The Korea Herald

Seoul stocks drop for 3rd consecutive day ahead of ECB meeting

Jul 21, 2016

[THE INVESTOR] South Korean stocks edged down on July 21, sliding for a third consecutive session as investors took to the sidelines ahead of the European Central Bank’s policy meeting later in the day. The Korean won rose against the US dollar.The benchmark Korea Composite Stock Price Index fell 1.43 points, or 0.07 percent, to close at 2,015.46. Trade volume was light at 388 million shares worth 3.84 trillion won (US$3.38 billion), with losers outnumbering gainers 422 to 371. The European Cent
Bank chiefs see slowing household debt

Jul 21, 2016

[THE INVESTOR] Household debt increase rate will drop during the second half of the year, the chiefs of South Korean commercial banks said on July 21.Speaking at a meeting with Bank of Korea Gov. Lee Ju-yeol, they forecast a drop in the rate due to the efforts made by the government and banks. Saying that the effects of the measures rolled out by the financial authorities and the banks’ risk management will start to show during the second half despite the rapid increase seen during the first six
Seoul stocks down for 3rd day ahead of ECB meeting

Jul 21, 2016

Korean stocks edged down on Thursday, sliding for a third consecutive session as investors took to the sidelines ahead of the European Central Bank's policy meeting later in the day. The Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 1.43 points, or 0.07 percent, to close at 2,015.46. Trade volume was light at 388 million shares worth 3.84 trillion won ($3.38 billion), with losers outnumbering gainers 422 to 371. (Yonhap)Following last week's surge o
Korean insurers’ overseas investments hit all-time high

Jul 21, 2016

[THE INVESTOR] South Korean insurance companies’ investments overseas rose to a record high in the first quarter in 2016 as they are branching out into higher-return foreign assets to combat falling yields at home.Local insurers committed US$49.4 billion for foreign assets and companies during the January-March period, up 15.9 percent from a quarter earlier or up 50.9 percent on-year, according to data from financial investment industry. The Q1 figure remarks the all-time high amount and has sur
Number of fake banknotes drops 76% in first half: BOK

Jul 21, 2016

The number of counterfeit Korean banknotes detected here in the first half of this year declined 76.6 percent from a year earlier, the central bank said Thursday.A total of 637 counterfeit bills were found in the January-June period, down from 2,728 in the same period last year, according to the Bank of Korea.The sharp decline came as no massive counterfeit bills were found in the first half. In January last year, four people were caught making 2,012 fake 50,000-won bills.In Korea, the 50,000-wo
BOK chief calls for banks to maintain financial health

Jul 21, 2016

The head of Korea's central bank said Thursday that local banks should keep their financial status healthy to weather any possible external impact."It is important for banks to maintain a clean bill of health in terms of assets and a proper level of debt-to-equity ratio to cope with financial volatility," Bank of Korea Governor Lee Ju-yeol said in a meeting with chiefs of major banks in Korea.The chiefs of the major banks shared the view that they need to strengthen efforts to cut costs, citing
[EQUITIES] JB Financial Group to beat Q2 earnings expectations

Jul 21, 2016

[THE INVESTOR] JB Financial Group is likely to report stronger-than-expected second quarter earnings, propelled by a robust asset growth, local brokerage house Mirae Asset Securities said on July 21. “The group is expected to post 42.5 billion won (US$37.25 million) net profit in Q2 to exceed the current market consensus forecast of 40.3 billion won,” said Kang Hye-seung, an analyst at Mirae Asset said. Kang said JB Financial Group’s profit surged as its subsidiary Gwangju Bank showed a high gro
Foreigner investors keep buying Korean stocks, but analysts say the streak may be temporary

Jul 21, 2016

Offshore investors have been on a buying streak for Korean stocks, sending their market cap ratio in the main local bourse to a 14-month high, the Korea Exchange said Thursday, but analysts were divided on whether the rally will continue.Shares held by foreign investors as of Tuesday accounted for 33.61 percent of the total market cap for KOSPI, the highest since 33.62 percent reached on May 18 last year. The buying streak has continued since June 29 except for a single day on July 6, with a tot
Seoul stocks open higher on U.S. gains

Jul 21, 2016

Korean shares started higher Thursday taking a cue from overnight gains in Wall Street.The benchmark Korea Composite Stock Price Index gained 2.17 points, or 0.11 percent, to 2,017.63 in the first 15 minutes of trading.Fueled by positive earnings reports, the Dow Jones industrial average hit a record high on Wednesday.Most large caps traded mixed with market kingpin Samsung Electronics rising 0.13 percent.Top automaker Hyundai Motor rose 0.39 percent, and top steelmaker POSCO also gained 0.23 pe
Tax revision to focus on job creation: finance minister

Jul 21, 2016

Korea's finance ministry on Thursday said revisions to taxes set to take effect in 2017 will focus on revitalizing the national economy and creating more jobs."The decision by Britain to exit the European Union has sparked uncertainties at home and abroad," Finance Minister Yoo Il-ho said during a meeting with the ruling Saenuri Party. "Accordingly, future tax-related changes will aim to beef up the economy and stabilize the lives of the people."The country's top economic policymaker added he wi
Amid widening probe into founder, Nexon affiliate sees 31% plunge in stock price

Jul 20, 2016

[THE INVESTOR] Nexon GT, an affiliate of game developer Nexon, saw its stock price plunge to a record low in 16 weeks amid the snow-balling investigation into founder Kim Jung-ju’s alleged involvement in insider trading.The company’s stock price dropped 31.3 percent from 13,200 won (US$11.60) on April 7 to 10,050 won on July 20 -- the lowest since Feb. 15 when the share price plummeted to 9,920 won.Kim Jung-ju, Nexon founder and the chairman of the game firm’s holding firm NXC. The Investor Kim,
Busan Bank raising $250m through CoCo bonds

Jul 20, 2016

Busan Bank, a subsidiary of BNK Financial Group, has sold contingent convertible bonds, or CoCos, worth $250 million, the lender said on Wednesday. The 10-year additional tier 1 bond, which drew orders of almost $2.4 billion, is priced with a coupon of 3.675 percent. “It is the lowest rate among US dollar-denominated CoCos ever issued in Asia since Basel III came into effect,” an official at Busan Bank said. The Basel III is a global regulatory framework on bank capital requirements, stress test
Kiwoom Securities to acquire TS Bank

Jul 20, 2016

Kiwoom Securities will acquire a Seoul-based savings lender TS Bank to expand its revenue sources, the Korean brokerage firm said on Wednesday. Kiwoom plans to buy the entire stake -- 2 million shares -- in TS Bank for 88.5 billion won ($77.52 million), according to the firm’s regulatory filing. Currently, TS Bank runs two branches in Yeoksam and Yeouido, Seoul. Kiwoom said the acquisition plan aims at “increasing revenue by entering the savings banking business.” The deal is the latest move by
Workers in 60s more likely to have jobs than 20-something

Jul 20, 2016

The number of those in their 60s who got hired in the second quarter of this year exceeded those in their 20s for the first time in two years, according to Statistics Korea on Wednesday.As life expectancy increases and employees seek to push back retirement as companies adopt a wage peak system, a growing number of elders are looking to either remain in the workforce as long as they can or try to reenter the labor market to further prepare for their postretirement.The number of those employed in
FSC seeks to address foreign financial firms' concerns

Jul 20, 2016

Jeong Eun-bo, the vice chairman of the Financial Services Commission, said Wednesday that a task force will be set up to foster constant communication with foreign financial companies operating in the country and address their needs.This comes as the state financial regulator is concerned over an increasing number of foreign financial companies folding their businesses and exiting the Korean market amid a gloomy outlook and decreasing profitability.In a meeting with executives of foreign financi