The Korea Herald

Repayment of derivatives-tied securities on rise in Q1

MarketsJun 29, 2017

Repayment of derivatives-tied securities rose during the first quarter of this year as more investors took profits amid a rally in the local stock market, data showed Thursday. The issuance of equity-linked securities and derivatives-linked securities (DLS) gained by 11.4 trillion won ($9.97 billion) on year during the January-March period, but repayment also rose by 18.1 trillion won. Accordingly, the total balance of derivatives-tied securities fell to 97.7 trillion won at the end of March, co
Korea's manufacturing sentiment worsens for July

EconomyJun 29, 2017

South Korean manufacturers' business sentiment for July worsened from this month as local companies expect a slight decline in domestic demand and exports, central bank data showed Thursday.The business survey index of manufacturing firms came to 80 for next month, down from 84 in June, according to the Bank of Korea. A reading below 100 means pessimists outnumber optimists, while a reading above the benchmark means the opposite.An index measuring local firms' sentiments toward exports came to 8
Seoul stocks start higher tracking Wall Street

MarketsJun 29, 2017

South Korean shares opened higher Thursday, tracking overnight gains on Wall Street. The benchmark Korea Composite Stock Price Index rose 12.14 points, or 0.51 percent, to 2,394.70 in the first 15 minutes of trading. The index hit a fresh intra-day record high of 2,397.95 at one point. Most large caps traded mixed with market kingpin Samsung Electronics gaining 1.26 percent.Top automaker Hyundai Motor fell 0.62 percent, while top steelmaker POSCO rose 0.53 percent.The local currency was tra
Korea needs to address inevitabilities of household debt: economists

EconomyJun 28, 2017

South Korea does not face an imminent crisis over its growing household debt, but it needs to address some inevitabilities, foreign economists said Wednesday.South Korea's household debt stood at 1,359.7 trillion won ($1.2 trillion) as of end-March, a dramatic increase from 665 trillion won at the end of 2007, according to the Bank of Korea.The ratio of South Korea's household debt to gross domestic product came to 92.8 percent as of end-2016, up 4.7 percentage points from a year earlier, accord
Cooperation trumps restrictions for sustainable reform: Herald forum

EconomyJun 28, 2017

South Korea needs to address chronic problems in its economic structure in order to achieve sustainability in economic reforms, including those of family-run business groups known as chaebol by the new government, experts voiced at a forum on Wednesday. Around 300 government officials including Deputy Prime Minister for Economic Affairs Kim Dong-yeon, executives of major businesses, and economic scholars gathered at the 2017 Herald Business 氣UP Forum, a business policy conference, held at the Fo
Corporate internal reserves on rise

EconomyJun 28, 2017

The rising level of internal reserves at Korea’s large corporations is drawing attention again, as the new administration is moving to levy heavier taxes on them.According to Chaebul.com, an online corporate tracker, total internal reserves held by 178 listed companies affiliated with the country’s 30 largest conglomerates stood at a record high of 691.5 trillion won ($606.5 billion) as of the end of March.Internal reserves include profit reserves and capital surpluses. A high level
Govt. urged to exempt taxes on income earned abroad: KERI

EconomyJun 28, 2017

A private think tank urged the government Wednesday to exempt taxes on income earned by South Korean multinationals abroad so they can easily repatriate funds that can fuel investment in the country."The core of the new US administration's tax reform revealed in April is centered on the country moving away from an extraterritorial or residence tax regime to that of a source base system so that dues are only levied on income incurred domestically," Lim Dong-won, a researcher at the Kore
Seoul stocks retreat from all-time high on foreign sell-offs

MarketsJun 28, 2017

South Korean stocks slumped on Wednesday, retreating from the previous session's all-time high, as foreign investors remained net sellers. The Korean won declined against the US dollar. The benchmark Korea Composite Stock Price Index declined 9.39 points, or 0.39 percent, to close at 2,382.56. Trade volume was moderate at 340 million shares worth 5.79 trillion won ($5.06 billion). The local stock market opened lower with subdued sentiment after a key vote on US President Donald Trump's heal
30% of senior citizens received pensions in 2016: report

MarketsJun 28, 2017

The percentage of elderly South Koreans receiving public or private pensions stood at 30 percent in 2016, a government report showed Wednesday.The report by the Board of Audit and Inspection, which analyzed data by the NPS and private insurance companies, showed many people remaining unprotected by the country's social security net, although measures are being taken to correct the situation. The government expects the coverage will likely rise to 37 percent in 2020, 42.3 percent in 2030 and 55.5
Korean households' net lending shrinks in Q1

EconomyJun 28, 2017

Net lending by South Korean households fell in the first quarter from a quarter earlier due to the increased purchase of houses, central bank data showed Wednesday.The net lending, which reflects available funds and takes into account savings, the value of acquisitions and capital used, came to 14.1 trillion won ($12.3 billion) as of end-March, compared to 19.2 trillion won from three months earlier, according to preliminary data from the Bank of Korea. The numbers are for local households and n
Korean shares down in late morning trading

MarketsJun 28, 2017

South Korean shares traded lower late Wednesday morning as sentiment subdued after a key vote on US President Donald Trump's healthcare reform was delayed. The benchmark Korea Composite Stock Price Index fell 6.17 points, or 0.26 percent, to 2,385.78 as of 11:20 a.m.Large caps traded mixed with market kingpin Samsung Electronics falling 1.37 percent and global chipmaker SK hynix down 1.59 percent.Top automaker Hyundai Motor rose 0.31 percent, and its smaller affiliate Kia Motors traded
Insurers required to raise capital reserves from year-end

MarketsJun 28, 2017

Insurance firms in South Korea are required to gradually increase their capital reserves from the end of this year, the financial regulator said Wednesday, in the latest step to help them better cope with changes in global accounting rules.South Korea is one of more than 100 nations that will adopt the new global bookkeeping standard or the International Financial Reporting Standards 17, starting in January 2021. When adopted, some insurers in South Korea will face capitalization pressure b
Chipmaking, petrochemical sectors to benefit from bullish market: report

MarketsJun 28, 2017

South Korea's chipmaking and petrochemical sectors are positioned to benefit the most from the ongoing global economic recovery, with the sectors' exports expected to remain bullish moving forward, a report showed on Wednesday.IBK Economic Research Institute, a research arm of Industrial Bank of Korea, said in the report that small and mid-sized firms in the sectors are poised to gain from the upward business cycle.The country's exports of computer chips reached $20.2 billion in the first quarte
Seoul stocks start lower tracking Wall Street

EconomyJun 28, 2017

South Korean shares opened weak Wednesday, tracking a decline on Wall Street after a key vote on US President Donald Trump's health care plan was delayed.The benchmark Korea Composite Stock Price Index slipped 9.47 points, or 0.4 percent, to 2,382.48 in the first 15 minutes of trading. Most large caps traded mixed with market kingpin Samsung Electronics falling 0.83 percent.Top automaker Hyundai Motor rose 1.25 percent, and top steelmaker POSCO gained 1.45 percent.The local currency was tra
Korea's toy imports hit record high through April: data

EconomyJun 28, 2017

The amount of toy imports in South Korea rose to a record level in the first four months of this year on robust demand for character robots, government data showed Wednesday. The inbound shipment of kids' toys reached a record $276 million in the January-April period, up 3.1 percent from $267 million the previous year, according to the data compiled by the Ministry of Culture, Sports and Tourism and its affiliated Korea Culture Information Service Agency. The purchase of character toys, in