A new set of regulations for local banks is set to take effect Wednesday, with the aim of further slowing down the pace of South Korea’s household credit growth. The full-fledged enforcement comes after a grace period that began in March, during which commercial banks had to cap the volume of the high-risk retail loans they extended. Starting Wednesday, commercial banks are required to keep “highly risky loans” to individuals to no more than 10 percent of the volume of all hous

Market Oct. 30, 2018

Stock markets in South Korea continued to slide for a fourth consecutive trading day, setting a new low for 2018 yet again, amid persisting downward pressure on markets at home and abroad. Analysts noted the unhindered pace of monetary tightening in the United States, Korea’s sluggish economic growth prospect and an escalating trade war between the US and China bode ill for a momentum for a swift rebound in stock index performance and a turnaround from foreign investor outflow.  The t

Market Oct. 26, 2018

South Korean internet services provider Kakao confirmed Thursday its employees have created an in-house labor union that aims to challenge the company’s current wage system.Kakao marked the fourth information technology company in Korea to see an organization to represent workers’ rights, following Naver, Nexon and Smilegate. Prior to the launch, the union was affiliated with the Korean Chemistry & Textile Federation of Unions. (Kakao)“We respect the launch of the labor union and their activitie

Industry Oct. 25, 2018

This is the 62nd in a series of articles analyzing major companies traded on the tech-heavy Kosdaq market. -- Ed.There is growing anticipation for a turnaround in at Gamevil, a developer and publisher of mobile games, after the global market reacted positively to its recent releases and news of releases slated for the fourth quarter.On Friday, Gamevil’s stock price jumped sharply, closing 14.9 percent up from Thursday. Its market cap came to 361.4 billion won ($319.2 million), ranking 121s

Market Oct. 21, 2018

Stricter compliance regulations are to be adopted for financial institutions within the watchdog’s jurisdiction to enforce stricter internal control and prevent errors and fraud, according to the market watchdog Financial Supervisory Service.According to a preliminary set of measures unveiled Wednesday, at least 1 percent of the entire staff and executives in a financial institution should be assigned to compliance operations, while compliance officers must be executives of the company wit

Market Oct. 17, 2018

The Korea Herald is publishing a series of interviews on promising startups in the financial technology industry. This is the 23rd installment. -- Ed.For about a decade before Chung Woo-young founded mobile biometrics developer startup Winningi in 2015, he was a forensic technician who worked for the National Police Agency in South Korea. He was engaged in the nation’s project to collect and manage some 56 million fingerprint records of residents in the nation with a population of 51.2 mil

Market Oct. 16, 2018

Facing a wave of mobile-first digital transformation, traditional media contents like recorded video, comic books and studio albums give way to live-streaming video services, webtoons and digital songs. Southeast Asian countries are no exceptions from such digital transformations, both posing challenges and heralding new opportunities to Korean business entities, Lee Sung-min, research associate at the state-led Korea Culture and Tourism Institute, told audience at a business forum hosted by The

Industry Oct. 16, 2018

South Korea’s stock markets were routed Thursday following a plunge in stocks at Wall Street amid surfacing doubts about current tech stock valuations in the United States and fears on lingering US-China trade war threats.Analysts said the market correction in the US triggered a ripple effect on Korean stock markets along with other Asian stocks, drawing concerns about what they call “the biggest external market risk.”Both the top-tier Kospi and the second-tier Kosdaq suffered

Market Oct. 11, 2018

President of Estonia Kersti Kaljulaid said Wednesday its e-Residency program has the potential to expedite Korean business entry into the European Union by encouraging applications for the nation’s program that offers foreigners a digitally encrypted and protected identification system.E-Residency refers to a digital identification system that involves blockchain technology without the use of cryptocurrency, so people in and out of Estonia can apply for it regardless of citizenship or location.

Technology Oct. 10, 2018

The South Korean startup 8Percent, dedicated to peer-to-peer financing to individuals and small-sized business owners, announced Wednesday it had drawn a combined 6 billion won ($5.3 million) in investments from three venture capital firms. The investments will be used to develop new credit analysis models, advance banking system and improve the profitability of lenders -- or investors into notes of borrowers -- the company said. One of the venture capital firms involved was DSC Investment, whil

Market Oct. 10, 2018

Ever since the decision two years ago to delay the closing time of the nation’s securities market by 30 minutes, market authorities and labor activists have been in a heated debate, with unions saying the extended trading hours place an undue burden on employees without conferring significant benefits in terms of transaction volume. The issue is to take center stage at this week’s National Assembly audit, with Korea Exchange Chairman Jung Ji-won having been called as witness to

Market Oct. 9, 2018

Woori Bank, South Korea‘s fourth-largest commercial bank by assets, said Monday it has created an office in Singapore to streamline loan evaluation of offshore units across Asia. The office, dubbed “Asia Credit Analysis & Approval Debt Center” is designed to “improve loan approval (of offshore units) and expedite the decision-making process” of corporations in China, Vietnam and Indonesia, as well as branches in Hong Kong, India and Middle East nations, the bank

Market Oct. 8, 2018

South Korea’s peer-to-peer financing startup Lendit said Thursday that it plans to allow investors and borrowers to trade notes that are not mature by establishing an online secondary market. P2P financing refers to a loan crowdsourced from investors seeking midrange interest rates, between 5 and 10 percent per year. The interest comes from borrowers’ debt servicing. Korea is home to 175 P2P financing platforms licensed as of end-August.The new system, dubbed the “Lendit Market

Market Oct. 4, 2018

PHRA NAKHON SI AYUTTHAYA, Thailand -- Before a brutal Burmese invasion in the late 18th century, the city of Ayutthaya, the second capital of the Siamese Kingdom for four centuries, was a grand Buddhist city where international trade and art prospered. Its population rivaled that of contemporary London or Paris in its prime.  A large stone Buddha statue and headless statues sit in front of a prang in Wat Mahathat. (Son Ji-hyoung/The Korea Herald)Buddhist temples and royal relics were strewn acro

Travel Oct. 4, 2018

South Korea’s financial authorities are reinforcing regulations to dissuade homeowners in Seoul from taking out loans to purchase additional residences, part of ongoing efforts to bring housing prices under control and subdue household debt. The Financial Services Commission recently revised its banking oversight regulations, which now restrict anyone who owns a home in the Seoul metropolitan area from taking on additional mortgages, officials said Wednesday.The new restrictions on lending

Market Oct. 3, 2018