The Korea Herald

Savings banks to suffer additional losses from sour PF loans

Aug 8, 2011

South Korean savings banks are expected to suffer additional losses of around 3 trillion won ($2.8 billion) from soured project financing (PF) loans, a report showed Monday.The local savings bank industry has to additionally set aside reserves totaling 2.98 trillion won in a bid to cover its bad PF
Foreign direct investment in Seoul more than doubles in first quarter

Aug 8, 2011

Foreign direct investment (FDI) in Seoul rose more than twofold in the first half of this year from the same period last year thanks to an improved business environment in the capital city, officials said Monday.The FDI in Seoul totaled $1.8 billion in the January-June period, up 116 percent from la
Seoul shares open lower

Aug 8, 2011

Korean shares opened down 1.4 percent Monday following last week's market turmoil and the downgrade to the United States' credit rating by Standard & Poor's.The weak start came even after the Group of Seven nations said they were committed to taking coordinated action to ensure liquidity and to supp
Seoul policymakers strive to preempt market volatility

Aug 7, 2011

Korean policymakers were striving Sunday to contain the impact from the historic cut in the U.S.’s sovereign credit rating and the European debt crisis amid growing concerns over the domestic markets’ vulnerability to external uncertainties.Senior officials from the Finance Ministry, the Bank
Foreign currency liquidity vital for nation: FSC chief

Aug 7, 2011

Financial Services Commission chairman Kim Seok-dong called for stronger measures to secure foreign exchange reserves to stave off debt woes abroad spilling over into local financial markets.“Inflation doesn’t undermine a nation immediately, but the foreign currency liquidity problem does topple a n
Won poised to weaken amid risk aversion: analysts

Aug 7, 2011

The Korean won is poised to weaken further against the greenback this week over the risk of economic slowdown in the U.S., analysts said. The won dropped lower against the U.S. dollar in the past week after Washington avoided a partial debt default, averaging a 4.23 won loss each day from Aug. 2 onw
Seoul stocks hit hardest among big Asian markets

Aug 7, 2011

Korean banks see risks grow to eight-month highKorea has seen its stocks plummet the most among major Asian markets over the past four days after the U.S. and European fiscal woes hit the global markets.The KOSPI tumbled by 10.5 percent last week, posting the sole double-digit fall among the major i
S. Korean shares likely to be rocked by uncertainties next week

Aug 6, 2011

South Korean stocks are expected to face a considerable amount of uncertainties and volatile sessions next week following the downgrading of the U.S. sovereign credit rating, analysts said Saturday.Market experts said that the decision by Standard and Poor's Rating Services (S&P) to lower the credit
Kyungeun Savings Bank suspended for six months

Aug 5, 2011

South Korea's financial watchdog on Friday suspended the operation of a local savings bank for six months, citing its capital shortage.Kyungeun Mutual Savings & Finance will be suspended until Feb. 4, as it failed to meet regulatory capital requirement, the Financial Services Commission said in a st
Eximbank, KDB join hands to fund overseas projects

Aug 5, 2011

South Korea's two state-run policy lenders said Friday that they agreed to help local companies win more big-ticket overseas projects by providing massive financing.Under the memorandum of understanding (MOU), the Export-Import Bank of Korea (Eximbank) and Korea Development Bank (KDB) will cooperate
S. Korean banks' Q2 net more than quadruples in Q2

Aug 4, 2011

South Korean lenders saw their earnings grow more than four-fold in the second quarter from a year earlier, due mainly to decreased loan-loss reserves and one-off gains from the sale of a stake in a local builder, the financial watchdog said Thursday.The combined net income of 18 local banks came to
Seoul markets hit by U.S. woes

Aug 3, 2011

The nation’s financial markets on Wednesday reflected worse fiscal conditions of the United States and European countries, seeing most key indices negatively affected.In the wake of anxiety that the U.S. economy could enter into a double-dip recession, local stocks tumbled and the Korean won lost gr
Shinhan, IBK probed over irregular lending

Aug 3, 2011

The Financial Supervisory Service recently conducted an on-the-spot probe into Shinhan Bank and Industrial Bank of Korea over their allegedly irregular lending practices.The regulatory body looked into their loan-related documents by dispatching a group of inspectors to the headquarters of the two b
Watchdog requests W500b for savings banks’ overhaul

Aug 3, 2011

South Korea’s financial watchdog said on Wednesday it has requested the government to inject 500 billion won ($473 million) in a special fund aimed at overhauling the country’s ailing savings bank sector.Local savings banks have been suffering from a deterioration of asset quality due to a pile-up o
BOK buys gold for first time in 13 years

Aug 2, 2011

Foreign reserves rise to record-high $311 billion in JulyThe Bank of Korea said Tuesday it bought 25 tons of gold in the June-July period ― its first purchase since the 1997-98 financial crisis.The purchase touched off speculations about its motives at a time when gold prices are hitting record high