South Korean banks’ mid- and long-term overseas borrowing jumped in January as lenders secured foreign currency liquidity to brace against a possible deterioration in external conditions, the financial watchdog said Sunday.The refinancing rate of 12 local banks’ mid- and long-term foreign debts came to 382.2 percent at the end of last month, up from 174.4 percent in December, according to the Financial Supervisory Service.The rollover rate gauges the percentage of fresh overseas borrowing agains

Growth of exports to China slows; major Asian nations post unfavorable indicesWorries are growing over the possibility that Korea’s economic growth will be undermined by the gloomy indices of major Asian countries.Apart from the eurozone debt crisis, Asian countries facing symptoms of an economic slowdown include China, Japan, India, Indonesia and Vietnam, according to think tanks at home and abroad.Economists say there is a possibility that the Chinese economy could undergo a hard landing due m

Korea and Japan had a similar chance of declaring a national credit default as of the end of last month, a report showed Friday, after a recent surge in Japan’s economic woes.The likelihood of the two countries plunging into sovereign default became almost the same after Japan logged its first trade deficit in 31 years and may be subject to a downgrade in its credit rating. According to a report released by the Korea Center for International Finance, Japan’s credit default swap premium stood at

Foreign investors have scooped up more than a net 10 trillion won ($8.93 billion) worth of Korean equities this year, with their holdings of local stocks and bonds accounting for over one third of the country’s market capitalization, data showed Friday. The combined value of stocks and bonds listed on the main bourse and owned by foreigners reached a net 10.8 trillion won as of Feb. 9, according to the data by the Korea Exchange. As of Jan. 25, foreign investors accounted for 33.3 percent of the

Despite worries, they seek to connect affiliates for high-end synergyMajor financial groups have been in competition to introduce a fresh business concept which connects units, such as banks and brokerages.Hana Financial Group introduced the “matrix” system in the local market in 2008.Shinhan Financial launched a similar unit by selecting a group of employees from Shinhan Bank and Shinhan Investment Corp. last month.Woori Financial has been in discussion with major affiliates to join the move la

Authorities discover Citi, Standard Chartered, Deutsche and HSBC underpaid taxesFour Korean branches of overseas banks are to pay a combined 300 billion won ($268 million) in capital gains taxes on from an offshore fund in Luxembourg, underpaid for the past five years, government officials confirmed Thursday. Citi Bank, Standard Chartered Bank, Deutsche Bank and HSBC are to make additional payment on their capital gains from investing in offshore funds called Sicav in Luxembourg, tax authorities

Group completes KEB takeover payment to Lone Star and Korea EximbankHana Financial Group chairman Kim Seung-yu confirmed his earlier stance that he will step down from his post.Kim reiterated his willingness to resign during a meeting with reporters right after he participated the financial group’s board meeting on future management policies on Thursday.“We (executives) gave up persuading chairman Kim to serve one more term,” a senior executive also said, adding that the chairman has not reverse

South Korean stocks closed 0.54 percent higher Thursday on optimism that Greece may wrap up its austerity talks to receive a fresh bailout from its European neighbors, analysts said. The local currency edged up against the U.S. dollar. The benchmark KOSPI gained 10.89 percent to 2,014.62. Trading volume was heavy at 549.9 million shares worth 7.87 trillion won ($7.05 billion) with gainers outpacing losers 440 to 373. In early trading, strong foreign and program selling sent the KOSPI tumbling as

KB Financial Group and Shinhan Financial Group reported robust earnings in 2011 on the back of their policy to seek management efficiency.KB Financial posted 2.37 trillion won ($2.07 billion) in net profit last year. Its total assets came to 361.6 trillion won, up 28.1 trillion won from a year earlier.Its flagship KB Kookmin Bank saw its assets reach 276.7 trillion won and KB Kookmin Card recorded 13.4 trillion won.Shinhan Financial, which owns the nation’s largest credit card firm, posted 3.1 t

South Korea’s finance minister promised Thursday to grant more incentives to municipal governments for their efforts to refrain from raising regional public service fees in a bid to prevent price hikes from fueling overall inflationary pressure.“To induce price stability, the government will expand incentives to municipalities for their efforts to manage regional public fees in a stable manner,” Finance Minister Bahk Jae-wan said during an anti-inflation meeting with other policymakers.It plans

South Korea’s producer prices increased at the slowest clip in 17 months in January on a sharp fall in prices of vegetables and fruits, the central bank said Thursday. The producer price index, a barometer of future consumer inflation, gained 3.4 percent in January from one year ago, slowing down from 4.3 percent on-year growth in the previous month, according to the Bank of Korea (BOK). Last month’s data, which was released ahead of the BOK’s monetary policy meeting to set the key interest rate

Delinquent borrowers of retirement age are rising in South Korea, data showed Thursday, raising concerns that the trend may accelerate in line with its rapidly aging society.A total of 18,342 people in their fifties or older filed for a debt workout last year, accounting for 24.2 percent of all debt workout applicants, according to the data by the Credit Counseling and Recovery Service.Of the total, those in their fifties accounted for 19.4 percent, while the comparable figure for those in their

South Korea’s economic growth will likely decelerate in 2012 due to a global slowdown and rising tensions in the Middle East, a think tank said Thursday.Asia‘s fourth-largest economy is expected to grow 3.2 percent this year, slowing from last year’s 3.6-percent expansion, according to the Korea Economic Research Institute (KERI) under the Federation of Korean Industries, the nation‘s largest business lobby.The latest growth projection is also down from its earlier estimate of a 3.5 percent gain

The Financial Services Commission approved Hana Financial Group’s application to take over Jeil 2 Savings Bank and Ace Mutual Savings Bank.With the regulatory endorsement, the financial group’s secondary banking unit, named Hana Savings Bank, is poised to launch business on Feb. 17.Hana Financial won the bid to acquire the two distressed savings banks last December.Jeil 2 Savings Bank, which is headquartered in Seoul, has assets of 503.7 billion won ($441.8 million). Ace Mutual is based in Inche