The Korea Herald

Seoul shares to rebound on European crisis deal

Dec 11, 2011

South Korean shares are expected to rebound this week, as European leaders agreed last week on a series of fiscal measures to stem the ongoing debt crisis, analysts said Saturday.At their two-day summit that ended Friday, European leaders agreed to tighten anti-deficit rules and funnel money to the International Monetary Fund, thus preventing future debt run-ups.“The outcomes were roughly in line with market expectations,” said Kang Hyun-chul, an analyst at Woori Investment & Securities. “Now, i
Winds of change blowing at SC First Bank

Dec 11, 2011

Lender pushes reform of compensation system, name change, manpower restructuringSC First Bank, the Korean unit of the London-based financial group Standard Chartered, will drop the “First” from its name starting next year. The bank’s name was a result of the British firm’s 2005 acquisition of Korea First Bank, established in 1929.Last week, a new signboard reading “Standard Chartered” appeared on its head office in Jongno, Seoul. Its nationwide branches are also replacing their signboards.For S
Buffett tips his farmer son as next Berkshire chair

Dec 11, 2011

NEW YORK (AFP) -- Mega-billionaire Warren Buffett says his son, a corn farmer, would be a good replacement for him as chairman of his $245 billion investment giant Berkshire Hathaway.Warren Buffett (AP-Yonhap News)Buffett told CBS television that Howard Buffett, 56, would be a good "guardian of
FSS chief stresses fair audit, accounting transparency

Dec 9, 2011

The nation’s top financial regulator on Friday urged accounting firms to commit to a rigorous audit of troubled savings banks to uproot accounting fraud.Financial Supervisory Service Gov. Kwon Hyouk-se pinpointed the lack of transparency in financial reports in the industry at a breakfast meeting with chiefs of the industry’s 13 biggest accounting firms.“Transparency is an essential element in a trusted relationship between banks and the public, and demand for honest reporting is growing,” Kwon
Many brokerage houses to get new CEOs in 2012

Dec 9, 2011

More than half of securities company chiefs in Korea are about see the end of their terms, signaling a wave of management changes in the brokerage industry.According to the Korea Financial Investment Association, 29 out of 49 securities firms will see their tenures end next year.In particular, most of the 10 major securities firms are affected. Samsung Securities replaced its CEO on Dec. 7.The current figures include Daewoo Securities CEO Im Kee-young, Woori Investment and Securities CEO Hwang S
Producer price growth hits 1-year low in Nov.

Dec 9, 2011

South Korea’s producer prices grew at the slowest clip in one year in November as prices of vegetables and fruits fell sharply, the central bank said Friday.The producer price index, a barometer of future consumer inflation, rose 5.1 percent in November from a year earlier, cooling from a 5.6 percent on-year gain in October, according to the Bank of Korea.Last month‘s data marked the slowest gain since a 4.9 percent gain tallied in November 2010, it added.Compared with the previous month, produc
BOK cuts 2012 growth forecast to 3.7 percent

Dec 9, 2011

The Bank of Korea on Friday dimmed the country’s growth forecast for next year to 3.7 percent, down from its earlier estimate of 4.6 percent, citing uncertainty from Europe’s debt situation as lingering risks for the export-reliant economy.The downward revision narrowed gaps in the mid- to-high 3 percent range at private think tanks, in a sign that Asia’s fourth largest economy will grow at a slower pace than this year under sluggish global trade sentiment and weak domestic demand.The central ba
Hyundai, Kia top Russian car market

Dec 9, 2011

1.6-liter Gamma engine selected for the ‘Best 10 Engines’ list by U.S. auto mediaHyundai Motor and its affiliate Kia Motors became the No. 1 and No. 2 foreign carmakers, respectively, in Russian markets in November, according to industrial data.Hyundai posted sales of 17,283 units in Russia last month, maintaining the No. 1 position for the third consecutive month, according to the Association of European Businesses.Kia ranked second with sales of 15,115 units, overtaking GM Chevrolet with sales
Shares sink 1.97% on eurozone fears

Dec 9, 2011

South Korean stocks fell 1.97 percent on Friday as investor sentiment was dampened by uncertainties over the eurozone debt crisis and a grim economic growth forecast, analysts said. The local currency declined against the U.S. dollar.The benchmark KOSPI lost 37.64 points to 1,874.75, sinking below the 1,900 point level for the first time since it finished at 1,847.51 on Nov. 30. Trading volume was moderate at 367.9 million shares worth 5.07 trillion won ($4.42 billion) with losers leading gainer
Seoul, Tokyo stock exchanges to start cross-trading next year

Dec 8, 2011

Korea’s stock market operator said Thursday it has signed a preliminary agreement with its Japanese counterpart to begin cross-trading of listed stocks as early as next year, a move that is expected to speed up trading time and lower costs for investors in both countries.Through the deal, the Korea Exchange and Tokyo Stock Exchange will push for cross-trading between the bourses in addition to the listing of exchange-traded fund and derivatives products, the KRX said in a press conference.A cros
IBK to offer lowest lending rates: CEO

Dec 8, 2011

Industrial Bank of Korea CEO Cho Joon-hee unveiled his business policy to lower the maximum interest rate on loans to below 10 percent next year.Under the CEO’s commitment, the state-run bank is poised to provide the lowest lending rates in the local commercial banking sector.“We are pushing for the loan rate cut as households and enterprises are expected to suffer a heavier financial burden amid gloomy predictions over the 2012 economy,” Cho told reporters.To make up for curtailed profit from t
Korea freezes key rate for 6th month

Dec 8, 2011

The Bank of Korea held the benchmark rates steady for the sixth straight month Thursday, citing the deepening eurozone debt crisis abroad and slowing exports at home. The monetary policy committee led by Gov. Kim Choong-soo unanimously agreed to freeze the rate at 3.25 percent, a move aimed at helping Asia’s fourth-largest economy fight the external risks that threaten its export-oriented growth. “Downside risks to growth are high, due mostly to the sovereign debt crisis in Europe and to the pos
College opens way to high-income farmers

Dec 8, 2011

Graduates of Korea National College of Agriculture and Fisheries earned 65.15 million won on average last year, twice as much as other farmers and even higher than the average pay at top 100 conglomerates, the university said Thursday.The government-funded university said almost one in five earned 100 million won in the past year and 71.3 percent of the total took home more than 30 million won.“What differentiates our graduates from other farmers is that every student in their second year of col
Shares down on Europe woes

Dec 8, 2011

South Korean stocks slumped 0.37 percent on Thursday as investor sentiment remained fragile due mainly to weak hopes for an upcoming European summit, analysts said. The local currency fell against the U.S. dollar.The benchmark KOSPI declined 7.03 points to 1,912.39. Trading volume was heavy at 420.1 million shares worth 5.86 trillion won ($5.18 billion), with gainers outpacing decliners 425 to 397.“Investors are doubtful whether the European summit on Friday will bring about substantial developm
Bank holding firms’ capital ratio slips in Q3

Dec 7, 2011

The capital adequacy ratio of South Korean bank holding companies fell in the third quarter, due to an increase in risk-weighted assets such as equities and loans, the financial regulator said Wednesday.The average capital adequacy ratio of nine local bank holding companies, including top player Woori Finance Holdings Co., stood at 13.54 percent as of the end of September, down 0.24 percentage point from three months earlier, according to the Financial Supervisory Service. The figure comes after