South Korean banks’ loan delinquency rate rose at the fastest clip in 15 months in October due mainly to increased defaults by construction firms and shipbuilders, the financial watchdog said Monday.The overall delinquency rate of bank loans to companies and households reached 1.28 percent as of the end of October, up 0.24 percentage points from the previous month, according to the Financial Supervisory Service. The rate is measured based on loans that are overdue for more than one day.The rise

South Korean listed firms’ ability to cover their interest costs with earnings slipped in the third quarter of this year from a year ago due to lackluster performances, a report showed Monday. The average interest coverage ratio of 612 firms listed on the local main bourse came to 5.11 times in the July-September period, compared with 6.01 times posted a year earlier, according to the report by the Korea Exchange and the Korea Listed Companies Association. The ratio measures a firm’s operating p

Cardif Korea, a local insurance unit of French banking giant BNP Paribas, on Monday launched a variable life insurance product with higher returns than industry norms after cancellation, even within a year of contract.“We’re launching i plus VUL through nationwide branches of Shinhan Bank today. The strong point of the product is that it guarantees more flexibility and value to customers by increasing the cash surrender value even if policyholders cancel at an early stage of contract,” the compa

Concerns rise over greater volatility generated by high frequency trading in KoreaForeign investors dominate high frequency trading in the Korean stock market, data showed on Monday, a practice regulators say fuels volatility. According to the report by the Korea Capital Market Institute, which tracked trading patterns of KOSPI 200 futures and options products that matured in December 2010, foreign investors made up 75.6 percent of high frequency traders in the local options market and 98 percen

South Korean stocks inched up 0.36 percent on Monday as investors were optimistic about Europe’s efforts to control eurozone budgets, analysts said. The local currency climbed against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 6.86 points, to 1,922.9. Trading volume was moderate at 324.9 million shares worth 4.1 trillion won ($3.6 billion) with gainers leading losers 485 to 338.“The index got off to a strong start but the gain was limited as investors remained cautiou

Customers’ card payment ceilings likely to be slashed to reduce soaring household debtTough screenings are expected for applications for new credit cards, starting later this month, as financial authorities strengthen supervision of card firms. Customers will also likely see monthly payment ceilings on new credit cards slashed sharply compared to the average ceiling on current cards, according to financial regulators.As part of policymakers’ efforts to curb snowballing household debt, the Financ

South Korean stocks are expected to move upward this week, as an upcoming central bank meeting and a summit in Europe drive investor expectations for more actions to tackle the eurozone crisis, analysts said. The benchmark KOSPI jumped 7.86 percent, or 139.64 points, to 1,916.04 on Friday from a week earlier, as investors scooped up risky assets after global central banks said they will lower dollar-funding costs. A bank reserve ratio cut by China and strong employment reports from U.S. private

Hana Financial Group chairman Kim Seung-yu has pledged to ensure the job security of about 8,000 Korea Exchange Bank employees if the group successfully acquires the lender.During a news conference on Sunday, Kim downplayed the possibility that Hana will conduct a massive manpower restructuring after a merger.He also said the financial group will file a bank merger application with the Financial Services Commission on Monday.The application will seek the regulatory approval of Hana Financial’s r

South Korean stocks are expected to move upward in the coming week, as an upcoming central bank meeting and a summit in Europe drive investor expectations for more actions to tackle the eurozone crisis, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) jumped 7.86 percent,

South Korean stocks finished nearly unchanged on Friday as investors sat on the sidelines after the key index’s rally in the previous session, analysts said. The localcurrency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index edged down 0.01 percent, or 0.14 points, to 1,916.04. Trading volume was moderate at 382 million shares worth 5.73 trillion won ($5.08 billion) with gainers leading losers 434 to 389. “There was no market trigger,” said Kwak Joong-bo, an analyst a

South Korea’s central bank said Friday it had raised its holdings of gold in four months in November in an effort to diversify its portfolio of foreign exchange reserves worth more than $300 billion. South Korea purchased 15 tonnes of gold, raising the country’s gold holding to 54.4 tonnes at a value of $2.17 billion at the end of November, according to the Bank of Korea.The move marked the BOK’s second purchase of the precious metal so far this year. It bought 25 tonnes of gold bullion in June

Hana Financial Group said in a regulatory filing to the Korea Exchange on Friday that it has reached an agreement with Lone Star Funds on an 11 percent cut in takeover price for Korea Exchange Bank. The official announcement, issued right after Hana held a meeting of board members Friday afternoon, marks the beginning of the last phase of the long-protracted acquisition deal that spawned a series of heated public disputes, legal wrangling and rampant speculation about pricing.Under the new deal,