The Korea Herald

Korean banks set for record Q3 profits

Oct 3, 2011

Bigger margins, troubles at savings banks a boon for major banksKorean banks are expected to post a record profit in the third quarter of this year, helped by wider margins as lenders hiked loan rates but lowered deposit rates. Margin in the banking sector refers to the percentage added to a market
Firms struggle with shrinking cash reserves

Oct 3, 2011

Local lenders tighten loans, hurting smaller companiesCash flow is slowing at a growing number of Korean firms, both big and small, sending a fresh warning signal to policymakers faced with greater economic uncertainties at home and abroad. Industry data from the Korea Listed Companies Association,
Korea’s CDS premium jumps in Sept.

Oct 3, 2011

The cost of insuring South Korea’s sovereign debt against default spiked more than 90 basis points in September from a month earlier amid the European debt crisis, data showed Sunday.According to the data by the Korea Center for International Finance, the credit default swap (CDS) premium on South K
HSBC may soon clarify banking closure rumors

Oct 2, 2011

HSBC Holdings’ Korean branch is likely to clarify rumors that it is planning to shut down retail banking operations here soon.According to reports that first came out late September, HSBC has drawn up plans to pull out of Korea’s retail banking market and began the process of selling related assets,
Irregular trading in derivatives on the rise

Oct 2, 2011

Unfair practices in the local derivatives market have become more frequent, according to a report from an opposition party lawmaker. In his report for the National Assembly’s audit of Korea Exchange, Rep. Yu Won-il of Creative Korea Party said that irregular trading of derivative products has surged
Korean stocks to lose ground on U.S. woes next week

Oct 1, 2011

South Korean shares will likely lose ground next week despite growing hopes of a solution for the European debt crisis as concerns over a U.S. economic slowdown will cause downward pressure, analysts said Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,769.65 on Friday,
Industrial output shrinks for second month in Aug.

Sept 30, 2011

South Korea’s industrial output shrank for the second straight month in August amid growing uncertainties surrounding global market situations, a government report showed Friday.According to the report by Statistics Korea, production in the mining and manufacturing industries fell 1.9 percent last m
Korea to monitor prices of products influenced by forex

Sept 30, 2011

South Korea will closely monitor products whose prices could be influenced by currency exchange rates as part of its efforts to bring the nation’s runaway inflation under control, the top economic policymaker said Friday.The remarks by Finance Minister Bahk Jae-wan came amid worries that the won’s r
LG Display stresses localization in China

Sept 30, 2011

HONG KONG (Yonhap News) -- South Korea's LG Display Co. said Friday localization is a priority in its China business in order to further expand its presence in the world's No. 2 economy."For LG Display, China is not a mere market" said Lee Bang-soo, LG Display's vice-president of public affairs and
Current account surplus plummets to 7-month low

Sept 29, 2011

The country’s current account surplus fell to a 7-month low in August as exports fell on slowing demand from advanced nations, the central bank said Thursday.The current account surplus, the broadest measure of trade encompassing goods, services and investments, came in at $401.3 million in August,
Bank of Korea cautious about interest rate policy

Sept 29, 2011

South Korea’s central bank said Thursday it plans to take a cautious approach to managing rate policy by considering risk factors at home and abroad due to greater economic uncertainty.The Bank of Korea said in a monetary policy report that it will focus its monetary policy on further stabilizing pr
Insurance supervisors kick off meeting

Sept 29, 2011

Participants in IAIS conference discuss macroprudential surveillance The 18th annual conference of the International Association of Insurance Supervisors kicked off at the COEX in Samseong-dong, Seoul, Thursday.About 500 regulatory officials and chief executives in the insurance indu
Market volatility leads to higher alert

Sept 29, 2011

(Yonhap News)Contingency plan activated; top financial regulator sees extended turmoil in marketThe alert level for Korea’s financial market has been raised to the second highest in the five-tier scale, reflecting the growing concerns about the possibility of the global recession as well as th
KIC calls off plan to raise BOA stake

Sept 29, 2011

Sovereign wealth fund Korea Investment Corp. said Thursday it won’t buy additional Bank of America shares, postponing its earlier plans to increase its stake of 69 million shares in the bank.“We decided to call off purchasing additional shares with the dividend from our existing stake. It has been p
AIA campaigns for insurance coverage

Sept 29, 2011

AIA Life, the local branch of Asia’s largest multinational life insurer, launched a marketing initiative to raise awareness of protection needs for the vast majority of households without insurance against cancer and death. Launched in May, the campaign urges the public to identify the protection ga