[THE INVESTOR] The Chinese market for direct trading of the South Korean won and Chinese yuan will be launched next week, the South Korean Finance Minister said on June 24.The won-yuan direct trading market will begin operations in Shanghai on June 27. The state-run Chinese Foreign Exchange Trading System will take charge of the management. “South Korea and China are important trade partners,” Finance Minister Yoo Il-ho said in an official opening ceremony held in Beijing. “The newly launched cu

[THE INVESTOR] Analysts warned Britain’s vote to leave the European Union may further dampen Korean stock financial markets as panic gripped investors. On June 24, the country’s benchmark KOSPI shed 61.47 points, or 3.09 percent, to 1,925.24. Sidecar kicked in following the secondary KOSDAQ’s 6-percent plunge. Shocked investors dumped pounds, leading the value of sterling to slump to a 31-year low on currency markets. Other Asian markets including Japan’s Nikkei finished the day with big losses.

2Q estimates: sales of W3.76tr (+2.1% QoQ), OP of W445bn (-21.6% QoQ) Rebounding indicators, earnings to improve QoQ in 3Q ¨ Retain BUY for target price of W38,0002Q estimates: sales W3.76tr (+2.1% QoQ), operating profit W445bn (-21.6% QoQ)SK Hynix is forecast to post 2Q sales of W3.76tr (+2.1% QoQ, -18.9% YoY) and operating profit of W445bn (-21.6% QoQ, -67.7% YoY). We expect bit growth of 13% and ASP drop of 10%. Earnings should bottom out in 2Q. We expect operating profit of W549bn (+23.5% Qo

KOSPI falls 3%, experts mixed on impact

Korean Finance Minister Yoo Il-ho on Friday said Seoul will "swiftly and firmly" take measures to deal with volatility in financial markets if necessary as Britain voted to leave the European Union. Korea "has faithfully reviewed contingency plans and the government will swiftly and firmly deal with the development if necessary," the policymaker said in a statement, saying that the Brexit is expected to pose "long-term uncertainty" to the world economy and Korea. "In the short term, volatility i

[THE INVESTOR] Woori Bank needs to set aside loan-loss provisions of 700 billion won (US$ 594 million) to maintain its credit rating of AAA, credit rating agencies said on June 24. Woori Bank’s BIS capital adequacy ratio declined to 13.5 percent as of the end of the first quarter, the lowest level among commercial banks. Due to its exposure to debt-laden shipping and shipbuilding companies, the ratio has been plunged from 15.5 percent to 13.7 percent during two years between 2013 and 2015. Accor

Korea's financial market was roiled Friday by Britain's exit from the European Union, with the local stock market plunging over 3 percent and the local currency nosediving.The country's benchmark Korea Composite Stock Price Index shed 70.43 points, or 3.55 percent, to 1,916.53 as of 2:20 p.m. From a session earlier, the Korean won fell 28.20 won, or 2.6 percent, against the U.S. dollar to trade at 1,178.40 won.  (Yoon Byung-chan /The Korea Herald)The main index opened up at 2,001.55 but turned l

[THE INVESTOR] Korea has revised its annual economic growth rate outlook for 2016 to 2.8 percent from the previous 3.1 percent, the government said on Friday.During a meeting with the ruling Saenuri Party, government policymakers said growth is expected to slow in the second half of 2016. “If the second-half economic policy plan is executed as  Finance Minister Yoo Il-ho at a meeting with the ruling Saenuri Party (Park Hae-mook/The Investor)expected, this year’s growth will decrease from (the) i

[THE INVESTOR] Korea’s high economic dependence on China is a double-edged sword, a report said on Friday.In a report titled “China’s choice,” the McKinsey Global Institute ranked Korea fourth in the world in terms of economic dependence on China. According to the report, Korea is fourth in the world in terms of the proportion of gross domestic product raised from exports to China. Oman showed the highest dependence followed by Angola and Malaysia. Korea’s economy is highly trade reliant. About

Korea's financial market was roiled Friday by Britain's exit from the European Union, with the local stock market plunging over 3 percent and the local currency nosediving.The country's benchmark Korea Composite Stock Price Index shed 66.62 points, or 3.35 percent, to 1,918.58 as of 2:00 p.m. From a session earlier, the Korean won fell 29.00 won, or 2.5 percent, against the U.S. dollar to trade at 1,170.05 won. The main index turned lower on Friday morning as early vote results on Britain's EU m

[THE INVESTOR] The total transactions of Chinese shares by Koreans dropped by 81.7 percent to US$510,000 this year through June 21 from US$4.14 million a year earlier, the Korea Securities Depository said June 24. China’s stock market was hammered earlier this year due to concerns about its slowing economy. After suffering heavy losses from their investments in Chinese shares, Korea’s retail investors withdrew some of their assets to avoid further losses. Korean investors poured a total of $4.29

Koreans' transactions involving Chinese stocks plunged to $510,000 this year through June 21 from $4.14 million a year earlier, the Korea Securities Depository said Friday. China's stock market was pummeled early this year by growing concerns about its slowing economy. After suffering heavy losses from their investments in Chinese shares, Korea's retail investors have withdrawn some of their assets parked there to avoid further losses. Korean investors poured a total of $4.29 million into Chines

Korean shares turned lower late Friday morning as the results of the British referendum remain murky.The benchmark Korea Composite Stock Price Index edged down 11.55 points, or 0.58 percent, to 1,975.16 as of 11:20 a.m. One of the latest polls conducted after the vote ended at 6 a.m. Friday (Korean time) suggested the "Remain" camp's victory.But early voting results indicated a tight race so investors remain cautious until the final voting outcome is available at around 3 p.m. Friday. Top carmak

We now believe KAI is highly likely to win the bid for both of the major projects set to determine its growth potential, i.e., the aircraft maintenance, repair, and overhaul (MRO) service project in Korea and the US Air Force‘s T-X project. We also expect marked HoH improvement in its new order intake in 2H16, given: 1) the scheduled receipts of new orders by both the defense and aircraft parts divisions; and 2) likely additional exports of finished aircraft. With KAI forecast to report relative

[THE INVESTOR] South Korean shares opened higher on June 24 as the first poll after the Brexit vote on June 23 showed signs of Britain remaining in the European Union. The benchmark Korea Composite Stock Price Index soared 8.68 points, or 0.44 percent, to 1,995.39 during the first 15 minutes of trading.South Korean shares opened higher on June 24 as initial poll results showed Britain may stay with the EU. Lee Sang-sub/The InvesterAll eyes are on the outcome of the Brexit poll due out at around