South Korean banks' lending rates edged up in December last year amid rising market rates, central bank data showed Friday. The average interest rate charged on new bank loans came to 2.74 percent in December, up 0.03 percentage point from the previous month, according to preliminary data from the Bank of Korea (BOK). The BOK cut the key interest rate to a record low of 0.5 percent in May last year after delivering an emergency rate cut of half a percentage point in March to cushion the impact

The issuance of asset-backed securities (ABS) in South Korea jumped 53 percent in 2020 due to increased sales of government-led mortgage funds, data showed Friday. The value of ABS issues stood at 79.1 trillion won ($71 billion) last year, up 27.4 trillion won from a year ago, according to the data from the Financial Supervisory Service (FSS). ABS are structured with mortgages, auto loans, credit-card receivables and student loans as underlying assets. The jump came as the Korea Housing Finan

LG Energy Solution Ltd. has picked the lead managers for its listing on the Seoul bourse after a spin-off from its parent LG Chem Ltd., according to industry sources, which is expected to be one of this year's mega IPO deals. The battery unit wholly owned by LG Chem Ltd. has named KB Securities and Morgan Stanley as the lead managers for its IPO and also selected five brokerages, including Shinhan Investment Corp. Daishin Securities Co., as bookrunners for the IPO, according to them. "The

South Korean shares rebounded Friday due to bottom-fishing, led by tech and chemical advances. The benchmark Korea Composite Stock Price Index (KOSPI) rose 13.88 points, or 0.45 percent, to 3,082.93 in the first 15 minutes of trading. The key stock index rebounded after losing 4.4 percent in total in the past three sessions, as investors speculate a stock price hike in the volatile markets. Market bellwether Samsung Electronics added 0.96 percent, with No. 2 chipmaker SK hynix gaining 2.85 pe

South Korea's industrial output, consumption and investment increased on-month in December, data showed Friday, in the latest sign that the country's economy is on a recovery track amid the pandemic. But stung by the fallout of the COVID-19 pandemic, the nation's industrial production declined last year for the first time since the statistics agency began compiling data in 2000. The industrial output grew 0.5 percent in December from the previous year, compared with a 0.8 percent on-month gain

South Korea plans to sell 13.9 trillion won ($12.4 billion) in state bonds next month, the finance ministry said Thursday. The ministry will issue 700 billion won in Treasurys with a maturity of two years for the first time in an effort to soothe market uneasiness from its planned massive bond sales, according to the Ministry of Economy and Finance. It will also float 3 trillion won in three-year government bonds, 2.7 trillion won in five-year government debts and 2.9 trillion won in bonds wit

Seoul-based investment house Korea Investment Management said Thursday that it has rebranded three open-ended equity funds to cater to the diversified needs of South Korean retail investors. The three open-ended equity funds have ditched their respective strategies and shifted their focus to the domestic technology sector; to sectors benefiting from the Korean New Deal initiative, such as batteries, biotechnology, internet and games; and to environmental, social and governance factors. Accor

South Korean stocks dipped almost 2 percent Thursday on massive foreign selling, generated by results of the Federal Open Market Committee (FOMC) meeting. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 53.51 points, or 1.71 percent, to close at 3,069.05 points. Trading volume was moderate at about 1.3 billion shares worth around 22.7 trillion won ($20.3 billion), with losers outnumbering gainers 768 to 114. Foreigners sold a net 1.6 tri

Kakao Pay is expected to halt its integrated personal data management services after failing to obtain a license from the financial authorities, the company said Thursday. The move could leave the firm lagging behind rivals, which are aggressively tapping into the business area. The fintech arm of mobile giant Kakao said its asset management service, which allows users to keep track of all their bank accounts, credit card records and insurance policies, will cease Feb. 5. Other companies that

South Korea’s current snowballing budget deficit, fueled by the COVID-19 pandemic “can be offset by gradual consolidation” in coming years, the International Monetary Fund said Thursday. The remark by Andreas Bauer, Korea mission chief at the IMF, apparently aims to alleviate concerns surrounding the nation’s government debt surged by four rounds of supplementary budgets implemented to finance COVID-19 relief programs. The sovereign debt is projected reach 956 trillio

The daily foreign exchange (FX) trading by banks in South Korea fell 5.3 percent on-year in 2020 as the local currency rose against the US dollar, central bank data showed Thursday. The daily FX turnover came to an average $52.8 billion last year, down $2.93 billion from the previous year, according to the data by the Bank of Korea (BOK). The BOK said the drop in the daily FX turnover came as the won's gain reduced demand to hedge risks with FX derivative trading. The Korean currency apprecia

South Korea’s top financial regulator said Thursday it has decided to advise major banks to maintain their dividend payouts below 20 percent of net income during the first half of this year in response to the prolonged economic fallout of COVID-19.  Under the latest guidance by the Financial Services Commission, local lenders are expected to cut payments to shareholders by about 5 to 7 percentage points. Last year, the country’s four major banking groups -- KB Financial, Shinha

Netherlands-based investor NN Investment Partners said Thursday the search for yield will make emerging markets the most attractive destination for bond investors, but that South Korea was not likely to be their first choice. “Although Korea is part of the emerging market universe in indices, it is much closer to the developed than many other emerging market universe,” Valentijn van Nieuwenhuijzen, chief investment officer of NNIP, said in a teleconference with Korean reporters. &

South Korea's terms of trade rose for the ninth consecutive month in December as export prices increased at a faster pace than import prices, central bank data showed Thursday. The nation's net terms-of-trade index for goods -- a gauge of trade terms -- increased 7.2 percent last month from a year earlier, according to preliminary data from the Bank of Korea (BOK). It marked the ninth straight month of an on-year rise since April, when the trade terms logged the first on-year hike in over two

South Koreans' consumption of rice hit a record low in 2020, data showed Thursday, due mainly to changes in diet and eating habits. The average South Korean consumed 57.7 kilograms of rice in 2020, down 2.5 percent or 1.5 kilograms from the previous year, the Ministry of Agriculture, Food and Rural Affairs said, citing the data compiled by Statistics Korea. Rice is a key staple food for Koreans, but its consumption has been on a steady decline since 1980, when per capita average annual rice co