The Korea Herald

Weaker won a mixed blessing for exporters

Sept 21, 2011

A rapid decline of the Korean won against the U.S. dollar is expected to boost sales of local exporters such as automakers and electronics manufacturers, analysts said on Wednesday. The depreciation of the local currency, or a drop in the value of the Korean won, is generally viewed as a factor that
Two savings banks probed for irregularities

Sept 21, 2011

The Financial Supervisory Service said Wednesday that it has uncovered two savings banks ― Jeil and Ace ― which have issued irregular loans to ailing builders over the past few years.The regulator filed complaints the two lenders and nine other banks in the secondary banking industry with the prosec
Seoul sets W23tr for infrastructure

Sept 21, 2011

Next year’s national budget to focus on investment, welfare, job growthThe government plans to allocate 22.6 trillion won ($19.8 billion) for social infrastructure projects next year, emphasizing that the 2012 budget plan, unveiled next week will focus on upping investment in public works, welfare a
Italy downgrade to hit Korean market

Sept 20, 2011

In a surprise move, Standard & Poor’s has downgraded Italy’s sovereign debt rating, a development that analysts said could affect the Korean stock and foreign exchange markets negatively at least in the short term. The rating agency cut Italian debt one notch to “A/A-1” from a “A+/A-1+” grade, citin
Savings banks to tap public funds soon

Sept 20, 2011

Suspended banks are expected to be auctioned off in the coming monthsFinancial regulators will inject taxpayers’ money, projected at about 500 billion won ($454 million), into the distressed savings banking sector by the end of this year.Under the policy of the Financial Services Commission, the Kor
Banks avoid massive withdrawals

Sept 19, 2011

Regulators uncover illegal lending by some savings banksDespite initial concerns that customers would withdraw their deposits en masse, the banking sector’s overall business operation looked normal, government and bank officials said on Monday.They said there were no particular signs of a bank run i
Korea’s total financial debt snowballing

Sept 19, 2011

Korea’s three major economic pillars ― the public sector, households and corporations ― have incurred 3,300 trillion won ($2.96 trillion) in financial debt as of June, threatening to undermine efforts to fuel Asia’s fourth-largest economy. The record amount of financial loans shouldered by key playe
Government under pressure to lower 2011 growth forecast

Sept 19, 2011

South Korea’s government is coming under pressure to adjust its 2011 growth forecast in the face of mounting downside risks caused by the sluggish global economy, sources said.The prediction comes as the finance ministry cut this year’s growth estimate from 5.0 percent to 4.5 percent in June and fol
Hana SK Card information leaked

Sept 19, 2011

Hana SK Card said the personal information of about 200 of its customers has been compromised by a telemarketer, the latest in a series of data leaks at financial institutions.The Financial Supervisory Service, however, said the leak would be of a far larger scale than reported by the credit card co
Banks cut down on household loans

Sept 19, 2011

Lenders turn to extending loans to large corporations with higher credit ratingsHousehold loans extended by Korean banks tumbled about 400 billion won ($359 million) over about two weeks this month, banking data showed on Monday.The drop in local lenders’ loans to households came as the major banks
Savings banks' massive illegal loans revealed

Sept 19, 2011

SEOUL, Sept. 19 (Yonhap) -- South Korean savings banks were discovered to have extended illegal loans to their major shareholders, financial regulators said Monday, angering depositors and fueling anxiety following the suspension of seven local savings banks.The data comes a day after the Financial
Hana SK Card's customer data leaked

Sept 19, 2011

SEOUL, Sept. 19 (Yonhap) -- Hana SK Card Co., a South Korean credit card firm, said Monday that some 200 customers' personal information has been leaked, the latest in a series of security breaches that are spurring concern about private data protection. The card firm, a joint venture between Hana F
Korea to overhaul credit card industry

Sept 18, 2011

The Financial Services Commission said on Sunday it would draw up a comprehensive plan to restructure the troubled credit card industry, which is under criticism for pursuing rapid expansion at the risk of generating market bubbles.“The average number of credit cards held by a single individual rose
7 more savings banks suspended

Sept 18, 2011

Major players including Tomato, Jeil fail to meet capital adequacy ratioThe financial regulator on Sunday suspended the operation of seven more savings banks that failed to meet the capital adequacy ratio set by the International Bank of Settlements, including major players Tomato and Jeil. Sixteen
Local industries brace for exchange rate impact

Sept 18, 2011

Local industries were seen bracing for the impact from the recent surge in the Korean won against the U.S. dollar exchange rate amid lingering concerns of a debt crisis in the European region.On Friday, the local currency ended at 1,112.5 won against the greenback, with the exchange rate stabilizing