The Bank of Korea should be given rights to supervise financial institutions independent of other financial authorities, BOK Governor Kim Choong-soo said Friday. Speaking after the monthly rate review meeting, Kim said that the central bank should be able to conduct independent supervision under “special circumstances.” “(The BOK) means to conduct (independent investigations) when a particular ...

The National Pension Service on Friday said that it will select eight local asset managers to set up 900 billion won ($830 million) fund investing only in Asia. The NPS, the world’s fourth largest pension fund, said that it will start taking bids on May 26 to run the Pan-Asia Fund which will invest in stocks, bonds and commodities of China, India and other Asian countries. “We’re expanding our ...

The Bank of Korea should be given rights to supervise financial institutions independent of other financial authorities, BOK Governor Kim Choong-soo said Friday. Speaking after the monthly rate review meeting, Kim said that the central bank should be able to conduct independent supervision under “special circumstances.” “(The BOK) means to conduct (independent investigations) when a particular ...

BOK freezes key rate at 3 % South Korea's central bank unexpectedly froze the key interest rate on Friday for the second straight month as economic uncertainty such as the eurozone debt crisis persists even in the face of inflation risks. Bank of Korea (BOK) Gov. Kim Choong-soo and his fellow policymakers held steady the benchmark seven-day repo rate, dubbed the base rate, at 3 percent for May....

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...

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 gl...

Korea’s money supply grew at the weakest pace in nearly seven years in March as payments of corporate tax drained money circulation, the central bank said Thursday. The country’s M2, a narrow measure of its money supply, reached 1,677.5 trillion won ($1.55 billion) in March, marking a 4.3 percent increase from the figure posted a year earlier, according to the Bank of Korea. The March reading w...

Korean banks’ home-backed loans grew by the largest amount in four months in April as the economic recovery spurred loan demand, the central bank said Thursday. Local banks’ mortgage loans reached an outstanding 292.3 trillion won ($269 billion) as of the end of April, up 2.4 trillion won from the previous month, according to the Bank of Korea. The April number jumped from a 2.1 trillion won on...

Decision spurns speculation that Hana Financial-Lone Star deal may break down The 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 ...

Korea will unveil its road map for the sale of a controlling stake in the second-biggest banking group Woori Finance Holdings Co. next week in a bid to restart its stalled privatization, the financial regulator said Wednesday. The Public Fund Oversight Committee, which handles the sale of state-owned firms, will announce on May 17 how to sell the 56.97 percent government stake in Woori Finance, ...

Korea’s central bank is widely expected to resume its tightening move in May by raising the key interest rate by a quarter of a percentage point in a bid to stem inflationary pressure, a poll showed Wednesday. A total of 14 out of 17 economists forecast that the Bank of Korea will raise the benchmark seven-day repo rate to 3.25 percent on Friday, according to the survey by Yonhap Infomax, the fi...

Real interest has stayed below inflation for the past year, devaluing returns on bond investments and deposits at banks, a government report said Wednesday. The interest rate on 1-year savings products at most commercial banks is just over 4 percent, leaving no room for profit given on-year inflation in the 4 percent range on top of a 15.4 percent tax on interest income. “Real returns on deposi...