The default rate on loans extended by South Korean insurers inched up as of end-April from a month earlier, mainly due to a slight rise in overdue household and corporate loans, the financial regulator said Monday.The average ratio of overdue loans came to 0.80 percent of total lending by local life and non-life insurers, up 0.04 percentage points from the end of March, the Financial Supervisory Service said in a report.The April figure, however, marks a 0.29 percentage point dip from a year ear

Ergo sells Korean online insurer, Aviva and ING put units up for saleA string of foreign insurers are withdrawing from Korea. Britain’s second-largest insurer Aviva Group is putting its Korean and Sri Lankan businesses on the auction block, according to Reuters last month. It plans to sell underperforming businesses globally to raise money to protect against its eurozone exposure, the media reported. Aviva set up a consortium with Woori Financial Holdings in 2008 to buy LIG Insurance and establi

South Korea joining the ranks of the exclusive “20-50 club” marks a new chapter in the development history of the country, the government said Saturday.The finance ministry said as the country’s population has passed the 50 million mark and it has been able to maintain a per capita income of over $20,000, South Korea has achieved an unprecedented feat for a newly industrialized economy.The 20-50 club is a coined termed by the local media to highlight countries who possess sizable populations and

South Korean stocks will be influenced by the results coming out of the European Union’s summit meeting scheduled for late next week that could help determine the future of the euro monetary union, local analysts said Saturday.The country’s key stock index, the KOSPI, closed at 1,847.39 on Friday, a drop of 0.57 percent or 10.77 points from the week before. The decrease marks the first time in five weeks that the bourse lost ground on a weekly basis, and was brought on by disappointment over the

Korean credit card firms are working to build their own international networks hoping to reduce dependence on Visa and MasterCard. Local credit cardholders and issuers pay tens of billions of won every year as royalties and commission to the multinational credit card giants. Visa and MasterCard have a combined market share of about 92 percent in Korea.Visa or MasterCard-branded credit cardholders pay 1 percent of the amount they spend abroad as commission to the duopoly. Koreans spent some $8.62

South Korea’s economic growth is expected to slow to 3.5 percent in 2012 from a 3.6 percent expansion last year as global uncertainties hurt exports, a private think tank said Thursday. In its growth outlook, Hyundai Research Institute said first half growth has been affected by protracted eurozone woes and sluggish economic conditions in the United States and China. It said such developments have hurt outbound shipments that play an important role in the country’s growth.The HRI’s forecast for

Korea’s household loans have grown “at an alarming rate” to $553 billion in April and are vulnerable to financial shocks arising from a global economic downturn, a report said Tuesday.More people are borrowing just to meet living expenses and there is an increase in borrowers from the older age group and lower income group, said the report from Moody’s Investors Service.The credit ratings agency said outstanding household loans at the country’s banks and non-banks totalled 639.6 trillion won ($5

Earnings of asset management firms in South Korea fell 14 percent on-year in the 2011 fiscal year as weak stock prices and a drop in the net value of holdings cut into profits, the financial regulator said Wednesday.The combined net earnings of 82 asset managers came to 305.2 billion won ($264.7 million) when fiscal 2011 ended in March, down 49.8 billion won from a year earlier, according to the Financial Supervisory Service.“The total value of assets under management declined mainly because of

By Kim Min-ju Cardif in Korea, a subsidiary insurance arm of the BNP Paribas Cardif, announced Wednesday that it has named current deputy CEO Jean Christophe Darbes as its new incoming chief executive officer.Darbes was named to the post following a meeting of the board of directors on June 19. He will succeed current head Herve Giraudon on July 1. The company expressed its confidence in the new appointment, explaining that Darbes’ experience and relationships with both banks and financial gro

Earnings of asset management firms in South Korea fell 14 percent on-year in the 2011 fiscal year as weak stock prices and a drop in the net value of holdings cut into profits, the financial regulator said Wednesday.The combined net earnings of 82 asset managers came to 305.2 billion won (US$264.7 million) when fiscal 2011 ended in March, down 49.8 billion won from a year earlier, according to the

South Korean stocks closed effectively unchanged Tuesday as troubles in Spain’s bonds market offset Greece’s upbeat election results, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index edged up 0.06 points to close at 1,891.77. Trading volume was light at 362 million shares worth 3.44 trillion won ($2.97 billion), with losers outpacing gainers 440 to 371.“Spain’s surging borrowing costs clearly showed that relief over Greece’s electio