The Korea Herald

Samsung recruits diplomat

Jan 9, 2012

A diplomat who played a key role in negotiations for Korea-U.S. Free Trade Agreement will likely take the post of an executive director at Samsung Electronics.Kim Won-kyoung, a councilor of the Korean Embassy in the United States, tendered his resignation last weekend, according to diplomatic sources.The 45-year-old figure has reportedly been scouted by Samsung Electronics to hold the post of an executive director at the chipmaker’s U.S. sales corporation.Kim worked as the general director of th
Kyobo-KTB SPAC fails to fully disclose information on target firm

Jan 8, 2012

A special purpose acquisition company (SPAC) jointly built by South Korea’s major securities firm and leading venture capital firm failed to fully disclose information on its target company, resulting in its overvaluation, documents showed Sunday. Kyobo-KTB SPAC, a paper company established by Kyobo Securities Co. and KTB Securities Co., released inaccurate information about target company Korea Fueltech Corp., which then allowed the SPAC to overvalue Korea Fueltech.In a December regulatory fili
FSS seeks tie-ups with G20 nations in 2012

Jan 8, 2012

Korea’s financial regulator plans to bolster collaboration with international organizations to develop advanced supervision skills and help Korean financial firms to actively tap overseas markets.On Sunday, the Financial Supervisory Service unveiled its 2012 policy directions, which include enhancing cooperation with overseas supervisors and hosting planned gatherings.Its global policy features pushing for signing memoranda of understanding with several members of the Group of 20.“We will seek M
Shares to feel the effects of eurozone woes

Jan 8, 2012

Korea’s bourse is expected to feel the effects of eurozone woes with stocks prices likely to remain locked this week despite modest gains made coming into the new year, local analysts said Saturday.The benchmark KOSPI gained 0.95 percent from the previous week’s closing to end the first week of trading in 2012 at 1,843.14 points.The 17.40 point gain comes despite unfounded rumors about a nuclear accident in North Korea that caused the KOSPI to temporarily fall sharply for a time on Friday.Analys
Regulator set to beef up monitoring of stocks linked to politicians

Jan 8, 2012

Politically sensitive stocks log sharp rises on rumors ahead of elections this yearKorea’s financial regulator said Sunday it would strengthen its monitoring of the local stock market to weed out false rumors concocted to boost share prices amid worries over politics-linked stocks. According to the Korea Exchange and the Financial Supervisory Service, the number of stocks that investors considers to move in tandem with political developments here shot up to 78, reflecting the planned parliamenta
Regulator to put a ceiling on banks’ dividend payout

Jan 8, 2012

Korea’s financial regulator said Sunday it would ban local lenders from paying out dividends to their respective holding companies as part of efforts to drive out the “greedy practices” of the financial sector. The Financial Supervisory Service, which voiced its opposition to excessive dividend payments on several occasions, asked the banks to file capital soundness plans for the next five years. The plans should include banks’ dividend targets, and the FSS would put a ceiling on the figure to b
Pension fund gets qualified investor status from China

Jan 8, 2012

South Korea’s state-run pension fund has received qualified investor status from Chinese authorities, opening the door for its investment in Chinese stock markets, its officials said Sunday.The National Pension Service received the status of “qualified foreign institutional investor” (QFII) from the China Securities Regulatory Commission, according to the officials.The approval comes more than a year after the NPS applied for the QFII in December 2010. Among the world’s top four pension operator
Seoul shares to feel the effects of eurozone woes

Jan 7, 2012

South Korea's bourse is expected to feel the effects of eurozone woes with stocks prices likely to remain locked next week despite modest gains made coming into the new year, local analysts said Saturday.The benchmark Korea Composite Stock Price Index gained 0.95 percent from the previous week's clo
FSS probes stock rumors on N.K. nuclear blast

Jan 6, 2012

The Financial Supervisory Service opened a probe on Friday into suspicions that a group of investors manipulated stocks by spreading false rumors on North Korea.The measure was taken after South Korean stocks plunged for several minutes after 2 p.m. during the trading session, hit by the rumors that there was an explosion at the Yongbyon nuclear complex in North Korea. The FSS also requested that police investigate the case.Though the stock market stabilized before it closed, the brokerage secto
FSC, FSS to undergo six-week inspection by top audit agency

Jan 6, 2012

The Board of Audit and Inspection will launch an extraordinary inspection into the nation’s two financial regulators next Monday.The top auditor has informed the Financial Services Commission and the Financial Supervisory Service of its scheduled probe for the coming six weeks, regulatory officials said Friday.The officials said they do not rule out the possibility that the BAI may investigate the regulators’ ruling on Lone Star Funds, the biggest shareholder of Korea Exchange Bank.“The schedule
FSC, FSS under government inspection next week

Jan 6, 2012

The Board of Audit and Inspection will launch an extraordinary inspection into the nation’s two financial regulators next Monday.The top auditor has informed the Financial Services Commission and the Financial Supervisory Service of its scheduled probe for the coming six weeks, regulatory officials said Friday.The officials said they do not rule out the possibility that the BAI may investigate the regulators’ ruling on Lone Star Funds, the biggest shareholder of Korea Exchange Bank.“The schedule
Seoul shares decline 1.11% on renewed Europe concerns

Jan 6, 2012

Korean stocks dropped 1.11 percent Friday on renewed eurozone concerns that shrugged off optimism about economic recovery, analysts said. The local currency declined sharply against the U.S. currency.The benchmark KOSPI fell 20.6 points to 1,843.14. Trading volume was heavy at 466.6 million shares worth 4.36 trillion won ($3.75 billion) with losers outnumbering gainers 551 to 264.“Europe issues weighed heavily on the market, dragging down the key index,” said analyst Lee Seung-woo from Daewoo Se
Korea Exchange to open spot oil trading system

Jan 6, 2012

Korea’s bourse operator said Friday it plans to open a spot oil electronic trading system in a bid to bolster the local transaction market and help stabilize energy prices. The trading system will begin preliminary operations in late March after test runs are conducted next month, with oil refiners and exporters expected to be the main sellers, according to the Korea Exchange. Franchise dealers and gas station owners will take part as buyers through the trading system. Any entrepreneur in the oi
Eximbank raises $2.25b via debt sale

Jan 5, 2012

The state-run Export-Import Bank of Korea said Thursday it has issued dollar-denominated bonds worth $2.25 billion, the single biggest debt sale by a Korean institution excluding the government.The debt is composed of two-tranche global bonds maturing in five years and 10 years and three months, respectively, the policy lender said.The five-year bonds worth $1.25 billion carry an interest rate 3.15 percent above the corresponding U.S. state bond yields. The other tranche, worth $1 billion, are p
Brokerages’ foreign units’ losses increase

Jan 5, 2012

Korean securities firms saw losses at their foreign operations widen in the first half of fiscal 2011 from a year earlier due mainly to heightened market uncertainties, the financial regulator said Thursday.The 93 foreign units of 19 local brokerages saw their combined net loss reach $43.3 million in the April-September period of last year, compared with $17.3 million a year earlier, according to the Financial Supervisory Service. The firms close their books on March 31.The weak bottom line came