The Korea Herald

KDB mulls 50 bln won in loan to Hanjin Shipping

Sept 22, 2016

The state-run Korea Development Bank, the main creditor of the cash-strapped Hanjin Shipping Co., is considering loaning some 50 billion won ($45.4 million) to help the ailing shipper unload its cargo, industry sources said Thursday.According to the sources, the KDB will finalize the loan extension this week to the country's No. 1 shipping line, which will be used to resolve unpaid cargo unloading fees.The move came one day after Korean Air Lines Co., the largest shareholder of Hanjin Shipping,
Banks issue refund guarantee for Hyundai Heavy's new order

Sept 22, 2016

A group of banks, led by KEB-Hana Bank, have offered a refund guarantee for a new order won by Hyundai Heavy Industries Co., ending their monthlong tussle over the issue, industry sources said Thursday.Early last month, Hyundai Heavy, a major shipyard, won a deal from a Greek customer to build two oil tankers. But KEB-Hana Bank and other creditors, increasingly concerned about their credit exposure to the ailing shipbuilders in the country, were reluctant to offer refund guarantees for the order
Eximbank finances Turkish hospital project

Sept 21, 2016

The Export-Import Bank of Korea has provided 143 million euros ($159 million) in direct loans and loan guarantees for a hospital construction project led by Samsung C&T in Turkey, the state-run lender said Wednesday. This is the first time that the Seoul-based bank has financed an overseas hospital construction project, it said in a press statement. The Turkish government-initiated project envisions a 1,875-bed general hospital to be constructed in the southeastern Turkish city of Gaziantep, wit
Seoul stocks up 0.51% on BOJ's freeze of key rate

Sept 21, 2016

South Korean stocks ended higher Wednesday on the Japanese central bank's decision to freeze its key rate. The local currency rose against the US dollar.The benchmark Korea Composite Stock Price Index climbed 10.28 points, or 0.51 percent, to 2,035.99.The Bank of Japan kept its key rate unchanged at minus 0.1 percent."The BOJ's decision pushed up the benchmark index as investors were relieved from the bank's decision to keep its key rate unchanged," said Kim Ye-eun, an analyst at LIG Investment
[News Focus] Government braces for industry-level strike by financial workers this week

Sept 21, 2016

Tension is growing between South Korean financial authorities and the trade unions of financial institutions ahead of an industry-wide labor strike slated for Friday.The Financial Services Commission and the Financial Supervisory Service on Wednesday held an emergency meeting with the heads of seven commercial banks whose labor unions decided to go on strike this week to discuss contingency plans regarding possible inconvenience to consumers. The Korean Financial Industry Union has been warning
Firms to adopt their own credit rating systems next year

Sept 21, 2016

The Financial Services Commission on Wednesday came up with a string of measures to improve the credit rating market after coming under fire for belated actions on defaulting companies by local credit rating agencies. The FSC will allow financial institutions to adopt stand-alone credit rating systems starting next year, and all businesses from 2018. Such independent rating systems will help firms evaluate their own risks while making investment decisions and improving fiscal soundness, the comm
[Photo News] Financial job fair

Sept 21, 2016

A jobseeker wearing a virtual reality headset searches for recruitment plans by financial institutions on a screen at the first financial industry-level job fair held at Coex in Samseong-dong, southern Seoul on Wednesday. (Yonhap)
Gov't urges bank labor to drop strike plan

Sept 21, 2016

South Korea's chief financial regulator called on the nation's umbrella bank union Wednesday to withdraw its plan to go on a general strike later this week, saying such a collective action will never win public support especially at a time when the local banking industry faces a "life-or-death" crisis.Yim Jong-yong, chairman of the Financial Services Commission, delivered the message in a meeting with the heads of seven major local banks to discuss ways to deal with the move by the Korean Financ
[Monitor] Korea’s shadow economy size bigger than OECD peers

Sept 20, 2016

The size of South Korea’s underground economy is equivalent to 10 percent of the nation’s gross domestic product, a research paper said Monday. Professor Kim Jong-hee of Chonbuk National University said the scale of the shadow economy in South Korea, at an average of 10.89 percent, far exceeds the average of 6.65 percent for G7 countries, as well as the 8.06 percent for 18 other member states of the Organization for Economic Cooperation and Development.
[News Focus] Investors positively considering bidding for Woori Bank shares

Sept 20, 2016

Prospects look bright for the South Korean financial authority’s fifth attempt to privatize state-owned Woori Bank, with a handful of institutional investors positively considering applying for the bid slated to open Friday. So far, Kyobo Life Insurance, Hanwha Life Insurance and Korea Investment Holdings have confirmed as of Tuesday that they are considering buying splinter stakes to become one of the oligopolistic stakeholders of the bank. In August, the Financial Services Commission’s Public
First South Korean bank branch opens in Myanmar

Sept 20, 2016

Shinhan Bank, South Korea's fourth-largest bank by assets, said Tuesday that it has set up a branch in Myanmar as part of its diversification strategy. Shinhan Bank said it won final approval to start operations in Yangon, the former capital of Myanmar, from the local financial authorities last week.It marked the first time for a South Korean lender to set up a branch in the Southeast Asian country. The latest opening of a branch has raised the number of its global financial network to 147 in 20
Citibank Korea launches new wealth management platform

Sept 20, 2016

Citibank Korea launched a comprehensive wealth management advisory system called Total Wealth Advisor to provide quality service for asset management, the bank said Tuesday. Citibank Korea’s new service enables the bank’s relationship managers and portfolio counselors to provide financial goal planning and investment asset management services for customers through a systematic and standardized process, the bank said. Citibank Korea officials provide a customer with an asset management service.
[Monitor] Think tank predicts economic growth of 2.6% next year

Sept 19, 2016

A leading economic think tank in Korea predicted Sunday that the nation’s economy will grow 2.6 percent next year, marking a third consecutive year trapped in the 2-percent range. Hyundai Research Institute said in its report that the nation is expected to see continued low growth due to weak domestic consumption. 　
Expert urges Korea to step up fight against money laundering

Sept 19, 2016

The head of a new international educational institute on anti-money laundering urged Korea to upgrade its legal system to better combat illegal financial transactions and terrorism financing. 　Kevin Stephenson, the inaugural director of the Training and Research Institute under the Financial Action Task Force, or FATF TREIN, slated for official launch in Busan on Tuesday, acknowledged the efforts the Korean government has made so far to root out illegal financial transactions, but asked for more
Financial sector less contributing to GDP: research

Sept 19, 2016

South Korea's economy has become less dependent on the financial sector over the past several years despite the latter's growth in size, a study showed Monday.The financial industry's output accounted for only 4 percent of the total output of the country's economy in 2014, down from 4.7 percent in 2007, according to National Assembly Research Service.The findings, based on the analysis of the Bank of Korea's data, mean the financial industry has contributed less to the gross domestic product of