The Korea Herald

NATO to formally end Libya operations Oct 31

Oct 28, 2011

BERLIN (AP) _ NATO's secretary-general says the alliance will on Friday confirm a decision to end its operations in Libya by Oct. 31.Anders Fogh Rasmussen said Thursday after meetings in Berlin with German Chancellor Angela Merkel that the U.N.'s resolution adopted earlier in the day “reflects
Korea’s economy shows no sign of pickup in growth

Oct 27, 2011

GDP rises 3.4 percent in Q3 from year earlier, slowest in 21 monthsSouth Korea’s economy failed to show a meaningful sign of improving in the third quarter, hurt by lackluster consumer spending and weaker capital investment, Bank of Korea data showed on Thursday. According to the advance estimate of the BOK, the country’s gross domestic product grew 3.4 percent in the July-September period from a year earlier, marking the slowest pace in 21 months. The on-quarter GDP growth slumped to 0.7 perce
Foreign exchange rates, rising costs dent local companies’ Q3 figures

Oct 27, 2011

Fluctuating foreign exchange rates and Europe’s financial instability dampened Korean firms’ performances in the third quarter.According to the financial information provider Fn Guide, 62 percent of listed companies that have posted net profits for the period by Wednesday, saw their net profits fall or move into the red.As of Wednesday, 91 listed firms posted third-quarter figures, of which 79 disclosed their net figures.Of the 79, seven companies including Korea Air, LG Display and LG Electroni
Seoul shares up 1.46% on Europe bailout plan

Oct 27, 2011

South Korean stocks rose 1.46 percent on Thursday as investors were buoyed by a set of bailout measures agreed on by European policymakers and financialinstitutions. The local currency shot up against the U.S. dollar.The benchmark Korea Composite Stock Price Index soared 27.73 points to a near three-month high of 1,922.04. Trading volume was heavy at 410.4 million shares worth 7.82 trillion won ($7.02 billion), with gainers far outnumbering decliners 594 to 234.“Market watchers are split on the
Moody’s keeps ‘A1’ sovereign rating for Korea: official

Oct 27, 2011

Moody’s Investors Service reaffirmed its “A1” sovereign rating with stable outlook for Korea, citing the nation’s strong fiscal status and ample foreign exchange reserves, a Finance Ministry official said Thursday. The rating agency is said to have assessed the strength of the economy by sending a delegation to the Finance Ministry and Financial Supervisory Services earlier this year, where it decided to maintain its fifth-highest rating for Asia’s fourth largest economy.“In accordance to its re
Hyundai Motor’s Q3 net profit jumps 21%

Oct 27, 2011

Hyundai Motor Co., the world’s fifth-largest carmaker by sales, posted a 21 percent jump in net profit in the third quarter Thursday.The figure was in line with the market consensus on continued popularity of its sedans and SUVs in China, the U.S. and Europe. The company reported 1.92 trillion won ($1.7 billion) of net income for the June-September period, up from 1.59 trillion won a year earlier.The result is expected to cap the company’s most profitable year and beat sales of its rival firm To
Korea growth may slow, pressing BOK to hold key rate longer

Oct 26, 2011

South Korea’s growth probably moderated in the third quarter as a faltering global economy damped demand for Asian exports, putting pressure on the central bank to extend a pause in raising rates.Gross domestic product expanded 0.6 percent from the second quarter, when it gained 0.9 percent, according to the median of 12 estimates in a Bloomberg News survey. The report will be released at 8 a.m. tomorrow in Seoul. From a year earlier, the economy grew 3.4 percent, according to the survey.Europe’
Higher commodity costs feared to fuel inflation

Oct 26, 2011

International prices of key raw materials have been rebounding recently, data showed Wednesday, raising concerns South Korea could face growing inflationary pressure due to its heavy dependence on their imports.According to the data by the Korea Center for International Finance, the CRB index, a major gauge of raw material prices, came to 318.57 as of Monday, up 8.6 percent from Oct. 4 when it fell to 293.28, the lowest this year.The increase is driven mostly by price hikes of key raw materials
Finance minister urges swift approval of FTA with U.S.

Oct 26, 2011

South Korea’s top economic policymaker called for the swift ratification of the long-pending free trade agreement with the United States on Wednesday, saying that a further delay could eventually do more harm than good to the nation’s interests.The trade deal, known as the KORUS FTA, was signed in 2007 and supplemented in December of last year with minor modifications that mostly dealt with the auto industry. Recently, the U.S. Congress passed the deal and it has been awaiting approval from Sout
Expectations for KOSPI rebound

Oct 26, 2011

Improving outlook for eurozone and U.S. instills optimismKorea’s major brokerages forecast on Wednesday the KOSPI index might reach 2,100 by year-end, citing improving outlook on the eurozone debt crisis and a faster-than-expected recovery of the U.S. economy.The main index recouped its losses this month, rising quickly from 1,650 to around 1,900, on the expectations that the protracted sovereign debt crisis in the eurozone might find a breakthrough sooner than earlier predicted. The rapid rise
Korea, China agree to double currency swap facility

Oct 26, 2011

Two central banks agree to increase trade settlements in yuan, won South Korea and China agreed Wednesday to double their won-yuan swap arrangement from the existing $26 billion to $56 billion in an effort to secure foreign exchange liquidity, officials in Seoul said.The move ramped up Korea’s financial safety net measures following a similar deal reached with Japan last week.China Vice Premier Li Keqiang met with Korean President Lee Myung-bak and Prime Minister Kim Hwang-sik separately during
Seoul shares up 0.3% on eurozone policy hopes

Oct 26, 2011

South Korean stocks ended 0.3 percent higher on Wednesday as continued optimism over the eurozone’s policy efforts to salvage the region from a debt crisis kept investor sentiment afloat, analysts said. The local currency fell against the U.S. dollar.After opening lower, the benchmark Korea Composite Stock Price Index climbed 5.66 points to 1,894.31. Trading volume was moderate at 379 million shares worth 5.49 trillion won ($4.85 billion), with gainers outnumbering decliners 428 to 374.“The shif
Regulator set to order Lone Star to sell KEB stake

Oct 25, 2011

South Korea's financial regulator is expected to order Lone Star Funds to sell the bulk of its stake in Korea Exchange Bank after the U.S. buyout firm said it cannot meet the requirements as the major shareholder of the fifth-largest lender, watchers said Tuesday.Lone Star reported to the Financial
Korea to closely monitor impact of China slowdown

Oct 25, 2011

South Korea will keep tabs on the potential fallout from a slowdown in the Chinese economy, although the world’s No. 2 economy is likely to make a soft landing despite some downside risks, officials here said Tuesday.The consensus was reached during a monthly policy consultation meeting between the finance ministry and the Bank of Korea earlier in the day in Seoul. The meeting was attended by Vice Finance Minister Shin Je-yoon and BOK’s senior deputy governor Lee Ju-yeol.“We shared the view that
Regulator poised to order Lone Star to sell KEB stake

Oct 25, 2011

South Korea’s financial regulator is expected to order Lone Star Funds to sell the bulk of its stake in Korea Exchange Bank after the U.S. buyout firm said it cannot meet the requirements as the major shareholder of the fifth-largest lender, watchers said Tuesday.Lone Star reported to the Financial Services Commission on Monday, the last day of a one-week deadline, that it cannot find a way to recover its status as KEB’s major shareholder, according to sources. Lone Star is currently the biggest