The Korea Herald

Bank household loan growth quickens

Sept 7, 2011

South Korean banks’ household loans rose for the seventh straight month in August on gains in home-backed lending, the central bank said Wednesday, fueling concerns over growing household debt.Local banks’ household loans, including mortgage and credit loans, totaled 448 trillion won ($417.8 billion
Households’ ability to service debt falling

Sept 7, 2011

South Korean households held an average of 50 million won ($46,620) in debt as of the end of June, data showed Wednesday, fanning concerns that rising household indebtedness may undercut economic growth.Debt per household reached 50.4 million won as of end-June, given that South Korea’s household cr
FSS, Korea Exchange to probe ‘celebrity stocks’

Sept 7, 2011

The Financial Supervisory Service and Korea Exchange have embarked on a joint investigation into alleged manipulation of stocks connected to politicians and well-known figures.A group of retail investors has been chasing so-called “celebrity stocks” related to politicians and famous figures without
Kookmin Bank secures $100m FX credit line

Sept 6, 2011

South Korea’s top lender Kookmin Bank has recently inked a $100 million foreign currency committed line with an overseas financial firm, sources said Tuesday, joining other banks seeking to diversify their foreign funding.Kookmin is also in talks with other foreign financial companies to expand its
Korea faces high inflation, growing uncertainties

Sept 6, 2011

South Korea is faced with growing inflationary pressure and expanded economic uncertainties stemming from worries over a global slowdown, the Finance Ministry said Tuesday.“Our economy is confronted with fast accelerating inflation that stands in the 5 percent range with some latest indicators falte
Real income growth lowest in 2 years

Sept 6, 2011

Korea’s economic growth slightly up from estimate thanks to public spendingKoreans saw the growth rate of their purchasing power fall to a two-year low during the second quarter of 2011, though the index inched up.The Bank of Korea said Tuesday that the gross national income inched up 0.6 percent to
Banks told to slash...rates on overdue loans

Sept 6, 2011

The Financial Supervisory Service said Tuesday that it would ease the burden on consumers by instructing banks to slash additional interest rates on overdue loans.The measure comes as part of the regulator’s policy to enhance consumer rights while low- and middle-income households suffer from high a
12 savings banks on close watch list

Sept 5, 2011

FSS warns that the banks may be subject to business suspensionAt least 10 savings banks have been on the close watch list of financial regulators for their poor financial statements, officials said Monday.As a “prior warning” to the industry, the Financial Supervisory Service has reportedly informed
Foreign investors dump W6tr of shares in Aug.

Sept 5, 2011

Foreign investors dumped nearly 6 trillion won ($5.6 billion) worth of South Korean stocks in August amid the first-ever U.S. credit cut rating and continued fears of Europe’s debt crisis, the financial regulator said Monday.Overseas investors sold a net 5.9 trillion won of local equities in August,
FSS seeks insurance globalization

Sept 5, 2011

500 officials in 70 nations to attend global regulatory meetingAbout 500 regulatory officials and CEOs in the insurance industry from 70 nations are set to attend one of the world’s three major financial supervisory meetings, slated for later this month in Korea.The 18th annual conference of the Int
Korea’s growth on rocky road

Sept 4, 2011

Foreign investment banks revise down country’s economic growth projectionsForeign investment banks have revised down their economic growth predictions for South Korea, reflecting worsening external factors such as continuing U.S. and European debt woes that could damage the country’s export-driven e
Regulator seeks to slash banking fees

Sept 2, 2011

The Financial Supervisory Service plans to unveil a series of measures to protect consumer rights and ease the burden of low- and middle-income households, starting next week.Among other things, the financial regulator is considering putting pressure on commercial banks to slash a variety of service
Trouble signs for economy

Sept 1, 2011

By Yang Sung-jinSouth Korea’s consumer prices surged at the fastest pace in three years in August and trade surplus shrank sharply as its soaring imports outpaced export gains, data showed Thursday. The double whammy has set alarm bells ringing over the Korean economy amid lingering worries about t
Lottery sales in Korea up 10.2% in H1

Sept 1, 2011

People line up to buy lottery tickets at Kookmin Bank in Seoul on Thursday. (Park Hyun-koo/The Korea Herald)Lottery sales in South Korea rose more than 10 percent in the first half of the year, data showed Thursday, raising expectations that full-year sales may reach a seven-year high.Lottery s
Loan delinquency rate reaches 11-month high

Sept 1, 2011

Price hikes weaken households’ ability to pay debts in JulyCommercial banks saw the ratio of overdue household loans reach the highest level in 11 months in July, despite financial regulators’ countermeasures to curb lending growth.The delinquency rate in banks’ household loans posted 0.77 percent i