With a new year stretching ahead, the chiefs of Korea’s top-tier banking groups underlined the urgent need to restore customers’ trust, defining the latest market situation as a “crisis.”While pointing to external factors such as slow economic growth and low interest rates, they also referred to disputed sales of derivatives-linked funds that led to extensive customer damages last year.“Shinhan should look beyond market ranking and aim for first class in the true se

Gearing up for the new year, South Korea’s top financial officials steeled themselves to face persistent external challenges and to spark new momentum for growth.Given the current trend toward low interest rates, which is likely to last for a while, policymakers vowed further efforts to steady the consequent overheating of the real estate market, saying this excessive liquidity needs to be diverted to innovative businesses.　“We need to maintain an easing monetary policy as the domest

The government on Monday expressed confidence that the South Korean economy will rebound in 2020, dispelling market concerns on the various growth forecasts.It also assessed that the latest mortgage loan restrictions have already been effective in reining in the overheated housing market. “I am confident that our economy may rebound next year and I am not just saying this out of personal sentiments or wishful thinking,” said Deputy Prime Minister and Finance Minister Hong Nam-ki, in

In line with its all-out efforts to revitalize the economy by any means in the upcoming year, South Korea will introduce a set of new tax rules to reinforce sanctions for delinquent taxpayers and expand tax reduction benefits for innovative small-sized businesses, the Ministry of Economy and Finance said Monday.In a pan-government policy brochure titled “Things to change in 2020,” the government listed key policy changes that will take shape in 2020, many of them slated to take effec

In line with its policy initiative to boost innovative growth, South Korea will expand administrative and financial benefits for small companies with source technology and banks that approve loans based on intangible intellectual assets, the country’s intellectual property office said Sunday.Starting Tuesday, the Korean Intellectual Property Office will offer a 50 percent discount on its annual IP fees for banks that hold collateral in the form of patents, utility model rights or design ri

Starting as early as mid-January, home buyers caught breaking the government’s real estate regulations will immediately have to redeem their mortgage loans, financial authorities said Sunday.The Financial Services Commission is working on an additional set of measures to restrain speculative buying sprees in the housing market, focusing on jeonse loan borrowers, officials said Sunday.Under the forthcoming rules, jeonse loan borrowers who purchase a residence priced over 900 million won ($7

The combined assets of the overseas subsidiaries of South Korean financial groups have expanded nearly 40 percent over the past three years, data showed Wednesday.According to data by the state-run Korea Deposit Insurance Corp., the total assets owned by overseas subsidiaries of South Korea’s major 10 financial groups tallied 61.6 trillion won ($529.2 billion) as of end-June.The list includes Shinhan Financial Group, Hana Financial Group, Woori Financial Group, KB Financial Group, JB Finan

Reflecting the slowing economy and prolonged low interest rates, investors here have increasingly turned their eyes to real estate, gold and overseas securities, South Korea’s stock market operator said Wednesday.Based on a survey of industry experts and media correspondents, the Korea Exchange selected its top 10 news stories about the domestic stock and derivative markets this year.A representative phenomenon was the soaring demand for real estate investment trusts, or REITs, led by the

The South Korean government on Tuesday vowed to further accelerate its fiscal spending next year, seeking to revitalize the economy following years of sluggish growth.The Ministry of Economy and Finance confirmed the fiscal allocation plan for 2020 at a Cabinet meeting under the chairmanship of Prime Minister Lee Nak-yon.Under the fiscal program, 71.4 percent of the annual expenditure or 305 trillion won ($262 billion) out of 414.1 trillion won has been allocated for the January-June period -- t

In order to carry forward financial innovation next year, it is crucial to induce market funds into innovative industries, instead of the oversupplied housing mortgage sector, according to the top financial regulator Monday.“The funds (in the domestic capital market) are excessively focused on household lending, which mostly comprise housing mortgage loans,” said Financial Services Commission Chairman Eun Sung-soo at a financial policy meeting held at the Korea Deposit Insurance Corp

South Korea’s largest automaker Hyundai Motor will present its new mobility road map at the annual Consumer Electronics Show 2020, the world’s largest consumer technology conference to be held in Las Vegas next month, officials said Friday.Releasing the teaser image of the human-centered mobility vision, the company envisioned the innovative mobility and consequent changes for dynamic future cities. The upcoming mobility vision comprises three key pillars, Urban Air Mobility, Purpose

The ownership transition of Grand Hyatt Seoul, a landmark hotel located in central Seoul, has successfully been completed, Hyatt Hotel Corp.’s exclusive real estate selling agent Jones Lang LaSalle said Friday.Acquiring the 41-year-old, five-star hotel building was a consortium led by Hong Kong-based investment firm PAG and Seoul-based Inmark Asset Management.The duo had been picked as the preferred bidder by Hyatt Hotel Corp. in August and signed a stock purchase agreement in October. Bui

Facing continuing external challenges and structural problems next year, South Korea vowed to add speed to innovation and investment, determined to edge its way out of prolonged slow growth.Pinning its hopes on a global economic uptrend, progress in US-China trade tensions and recovery of the chip business, the government forecast that Asia’s fourth-largest economy will achieve 2.4 percent growth next year, while its inflation will recover to around 1 percent, despite market skepticism.&ld

South Korea’s fifth-largest conglomerate Lotte Group was excluded from supervision by financial authorities, in line with its disposal of financial subsidiaries earlier this year, the Financial Services Commission said Wednesday.With this, the number of those subject to financial supervision came to six -- Samsung, Hyundai Motor, Hanwha, Kyobo Life Insurance, Mirae Asset Financial Group and DB Group.“The current regulations state that financial groups with assets of 5 trillion won ($

South Korea’s credit default risk fell below its 10-year low, following trade talk progress between the US and China and the latest result of the British election, the Ministry of Economy and Finance said Wednesday.The country’s credit default swap premium for foreign exchange stabilization bonds with a five-year maturity stood at 22.2 basis points as of Tuesday, marking the lowest since the 22.1 basis points observed on Oct. 15, 2007.While the United States and Japan respectively sa

Hyundai Card, a subsidiary of Hyundai Motor Group, has jointly launched an exclusive credit card with flag carrier Korean Air, officials said Tuesday.“Korean Air and Hyundai Card have launched a private label credit card (PLCC) and signed a partnership agreement. Hyundai Card will be in charge of marketing and operations,” the credit card firm said.PLCC refers to a credit card branded for a specific retailer, independent dealer or manufacturer. While partnership cards involve the com

Financial Services Commission Chairman Eun Sung-soo on Tuesday said that Korea will continue to face domestic and external uncertainties next year, pledging to add speed to the country’s drive for financial innovation.He also stood by the government’s latest and controversial real estate regulations, citing them as necessary steps to curb the country’s overheated housing market. “Domestic and external uncertainties are expected to prolong throughout next year and the low

In a surprise move on Monday, the South Korean government announced unprecedented real estate regulations to offset previous ones that have failed to curb rising housing prices.But as the newly introduced measures largely focus on loan restrictions, skepticism also mounted that the wealthy will continue their speculative buying in cash.The latest measures include a ban on mortgage loans for apartments priced 1.5 billion won ($1.28 million) or more, effective Wednesday. The real estate tax rate f

JB Financial Group has acquired a Vietnam-based brokerage owned by Morgan Stanley, in line with its recent moves to expand business in the Southeast Asian region, officials said Monday.The holding group of North Jeolla Province-based JB Jeonbuk Bank thereby became the first provincial banking group here to own a comprehensive overseas financial network comprising banking, capital and securities.A public announcement was made Monday that JB Financial had recently signed a sales and purchase agree

Following signs of a thaw in US-China trade tension, speculation is building that South Korea may slow its pace of monetary easing, in step with the growing possibility of a global economic upturn.Though the world’s top two economies face a bumpy road ahead, their latest reconciliatory move is expected to ease uncertainties -- especially for Asia’s fourth-largest economy, which is highly dependent on trade.After Washington and Beijing announced their phase one agreement Friday to red