The Korea Herald

Daewoo Shipbuilding opens Angola offshore oil plant

Nov 24, 2011

Daewoo Shipbuilding & Marine Engineering Co. opened the world’s largest floating production storage and offloading facility in Angola Tuesday, allowing offshore processing of hydrocarbons in the Pazflor oil field. The company said its project, dubbed Pazflor Floating Production Storage & Offloading Unit, is the first of its kind to process two very different grades of liquefied gas petroleum.“We’re proud to announce that Daewoo Shipbuilding has completed its third project in the Total E&P-operat
Seoul shares stage rebound

Nov 24, 2011

South Korean stocks reversed early morning losses to close up 0.67 percent on Thursday, as institutions snapped up battered stocks following a plunge in the previous session, analysts said. The local currency slumped against the U.S. dollar.The benchmark KOSPI rose 11.96 points to 1,795.06. Trading volume was moderate at 275.6 million shares worth 4.08 trillion won ($3.52 billion), with gainers slightly outnumbering decliners 432 to 412.“Institutions went hunting for bargains after the KOSPI dro
Regulator ordered to publicize on Lone Star

Nov 24, 2011

FSC official says the U.S. fund was ‘financial investor’ between 2003 and 2006The Supreme Court ordered the Financial Services Commission to make public the fund’s eligibility as the biggest shareholder of Korea Exchange Bank on Thursday.The FSC, which lost the original trial in 2007 and the second trial in 2009 in a lawsuit filed by Solidarity for Economic Reform, appealed to the highest court two years ago. The FSC and the Financial Supervisory Service are poised to clarify their stance on Lon
FSC regarded Lone Star as ‘financial investor’: official

Nov 24, 2011

Regulator says Texas buyout fund was eligible to own KEB until June 2006The Supreme Court ordered the Financial Services Commission to make public Lone Star Funds’ eligibility as the biggest shareholder of Korea Exchange Bank on Thursday.The FSC, which lost the original trial in 2007 and the second trial in 2009 in a lawsuit filed by Solidarity for Economic Reform, appealed to the highest court two years ago. The regulator has now lost its final case.The FSC and the Financial Supervisory Service
Hyundai Group sues Hyundai E&C creditors

Nov 23, 2011

Hyundai Group on Wednesday filed a lawsuit against creditors of Hyundai Engineering & Construction, the country’s biggest builder, over the conglomerate’s lost case to acquire a controlling stake in the builder last year. “We’re claiming a total of 325.5 billion won against the creditor group for damages caused after they deprived the Hyundai Group of the right to negotiate primarily with Hyundai E&C last year,” Min Byung-hoon, the group’s lawyer, told reporters at a press conference. Hyundai Gr
Verdict imminent on Lone Star

Nov 23, 2011

FSC might be ordered to decide on the fund’s shareholder eligibilityThe Supreme Court will deliver a verdict on a key issue regarding Lone Star Funds on Thursday, possibly forcing the Financial Services Commission to make public the fund’s eligibility as the biggest shareholder of Korea Exchange Bank.The FSC, which lost the original trial in 2007 and the second trial in 2009 in a lawsuit filed by Solidarity for Economic Reform, appealed to the highest court two years ago.Before the suit, the reg
Court to rule on FSC’s duty on Lone Star

Nov 23, 2011

Regulator expected to be ordered to reveal the fund’s bank shareholder eligibilityThe Supreme Court will deliver a verdict on a key issue regarding Lone Star Funds on Thursday, possibly forcing the Financial Services Commission to make public the fund’s eligibility as the biggest shareholder of Korea Exchange Bank.The FSC, which lost the original trial in 2007 and the second trial in 2009 in a lawsuit filed by Solidarity for Economic Reform, appealed to the highest court two years ago.Before the
Seoul shares slump 2.36% on U.S. growth concern

Nov 23, 2011

South Korean stocks retreated 2.36 percent to close at a six-week low on Wednesday, as investors offloaded shares of big caps amid concerns over U.S. economic growth data, analysts said. The local currency dropped against the U.S. dollar.The benchmark KOSPI plunged 43.18 points to 1,783.1, closing below the 1,800 mark for the first time since Oct. 11. Trading volume was moderate at 406.8 million shares worth 4.59 trillion won ($3.99 billion), with decliners far outnumbering gainers 678 to 174.“D
2012 growth average at 3.7%: economists

Nov 23, 2011

Major think tanks and investment banks slashed the 2012 growth forecast for the Korean economy to an average of 3.7 percent, tracking downward revisions emerging as exports cool due to growing external uncertainty in advanced nations.The growth forecasts by 19 think tanks, brokerage firms and banks came in mostly in the 3 percent range, predicting the country will grow below its potential growth rate of 4 percent for the second straight year. The grimmer outlook follows downward adjustments made
Farm sector to see major blow from U.S. FTA

Nov 23, 2011

Agriculture and livestock will be hardest hit by the trade pact between the U.S. and Korea as the lifting of trade barriers will wipe out at least 12.67 trillion won ($10.5 billion) of local production over the next 15 years, the government estimates. Farmers here will face an uphill battle fighting the inflow of cheaper products from the world’s largest economic bloc. The government plans to provide a total of 21.1 trillion won over the next decade on the farming, stockbreeding and fisheries in
More households borrow from secondary banking sector

Nov 22, 2011

Household loans from the secondary banking sector, which have a higher risk of default, hit a fresh high in the third quarter, the central bank said, fueling concerns over household debt. Loans provided by savings banks, insurance companies, credit card companies and other non-bank institutions grew 163 trillion won ($142 billion) in the past five years, swelling 1.6 times faster than loans from commercial banks. Korean households now owe 391.29 trillion won, or 46.5 percent of their total debt,
Seoul shares up 0.34% despite U.S. debt talk failure

Nov 22, 2011

South Korean stocks closed 0.34 percent higher on Tuesday as hopes for seasonal shopping demand and positive U.S. economic data outweighed the fallout from failed U.S. debt-reduction talks, analysts said. The local currency lost ground against the U.S. dollar.After a weak open, the benchmark KOSPI strengthened 6.25 points to 1,826.28. Trading volume was moderate at 261.4 million shares worth 3.82 trillion won ($3.33 billion), with decliners outnumbering gainers 443 to 368. “The impact of the U.S
KB, Shinhan to buy savings banks

Nov 22, 2011

Three of four major financial groups to own secondary banking unitKB Financial Group and Shinhan Financial Group are expected to take over major savings banks, as they won bidding competitions for the distressed sector.The state-run Korea Deposit Insurance Corp. said Tuesday that it selected Shinhan Financial Group as the preferred bidder for Tomato Savings Bank, the No. 2 player in the secondary banking sector.KB Financial Group has been picked as the preferred negotiator for Jeil Savings Bank.
Korea’s external debt falls in Q3 amid eurozone woes

Nov 22, 2011

South Korea’s external debt dropped in the third quarter from three months earlier mainly because local branches of foreign banks repaid overseas borrowing amid the eurozone debt crisis, the central bank said Tuesday.The country’s external debt totaled $394.3 billion as of the end of September, down $4.9 billion from a record high three months earlier, according to a report by the Bank of Korea.It marked the first quarterly decline since the foreign debt fell by $8.5 billion in the fourth quarte
Finance minister wary of fiscal expansion

Nov 22, 2011

South Korea’s finance minister on Tuesday expressed reservations about increasing the country’s fiscal spending in the face of an uncertain economic future.“Since it is hard to predict the country’s economic future and using fiscal policies can actually fuel market volatility, it may be advisable to take a more cautious stance,” Bahk Jae-wan told a meeting of senior economic policymakers.Maintaining a fiscal balance is a vital safety net in setting macroeconomic policies and it is unwise to use