Major private money lenders in Korea were ordered Thursday to suspend their operations for six months for reaping illegal profits through “unfair” interest rates, officials said Thursday.Seoul’s Gangnam Ward office informed four private lenders, including market leaders A&P Financial and Sanwa Money, to halt their business operations between March 5 to Sept. 4, according to industry officials.The move comes after the local financial regulator vowed to overhaul the private money market amid growi

Korean stocks sank 1.38 percent Thursday as investors stepped to the sidelines after the previous session’s rally amid lingering market uncertainty, analysts said. The local currency fell against the U.S. dollar.Following a 1.13 percent jump a day earlier, the benchmark Korea Composite Stock Price Index tumbled 27.87 points to 1,997.45. Trading volume was heavy at 689.3 million shares worth 6.8 trillion won ($6 billion), with decliners outnumbering gainers 548 to 288.“Nagging eurozone woes and e

Foreign currency deposits at South Korean banks jumped last month on the back of the local unit’s ascent against the U.S. dollar and the yen as well as worries about Europe’s debt crisis, data showed Thursday. Foreign currency deposits held by five commercial banks rose 10.3 percent in January from a month ago to $19.73 billion, according to the data.The January figure, compiled from Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank and the state-owned Industrial Bank of Korea, was a 38.5 percen

State-run Korea Gas Corp. said Thursday that its fourth-quarter earnings more than doubled from a year earlier due to increased sales and higher prices of refined energy products.Net profit reached 94.7 billion won ($84 million) in the October-December period, compared with earnings of 45.2 billion won tallied a year earlier, the company said in a regulatory filing.Sales jumped 34.6 percent to 8.7 trillion won during the cited period, with operating profit climbing 53.2 percent to 362.1 billion

More than half of Korean households owed debts to local banks in 2011 as they borrowed money to help support living costs, a poll showed Thursday.According to the survey of 2,030 households by the Bank of Korea, 54 percent of them borrowed money from financial institutions as of December of last year. Among the surveyed households, 22.5 percent of them replied they had taken out fresh loans between July and December last year. Of the recently indebted households, 32.2 percent of them said they h

Speculation rampant that two sides near compromise over mergerHana Financial Group chairman Kim Seung-yu has been striving to prevent the union of Korea Exchange Bank, which has been acquired by the group, from going on strike.While KEB unionized workers have threatened to stage an all-out strike, Kim held a low-key negotiation with leaders of the union on Thursday.According to a speculation, raised by an online news provider, the two parties reached an agreement, which includes that KEB will be

Moody's Investors Service downgraded the credit rating of SK Telecom Co. on Wednesday in the latest move by global credit appraisers to lower the rating of South Korea's biggest mobile carrier after its takeover of a chipmaker.   Moody's cut the credit rating of SK Telecom by one notch to

Financial regulators filed a complaint against Green Non-Life Insurance and its chairman Lee Young-doo with the prosecution for manipulating stocks.The Securities and Futures Commission said Wednesday that the insurance firm has been suspected of frequently rigging stocks between July 2010 and September 2011.During the period, the insurance firm engaged in more than 3,000 cases of fraudulent trading, according to the regulator.The SFC alleged that the practices were aimed at raising the “risk-ba

Korean stocks closed 1.13 percent higher on Wednesday as shares of blue-chip technology companies rose on the back of foreign buying and market rumors, analysts said. The local currency gathered ground against the U.S. dollar.The benchmark KOSPI climbed 22.68 points to 2,025.32. Trading volume was moderate at 675.6 million shares worth 7.6 trillion won ($6.8 billion), with gainers outnumbering decliners 445 to 374.“The market performed as usual, but steep rises in shares of Samsung Electronics a

The state-run policy lender Export-Import Bank of Korea said Wednesday it signed an agreement with five Chinese banks as part of efforts to help local companies win big overseas projects.Under the deal, Eximbank will hold quarterly meetings with the five lenders to discuss co-financing plans for South Korean companies’ major projects in areas such as shipbuilding, plant construction, and corporate mergers and acquisitions, the policy lender said.The five banks are the Bank of China, the Industri

Labor union claims Kim’s plan compromises central bank’s independenceBank of Korea Gov. Kim Choong-soo has come under fire from the bank’s labor union on Wednesday, offering a painful glimpse into the internal division and distrust that could generate more public doubt about its policy decisions. The BOK labor union issued a statement in the afternoon, attacking its own governor over his alleged decision to recommend a non-BOK figure to the No. 2 position at the central bank.“According to a rece

Foreign investors’ buying of local stocks surged this year on the back of eased fear on the eurozone debt crisis that fueled a huge inflow of European money into the emerging markets like Korea, data showed Wednesday. Foreign investors have scooped up local stocks worth a net 8.8 trillion won ($7.82 billion) this year as of Monday, according to the data by the Financial Supervisory Service, the country’s financial regulator.Offshore investors have been on an extensive buying spree since late las

Korean stocks fell 0.15 percent on Tuesday as investors offloaded shares following a credit cut on six eurozone countries, but losses were limited as the downgrade was largely expected, analysts said. The local currency fell against the U.S. dollar.After retreating as much as 0.51 percent at one point, the benchmark KOSPI ended 3.1 points lower at 2,002.64. Trading volume was heavy at 500.5 million shares worth 6.4 trillion won (US$5.7 billion), with decliners slightly outweighing gainers 411 to

The ruling party and the government agreed to abolish the joint liability system for self-employed businessmen when they apply for loans from May in a bid to lessen the burden on new businesses and boost entrepreneurship, the party’s chief policymaker said Tuesday.Rep. Lee Joo-young of the Saenuri Party held a meeting with senior officials of the Financial Services Commission at the National Assembly and reached an agreement to adopt a package of measures aimed at helping self-sufficient busines