnumbering gainers 439 to 356.“Despite the International Monetary Fund’s g