Most Popular
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Blinken calls on China to press N. Korea to end its 'dangerous' behavior
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New celebrity-endorsed therapy for face contouring requires only a pair of rubber bands
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Tensions heighten ahead of first president-opposition chief meeting
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Seoul to provide housing subsidy to married couples with newborns
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[Weekender] How DDP emerged as an icon of Seoul
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Rapper jailed after public street fight with another rapper
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Doctor group's incoming head renews call for govt. to scrap medical school quota hike for dialogue
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Woman gets suspended term for injuring boyfriend with knife
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[KH Explains] No more 'Michael' at Kakao Games
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NewJeans pops out ‘Bubble Gum’ video amid troubles at agency
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S. Korean firms issue more than W5tr of ESG-related bonds
South Korean firms have issued more than 5 trillion won ($4.27 billion) worth of environmental, social and governance-related bonds so far this year, which surpasses the volume of the asset class floated for the entirety of last year. ESG-related bonds are fixed income investments -- mostly issued by government-run organizations or institutions at the moment -- that finance environmental or social projects that help boost transparency and sustainability in society. Local firms including state-ru
May 28, 2019
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Kospi-listed firms’ debt-to-equity ratio worsens in Q1
South Korean companies listed on the main bourse saw their average debt-to-equity ratio up by nearly 6 percentage-points in the first quarter of the year, data showed Monday, with analysts citing poor corporate performance and implementation of new accounting standards. The average D/E ratio of 640 Kospi-listed firms, that end their fiscal year in December, increased 6.37 percentage points from the end of the year to 110.7 percent by end-March, according to data provided by the Korea Exchange, t
May 27, 2019
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[Contribution] Do we hold too much cash?
The Korea Herald is publishing a regular contribution series written by senior investment strategists at Standard Chartered Group Wealth Management. -- Ed.After being desensitized for many years by virtually zero interest rates, one can suddenly earn a positive yield on cash again in many major currencies. While the rates may still not be terribly exciting -- 12-month USD Libor yields are now approximately 2.75 percent per annum, for example -- these yields can be seen by some as credible compet
May 27, 2019
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Regulator rejects 2 applications for online banks
In an unexpected turn of events, South Korea’s financial regulator on Sunday rejected applications by two consortia to set up the nation’s third and fourth internet-only banks.One consortium is backed by financial technology firm Viva Republica and the other is led by brokerage Kiwoom Securities.The Financial Services Commission said it accepted the recommendations of an independent evaluation committee that both consortia had put together inadequate bids. The outside evaluators said
May 26, 2019
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S. Korean stocks retreat, won dips amid US’ threat to slap duties
South Korean stocks fell Friday, while the won closed higher against the US dollar, hours after Washington’s remarks that it is considering to impose anti-subsidy duties on nations that undervalue their currencies against the greenback. The announcement, which came amid an intensifying US-China trade dispute, put Korea at risk of higher tariffs, alongside the world’s second-largest economy China, Japan, India, Germany, and Switzerland. The benchmark Kospi closed 14.28 points, o
May 24, 2019
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[Photo news] Paving the way to Myanmar
May 23, 2019
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Inaugural Korea Fintech Week kicks off
The inaugural Korea Fintech Week event kicked off in Seoul Thursday, bringing together more than 50 local startups and 2,500 attendees to share business ideas and clinch new investment opportunities.The three-day event taking place at the Dongdaemun Design Plaza in Seoul through Saturday is organized by the Financial Services Commission, Financial Supervisory Service and Fintech Center Korea.The CEOs of fintech operators, including mobile payment platform Kakao Pay, personal finance managem
May 23, 2019
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Net profit of overseas FI branches jumps 37%
The overseas branches of South Korean financial institutions reported a 37 percent growth in their combined net profit on-year to nearly $1.3 billion last year, data from the Financial Supervisory Service showed Thursday.Overall, 79.1 percent of the combined net profit came from branches in Asia. China contributed the most with $252 million, with Hong Kong and Vietnam each tailing behind at $235 million and $157 million, respectively. The number of overseas branches operated by the firms i
May 23, 2019
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Toss vs. Kiwoom: anticipation builds for Korea's third internet-only bank license
As South Korea’s financial regulators prepare to issue new operational licenses for internet-only banks here next week, all eyes are on the approval prospects of Toss Bank and Kiwoom Bank -- the two consortia currently in the running for preliminary permits. Up to two licenses are up for grabs, though the Financial Services Commission, the country’s chief financial regulatory body, has hinted it may approve only one. The FSC’s review panel and the Financial Supervisory Servi
May 22, 2019
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MBK Partners-Woori Bank consortium selected as new preferred buyer of Lotte Card
Lotte Holdings said Tuesday that it has selected a consortium of MBK Partners and Woori Bank as the new preferred buyer of Lotte Card, amid legal irregularities surrounding former negotiations partner Hahn & Co. The holdings unit of the Korean-Japanese retail conglomerate said in a disclosure that it had initially chosen local private equity fund Hahn & Co. as its preferred bidder on May 3, but that the priority period for negotiations had expired as of May 13. As a result, Lotte deci
May 21, 2019
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Costco Korea to make switch to Hyundai Card this week
Costco Wholesale Korea, the South Korean unit of the US wholesale giant, will officially switch to Hyundai Card as its credit card partner from Friday in line with contract stipulations, the credit card company said Tuesday. This means that starting Friday at all Costco outlets in Korea, Costco members will only be able to pay with a Hyundai credit card or cash under the wholesaler’s single-network credit card policy. Samsung cards will no longer be accepted.The change follows an agreement
May 21, 2019
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Woori conducts first overseas IR meeting as holding firm
Woori Financial Group has conducted its first investor relations meetings abroad after adopting a financial holding firm structure early this year, the firm said Monday.Group Chairman Sohn Tae-seung is participating in the first leg of the company’s IR roadshow in Japan and Hong Kong, which kicked off Sunday. The roadshow will take place over the course of four days. Sohn plans to outline the firm’s first-quarter performance for its foreign investors, the firm said, adding that the f
May 20, 2019
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[Monitor] Local brokerages see IB profitability rise in Q1
Major securities firms saw their operating profits rise in the January to March period this year, mainly boosted by the expansion of investment banking business, Financial Supervisory Service data showed Sunday.According to the watchdog’s electronic disclosure board, NH Investment & Securities, Mirae Asset Daewoo and Meritz Securities all saw the contribution of the IB sector to total quarterly profit surpass 30 percent. Leading the trend was Mirae Asset Daewoo, which logged 142 billio
May 19, 2019
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S. Korean investors shift attention to overseas stocks
South Korean investors are turning their attention to foreign stocks, with local shares continuing to yield disappointing results amid the benchmark Kospi’s lack of long-term movement. The nation’s benchmark Kospi index inched up nearly 7 percent from the beginning of the year as of Thursday, but is moving at a snail’s pace compared with other major global indexes. It was just last month that the US’ S&P 500 and Nasdaq Composite closed at record-high levels, buoyed by
May 19, 2019
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US-China trade dispute weighs on Korea’s financial markets
The value of South Korean won compared to other major currencies fell to a 19-month low as of Sunday, with the ongoing US-China trade disputes weighing down the economy.Asia’s fourth-largest economy also saw its benchmark Kospi shed 7 percent after US President Donald Trump’s announcement to impose fresh tariffs on Chinese goods, two weeks earlier. According to real effective exchange rate index compiled by the Bank for International Settlements, the value of the South Korean currenc
May 19, 2019
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S. Korean stocks likely to remain range-bound next week
South Korean shares will likely continue facing downward pressure next week due to lingering effects of the trade dispute between the United States and China but largely remain range-bound, with some positive factors also expected, analysts said Saturday.The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,055.80 on Friday, down 52.6 points, or 2.5 percent, from a week earlier. South Korean stocks got off to a weak start this week as the US announced an increase in its import tari
May 18, 2019
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Lotte Card sale mired in uncertainty over investigation of Hahn & Co., labor union backlash
The pending sale of Lotte Group’s credit card unit, Lotte Card, appears uncertain, as an executive of its preferred bidder, Hahn & Co., faces an investigation over alleged tax irregularities -- a development that could preclude the private equity firm from completing the acquisition. Further complicating the situation, Lotte Card’s labor union has strongly opposed the idea of a takeover by a profit-driven PEF due to concerns of employment stability, pledging group acti
May 17, 2019
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Listed firms’ Q1 net dips on sluggish exports
South Korean listed firms’ profits tumbled nearly 40 percent in the first quarter of the year due to weaker exports, data showed Friday. The combined net profit of 573 non-financial companies listed on the main bourse came to 20.9 trillion won (US$17.6 billion) in the January-March period, down 38.8 percent from a year ago, according to the data from the Korea Exchange and the Korea Listed Companies Association. Sales of the firms, which close their books in December, edged up 0.2 percent
May 17, 2019
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[News Focus] Will Hana’s win over Lone Star affect ISDS arbitration?
Hana Financial Group’s latest win over Lone Star Funds over the purchase of KEB Hana Bank, formerly known as the Korea Exchange Bank, prevented the South Korean banking group from paying the US private equity fund some $1.44 billion in compensation. All eyes are now on how this outcome will affect another high-profile arbitration that is still pending -- the investor-state dispute settlement between the Korean government and Lone Star involving a $4.68 billion damage claim.Hana Financial s
May 16, 2019
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Hana Financial wins suit against Lone Star on KEB deal
Hana Financial Group, one of South Korea’s four major banking groups, said Wednesday that it has won an international arbitration against US private equity fund Lone Star Funds over its purchase of KEB Hana Bank, formerly known as Korea Exchange Bank. Lone Star had filed a suit at the International Court of Arbitration under the International Chamber of Commerce in 2016, accusing Hana Financial of internationally lowering the price of KEB in negotiating the deal. But the court has dismisse
May 15, 2019