The Korea Herald

Korean firms rush to sell debts ahead of US rate hike

Sept 8, 2016

Some South Korean companies with relatively high credit ratings are hurrying to raise capital in the debt market amid growing speculation that the US Federal Reserve may lift its benchmark interest rate soon, market watchers said Thursday.The move is also attributable to growing worries that the corporate bond market may be strained suddenly by the impact of a corporate revamp drive, they added.There was not a single A-rated corporate bond offering here in August. This month, however, SK Incheon
Report shows corporate tax burden falling while rising for personal income

Sept 8, 2016

The tax burden rate for the corporate community has continuously fallen throughout the two previous and current administrations while the tax load on personal income has risen, a parliamentary report showed Thursday, with a suggestion that there was room for a tax hike.Such conclusions were drawn as the opposition camp, who wields the majority in the National Assembly, is pressing for a tax increase. The government has stayed the rate for corporate, income and value-added taxes for next year.The
Asset management firms' net profits widen in Q2

Sept 8, 2016

The combined net profits of asset management companies in South Korea jumped nearly 20 percent on-quarter during the April-June period this year on increased commission revenues, government data showed Thursday.The number of asset managers operating here rose to 138 in the second quarter from 115 in the previous quarter, according to the Financial Supervisory Service.They were managing 871 trillion won ($799 billion) of assets as of end-June, up 3 percent from 846 trillion won three months earli
[Photo News] Shinhan branches in Hanoi

Sept 7, 2016

Shinhan Bank Vice President Yoon Seung-wook (left), Korean Ambassador to Hanoi Lee Hyuk (center) and Nguyen Thi Thu Huong (fourth from right), director general for finance at the State Bank of Vietnam, hold a tape-cutting ceremony to mark the launch of the 16th and 17th Shinhan Bank branches in Hanoi on Tuesday. (Shinhan Bank)
Korean population surpasses 50 million

Sept 7, 2016

South Korea’s population reached more than 50 million for the first time last year, according to Statistics Korea on Wednesday.After including the population of foreigners residing in Korea, the country’s population stood at around 51.07 million as of Nov.1, 2015, up 2.7 percent from the 49.71 million five years ago.The male population stood at 25.61 million, 150,000 more than the female population.The number of foreigners in Korea also surpassed 1 million for the first time, reaching 1.36 milli
Market cap of China-related firms shrink 11% due to THAAD risks

Sept 7, 2016

The market values of Korean firms eyeing the Chinese market has shrank significantly, as their stock prices have been falling for the past two months since the South Korean government announced the deployment of a US missile defense system on the Korean Peninsula. According to the Korea Exchange on Wednesday, the market values of 10 major businesses exporting products to China or operating in the market have shed nearly 7 trillion won ($6.42 billion) in total for the past two months. The aggrega
KDB issues $1b global bonds at lowest borrowing rates

Sept 7, 2016

Korea Development Bank said Wednesday the state-run financier issued $1 billion worth of global bonds at all-time low borrowing rates, thanks to a recent upgrade in Korea’s sovereign credit rating. The country’s largest public financier issued three-year and 10-year bonds at rates 0.06 to 0.09 percent lower than the interest rates of similar bonds issued by the KDB and the Industrial bank of Korea. The rates are 0.04 to 0.17 percent lower than those of Canadian and Australian bonds, the bank sai
Hanjin’s other companies have debt problems, too

Sept 6, 2016

Hanjin Group, the parent company of the near-bankrupt container line Hanjin Shipping, has some serious debt problems at its other companies, data showed Monday. According to chaebul.com, an online corporate research firm, one-third of the group’s 38 units, or 12 companies, are “zombies,” which means they have paid-in capital already impaired by losses or are unable to cover interest costs with what they earn. The group as a whole had debt at 450 percent of its total equity on average for the pas
Financial authorities under fire for belated measures on Hanjin

Sept 6, 2016

South Korean financial authorities are drawing criticism from the market for their inability to pre-emptively deal and manage repercussions in the logistics sector following the fallout of Hanjin Shipping.As of early this week, about 70 percent of more than 120 ships run by Hanjin have been blocked, stranded and denied entry at major ports around the world, according to the Korea Shipowners’ Association. Yim Jong-yong (left), chairman of the Financial Services Commission, and Maritime Affairs Mi
South Korean households see healthcare burden growing faster than income growth

Sept 6, 2016

South Korean households’ expenditure on healthcare rose faster than the income growth in the last 10 years, a trend that is very likely to accelerate as the country’s population is rapidly aging. According to a survey by Statistics Korea on Sunday, the average monthly income of a household was 4,306,412 won ($3,857) in the second quarter in 2016, increasing by 45.2 percent from 2,965,551 won in the same period in 2006. Meanwhile, healthcare expenditure rose greater than the income growth, with e
Insurance scam figures at record high: FSS

Sept 6, 2016

Fraudulent insurance claims caught by South Korea's authorities hit a record high in the first half of this year amid a tougher crackdown, data showed Tuesday.The related authorities caught insurance fraud cases worth 348 billion won ($314 million) during the period, up 12.1 percent from a year earlier, according to the data compiled by the Financial Supervisory Service.The figure marks an all-time high in the biannual statistics.But the number of scammers caught declined 2.2 percent to 40,054.T
[Kosdaq Star] Naturalendo Tech scrambles to rebuild global reputation

Sept 5, 2016

After being hit by a fake herb scandal last year, Naturalendo Tech aims to rebuild its reputation from scratch. The Kosdaq-listed firm lost more than 1 trillion won ($904 million) in market capitalization last year, when the Korea Consumer Agency claimed it had detected fake ingredients in the firm’s best-selling product, EstroG-100. The product was selling in countries including the United States, Canada and Australia. The agency claimed nearly 90 percent of similar products in the domestic mar
Hanjin Shipping files for US bankruptcy protection

Sept 5, 2016

Owner Cho Yang-ho should take full responsibility, regulator says
Homegrown hedge funds amass over 6 tln won

Sept 5, 2016

South Korea's hedge funds have rapidly grown to see their assets under management exceed 6 trillion won ($5.4 billion), industry data showed Monday.Local hedge funds' assets under management came to 6.2 trillion won as of end-August, according to the data.The volume of South Korea's hedge funds, introduced in late 2011, continued to grow fast from 800 billion won in September 2012 to over 3 trillion won in January this year.Market watchers said hedge funds have emerged as an attractive investmen
Seoul to allow unprofitable firms to go public

Sept 5, 2016

South Korea’s financial regulator said Monday it will revise the stock market listing requirements to allow unprofitable but promising companies to go public. Calling it the “Tesla qualification,” Yim Jong-yong, chairman of the Financial Services Commission, said the regulator will add a new qualification gauging the growth potential of unlisted firms, besides looking at existing financial qualifications including sales and profits. “The global electric vehicle maker Tesla could finance funds th