South Korean banks’ earnings are likely to fall 11 percent next year from this year as the cooling economic growth and slowing loan expansion will undercut their bottom lines, data showed Sunday.The combined net income of four major banking groups and two lenders are likely to reach 11.5 trillion won ($10.2 billion) for next year, down from 12.9 trillion won projected for this year, according to an estimate made by financial information provider FnGuide.Korean banks are expected to post stellar

South Korean banks’ mid- and long-term foreign borrowing sharply increased in October as lenders rushed to secure foreign currency in a bid to brace against global financial woes, the financial watchdog said Sunday.A total of 12 local banks refinanced 299.3 percent of their maturing mid- and long-term foreign debt through fresh borrowing last month, up from 186.6 percent in September, according to the Financial Supervisory Service.The rollover rate gauges the percentage of fresh overseas borrowi

South Korea’s financial watchdog said Sunday it is mulling a set of measures to limit retail investors’ trading of derivatives in a bid to keep them from suffering heavy losses.Currency margin trading is viewed as one of the riskiest derivatives for retail investors as losses from their excessive bets on currency volatility have increased, prompting the financial watchdog to study steps to curb it.Margin trading allows investors to place heavy bets on currency volatilities with a relatively smal

South Korean stocks are forecast to gain ground next week as Italy moves to stabilize its fiscal woes, analysts here said Saturday.Stock market analysts said the move by Italian lawmakers to reform its pension plan and dispose of state assets will send the right message to investors and help reduce the European country’s debt that stands at 120 percent of its gross domestic product.The effort follows similar action taken by Greece, Portugal and Spain to ward off disasters that could destabilize

Samsung, Hyundai, Shinhan in campaign to attract more customersCredit card companies are fighting another marketing war despite financial regulators’ warnings against signing up too many customers.The industry’s big three ― Shinhan Card, Hyundai Card and Samsung Card ― have taken the initiative in the issuance competition. Other companies, such as KB Kookmin, Lotte and Hana-SK, are set to follow the move. In particular, Samsung Card, the third-largest issuer, has been aggressive in developing ne

A government report showed Friday a steep deterioration in household finances, citing a much faster rate of debt growth than asset increases.A joint report by the Statistics Korea, the Bank of Korea, and the Financial Supervisory Services said the average household debt expanded 12.7 percent to 52.05 million won ($46,143) for a year ending March, outgrowing the 7.5 percent expansion of total assets to 297.65 million won per household on average.People with mortgages saw a particularly tight sque

South Korean stocks finished 2.77 percent higher on Friday as investor sentiment was boosted by eased Italian debt woes, analysts said. The local currency rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index jumped 50.2 points to 1,863.45, rebounding from a massive 94-point fall on the previous session. Trading volume was light at 291.7 million shares worth 5.15 trillion won ($4.57 billion) with gainers leading losers 682 to 170.“The European Central Bank bought Italian b

Prosecutors said Friday they have opened an investigation into several executives of the state-run Korea Development Bank, including former chairman Min Euoo-sung, on suspicion of incurring massive losses to the bank in a 2009 acquisition of a life insurance firm.Min and several other incumbent and former KDB executives are under suspicion of taking over Kumho Life Insurance Co. for an above-market price, inflicting losses to the bank run with taxpayers’ money, the financial sector bureau of the

Insurance firms saw their loans grow at the fastest pace in two years as a result of the authorities’ tight control on bank loans, data showed on Friday. According to the Financial Supervisory Service, Korea’s insurers lent a combined 95.5 trillion won ($84.2 billion) to companies and households as of the end of the third quarter, up 4.1 trillion won, or 4.45 percent from the previous quarter. The rapid growth marked the highest level since September 2009, when the figure reached 4.75 percent. T

South Korea's government said Friday that it will raise wages of state-run companies by a maximum 3 percent in 2012 to reflect the general rise in living expenses.   The finance ministry said a committee governing public sector management passed the increase motion after reviewing demands

South Korea's central bank left the key interest rate unchanged on Friday for the fifth straight month in the face of the deepening eurozone debt crisis and moderated inflation growth.Bank of Korea (BOK) Gov. Kim Choong-soo and his fellow policymakers froze the benchmark seven-day repo rate at 3.25

The default rate on loans extended by South Korean insurance companies inched up in the third quarter from three months earlier, due mainly to a rise in overdue corporate loans, the financial watchdog said Friday.The average ratio of overdue loans came to 1.18 percent of total lending by local life