The Korea Herald

IBK to expand overseas operations

Jan 18, 2012

CEO says bank’s new targets include India, Indonesia and ThailandThe Industrial Bank of Korea said it will expand its overseas business in Asia for this year by opening more branches in the region.Apart from China and Vietnam, the state-owned bank is considering making inroads into India, Indonesia and Thailand, IBK president & CEO Cho Jun-hee told The Korea Herald.“We are seeking to open a liaison office in India this year. We also plan to tap the markets, such as Indonesia and Thailand, where
Household loan growth slowed in Nov.

Jan 17, 2012

Growth of household loans offered by South Korean depository institutions slowed in November, the central bank said Tuesday, amid the government’s efforts to rein in private sector debt. Household lending handled by local banks and non-bank institutions totaled 638 trillion won ($554.4 billion) as of the end of November, up by more than 3.6 trillion won from the previous month, according to the Bank of Korea. The monthly increase in November was moderate compared with the growth in the previous
IMF likely to lower Korea’s GDP outlook soon: official

Jan 17, 2012

The International Monetary Fund may lower Korea’s growth outlook from current 4.4 percent in its next economic report due April, a government official in knowledge of the fund’s visit to Seoul this week said Tuesday.“A delegation from the IMF was at the Finance Ministry on Monday. I think they might change their growth outlook on Korea as things have changed from last September,” the official said on condition of anonymity. “GDP projection is likely to be dimmed,” he added.A cut in growth outloo
Women flex muscles as fund managers, analysts

Jan 17, 2012

More women take up key research positions at major securities companiesWomen are making inroads into the financial sector at a rapid pace, taking up more specialist positions such as fund managers and analysts. According to brokerages and the Korea Financial Investment Association, the proportion of female analysts and fund managers is rising, following the broader trend of the gender gap narrowing in the workplace. The most significant change is taking place in the research divisions of major s
Shares up on eased EU worries

Jan 17, 2012

South Korean stocks ended 1.8 percent higher Tuesday as investors shrugged off recent eurozone sovereign downgrades and snapped up shares of blue-chip banks and exporters, analysts said. The local currency gathered ground against the U.S. dollar.The benchmark KOSPI soared 33.47 points to 1,892.74. Trading volume was heavy at 426.6 million shares worth 5.91 trillion won ($5.16 billion), with gainers outnumbering losers 553 to 269.Foreigners scooped a net 393.3 billion won worth of shares, extendi
KB Financial not to bid for Woori Financial

Jan 16, 2012

Euh stresses banks’ role change for upgrade of Korea’s financial marketKB Financial Group clarified its position that it will not bid to take over the state-run Woori Financial, at least for 2012.“This year, we have no plan to acquire any financial company including Woori Financial Group and the group’s subsidiaries,” KB Financial chairman Euh Yoon-dae told The Korea Herald on Monday.His stance comes as government officials and Woori Financial chairman Lee Pal-seung are striving to revitalize th
U.S. hedge fund may tap into local market

Jan 16, 2012

Millennium Partners, a fund managed by the U.S.-based Millennium Management LLC, is considering tapping the Korean hedge fund market, sources said Monday, in what would mark the first local entry of an overseas fund.Millennium Partners, which manages funds valued at around $13 billion, reportedly plans to set up a local affiliate and seek regulatory approval as early as this month in a bid to operate its hedge fund here.“The regulator has been in talks with the company, although an official docu
Seoul shares dip on eurozone woes

Jan 16, 2012

South Korean stocks ended 0.87 percent lower on Monday as a massive eurozone credit ratings cut battered investor sentiment, raising fears the region is far off from solving its debt crisis, analysts said. The local currency fell against the U.S. dollar. After tumbling as much as 1.7 percent at one point, the benchmark KOSPI closed down 16.41 points at 1,859.27. Trading volume was moderate at 382.9 million shares worth 3.88 trillion won ($3.36 billion), with decliners outnumbering gainers 586 to
Foreign IBs see firm export growth for Korea this year

Jan 16, 2012

Foreign investment banks predict South Korea’s export growth will likely top those of its Asian peers mainly due to increased demand from China and a free trade pact with the U.S. set to take effect early this year, data showed Monday.Global investment bank HSBC expected Korea’s export to grow 9.7 percent on-year in the first quarter of 2012, with the figure to stay above the 9 percent through most of the remainder of the year, according to the data by the Korea Center for International Finance.
Banks’ short-term foreign borrowing up in December

Jan 16, 2012

Korean banks’ short-term overseas borrowing climbed in December as lenders rushed to secure foreign currency liquidity amid concerns over a deterioration in external conditions, the financial watchdog said Monday.A total of 16 local banks refinanced 120.3 percent of their maturing short-term foreign debts through fresh borrowing last month, compared with 95.9 percent in November, according to the Financial Supervisory Service.The rollover rate gauges the percentage of fresh overseas borrowing ag
Foreign investors boost holdings of Korean Treasuries

Jan 16, 2012

Foreign investors scooped up Korean Treasuries last year as Korean debts emerged as relatively safer assets compared to those in slumping Europe and the U.S., data showed Monday.The outstanding amount of South Korean Treasuries held by foreigners reached 61 trillion won ($53.1 billion) at the end of last year, up 27.8 percent from a year ago, according to the data by the Korea Exchange. The proportion of foreign investors in the Korean bond market stood at 15.6 percent. Foreign investors’ won-de
Individual investors make more risky trades

Jan 16, 2012

Despite the sluggish stock market, Korea’s individual investors showed a stronger appetite for risky investment vehicles, raising worries over the side effects. According to data by the Korea Exchange, individual investors accounted for 37.2 percent of KOSPI 200 stock futures trades in terms of value in the fourth quarter of last year. The figure marks a 10-percentage point increase from 27.2 percent a year earlier. The proportion of individual investors in the highly risky futures trade began t
National pension fund to expand investment in overseas assets: chief

Jan 16, 2012

Korea’s national pension fund plans to boost its investment in overseas assets in a bid to expand and diversify its portfolio, the service’s chief said Monday.Jun Kwang-woo, the chairman of National Pension Service said that he plans to increase the fund’s offshore assets in such areas as real estate and equities as part of this year’s broader investment strategy.“We have secured more than 350 trillion won ($304.7 billion) in pension fund reserves despite unfavorable overall economic conditions,
Eurozone rating shock seen having limited impact on Seoul market

Jan 16, 2012

Renewed fears about the fiscal crisis in Europe following credit rating downgrades by Standard and Poor’s are likely to have a limited impact on the Korean market, brokerages said Monday.France, Austria and seven other European countries saw their ratings go down a notch or two on Friday, raising concerns about the trouble-laden eurozone and its effect on financial markets worldwide. “The downgrade has been already factored into market prices since Standard and Poor’s put 15 European nations on
Gloomy outlook for Korean industries

Jan 15, 2012

Eurozone ratings downgrades add to exporters’ worriesExporters and investors are bracing for a fresh wave of turbulence reignited by Standard & Poor’s downgrade of half of the eurozone nations on Friday.The automotive, shipbuilding and electronics industries expressed renewed concern for a recession in Europe and elsewhere from the mass credit rating cuts. Government officials downplayed the effect at home, but analysts agree that stocks and the won will slide in the coming weeks. “Demand is rel