Overseas branches of South Korean banks saw their combined net profit edge up 0.4 percent on-year to $988 million in 2019, data showed Wednesday. The figure accounted for 7.9 percent of the combined net profit of banks operating in South Korea last year, according to the data by the Financial Supervisory Service (FSS). The combined interest income at 195 overseas branches gained 9.4 percent on-year to $2.06 billion, the data showed. Their average non-performing loan ratio stood at 0.63 percen

South Korea is seeking to begin supplying US dollars under its bilateral currency swap arrangement with the United States next week, a Bank of Korea (BOK) official said Wednesday, a move that is widely expected to help ease dollar shortage caused by the new coronavirus pandemic. Negotiations are underway to finalize the currency swap deal, BOK Dep. Gov. Ryoo Sang-dai told reporters. "There are many issues that need to be discussed, but (the talks) are moving forward without any major diff

Five major banks in South Korea are expected to contribute to nearly two-thirds of an envisioned bond market stabilization fund, sources said Wednesday. Seoul unveiled an emergency financial aid package Tuesday, which calls for a 10 trillion-won bond market stabilization fund in early April to help coronavirus-wracked businesses raise money. Several dozens of local financial companies will contribute an additional 10 trillion won to the fund later. More than 20 major financial firms will also

South Korea will ease foreign exchange liquidity rules temporarily to prod local financial firms to provide more dollars in the currency market currently roiled by the market turbulence, the country's chief economic policymaker said Wednesday. Local financial institutions have been required to hold an adequate amount of foreign currency assets on hand to get over short-term liquidity disruptions. Currently, the foreign exchange liquidity coverage ratio (LCR) for banks is set at least 80 percent.

South Korean stocks opened sharply higher Wednesday tracking a record rally on Wall Street as investors bet on stimulus measures around the globe amid the new coronavirus pandemic. The benchmark Korea Composite Stock Price Index had risen 64.16 points, or 3.99 percent, to 1,674.13 as of 9:15 a.m. The Dow Jones Industrial Average on Tuesday skyrocketed 11.4 percent to close at 20,704.91, its biggest one-day gain since 1933, after US lawmakers said they are close to passing a $2.5 trillion stim

Facing a weakening local currency amid the escalating novel coronavirus crisis, companies are hedging their cross-border investment plans, including mergers and acquisitions, filings showed Tuesday. The deals denominated in foreign currency are facing increasing exchange rate pressure. as some of the investment decisions were made before the coronavirus outbreak. Over the past three weeks, South Korea’s local currency has weakened 4.6 percent against the greenback and fell 2.4 percent a

Seoul shares its epidemic-fighting experience with leading economies

South Korean stocks rebounded sharply Tuesday, as investors were buoyed by the US Federal Reserve’s overnight announcement of unlimited bond-buying and the government’s bold emergency financial aid package to tackle the economic slowdown due to novel coronavirus spread. 　 The benchmark Kospi soared 127.51 points, or 8.6 percent, from the previous session, to close at 1,609.97. The market began strong at 1,523.69 and continued to move upward through the day, marking the biggest incr

New emergency measure to further bolster SMEs, provide cushion for conglomerates and stabilize financial market

As the COVID-19 pandemic is expected to cause an economic contraction worldwide, South Korean conglomerates, the main locomotives of the nation’s economy, are increasingly borrowing money from banks in a bid to improve liquidity, according to data Tuesday. The loan balance of Korean conglomerates at five banks -- KB Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank and NH Bank -- came in at 78.7 trillion won ($62.9 billion) as of Friday, up 1.78 trillion won from late February. T

The plunging crude oil prices may increase pressure on South Korea’s financial market with rising volatility forcing investors to secure cash, not to mention its negative impact on the economy. The sharp drop in oil prices in recent weeks has rattled the stock market, already reeling from the deepening coronavirus pandemic. Oil refining and chemical industries are bearing the brunt, not only from plummeting demand but also lackluster investor sentiment.  According to data of the

South Korea on Tuesday highlighted the importance of its budget spending in supporting the country's economic growth next year, signaling a budget hike amid the growing fallout from the spread of the new coronavirus. Under its 2021 budget guidelines, the government said it will continue to maintain the active role of fiscal spending in boosting growth, while seeking to enhance its fiscal soundness. The guidelines, reviewed and approved by the Cabinet on Tuesday, are designed to direct governme

Despite a recent recovery, uncertainty is growing over South Korea's exports down the road due to the economic impact of the coronavirus pandemic, sources said Tuesday. The country's outbound shipments grew 10 percent on-year in the first 20 days of March on brisk overseas demand for chips and automobiles, along with more working days, according to government data. The solid increase follows a 4.5 percent rise in February, the first rebound in 15 months. This month's improved export performan

Real estate trust firms in South Korea saw their combined profit fall 5.5 percent in 2019 from a year earlier due to increased operating costs, data showed Tuesday. The combined net profit of 14 real estate trusts stood at 480 billion won ($379 million) in 2019, compared with 507.9 billion won in 2018, according to the data released by the Financial Supervisory Service (FSS). Real estate investment trusts are a type of security that invests in real estate to be traded on major exchanges and p

Discontent rises as foreigners bet on short selling, experts say it may not be the case