Korea’s central bank board to decide key rate on FridayIn recent months, the key debate concerning the interest rate policy of the Bank of Korea revolved around when it would raise benchmark rates. Not for Friday, when the central bank holds its policy-setting meeting amid growing worries over whether the eurozone debt crisis will spin out of control, engulfing bigger nations like Italy and dragging down the global economy.Although analysts and economists expect the central bank to keep the rate

The Korean economy is showing signs of weakness from the subdued outlook for global growth and uncertainties over the European debt crisis, the Finance Ministry said Tuesday.In its monthly economic assessment, the ministry cited slowing industrial output, export growth, job creation and facility investment as evidence of slowing economic momentum. It also warned of persistent price pressure which could worsen with rising import costs.“Our economy keeps recovering but some indicators are weakenin

South Korean stocks edged 0.83 percent down on Tuesday, as investors remained cautious over debt-ridden Italy’s situation, which could spill over into the entire region, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 15.96 points to 1,903.14. Trading volume was moderate at 398.6 million shares worth 5.16 trillion won ($4.6 billion), with losers outnumbering gainers 508 to 313.“There’s no big issue to prompt investors to bet on

KEB union files injunction with Constitutional Court to ban regulator’s actionUnionized workers of Korea Exchange Bank, owned by Lone Star, filed an injunction with the Constitutional Court on Tuesday to ban the Financial Services Commission from ordering the U.S.-based fund to dispose of its KEB shares without probing the fund’s shareholder eligibility.If the Constitutional Court accepts the request from the KEB union, the FSC cannot instruct Lone Star to do so for the time being. The financial

South Korea’s financial regulator on Tuesday said it will lift a three-month ban on short selling of non-financial stocks starting this week.“The ban on short selling of non-financial shares will be lifted starting Nov. 10, but the measure on financial shares will be retained for the time being,” the Financial Services Commission said in an e-mailed statement.The FSC had imposed a ban on short selling of all local stocks listed on the main KOSPI and the secondary tech-heavy KOSDAQ markets for th

About 5,000 unionized workers of Korea Exchange Bank are scheduled to hold a day-long rally in Yeouido, Seoul on Tuesday, demanding the financial regulator take punitive action against Lone Star Funds.Their planned gathering has been regarded as a strike amid the situation under which Lone Star, convicted of manipulating stocks of KEB’s credit affiliate, may leave the country with huge gains.The KEB union is also criticizing the Financial Services Commission for having been negligent in probing

The combined market capitalization of South Korea’s 10 largest conglomerates and their affiliates has shrunk 6.88 percent this year from the end of last year, data showed Monday.The market cap of the 10 conglomerates, including Samsung and Hyundai Motor, totaled 636.23 trillion won ($571.12 billion) as of Nov. 3, down from 683.22 trillion won as of end-2010, according to the data by the Korea Exchange.Nine of the 10 conglomerates saw their market cap fall amid economic uncertainties in the euroz

South Korea’s central bank forecast Monday that oil prices are likely to stay above $100 per barrel for a considerable period of time due to tight supply and a potential pick-up in speculative investment.The Bank of Korea said in a report that prices of Dubai and Brent crude are staying at a high level despite an end of political turmoil in Libya and market jitters stemming from the eurozone debt crisis.Prices of Dubai crude, South Korea’s benchmark, have been largely trading at more than $100 p

South Korea is still facing a high level of inflation despite easing price hikes in recent months, the top economic policymaker said Monday, calling for more efforts to tackle structural problems to guarantee longer-term price stability.“The overall inflation level remains high and the real burden that ordinary people are feeling in their life has yet to be reduced significantly,” Finance Minister Bahk Jae-wan told an anti-inflation meeting.South Korea’s consumer prices rose 3.9 percent last mon

South Korean stocks finished 0.48 percent lower on Monday as investor sentiment was hurt by lingering uncertainty about the European debt situation, analysts said. The local currency fell against the U.S. dollar.After opening 4.54 points higher, the benchmark KOSPI lost 9.31 points to 1,919.1. Trading volume was moderate at 342.9 million shares worth 1.09 trillion won ($957.8 million) with losers slightly leading gainers 415 to 400.“Europe’s sovereign debt issue still exerts great influence on t

Fitch Ratings on Monday raised Korea’s sovereign credit outlook to “positive” from “stable” and kept it’s A+ rating amid signs of improving economic fundamentals, sources said. The country’s sovereign credit fundamentals regained ground in terms of fiscal prudence, a strong sovereign balance sheet and foreign exchange liquidity, the sources close to the matter said.“Korea’s economic fundamentals are stronger than it was during the global financial crisis three years ago and the country has an ex

About 5,000 unionized workers of Korea Exchange Bank are scheduled to hold a day-long rally in Yeouido, Seoul on Tuesday, demanding financial regulators take punitive action against Lone Star Funds.Their planned gathering has been regarded as a strike amid the situation under which Lone Star, convicted of manipulating stocks of KEB’s credit affiliate, may leave the country with huge gains.The KEB union is also criticizing the Financial Services Commission for having been negligent in probing sha

Despite low rates, time deposits at banks rise sharply in OctoberThe growing uncertainties in the global financial market has resulted in a sharp rise in Korea’s short-term capital seeking new investment channels, data showed on Monday. The increased liquidity, which is yet to be invested in appropriate vehicles, comes together with a ballooning of time deposits at major banks despite low interest rates. The twin growth of short-terms funds and outstanding term deposits underscores the dearth of

South Korean stocks are forecast to move upward next week, analysts said Saturday, with the Greek prime minister’s latest victory in a confidence vote and an upcoming meeting among European financial ministers likely to embolden investor sentiment. The benchmark KOSPI closed at 1,928.41 on Friday, down 1.07 points, or 0.06 percent, from one week ago. Reports about MF Global Holdings’ filing for bankruptcy protection and an announcement from Greek Prime Minister George Papandreou that the trouble

South Korea’s per capita income is expected to reach a record high this year, surpassing $20,000 for the second consecutive year, a government official said Sunday.The official from the Ministry of Strategy and Finance said the country’s per capita gross national income will likely reach between $23,500-$24,000.The amount marks over 13 percent growth from last year’s $20,759.The International Monetary Fund predicted a similar level of growth for South Korea’s economy in an earlier report.In its