Korea's fiscal spending on SOC projects creates more jobs in Q1: gov't

South Korea increased fiscal spending on infrastructure-building projects in the first three months of the year contributed to the creation of more jobs, the finance ministry here said Friday.The government spent 14.9 trillion won carrying out social overhead capital projects in the January-March period, up 200 million won from its earlier plan, according to the Ministry of Strategy and Finance. The move aimed to expand the state's role in leading economic recovery for Asia's fourth largest econ

April 21, 2017

Banks urged to play 'responsible role' in normalizing Daewoo Shipbuilding

South Korea's top financial regulator on Friday called for heads of banks to play a "responsible role" in normalizing Daewoo Shipbuilding & Marine Engineering Co., as the bailout plan for the troubled shipbuilder was cleared by its stakeholders. Zhin Woong-seob, governor of the Financial Supervisory Service, also asked banks not to aggressively collect debt from shipbuilders and their subcontractors, given their financial strains over a downturn in the shipbuilding industry. I

April 21, 2017

Korean shares open higher on US gains

South Korean stocks opened higher Friday, tracking gains on Wall Street and ahead of major companies' first-quarter earnings reports. The Korean won rose against the US dollar.The benchmark Korea Composite Stock Price Index gained 12.45 points, or 0.58 percent, to 2,161.60 in the first 15 minutes of trading.The Dow Jones Industrial Average rose 0.85 percent on strong corporate earnings results, with the tech-heavy NASDAQ gaining 0.92 percent. Foreign and institutional investors increased their s

April 21, 2017

KB Financial Group’s net profit soars nearly 60% in Q1 on-year

KB Financial Group, the second-largest banking group in net assets, posted 870.1 billion won ($763.7 million) of net profit in the first quarter, a 59.7 percent rise on-year, according to the group’s earnings report Thursday. The net profit of the holding company, which operates financial units including Kookmin Bank, the second-largest commercial lender in market cap, skyrocketed 91.7 percent compared to the previous quarter, the report indicated Thursday Kookmin Bank in the first quarter

April 20, 2017

FSC to ease rules for debt-to-equity swaps

The Financial Services Commission of Korea announced Thursday it would ease regulations for lenders in streamlining the debt restructuring of financially troubled firms. By revising the enforcement ordinance of the Financial Holding Companies Act, lenders will be more easily able to exclude debt-ridden firms under their receiverships from their subsidiaries in the process of converting debt into equity.Currently, a lender, upon becoming the biggest financer of a debt-ridden company subject to re

April 20, 2017

Seoul stocks end higher on institutional buying

South Korean stocks closed higher Thursday as institutions scooped up stocks on bargain hunting. The won rose against the dollar. The benchmark Korea Composite Stock Price Index rose 10.75 points, or 0.50 percent, to close at 2,149.15. Trade volume was moderate at 262.01 million shares worth 4.91 trillion won ($4.3 billion), with gainers outnumbering losers 445 to 329.Institutional and foreign investors bought a combined 296 billion won worth of shares, offsetting 274.81 billion won in net sell-

April 20, 2017

Shinhan’s net profit surges 29 percent in Q1

Shinhan Financial Group said its net profit rose to 997.1 billion won in the first quarter this year, a 29 percent gain from a year earlier, mainly due to improved net interest margins and reduced general and administrative expenses.The nation’s largest financials having banking, credit card, insurance and other financial units said its first-quarter net profit this year was the largest since the establishment of the holding company in 2001.“While banking and non-banking affiliates i

April 20, 2017

Korea to support vulnerable borrowers

South Korea’s financial regulator said Thursday it planned to allow borrowers who cannot repay debts due to a job loss or the death of a relative, to suspend the repayment of the principal for up to three years.The Financial Services Commission announced a set of measures to help alleviate the debt burdens of vulnerable households after releasing new data on household debt. The growth of household debt slowed in the first quarter after quickly rising 11.7 percent on-year in 2016. Household

April 20, 2017

Daewoo Shipbuilding files for debt restructuring

Daewoo Shipbuilding & Marine Engineering filed a petition with the Changwon District Court on Thursday, seeking approval for its 2.9 trillion won ($2.5 billion) bailout plan. If DSME’s mass debt-restructuring proposal is approved, the cash-strapped shipbuilding firm will receive 2.9 trillion won in liquidity from its major creditors, including the Korea Development Bank and the Export-Import Bank of Korea. Upon the court’s approval, there will be a weeklong window for bondholders

April 20, 2017

BOK launches pilot program to achieve coinless Korea

The Bank of Korea on Thursday launched a pilot program with major distribution giants to push forward its long-term goal of creating a coinless society in Korea by 2020.By partnering convenience store chains, department stores and supermarkets nationwide, the BOK is encouraging consumers to use their change from purchases for electronic prepayments. Participating store operators include CU, 7-Eleven, With Me, E-mart and Lotte Mart.For instance, the change that results from a purchase at a CU sto

April 20, 2017

Dollar-won volatility widens in Q1

The volatility in the dollar-won exchange rates slightly increased in the first quarter from the previous three-month period as the US greenback weakened this year, central bank data showed Thursday.The average daily variation, showing the change from the previous session's closing price, came to 5.7 won in the January-March period, up from 4.9 won in the previous quarter, according to the Bank of Korea.The increased fluctuation in the dollar-won exchange rates came as the dollar has weakened si

April 20, 2017

Korean shares turn higher in late morning trade

South Korean stocks turned higher late Wednesday as foreigners and institutions went bargain hunting.The won fell against the US dollar.  The benchmark Korea Composite Stock Price Index advanced 8.75 points, or 0.41 percent, to 2,147.15 as of 11:20 a.m.Foreign and institutional investors bought a combined 114.84 billion won ($100.56 million) worth of stocks, while individuals sold stocks valued at 108.99 billion won, keeping the KOSPI from rebounding further.  The KOSPI ended in negati

April 20, 2017

China Ocean Resources on verge of being dropped from Korean stock market

China Ocean Resources Co., a Hong Kong-based deep-sea fisheries company, is on the verge of being delisted from the South Korean stock market due to its false financial disclosures. If China Ocean Resources is dropped, it will become the latest Chinese firm that is booted from the local bourse after grappling with lower valuations and a lack of investor confidence.A total of 22 Chinese companies were allowed to trade their shares on the Korean stock market since 2007, but seven Chinese firms hav

April 20, 2017

Korean shares open lower on US losses

South Korean stocks opened lower Thursday, tracking losses on Wall Street, ahead of major companies' first-quarter earnings releases. The Korean won fell against the US dollar.The benchmark Korea Composite Stock Price Index shed 1.65 points, or 0.08 percent, to 2,136.75 in the first 15 minutes of trading.Investors took to the sidelines as major companies such as Samsung Electronics and Hyundai Motor are set to announce their first-quarter earnings results later this month, analysts said.  T

April 20, 2017

Seoul stocks end lower on US slump, foreign selling

South Korean stocks closed lower Wednesday as foreigners offloaded stocks on profit-taking in the face of overnight losses on Wall Street. The won rose against the dollar. The benchmark Korea Composite Stock Price Index rose 10.06 points, or 0.47 percent, to close at 2,138.40. Trade volume was moderate at 337.71 million shares worth 4.71 trillion won ($4.1 billion), with decliners outnumbering advancers 412 to 376.Foreign investors sold 238.11 billion won worth of shares, offsetting net purchase

April 19, 2017

Tightened acquisition rules eyed for savings banks

South Korea's financial watchdog on Wednesday unveiled a set of new regulations on the acquisition of a savings bank by a consumer credit service company in a bid to improve transparency.Under the new rules, a consumer credit service firm is required to present a plan to shut down its retail lending business if it applies to acquire a savings bank in South Korea, according to the Financial Supervisory Service.The new rules also ban a major shareholder from owning a majority stake in more than th

April 19, 2017

Samsung to build $480m PEF for infrastructure

South Korean investment firm Samsung Asset Management announced Wednesday that it would build a $480 million worth private equity designed to fund infrastructure, by teaming up with the Australian investment company IFM Investors. The fund is slated to be earmarked by four Korean institutional investors, but a target for injection has yet to be chosen, according to the deal sealed in Seoul on Wednesday. The Seoul-based investment arm under the nation’s largest conglomerate will m

April 19, 2017

Woori Bank's Q1 net up 44% on decreased provisions

Woori Bank, a major South Korean commercial lender, said Wednesday its first-quarter net profit shot up 43.8 percent from a year earlier due mainly to decreased loan-loss provisions.Net profit jumped to 637.5 billion won ($559 million) in the January-March period on a consolidated basis, compared with 443.3 billion won a year earlier, the lender said in a statement.The bank attributed the rise in net profit to decreased loan-loss provisions, increased noninterest income, and a cut in costs throu

April 19, 2017

Korean shares widen losses in late morning trade

South Korean stocks widened losses in late Wednesday trading as foreigners and institutions offloaded stocks. The won rose against the US dollar.  The benchmark Korea Composite Stock Price Index dropped 10.58 points, or 0.49 percent, to 2,137.88 as of 11:20 a.m.Foreign and institutional investors offloaded a combined 60 billion won ($52.7 million) worth of stocks on profit-taking.Individuals bought stocks valued at 62 billion won, keeping the KOSPI from falling further.  The KOSPI ende

April 19, 2017

Top accounting firms dominating corporate clientele

Accounting firms are in sharp contrast in the scale and number of their corporate clients, with the top four in the field sweeping up half of the listed companies, a state portal said Wednesday.According to securities information portal SEIBro, operated by the Korea Securities Depository, 108 accounting companies are handling 1,898 companies, averaging 17.6 corporate clients per firm. The industry's top four, however, were dominant with 50.1 percent of the clients. Samil PricewaterhouseCoopers w

April 19, 2017