Both governing and opposition parties similarly push for more regulations against conglomeratesThe outcome of the general elections is expected to have a minimal impact on the South Korean economy in the short term as there is no substantial difference in key polices between the ruling and opposition parties, analysts said. If the main opposition Democratic United Party grabs a landslide victory, it will push for more welfare-oriented economic policies while introducing more restrictions on cong

South Korean stocks dropped 0.13 percent on Tuesday, weighed down by unfavorable U.S. economic indicators and geopolitical risks, analysts said. The local currency declined against the U.S. dollar.After regaining the 2,000-point level in early trading, the benchmark Korea Composite Stock Price Index shed 2.67 points to close at 1,994.41. Trading volume was heavy at 533 million shares worth 4.82 trillion won ($4.23 billion), with gainers outpacing losers 436 to 383.“The local bourse was unable to

South Korea’s national debt rose by 28.5 trillion won ($25 billion) last year from a year earlier as the government increased borrowing to fill its budget gap, the Finance Ministry said Tuesday.According to a ministry report, the national debt including central and local government borrowing amounted to 420.7 trillion won last year, up from 392.2 trillion won a year earlier.Central government debt grew by 29 trillion won to 402.8 trillion won in the 2011 fiscal year. Debt owed by local governmen

Passenger aircraft traffic over South Korea rose 5.8 percent in the first quarter from a year earlier on a growing number of people taking international and domestic flights, the government said Tuesday.The number of passenger planes taking off and landing at local airports and those overflying the country reached 132,000 aircraft in the three month period, from 123,000 a year earlier, the Ministry of Land, Transport and Maritime Affairs said.The tally represents all private jets that flew withi

South Korea, which suffered a sudden outflow of capital in 2008, has no plans to curb record purchases of its debt by foreign funds and will sell 30-year bonds aimed at such investors, a Finance Ministry official said. The level of foreign investment is “manageable” and no curbs are planned, Shin Hyung-chul, director general of the treasury bureau at the Ministry of Strategy and Finance, said in an April 5 interview in Gwacheon, south of Seoul. The government will “gradually increase” issuance o

South Korean stocks sank 1.57 percent on Monday on disappointing U.S. economic indicators, analysts said Monday. The local currency declined against the U.S. dollar.The benchmark KOSPI lost 31.95 points, or 1.57 percent, to close at 1,997.08. Trading volume was moderate at 458 million shares worth 4.27 trillion won ($3.75 billion), with losers outpacing gainers 726 to 151.The bourse was battered by worse-than-expected U.S. employment numbers, with the number of jobs created in March falling to a

KDB Financial Group said on Monday it has signed a memorandum of understanding with HSBC to acquire the U.K-based bank’s retail operations in Korea. KDB said the takeover of 11 retail branches of HSBC Korea would be implemented in the form of purchase and assumption. The lender said due diligence is scheduled for the assets to be acquired, and a sale and purchase agreement would be signed. The process, including regulatory approval, should be finished quickly. The P&A deal does not involve a tra

South Korean listed companies’ ability to pay back their debt deteriorated last year as their earnings declined amid increased bond issues, data showed Monday.The average interest coverage ratio of 616 firms listed on the main bourse came to 4.67 in 2011, down from 5.51 a year earlier, according to the data by the Korea Exchange and the Korea Listed Companies Association.The ratio, a firm’s operating profit divided by its interest costs, measures the company’s ability to pay interest on outstand

The Korea Institute of Finance, a state-run think tank, said in a report on Sunday that the country’s private banking market needs a revision to the related law to bolster growth and stay competitive in the long term. In a report titled “The potential and limitation of South Korean private banking,” the KIF said the PB industry appears to be growing at a steady pace but the quality of services is falling behind, with lenders struggling to turn out a profit from their supposedly premium banking s

South Korean stocks are likely to be influenced by first quarter earnings reports to be released this week, and the outcome of the parliamentary elections, local analysts said Saturday.The country’s key stock index, the KOSPI, closed at 2,029.03 on Friday, up 0.7 percent from a week earlier, and a 0.01 percent gain from the previous session. The bourse’s modest gains were fueled by improvements in U.S. consumer sentiment figures and Moody’s Investors Service decision to upgrade its outlook on So

The government will tighten its financial management of nearly 40 public corporations with large amounts of debt in a bid to keep them from placing a burden on the nation in the future, the Finance Ministry said Sunday.A total of 39 public companies with assets of 2 trillion won ($1.8 billion) or more, including Korea National Oil Corp. and Korea Asset Management Corp., will be required to submit plans to improve their balance sheets by the end of June, the ministry said.The ministry will then r

Korea will seek to gather international efforts to tighten rules on derivatives trading, the Finance Ministry said on Sunday, pledging to fight speculative investments in crude oil.“Korea, as a major importer of crude oil, will urge the international community to cooperate in stabilizing oil prices,” its report said. It assessed volatile crude prices as a major threat to global growth and called for concrete regulatory measures to tame the speculative forces in the next two Group of 20 meetings

The government should not loosen its anti-inflation efforts though consumer price growth declined to the 2-percent range in March, a private think tank warned Sunday.South Korea’s consumer price index rose 2.6 percent in March from a year earlier, slowing down from a 3.1 percent gain in February and marking the first time since August 2010 that inflation has fallen to the 2 percent range.“Last month’s slowdown was mainly helped by a low base of comparison and government efforts to clamp down on

Forum in Busan to discuss how to supervise accounting firmsGlobal audit regulators are likely to map out new standards in oversight of accounting firms during their scheduled gathering in Korea this month.The 11th plenary meeting of the International Forum of Independent Audit Regulators is slated for April 16-18 in the nation’s second-largest city of Busan.For the local industry, the Financial Supervisory Service of Korea stressed the significance of the meeting in terms of advanced countries’