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Apr 7, 2020 Markets

[Market close-up] Market eyes KDB's bail-out plan on coronavirus-hit companies

Excessive focus on conglomerates gives rise to concerns

FSS urges retail investors to shun loan stock buying

The Financial Supervisory Service on Tuesday cautioned local retail investors to refrain from borrowing money when investing stocks, pointing at the excessive market volatility. In a rare message, the financial regulator noted that the current market condition is somewhat different from the 2008 global financial crisis, stressing that it has become more unpredictable than before. “Some existing investors think that now is the time to purchase undervalued shares, since they have seen e

Apr 7, 2020
Markets
Seoul stocks up for 4th day on hopes for virus slowdown

South Korean stocks ended higher Tuesday, extending their gains to a fourth straight session as investor sentiment improved over signs that the spread of the coronavirus could be slowing. The Korean won sharply rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 31.72 points, or 1.77 percent, to 1,823.60. Huh Jae-hwan, a strategist at Eugene Investment Co., said expectations for the slowing spread of the coronavirus in the United States and Europe pushed u

Apr 7, 2020
Markets
S. Korea’s national debt hits record W1,700tr in 2019

South Korea’s national debt last year surpassed 1,700 trillion won ($1.39 trillion) for the first time, weighed down by increased treasury bond issuance coupled with the government’s consequent fiscal expansion, a government report showed Tuesday. The national debt jumped 60.2 trillion won on-year to 1,743.6 trillion won as of end of 2019, according to the annual national financial report reviewed and endorsed by the Cabinet. The Cabinet meeting was presided by Prime Minister Chung

Apr 7, 2020
Economy
Can Lotte Food’s leveraging plan be litmus test for stimulus package?

South Korea’s food service firm Lotte Food saw a moderate success in raising cash through investment-grade corporate bonds, as a state fund has helped fend off risks from the escalating coronavirus crisis. But analysts said Tuesday Korea is still a tough test bed to check whether the government’s stimulus package can normalize the funding market. On Monday, Lotte Food decided to raise 100 billion won ($81.77 million) after it carried out an institutional investor tranche for its AA

Apr 7, 2020
Markets
BOK to deliver additional $4.4b to banks via US currency swap this week

The Bank of Korea (BOK) said Tuesday that it will offer $4.41 billion to local banks this week in its second round of dollar funding using its bilateral currency swap arrangement with the US Fed that is designed to help prevent a foreign exchange liquidity crunch. The central bank held an online auction to provide up to $8.5 billion in seven-day debt and 84-day loans. Bids undershot the BOK target of $7 billion in 84-day loans and $1.5 billion in seven-day loans. "A total of $4.41 billi

Apr 7, 2020
Money
BOK kicks off pilot program for digital currency

South Korea’s central bank said Monday that it has launched a pilot program for a central bank-issued digital currency. “We do not see the immediate need to issue a digital currency in the near future, due to the considerable level of cash demands here and the relatively stable payment market operations,” the Bank of Korea said in a release. “But we should be able to make responsive moves, should environments change drastically at any time, so we shall undertake tech

Apr 7, 2020
Economy
S. Korea's tax revenue dips due to economic slump

South Korea's state tax revenue dropped from a year earlier in the first two months of 2020, the finance ministry said Tuesday, amid a slump caused by a steady decline in exports and problems stemming from the new coronavirus outbreak. In the January-February period, state tax revenue came to 46.8 trillion won ($38.3 billion), down 2.4 trillion won from the same period last year, according to the report from the Ministry of Finance and Economy. The amount represents 16.1 percent of this year'

Apr 7, 2020
Economy
Seoul shares open higher on Wall Street gains

South Korean shares opened higher Tuesday, tracking overnight gains on Wall Street amid signs that the spread of the coronavirus could be slowing. The benchmark Korea Composite Stock Price Index (KOSPI) rose 42.10 points, or 2.35 percent, to 1,833.98 in the first 15 minutes of trading. The main index tracked overnight gains on Wall Street. The Dow Jones industrial average rose 7.73 percent, and the tech-heavy Nasdaq composite index climbed 7.33 percent. US stocks soared as the number of new

Apr 7, 2020
Markets
Korea's current account surplus widens to $6.41b in Feb.

South Korea's current account surplus sharply increased from a year earlier in February, as its goods account surplus widened while its service account deficit slightly narrowed, central bank data showed Tuesday. The country's current account surplus came to $6.41 billion in the month, up from a $3.85 billion surplus the same month last year, according to preliminary data from the Bank of Korea (BOK). Its goods account surplus widened to $6.58 billion from $5.42 billion over the cited period,

Apr 7, 2020
Economy
Eximbank Korea to create health care funds worth W400b

The state-run Export-Import Bank of Korea said Monday that it intends to create two funds worth a total of 400 billion won ($325.2 million) to help South Korean health care companies go global. The money will go to Korean companies devoted to immunotherapy, gene therapy, health care systems, diagnostic kits and medical devices. It will be used to support them in exporting more products, clinching more overseas investment and expanding to foreign markets. Of the total, Eximbank Korea has comm

Apr 6, 2020
Money
NHIS commits W1.4tr to alternative investment

The National Health Insurance Service unveiled on Monday plans to commit up to 1.4 trillion won ($1.14 billion) to its first alternative investment in history as an institutional investor. It plans to select two lead partners to manage the assets for four years, officials said. This comes as the South Korean state agency, with some 20 trillion won worth of assets under management, moves to shift away from a conservative portfolio and turn to alternative assets, ranging from real estate to

Apr 6, 2020
Money
Jeonse prices on rise as demand for house purchases falls

The average price for the jeonse -- a real estate term unique to South Korea that refers to a property lease -- in Seoul has surpassed 460 million won ($375,000) for the first time, continuing the recent upward trend, data showed Monday. According to the Korea Appraisal Board, a property assessment agency, the average jeonse prices in the capital have been rising since July to reach 460.7 million won as of March. Separate data from property services platform KB Kookmin Bank Liiv On also sho

Apr 6, 2020
Markets
Bargain-hunting Korean investors flock to overseas stock markets

Local investors scoop up $12.38b of US stocks in March

Apr 6, 2020
Markets
Seoul stocks spike almost 4% on hopes of virus treatment

South Korean stocks soared by almost 4 percent on Monday, extending their gains to a third straight session on hopes of potential treatment for the new coronavirus that has infected more than 1.2 million people around the world. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 66.44 points, or 3.85 percent, to 1,791.88. Institutional investors bought a net 1.03 trillion won ($838 million), while foreign investors sold a net 202 billion w

Apr 6, 2020
Markets

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