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Foreign reserves top $300 billion

May 3, 2011

Disputes over optimum level may resurfaceSouth Korea’s foreign exchange reserves have surpassed $300 billion for the first time, up more than 50 percent from 2008 global financial crisis.The Bank of Korea reported Tuesday that foreign reserves reached a new high of $307.2 billion at the end of April, up $8.58 billion from a month earlier.The amount also posted growth of 52.6 percent compared to $2
FSS, BOK probe more banks

May 3, 2011

Authorities look to stem risks from currency speculationThe nation’s financial regulator and the central bank said Tuesday they would increase the number of banks dealing with foreign currency trading, which would be subject to their ongoing joint probe.The period of their joint inquiry into the foreign exchange banks will also be extended, according to the Financial Supervisory Service and the Ba
Dollar falls below 1,070 won

May 2, 2011

Intervention effect may be minimal amid global trendThe won has been in a gaining spree in its value against the greenback, due to the U.S.’s cheap dollar-oriented policy as well as Korea’s increased trade surplus.The dollar closed at 1,065 won on Monday, down 6.5 won from a trading session earlier, posting the cheapest level since it slid to 1,062.5 won on Aug. 25, 2008.After being traded between
7 savings banks to be auctioned off

Apr 29, 2011

Regulators plan to select preferred bidders in JuneThe nation’s top financial watchdog decided Friday to put seven debt-saddled savings banks up for auction to find preferred bidders among bigger financial companies.“After conducting due diligence on them and launching the bidding process in May, we plan to pick preferred bidders in June,” the Financial Services Commission said in a statement.The
Won hits 32-month high

Apr 28, 2011

The dollar slid to 1,071.2 won on Thursday, posting its lowest level in 32 months against the Korean currency.The Korean currency’s value rose by 8.3 won from a day earlier, bringing it to its highest point since Aug. 22, 2008, when it stood at 1,062.5 won per dollar.Economists attributed the won’s rise in value to U.S. policymakers’ stance which hinted at easing ― or a wait-and-see approach towar
2012 budget plan aims to reduce fiscal deficit

Apr 28, 2011

Budget spending focused on investment in new growth enginesThe Ministry of Strategy and Finance on Thursday unveiled its policy to improve the nation’s fiscal soundness next year by slashing unnecessary expenditure.The government is aiming to minimize the 2012 fiscal deficit by curbing the growth of total expenditure, ministry officials said citing its report to the Cabinet meeting held earlier in
Buying power weakens despite GDP growth

Apr 27, 2011

By Kim Yon-seKorean consumers’ purchasing power has weakened on average even though the economy sustained its pace of growth during the first quarter, a Bank of Korea report showed Wednesday.The central bank said the country saw its growth rate of gross domestic product post 4.2 percent in the first quarter on a year-on-year basis and 1.4 percent on a quarter-to-quarter basis.But the gross domesti
Lone Star haunts FSC chief for 8 years

Apr 27, 2011

Ruling on Lone Star’s eligibility as KEB owner postponedThe Financial Services Commission decided to delay its ruling on the issue of Lone Star Funds’ eligibility as the majority shareholder of KEB.The decision marks a shift from its earlier stance to rule on whether the U.S. fund was a financial investor in 2003 in its scheduled panel meeting Wednesday.Though the issue has come into the spotlight
Banks agree to purchase bad loans

Apr 26, 2011

At regulator’s demand, commercial lenders to take over 400b won in bad debts from troubled savings banksSeveral commercial banks on Tuesday accepted the financial authorities’ proposal to absorb a large portion of the soured loans held by distressed savings banks.The situation is provoking debate over whether financial regulators have been intervening in the market legitimately.A meeting between F
Regulators troubled over Lone Star ruling

Apr 26, 2011

FSC approved fund’s buyout of KEB, but consensus is that decision was wrongThe long-standing issue involving U.S. Lone Star Funds is embarrassing financial regulators again this year.The Financial Services Commission and the Financial Supervisory Service have recently shown off regulatory power by taking urgent countermeasures against several accidents including cyber system breakdown and hacking
FSS admits savings bank info leak

Apr 25, 2011

The Financial Supervisory Service is facing allegations that it failed to prevent its internal information from being leaked concerning the regulatory policies on savings banks.Among the allegations are that several customers of Busan Savings Bank withdrew large deposits a day before regulators suspended operations of the distressed bank in February.It has been alleged that key staffers of Busan S
Soured construction loans threaten banks

Apr 25, 2011

Five major banks see overdue project finance loans hit W3.3trTroubled soured loans issued to the construction sector, which have already dealt serious blows to some savings banks, may also threaten the financial soundness of commercial banks.Savings banks saw defaults on their troubled construction-related financing loans ―known as PF loans ― sharply driven up by the property market slump that sta
30 groups see debts surge 51% in 3 years

Apr 24, 2011

Combined debts of Samsung, Hyundai Motor grow by 89 trillion wonThe nation’s 30 biggest business groups saw their combined debts snowball over the past three years, which could undermine their financial soundness, the Fair Trade Commission said on Sunday.According to the antitrust regulator, debts held by the top 30 groups came to 1.03 quadrillion won ($925 billion) as of March 2011, up 51.2 perce
Korea pledges additional $500,000 for Libyan refugees

DefenseApr 21, 2011

South Korea pledged an additional $500,000 to help refugees in and near strife-torn Libya, the foreign ministry said Thursday.The aid will bring Seoul's total assistance for Libyan refugees to $1 million, including $500,000 provided in March. The new assistance will be used via the International Organization for Migration and the United Nations High Commissioner for Refugees, the ministry said.Tho
Savings banks recoup W1tr every year in service fees

Apr 21, 2011

The nation’s savings banks have reaped more than 1 trillion won ($900 million) in service fees per annum over the past five years, a lawmaker revealed Thursday.Citing data gained from financial regulators, Rep. Bae Young-shik of the ruling Grand National Party unveiled the figure during a two-day parliamentary hearing on the Financial Services Commission and the Financial Supervisory Service on po