Several insurance firms, such as ING Life and Tongyang Life, will likely be auctioned off this year.Netherlands-based ING recently clarified its business policy to sell its insurance operations in the Asia-Pacific region, citing global economic uncertainties.Market observers state the possibility that the Korean life insurance unit may also be included in the group’s sale target.As ING Life holds the position of fifth or sixth in the local market, heated competition is expected if it is put up f

Nearly half of all South Korean financial firms are expecting weaker performances in 2012 primarily due to the global economic slowdown and rising household debt, a poll showed Sunday.The survey on 250 financial firms by the Korea Chamber of Commerce and Industry showed 48.8 percent of the respondents saying they are bracing for lower results compared to 2011, with 26.8 percent forecasting conditions would remain unchanged from the year before. Regarding companies that held pessimistic views, 2.

South Korea’s exports grew nearly 20 percent in 2011 from a year earlier, primarily driven by robust sales of ships, vehicles and oil-related products, customs data showed Sunday.Exports came to a record high of $556.5 billion last year, up 19.3 percent from $466.4 billion a year earlier, according to the data by the Korea Customs Service. It made South Korea the world’s seventh-largest exporter for a second year.Imports also grew 23.3 percent on-year to $524.4 billion, bringing the nation’s ann

Foreign investment banks have warned that domestic banks could see their loan delinquency rates rise this year due to the increased possibility of household defaults on their debts, data showed Sunday.Bank of America, Merrill Lynch and other major global IBs expect the uptrend in South Korean banks’ loan delinquency rate, which started during the second half of last year, to gain further ground this year, according to data by the Korea Center for International Finance.The overall delinquency rat

The Export-Import Bank of Korea has unveiled its policy to increase its investment in developing natural resources in overseas markets by 900 billion won ($789 million) this year.The state-run bank will pour 2.8 trillion won into enterprises’ exploitation of overseas natural resources in 2012, its chairman and president Kim Yong-hwan told a news conference on Thursday.The figure for the project is a sharp increase from the bank’s investment of 1.9 trillion won in 2011.“European banks are expecte

Pandit may meet with regulatory officials to discuss investmentCitigroup Inc. chief executive Vikram Pandit plans to visit Seoul early next month as part of the global investment bank’s expansion policy in Asia, a source said Thursday. “On the occasion of the U.S.-based financial group’s 200th anniversary of its foundation, CEO Pandit will pay a visit to Korea and several other Asian countries in early February,” the source said.While his coming trip is seemingly focused on the group’s expanding

Hana Financial Group president & CEO Kim Jong-yeol expressed his intent to resign on Wednesday, even though his term was not to expire until the end of February.The sudden resignation of the group’s No. 2 figure is drawing interest as the financial group has been striving to acquire Korea Exchange Bank from Lone Star Funds.Kim was quoted by a news provider as saying that he “does not want to be a hurdle for the realization of the KEB takeover deal.”There is a possibility that the relations betwe

Korea’s financial aid to underdeveloped and developing countries has surpassed $1 billion per annum.The Export-Import Bank of Korea said Wednesday that the yearly amount of “official development assistance” has reached $1.17 billion.This means each Korean offered an average of 27,730 won to underdeveloped and developing countries, according to the state-run bank.Asia was the main target of the ODA, accounting for 65.2 percent, followed by Africa with 15.5 percent, and South & Central America wit

Life insurance companies reported poor performances in their stock investments through equity-linked insurance products.Equity-linked insurance products, also known as variable insurance, invest part of customers’ premiums in the stock market.According to the Korea Life Insurance Association, life insurance firms posted -12.87 percent in combined rate of return in their stock investments through the variable insurance products last year.The figure is lower than the KOSPI’s year-on-year drop of 1

Woori Financial Group has been pushing for takeover deals in three overseas markets simultaneously, its chairman Lee Pal-seung told reporters Tuesday.“We have been in mergers and acquisitions talks in two regions (countries) in Southeast Asia. One of the two negotiations has seen good progress,” he said.He added that Woori Financial is also carrying out merger talks with a financial company in a country linking Asia and Europe.Group executives had said they were considering increasing the compan

Hyundai edges out Ford, Volkswagen for North American Car of the YearHyundai Motor’s Avante, dubbed the Elantra in overseas markets, has been named the 2012 North American Car of the Year.The winner was confirmed at the North American International Auto Show in Detroit after the compact sedan polled the highest number among a group of 50 motoring journalists from the U.S. and Canada. The Avante has been in a tight race with its fellow finalists ― the Volkswagen Passat and the Ford Motor Focus. T

Local firms’ cross-border takeover deals surge in value 51-fold in 5 yearsKorea has become the 10th-largest acquirer in the cross-border mergers and acquisitions markets, overtaking Germany and France.According to data of the Korea Capital Market Institute, Korean companies’ takeover of foreign players in the M&A markets was equivalent to $11.2 billion (12.7 trillion won) in combined asset value for the first 10 months of 2011.In 2010, Korean firms spent a net $9.9 billion on the overseas M&A de

A diplomat who played a key role in negotiations for Korea-U.S. Free Trade Agreement will likely take the post of an executive director at Samsung Electronics.Kim Won-kyoung, a councilor of the Korean Embassy in the United States, tendered his resignation last weekend, according to diplomatic sources.The 45-year-old figure has reportedly been scouted by Samsung Electronics to hold the post of an executive director at the chipmaker’s U.S. sales corporation.Kim worked as the general director of th

General Motors Co., with renewed verve as the world’s biggest automaker, will be in the spotlight at the Detroit auto show next week taking on BMW and its popular 3-Series line with a new compact Cadillac. The new model represents Chief Executive Officer Dan Akerson’s strategy for gaining ground in the compact-luxury segment. GM is trying to barge into the market for small, upscale cars, an important entryway for new customers that is dominated by German vehicles such as the 3-Series and the Mer

Audi will add models to feed U.S. passion for sedans and sport-utility vehicles and gain ground on market leaders Daimler AG and BMW.Audi will use the Detroit motor show next week to unveil a concept “Vail” version of the compact Q3 SUV for the U.S. market and plans to build a sedan version of the A3 hatchback after the newest model comes to market this year, CEO Rupert Stadler said in an interview. U.S. growth is critical to efforts by Audi, the top seller in western Europe and China, to replac

Korea’s financial regulator plans to bolster collaboration with international organizations to develop advanced supervision skills and help Korean financial firms to actively tap overseas markets.On Sunday, the Financial Supervisory Service unveiled its 2012 policy directions, which include enhancing cooperation with overseas supervisors and hosting planned gatherings.Its global policy features pushing for signing memoranda of understanding with several members of the Group of 20.“We will seek M

The Financial Supervisory Service opened a probe on Friday into suspicions that a group of investors manipulated stocks by spreading false rumors on North Korea.The measure was taken after South Korean stocks plunged for several minutes after 2 p.m. during the trading session, hit by the rumors that there was an explosion at the Yongbyon nuclear complex in North Korea. The FSS also requested that police investigate the case.Though the stock market stabilized before it closed, the brokerage secto

The Board of Audit and Inspection will launch an extraordinary inspection into the nation’s two financial regulators next Monday.The top auditor has informed the Financial Services Commission and the Financial Supervisory Service of its scheduled probe for the coming six weeks, regulatory officials said Friday.The officials said they do not rule out the possibility that the BAI may investigate the regulators’ ruling on Lone Star Funds, the biggest shareholder of Korea Exchange Bank.“The schedule

The Board of Audit and Inspection will launch an extraordinary inspection into the nation’s two financial regulators next Monday.The top auditor has informed the Financial Services Commission and the Financial Supervisory Service of its scheduled probe for the coming six weeks, regulatory officials said Friday.The officials said they do not rule out the possibility that the BAI may investigate the regulators’ ruling on Lone Star Funds, the biggest shareholder of Korea Exchange Bank.“The schedule

Major banks are poised to pay large-scale performance bonuses to employees, despite the difficult situation in the wider economy.The banking sector posted record-high earnings in 2011, while many households and small- and mid-sized enterprises are saddled with snowballing debts.As a year-end compensation for the performance, four major commercial banks ― KB, Woori, Shinhan and Hana ― have offered or plan to offer workers extra payments.Kookmin Bank provided employees with a bonus, which is equiv