Agency says consumer loan, M&A and foreign currency liquidity problems unlikely to ease soon Moody’s Investors Service on Monday highlighted several uncertainties in the local banking industry, saying that unfavorable factors could hamper banks’ long-term growth. Negative factors cited by the ratings agency included growing consumer loans, M&A issues and foreign currency liquidity. “A key cred...

A low birthrate and rapidly aging population is projected to pull South Korea’s economic growth rate from second place to ninth among Organization for Economic Cooperation and Development members by 2026. A report by the club of 34 major economies said the annual rate of growth in the South Korean economy will fall to 2.4 percent after 2026, a sharp downturn from its 6.2 percent expansion in 201...

The Korean stock market is forecast to maintain its upward momentum this week, but the growth pace may be slow due to lingering concerns about the global recovery, analysts said. The benchmark KOSPI wrapped up last week at 2,100.24, down 0.53 percent from a week earlier. The KOSPI lost ground earlier last week as weaker U.S. economic data and the eurozone debt crisis raised concerns about the g...

Top Korean firms see surge in foreign customers here The loan default rate of Korean The number of foreigners subscribed to insurance in Korea last year doubled from 2005, mainly due to relaxed application procedures and the rising number of international marriages, industry sources said Sunday. The number of foreigners who have subscribed to insurance offered by the country’s top three insuran...

Watchdog likely to suspend around three more savings banks Financial regulators plan to launch fresh investigations into 10 more savings banks that survived the probe earlier this year, brewing another round of major upheaval in the country’s scandal-ridden secondary banking sector. A taskforce of auditors from three state agencies ― Financial Supervisory Service, Financial Services Commission ...

Foreign investors have apparently been banned from participating in the coming bidding for Woori Financial Group, the nation’s largest financial company by assets. Financial Services Commission chairman Kim Seok-dong clarified Friday that the authorities will hand over the state-run financial group to a Korean bidder. His remarks came during the FSC’s report to the National Assembly on the fina...

South Korea's current account surplus rose to the highest level in four months in April as robust exports overshadowed an increase in dividend payouts by local firms to foreign investors, the central bank said Friday. The current account surplus reached US$1.88 billion in April, up from a revised $1.33 billion the previous month, according to the Bank of Korea (BOK). The current account is the b...

U.S. Lone Star Funds has been suspected of omitting a significant document when it made a report to Korea’s financial regulator in March, an opposition lawmaker alleged. Rep. Lim Young-ho of the Liberty Forward Party said a unit of Lone Star owns 130 golf courses worth about 3.7 trillion won ($3.36 billion) in Japan, demanding regulatory sanction against the buyout fund. He called for the Finan...

BOK report shows debts surpassed 800 trillion won for the first time in Q1 of the year Snowballing household debts have emerged as a main factor undermining financial status of the middle- and low-income brackets of the local banking industry. According to the Bank of Korea, the nation’s household debts have surpassed 800 trillion won for the first time during the first quarter of the year. Ou...

Korean stocks finished 1.26 percent lower on Wednesday as foreigners extended their selling amid concerns over Europe’s debt risks, analysts said. The local currency lost ground against the U.S. dollar. After starting higher, the benchmark Korea Composite Stock Price Index slumped 25.89 points to 2,035.87. Trading volume was moderate at 341.8 million shares worth 6.84 trillion won ($6.2 billion)...