Kim should have ordered U.S. fund to sell shares, watchdog official saysKim Seok-dong, the nation’s chief financial regulator, has once again come under public scrutiny for his allegedly irresponsible policy on U.S. Lone Star Funds, the biggest shareholder of Korea Exchange Bank.Following the vague stance he assumed on corruption scandals of regulatory staffers, for which he has yet to offer a det

High-ranking officials of the Financial Supervisory Service will likely be subject to a tougher code of conduct and may face dismissal if they fail to meet annual internal assessments, officials said Sunday. Currently, 12 FSS executives, three deputy governors and nine assistant deputy governors, are allowed to maintain their three-year term as long as they do not engage in criminality.“In the wak

Volkswagen AG’s Audi luxury-car brand will increase its workforce by 17 percent through 2020 as the manufacturer expands production beyond Germany to meet growing demand in markets such as China and the U.S.“We’re expecting further growth over the long term beyond 2015,” Chief Executive Officer Rupert Stadler said a speech to be delivered today at the annual shareholders meeting in Neckarsulm, Ger

Hyundai Motor may build a network of as many as 1,000 rural outlets and introduce a cheaper small car after losing market share to Ford Motor Co. and Volkswagen AG.“We are looking strongly at these markets and want to focus on growing our network there,” Arvind Saxena, the carmaker’s India director for sales and marketing, said in an interview yesterday in New Delhi. He declined to give a timefram

Kia Motors America announced that its first hybrid, the 2011 Optima Hybrid, will be priced at $26,500. The Optima Hybrid, with an expected rating of 35 miles per gallon in the city and 40 on the highway, goes on sale in June.The gas-electric Optima shares its hybrid system with the Hyundai Sonata, which surprisingly carries a lower MSRP of $25,800. The full range of Optima trim levels are priced b

In the 2012 model-year most Mercedes-Benz vehicles are equipped with a more fuel-efficient 7-speed automatic transmission and increased power from direct-injection gasoline engines. That includes a new turbo four-cylinder, a normally aspirated V6 and bi-turbo V8s ― some with ECO Stop/Start technology.Many 2012 models also feature a new viewscreen with a 5.8-inch color display, Bluetooth audio stre

Prosecutors have uncovered additional alleged ethical breaches by former and incumbent staff at the Financial Supervisory Service.The further allegations of corruption by FSS officials are adding to public criticism the regulatory body is facing for its irregularities in supervising savings banks.The alleged scandals mostly involve FSS staff overlooking illegitimate practices in the market in retu

Eight major commercial banks will next month purchase toxic loans totaling 1 trillion won ($923.6 million) issued to the construction sector as part of a bid from the nation’s financial regulators to minimize the negative impact of such loans on the market.Financial companies have issued loans to builders in the name of “project financing” over the past few years. But in the wake of the 2008 globa

Decision spurns speculation that Hana Financial-Lone Star deal may break downThe Financial Services Commission announced Thursday that it has decided to indefinitely delay its ruling on whether Lone Star Funds of the U.S. was eligible to buy Korea Exchange Bank in 2003.With the decision, speculation is rising in financial markets that the preliminary contract between Hana Financial Group and Lone

Central bank may be given right to inspect financial companiesThe nation’s financial market is focusing on the growing possibility that a proposed revision of the law on the Bank of Korea could pass the National Assembly this year.If the law on the BOK is revised, the central bank ― like the Financial Supervisory Service ― will be entitled to conduct independent inspections into financial companie

Hyundai Motor Co. is boosting its presence in the U.S. luxury sedan market with its Genesis and Equus vehicle grabbing influential shares of sales.The automaker saw its Genesis sedan capture more than 10 percent of the U.S. market in the mid-luxury class for the first time last month.According to Autodata Corp., sales of the Genesis came to 2,648 units in April, up 16.9 percent from a year earlier

A top government financial regulator on Monday expressed his concern about public criticism of the financial supervisory authorities following a series of scandals.Speaking at a meeting with reporters, Financial Services Commission Chairman Kim Seok-dong admitted his responsibility for the bribery scandals at the Financial Supervisory Service, an executive arm of the FSC.“I, as the chief regulator

Four major financial groups are expected to reap more than 10 trillion won ($9.3 billion) in combined net profit this year, mainly buoyed by revised accounting standards.The market is focusing on the growing feasibility of their all-time high earnings as they reported remarkable earnings during the first quarter.Profits posted by the four groups ― KB, Woori, Shinhan and Hana ― reached 2.6 trillion

The Prime Minister’s Office is set to unveil a road map to reforming the nation’s financial regulatory body, which has been tarnished by a series of corruption scandals involving its staff and distressed savings banks.The reform plan, to be unveiled this week, will aims to reestablish public confidence in the embattled Financial Supervisory Service, which has been harshly criticized for failing to

Expert says top regulator has bigger responsibility as decision-makerThe Financial Services Commission has remained silent about the recent woes of its executive arm ― the Financial Supervisory Service, which is facing tough public criticism due to irregularities.The irregularities include allegations that several FSS staffers took kickbacks from debt-ridden savings banks and the regulator’s failu

South Korea’s construction industry went through hard times last year despite a general boom in growth in other sectors, a report by the central bank showed Thursday.The woes were mainly due to the sluggish local real estate market that caused a general drop in houses being built across the country and led to a decrease in work. Such developments exerted negative influence on key numbers such as r

The total amount of loans offered to local credit card holders decreased in the first quarter compared to the last three months of 2010 as financial institutions and state regulators tightened oversight to prevent risks down the road, an industry report showed Thursday.The latest findings showed card loans provided by six dedicated cards, excluding BC Card, reached 5.45 trillion won ($5.07 billion

State-run bank focuses on diversifying funding sources by tapping niche marketsFor more than 40 years, the Korea Development Bank has built up a reputation as a core Korean bond issuer in the global capital market.The state-run bank was founded with a mandate to supply and manage major industrial capital to develop Korean industries and the economy.KDB bond has continued to perform a crucial role

Foreign ownership of stocks listed on the Korea Exchange has exceeded 400 trillion won ($373 billion) for the first time. The record figure comes four years after their holding reached 300 trillion won in May 2007.The Financial Supervisory Service said Wednesday that foreign investors’ holdings of local shares came to a record high of 412.5 trillion won at the end of April, up 17.1 trillion won fr

The Financial Supervisory Service on Wednesday decided to ban its staffers from taking senior posts at financial companies right after their retirement as a way to prevent corruption. The decision came as part of its sweeping reform measures following several incumbent FSS staffers’ wrongdoings.In its statement, the regulatory body said it would ban the habitual practice under which incumbent and