[THE INVESTOR] Small and Medium Business Corp. (SBC) will issue US dollar-denominated bonds at the end of August, local news reported on July 25. Reports citing unnamed sources said that the SBC is planning a bond issuance to the scale of US$300 million. This will be the first time is issuing dollar-denominated bonds in 10 years. The SBC is reported to be planning to use the raised funds to cover the maturity of foreign currency-denominated bonds during the second half of the year. By Choi He-su

S-Oil Corp., the No. 3 oil refiner in South Korea, said Monday that its second-quarter net profit gained 3.8 percent from a year earlier, largely thanks to an improvement in its refining business and other areas.Net profit reached 445 billion won ($391 million) on a consolidated basis in the April-June period, compared with a profit of 429 billion won a year earlier, the company said in a regulatory filing.Sales dropped 18.4 percent on-year to reach 4.19 trillion won in the second quarter, while

South Korea's top financial regulator said Monday that it would mandate local banks to set aside more foreign exchange reserves starting next year to better deal with any possible massive foreign capital outflows.The local banks are required to raise the foreign exchange liquidity coverage ratio to 80 percent in 2019 from 60 percent in 2017, the Financial Services Commission said.The liquidity coverage ratio is measured as high-quality liquid foreign assets to projected net cash outflows over 30

[THE INVESTOR] Naver, the parent firm of mobile messenger operator LINE, said July 27 that an investors conference for the messenger firm will be held from 5 p.m. to 6:30 p.m. on July 27 in Tokyo after the second-quarter earnings report is announced at around 3 p.m. on the same day.The InvestorThe mobile messenger company went public on July 5 in Tokyo and New York and its stock price closed up 4.18 percent at 4,110 yen (US$38.70) on July 25.(theinvestor@heraldcorp.com)

South Korean stocks closed almost unchanged Monday as investors took to the sidelines waiting for a slew of key data and economic events in the coming days. The Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 1.98 points, or 0.1 percent, to close at 2,012.32. Trade volume was slim at 346.73 million shares worth 4.14 trillion won ($3.64 billion), with losers outnumbering winners 436 to 374.Market analysts say the market is expected to remain in a tig

[THE INVESTOR] Foreign securities companies are reducing their South Korean operations as potential profitability falls. According to local financial industry sources, the number of executives at foreign securities firms’ local operations fell from 42 in 2011 to 22 by March this year. The number of employees also fell from 904 to 735 over the same period. The workforce cut, which had been focused on nonessential departments, has now spread to sales and others linked directly to business operatio

Foreign traders have favored South Korean tech shares recently, while turning their backs on the automobile sector, data showed Monday.Foreigners scooped up a net 2.96 trillion won ($2.6 billion) worth of local stocks in the first three weeks of July alone, buttressing the benchmark Korea Composite Stock Price Index, according to the Korea Exchange.Ditching the traditional pattern of a "balanced" portfolio, they focused buying on tech, steel and materials shares.They net-purchased 631.6 billion

South Korea's terms of trade improved from a year earlier in June due to bigger declines in import prices compared to drops in export prices, central bank data showed Monday.The terms of trade index for products came to 100.86 last month, up 0.8 percent from a year earlier, according to preliminary data from the Bank of Korea.The index measures the amount of imports a country can purchase for each unit of its exports, showing how the country's exports are doing in comparison with those of others

A Chinese buyer is expected to win the bid to acquire South Korea's fifth-largest life insurer by assets, industry sources said Monday.MBK Partners, a South Korean private equity fund, plans to begin the formal bidding process early next month to sell off ING Life Korea. A deal that could fetch around $3 billion."Preliminary due diligence that started in June has almost finished," a source said. "A preferred bidder is scheduled to be selected through the bidding to open in early August."It's sha

South Korean stock market capitalization has grown 2.3 percent this year to rank as the world's 14th despite a host of challenges at home and abroad, data showed Monday.The combined market cap of local firms listed on the main and secondary bourse came to $1.259 trillion at the end of June, up from $1.231 trillion recorded half a year earlier, according to the Korea Exchange. (Yonhap)The increase pushed up South Korea's ranking by one notch to 14th in stock market value.The global stock market c

[THE INVESTOR] Shinhan Investment forecast Hotel Shilla’s second-half profit to rise on improving profit margins in both the hotel and duty-free business in the second half of the year. Third quarter operating profit was forecast to rise 1312 percent on-year to 39.5 billion won (US$347.16 million) on a consolidated basis, to further increase by 173 percent to 30.8 billion won. Rising tourist volume will contribute to the increase, Shinhan said. As a further catalyst, the license of rivals in the

[THE INVESTOR] NH Investment said on July 25 that SK Innovation’s third-quarter operating profit will fall 42.1 percent on-quarter to 647.9 billion won (US$569.43 million). The figure, however, will reflect a 78 percent increase from the same period in 2015.The forecast was based on speculation that the average refinery margins will fall, NH said. In the second quarter, the South Korean energy firm posted 1.11 trillion won of operating profit, exceeding 1 trillion won in quarterly profit for the

South Korea will extend its trading hours for its equities, derivatives, gold futures and foreign exchange markets from Aug. 1 to boost its financial market status in line with the Morgan Stanley Capital International standards.The Korea Exchange, the country’s quasi-independent stock market operator, said Sunday that the stock and bullion markets’ trading hours will be extended by 30 minutes, enabling investors to buy and sell them between 9 a.m. and 3:30 p.m. Foreign exchange brokers will also

[THE INVESTOR] A lawsuit filed by minority shareholders of KEB Hana Bank against Lone Star Funds was dismissed by South Korea’s highest court. A group of shareholders including a former lawmaker and bank union leader had filed a suit to cancel dividend payouts worth 280 billion won (US$244.97 million) made out to the US private equity fund. In 2011, Lone Star pocketed the dividends from its 51 percent stake in Korea Exchange Bank. The amount was decided at a shareholders meeting in March that ye

[THE INVESTOR] The government will inject 1.4 trillion won (US$1.23 billion) into state-run banks closely involved in shipbuilding and shipping industries’ restructuring. According to the supplementary budget plans approved by the Cabinet on July 22, the Korea Development Bank will see injection of 400 billion won, and the Export-Import Bank of Korea will get 1 trillion won. The government estimates that state-run banks, including KEXIM and KDB, need to secure as much as 8 trillion won for the o