The Korea Herald

Kim Yon-se

안녕하세요 Kim Yon-se 기자입니다.

Articles by Kim Yon-se

KOSPI breaks 2,000 for 1st time in three months

Sept 11, 2013

The Korea Composite Stock Price Index exceeded the 2,000 mark on Wednesday, marking the first time since May 30, bouyed by foreigners’ continuous net buying. The benchmark KOSPI closed at 2,003.85 on the Korea Exchange, up 9.79 points or 0.49 percent from the previous session.Foreigners net purchased the local equities worth 676.6 billion won ($616 million), maintaining their net buying spree for the 14th consecutive trading session since Aug. 23. Samsung Electronics rose 0.43 percent to surpass
FSS probes plunge in KB Financial shares

Sept 10, 2013

Financial regulators on Tuesday launched their investigation into KB Financial Group shares, which plummeted during the trading session following some unidentified investors’ bulk “sell” orders through a foreign brokerage house earlier in the day.While some observers said they regarded the KB Financial stocks’ fluctuation as a securities firm making a simple mistake in issuing the order, the Financial Supervisory Service decided to look into the allegation of attempted price-rigging.After the Ko
3 foreign IBs scrutinized over sales of derivatives

Sept 9, 2013

The Financial Supervisory Service said Monday that it had launched an inquiry into suspicions of irregular business practices involving several foreign investment banks operating in Korea.The foreign banks include the local units of New York-based Goldman Sachs, Zurich-based Credit Suisse and Edinburgh-based Royal Bank of Scotland, according to the financial regulator.While the main investigation target of the FSS involves the three banks’ sales of financial derivatives in Korea, market insiders
SK E&C warned for deferred payment to suppliers

Sept 6, 2013

The Fair Trade Commission said Friday that it issued a warning against SK E&C for unfair deals with eight subcontractors.The conglomerate-based builder was found to have paid the small and mid-sized enterprises parts-supply costs far later than the legal due dates, according to the antitrust regulator.An FTC official said some of the eight suppliers were paid 437 days past the deadline.“As a government agency ― for its construction order ― raised its total payment to SK E&C in reflection of the
Money transfers to tax havens surge

Sept 6, 2013

Korean companies and individuals were found to have continued to increase their money remittance to overseas tax havens over the past few years.According to the Bank of Korea and data from the financial investment industry, their money transfers to tax havens including countries in the Caribbean have nearly doubled since the 2008 financial crisis.The annual figure, which stood at $212.2 billion (254.3 trillion won) in 2009, climbed to $324.2 billion in 2010, $385.7 billion in 2011 and $413.9 in
DP lawmakers propose tax hikes for the rich

Sept 5, 2013

Debates on whether to raise incomes taxes on the wealthy will likely be heated between ruling and opposition lawmakers during the September plenary session of the National Assembly.While the governing Saenuri Party had taken a skeptical stance over demands to increase the tax burden on the high-income bracket, opposition lawmakers have revived the issue.Along with the opening of the plenary session, 10 lawmakers of the main opposition Democratic Party proposed a motion to raise the upper ceiling
Three chaebol fined for violating disclosure rules

Sept 4, 2013

The Fair Trade Commission on Wednesday imposed fines of 665 million won ($578,000) in total on three conglomerates for breaching the disclosure rules on intra-group deals.Between April 2010 and March 2013, 17 out of the 38 business units of Lotte, POSCO and Hyundai Heavy Industries engaged in the irregular intra-group trading, said the antitrust regulator.The FTC revealed 25 violations by the 17 companies. As the cases involve “not publicizing” or “delaying disclosure,” allegations could be rais
KDB leads policy-funding to SMEs

Sept 4, 2013

The state-run Korea Development Bank said it has unveiled a road map to foster competitive small and mid-sized enterprises under its policy to support the Park Geun-hye administration’s vision of “creative economy.” As the first step, the flagship unit of the KDB Financial Group held a conference on “creative finance,” specializing in one-stop services, in collaboration with the Korea Federation of Small and Medium Business in Seoul on Wednesday.While some 480 SMEs and venture start-ups particip
ING Life fined for over-purchasing bonds

Sept 4, 2013

The Financial Supervisory Service said on Wednesday that it has slapped the Korean life insurance unit of Netherlands-based ING Group with fines of 452 million won ($393,000) for breaching an insurance business law.ING Life was found to have over-purchased bonds issued by four companies including Korean Air between October 2010 and February 2012, thereby violating the law banning an insurer from owning too many bonds issued by a particular company.The FSS said the company formerly held bonds abo
POSCO placed under full-scale tax probe

Sept 3, 2013

The National Tax Service on Tuesday launched its investigation into POSCO by dispatching a group of inspectors to the steel producer’s headquarters in southern Seoul.The state tax inspectors also raided POSCO’s two steel mills in Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province.Without offering a prior notice on their visit, the inspectors reportedly secured the company’s financial statements and computer hard disks in executives’ offices.As the company was subject to peri
Chaebol welfare foundations hold W4tr stocks in affiliates

Sept 2, 2013

Scholarship or welfare foundations of the nation’s 10 major business groups were found to hold shares worth more than 4 trillion won ($3.5 billion) in their commercial affiliates such as Samsung Electronics and Hyundai Motor.Data compiled by Chaebul.com, which tracks conglomerate-related information, showed Monday that 19 nonprofit foundations, controlled by the 10 conglomerates, collectively own stocks totaling 4.72 trillion won in their profit-making sister firms as of Aug. 29.While the organi
7 of top 10 conglomerates see earnings fall in H1

Sept 1, 2013

Seven of the 10 biggest business groups in Korea saw a contraction in profits or widening losses in the first half on a year-on-year basis, apparently hit by weaker price competitiveness in exports due to the cheap Japanese currency.According to the Korea Listed Companies Association, 79 publicly traded units owned by the 10 major conglomerates saw their collective operating profit come to 24.3 trillion won ($21.1 billion) during the first half, down 4.1 percent from 25.3 trillion won in the sam
Stock issuances hit lowest since ’09 crisis

Sept 1, 2013

Korean companies’ stock issuances fell to their lowest level since the 2008-09 global financial crisis during the first half, signaling sluggish corporate fund-raising in the securities market.According to the World Federation of Exchanges and Korea’s financial investment industry, the corporate initial public offerings were valued at $228 million in the local stock market for the first six months of the year.The IPOs accounted for only 0.02 percent of the combined market capitalization worth $1
Senior tax officials banned from dining, golfing with conglomerate executives

Aug 29, 2013

The National Tax Service announced Thursday that it would bar its senior officials from playing golf or dining out with executives of large businesses, starting later this year.Following a series of corruption scandals, tax authorities issued the ban on high-profile NTS officials on privately meeting with CEOs, executives and tax advisers of the nation’s 100 major conglomerates.The senior tax investigators that will be subject to the prohibition include officials holding positions of director ge
Tongyang Securities’ ‘wrap’ account ...outperforms KOSPI

Aug 29, 2013

Tongyang Securities’ new investment product is gaining popularity as it ensures stable profitability despite low interest rates and ongoing volatility in the market.In June, the brokerage house launched the “My W New Dividend Plus Wrap” account, which is designed to seek dual returns ― stock gains and dividend earnings ― via direct investment in equities on the Korea Exchange.The noteworthy point is that the wrap account is mostly being invested in “stocks guaranteeing high dividend payouts” to