The Korea Herald

Kim Yon-se

안녕하세요 Kim Yon-se 기자입니다.

Articles by Kim Yon-se

Seoul on watch for yen carry trade resurgence

May 14, 2013

Korea’s financial regulator and central bank are bolstering their monitoring of the foreign exchange market ― investments from funds raised in Japan in particular ― amid the feasibility of sparking the so-called “yen carry trade.”Taking advantage of Japan’s low interest rates and cheap currency, more and more investors are borrowing the yen from Japanese banks either to use the loans as capital or to invest in Korean stocks and other assets.“Though the current impact on the local market is minim
STX Corp. garners creditors’ bailout

May 14, 2013

STX Corp. averted default as its creditors on Tuesday agreed to provide the financially distressed company with bailout funds totaling 300 billion won ($270 million).The 300 billion won is composed of funding for the 200 billion-won-worth corporate bonds issued by STX Corp., which matured on Tuesday, and 100 billion won in emergency relief funds, said its main creditor Korea Development Bank.Over the past week, the state-run KDB and other creditors have been in a series of heated discussions whe
Coming Woori chief to lead group sale

May 12, 2013

Financial regulators recently conducted close inquiries into the eligibility of several candidates for the next chairmanship of the state-funded Woori Financial Group “in terms of policy direction code,” market insiders said Sunday.Regulatory officials also admitted that a significant requirement for the position was a commitment to privatize the 12 trillion won-injected financial group during his or her tenure.While several candidates are vying for the Woori chairmanship, an official of the Fin
Banks’ household lending surges again

May 12, 2013

Commercial banks saw their outstanding loans extended to the household sector snowball about 1 trillion won ($909 million) in April from a month earlier, data from the Financial Supervisory Service showed Sunday.After falling 3.4 trillion won in January and 1.5 trillion won in February, the combined lending balance in the banking sector started to climb again from March, when the loans increased by 100 billion won on a monthly basis.In April, the banks’ outstanding loans came to 460.6 trillion w
FSS monitors lenders over unfair practices

May 9, 2013

Financial regulators are set to crack down on irregular business practices committed by financial service companies to help prevent consumers from being bullied.The supervisory policy toward enhanced consumer protection comes after angry citizens recently criticized an employee of Namyang Dairy Products for verbally abusing a wholesaler in the manufacturing sector.The irregular practices in the financial sector include commercial banks allegedly demanding unreasonable conditions in loan issuance
Woongjin chief faces probe for unfair trading

May 8, 2013

The nation’s securities regulator said Wednesday that it had filed a complaint against Woongjin Group chairman Yoon Seok-keum with the prosecution on charges of attracting investment while concealing its poor financial status.Though Woongjin Group had lost its ability to pay back its debt in the aftermath of a credit rating downgrade, Yoon raised funds by issuing commercial paper worth 100 billion won ($91 million) from July to August 2012, said the Securities and Futures Commission.According to
KB hosts forum of Asian financial leaders

May 8, 2013

A two-day annual conference of financial leaders in Asia will be held in Seoul on Thursday on the auspices of KB Financial Group.KB Financial said Wednesday that it invited 116 chief executives and senior regulatory officials for the 2013 Institute of International Finance Asia CEO Summit, slated for May 9-10 at the Westin Chosun Hotel in downtown Seoul.Following the Bangkok meeting a year before, the annual gathering in Seoul will cover three major agenda ― Asia & the World, Asian Financial Sys
Loss-making public firms pay chiefs W3b in bonuses

May 8, 2013

Chiefs of the nation’s loss-generating public agencies raked in performance-based benefits worth about 3 billion won ($2.7 million) in total last year.According to financial info provider Alio, CEOs of 104 state-funded agencies that failed to log a net profit in 2012 received a combined 2.98 billion won in bonuses.The state-run companies that posted net losses or reaped zero net profit included Korea Finance Corp., Korea Deposit Insurance Corp., Korea Credit Guarantee Fund, Korea Electric Power
Korea, U.S. to strengthen energy cooperation under FTA

IndustryMay 7, 2013

South Korea and the United States plan to sign a pact on close collaboration in the energy sector this week, officials at the Ministry of Trade, Industry and Energy said Tuesday.On the sidelines of President Park Geun-hye’s summit diplomacy in the United States, Korea’s Trade, Industry and Energy Minister Yoon Sang-jick will make a joint declaration on mutual aid on energy development with his counterpart later this week, according to the ministry officials.While the new secretary nominee for U.
China names yuan convertibility plan among goals

World BusinessMay 6, 2013

China will this year put forward a plan for allowing yuan capital-account convertibility as part of measures to loosen control over its currency and interest rates, the nation’s cabinet said.The yuan plan will also include creating a mechanism that allows investments overseas by individuals, the State Council said in a statement today after a meeting led by Premier Li Keqiang on the focus of economic reforms in 2013.Other measures include improving controls on risks from local government debt, e
Italy's ex-premier Giulio Andreotti dies at 94

World NewsMay 6, 2013

Giulio Andreotti personified the nation he helped shape, the good and the bad. One of Italy's most important postwar figures, he helped draft the country's constitution after World War II, served seven times as premier and spent 60 years in Parliament. But the Christian Democrat who was friends with popes and cardinals was also a controversial figure who survived corruption scandals and allegations of aiding the Mafia: Andreotti was accused of exchanging a “kiss of honor” with the mob's longtime
Israel raids killed at least 15 soldiers

World NewsMay 6, 2013

Israeli raids on Syrian targets at the weekend killed at least 15 soldiers, a watchdog said Monday, as UN chief Ban Ki-moon led calls for restraint to prevent the war spilling over borders.UN human rights investigator Carla del Ponte, meanwhile, said that rebels have used the deadly nerve agent sarin in their fight to oust Syria's regime."At least 15 soldiers were killed, and dozens more are missing" after the Israeli strikes near Damascus, said Rami Abdel Rahman of the Syrian Observatory for Hu
STX creditors likely to agree on rescue plan

May 6, 2013

Creditors of STX Group tentatively reached a consensus that they will give their “qualified” consent to bailing out ailing units of the shipbuilding giant, the state-run Korea Development Bank said Monday.The main creditor KDB and others held a meeting to discuss whether to accept the proposal from the business group over joint management of several units by creditor banks.Their qualified consent means that the creditors are seeking to inject emergency relief funds into the debt-saddled STX Grou
Financial firms set W700b in Gaeseong relief fund

May 3, 2013

Financial companies will offer bailout funds worth 700 billion won ($636 million) to the 123 financially troubled South Korean companies operating in the suspended Gaeseong industrial complex in North Korea, financial regulators said Friday.Their emergency relief loans, aimed at preventing the firms from experiencing a liquidity crisis, were fostered after the North suspended operations of the complex by pulling out most of its 53,000 workers about a month ago in protest against a joint military
4 STX units apply for creditors’ management

May 3, 2013

STX Group has applied for joint management of its four financially distressed subsidiaries by creditor banks, the state-run Korea Development Bank said Friday.The main creditor KDB also said STX Group is considering selling two units of STX Europe ― STX France and STX Finland ― as part of efforts to improve the group’s overall financial soundness.The shipbuilding conglomerate’s application for creditors’ comanagement is seen as a desperate effort to overcome the financial crisis facing STX Heavy