The Korea Herald

Regulators suspend four savings banks

May 6, 2012

Solomon, Korea face delisting from bourseThe Financial Services Commission said Sunday that it has decided to suspend operations of four mutual savings banks in Korea over the next six months.The four secondary financial firms are Solomon Savings Bank, Korea Savings Bank, Mirae Savings Bank and Hanju Savings Bank, the FSC said in a press release.Of six banks the regulatory body has investigated since September last year, the FSC shortlisted the four as distressed banks with weak financials.Only
Etrade seeks investors for stable share price

May 6, 2012

Largest PE shareholder G&A could consider exit next year　When Nam Sam-hyun joined Etrade Korea as its chief executive officer four years ago, he was in deep sorrow at seeing the company, the first online brokerage firm to be established in Korea, fall behind Kiwoom Securities. Nam, the former CEO of Woori Futures, said he has since vowed to improve everything about Etrade’s image and operations by first investing in not only its electronic systems but also human capital.“When I first came to thi
Four savings banks suspended for lack of sufficient capital

May 6, 2012

(Heraldbiz.com)Financial regulators Sunday suspended operations of four savings banks for their failure to meet the capital adequacy ratios recommended by the Bank for International Settlements (BIS) standards.They are Solomon Savings Bank, Mirae Savings Bank, Korea Savings Bank, Hanju Savings Bank, the Financial Services Commission(FSC) said.It is the second time since September that the financi
Imminent suspension prompts runs on big savings banks

May 4, 2012

Some of the nation’s largest mutual savings banks showed signs of bank runs on Friday as the Financial Supervisory Service is set to suspend their operations as early as Sunday.The top financial regulator is expected to suspend the business of three of the 10 biggest savings banks and a smaller bank, the combined assets of which hover at 10 trillion won ($8.84 billion).Banking sources said the financial authorities already put the computer network systems of the four troubled lenders under their
Kids with stock holdings exceeding 100 mln won top 100 mark

May 4, 2012

The number of kids with stock holdings exceeding 100 million won (US$88,400) exceeded the 100 mark for the first time in April as owners of large businesses take steps to pass on their wealth to their children, data showed Friday.According to the data compiled by Chaebol.com, an information provider on large conglomerates, 102 children under 12 held sizable shares in listed companies as of the end
FSS asks prosecutors to probe 4 savings banks

May 3, 2012

The Financial Supervisory Service recently asked the prosecution to investigate four debt-saddled savings banks for alleged embezzlement or breach of duties, officials said Thursday.The four troubled savings banks are Solomon, Korea, Hyundai Swiss and Mirae, according to regulatory officials at the FSS.Solomon Savings Bank is the largest player in the secondary banking sector, and the combined assets of the four lenders hover at 10 trillion won ($8.84 billion).As the FSS is also considering susp
Tax policies unnerve foreign investors

May 3, 2012

The foreign business community expressed uneasiness through a survey about the nation’s taxation policies, despite Korean tax authorities’ recent promise of fewer and easier audits on foreign firms.In March, the National Tax Service said it would reduce the frequency and scope of tax audits on foreign companies doing business here in a bid to attract more long-term investment.But in a survey conducted by the Federation of Korean Industries on 150 foreign firms operating in Korea, 72 percent of t
Shares end lower on weak U.S. data

May 3, 2012

South Korean stocks closed 0.20 percent lower on Thursday on weaker than expected U.S. economic data and lingering eurozone woes, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 3.96 points to close at 1,995.11, the first drop in five sessions.Trading volume was heavy at 677 million shares worth 4.57 trillion won ($4.03 billion), with gainers outpacing losers 442 to 378.“Lower than expected job gains in the United States and oth
Korea’s foreign reserves hit record high in April

May 3, 2012

South Korea’s foreign exchange reserves reached a new record high in April as the strength of the euro and other currencies boosted the conversion value of those assets, the central bank said Thursday.The country’s foreign reserves reached $316.84 billion at the end of last month, up $890 million from March, according to the Bank of Korea. The previous record was $315.95 billion set in the previous month.Asia’s fourth-largest economy saw its foreign reserves surpass the $300 billion mark for the
Korea, China, Japan agree to invest in each other’s state bonds

May 3, 2012

HONG KONG (Yonhap News) ― South Korea, China and Japan agreed Thursday to invest in each other’s government bonds, reaffirming their commitment to stabilizing the regional financial and currency markets, government officials said. “We agreed to promote the investment by the foreign reserve authorities in one another’s government bonds, further strengthening our cooperation,” the financial ministers and central bank governors from the three nations said in a joint statement. “We agreed to have wo
Options limited for loan shark victims

May 3, 2012

Lee instructs state-run legal aid agency to sue loan sharks on behalf of victimsKwon Hyung-min (not his real name), a self-employed tradesman in a provincial market, found himself in hot water after borrowing 2 million won ($1,700) from a private lender, which he promised to pay back in 10 days. He missed the deadline, and thanks to annual interest of 360 percent, his liabilities eventually snowballed to 200 million won. The loan shark used illegal methods including violence to collect the debt.
Korea better to remain in MSCI emerging markets index

May 3, 2012

Asia’s 4th largest economy unlikely to graduate to developed markets index soonSouth Korea would be better off remaining in Morgan Stanley Capital International’s emerging markets index than entering its developed markets index, said a global investment bank.Shawn Kim, an equity strategist and executive director at Morgan Stanley, said that Korea could end up like Israel and be ignored by global investors if it moved into the developed index.“After Israel was included in the MSCI developed inde
S. Korea's foreign reserves hit record high in April

May 3, 2012

South Korea's foreign exchange reserves reached a new record high in April as the strength of the euro and other currencies boosted the conversion value of those assets, the central bank said Thursday.The country's foreign reserves reached $316.84 billion at the end of last month, up $890 million from March, according to the Bank of Korea. The previous record was $315.95 billion set in the previou
Shinhan posts W826.3b profit in first quarter

May 2, 2012

Shinhan Financial Group Co., South Korea’s largest financial company by market value, said first- quarter profit fell 11 percent after the company set aside more funds for bad loans as the economy slows. Net income dropped to 826.3 billion won ($733 million) in the three months ended March 31 from 924.3 billion won a year earlier, the Seoul-based company said in an e-mailed statement today. That compares with the 766.1 billion won average of 20 analyst estimates compiled by Bloomberg. Earnings a
Shares end higher buoyed by U.S. data, corporate earnings

May 2, 2012

South Korean stocks closed 0.86 percent higher on Wednesday on U.S. economic data and solid earnings by local blue-chip companies, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index added 17.08 points to close at 1,999.07, rising for the fourth consecutive session. Trading volume was heavy at 639 million shares worth 6.21 trillion won ($5.50 billion), with gainers outpacing losers 529 to 320.“The overnight rally in Wall Street exerted p