Agency says consumer loan, M&A and foreign currency liquidity problems unlikely to ease soonMoody’s Investors Service on Monday highlighted several uncertainties in the local banking industry, saying that unfavorable factors could hamper banks’ long-term growth.Negative factors cited by the ratings agency included growing consumer loans, M&A issues and foreign currency liquidity.“A key credit issu

 

 

Foreign investors have apparently been banned from participating in the coming bidding for Woori Financial Group, the nation’s largest financial company by assets.Financial Services Commission chairman Kim Seok-dong clarified Friday that the authorities will hand over the state-run financial group to a Korean bidder.His remarks came during the FSC’s report to the National Assembly on the financial

U.S. Lone Star Funds has been suspected of omitting a significant document when it made a report to Korea’s financial regulator in March, an opposition lawmaker alleged.Rep. Lim Young-ho of the Liberty Forward Party said a unit of Lone Star owns 130 golf courses worth about 3.7 trillion won ($3.36 billion) in Japan, demanding regulatory sanction against the buyout fund.He called for the Financial

BOK report shows debts surpassed 800 trillion won for the first time in Q1 of the yearSnowballing household debts have emerged as a main factor undermining financial status of the middle- and low-income brackets of the local banking industry.According to the Bank of Korea, the nation’s household debts have surpassed 800 trillion won for the first time during the first quarter of the year.Outstandi

Board to discuss on eurozone woes possible extension of KEB takeover dealHana Financial Group plans to hold an emergency board meeting as early as this week to conclude the issue on whether to extend the expiry date of a takeover deal with U.S. Lone Star Funds.The initial contract between Hana and Lone Star to trade shares of Korea Exchange Bank expired on May 24 and they have all been entitled to

Total contribution expected to amount to 1.23 trillion wonA bad bank, which would specialize in absorbing bad loans held by financial companies, will be set up as early as this month, banking sources said Tuesday.“The bad bank may possibly be launched by the end of this month,” a bank official said. “But the launch could be delayed into next month due to the time needed to fine-tune terms of the b

Financial Services Commission Chairman Kim Seok-dong said it would not be easy to order U.S. Lone Star Funds to sell its stake in Korea Exchange Bank by directing “concrete” sale terms.His remarks are based on the assumption that the financial regulator will decide to issue a sanction of coercive stake sale against the Texas-based buyout fund, suspected of stock manipulation.“(Under the scenario o

Bidding competition for debt-saddled ailing savings banks in business suspension will be launched Tuesday, according to the Korea Deposit Insurance Corp.The state-run KDIC has decided to make a public notice for sale of the seven savings banks on Tuesday, aiming to select preferred bidders by July.In a bid to induce close competition and fast conclusion of deals, the government agency will lower t