Business - The Korea Times

Who can lift Seoul’s stock market as foreign investors dump $30 billion over nine months?

Foreign investors have offloaded more than 40 trillion won ($30 billion) worth of Korean stocks over the past nine months, underscoring growing concerns over political uncertainty and U.S.-driven tariff risks. As both major presidential candidates pledge to bolster the stock market and appeal to the nation’s 14 million retail investors, analysts warn that only long-term structural reform can prevent those promises from becoming empty slogans. According to data from the Financial Supervisory Service on Sunday, non-Korean investors sold a net 13.6 trillion won in Seoul stocks in April, the largest monthly sell-off on record and surpassing the previous high of 13.5 trillion won in March 2020. It marked the ninth straight month of net selling, with cumulative outflows over the period totaling 40.08 trillion won. Lee Jae-myung's pledges Lee Jae-myung of the Democratic Party of Korea, who has repeatedly referred to himself as a “retail investor,” has made capital market reform a key part of his campaign. In his policy platform, he claims that, with proper reforms, the KOSPI index could rea

May 20, 2025By KTimes

Who can lift Seoul’s stock market as foreign investors dump $30 billion over nine months?

Seoul shares down late Tuesday morning amid eased US downgrade woes

Korean stocks trimmed earlier gains late Tuesday morning amid the fading concerns of the U.S. credit rating downgrade. Opening 0.74 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) had gained 3.1 points, or 0.12 percent, to 2,606.52 as of 11:20 a.m. Moody's slashed the U.S. sovereign credit rating to "Aa1" from "Aaa" late Friday (U.S. time), citing the government's huge debt load. Wall Street on Monday, however, ended slightly higher, shrugging off the downgrade by Moody's. The Dow Jones Industrial Average rose 0.32 percent, and the S&P 500 inched up 0.09 percent. The tech-heavy Nasdaq Composite climbed 0.02 percent. In Seoul, major shares traded in mixed territory. Chip giant Samsung Electronics rose 0.36 percent, and its rival SK hynix added 2.06 percent. The state-run Korea Electric Power Corp. jumped 3.17 percent, and Hybe, a record label behind global superstars BTS, increased 2.41 percent. However, leading battery maker LG Energy Solution tumbled 4.63 percent, and defense giant Hanwha Aerospace dropped 0.12 percent. The local currency was trading at 1,393.2 won ag

May 20, 2025By Yonhap

Seoul shares down late Tuesday morning amid eased US downgrade woes

Corporate direct financing surges in April on spike in debt sales

Corporate direct financing in Korea soared in April as companies heavily sold debt amid increased uncertainties stemming from U.S. tariffs, data showed Tuesday. Local companies raised a combined 30.8 trillion won ($21.19 billion) last month by selling stocks and bonds, up 8.86 trillion won, or 41.2 percent, from the previous month, according to the data from the Financial Supervisory Service. Stock sales fell by 20.4 percent on-month to 373 billion won last month, while share sales via initial public offerings dipped to 90.9 billion won from 169 billion won over the cited period. Corporate bond sales surged 42.5 percent month-on-month to 30.43 trillion won. The value of outstanding corporate bonds stood at 713.69 trillion won as of end-April, up 9.02 trillion won from a month earlier, the data showed.

May 20, 2025By Yonhap

Corporate direct financing surges in April on spike in debt sales

KB Kookmin Bank's Indonesian subsidiary posts first quarterly profit after 5 years

KB Kookmin Bank’s Indonesian subsidiary, KB Bank, turned a profit in the first three months of this year, five years after the Korean lender acquired a controlling stake acquisition in 2020, the company said Monday. The Indonesian subsidiary, formerly PT Bank KB Bukopin Tbk, reported a profit of 342.2 billion rupiah (28.74 billion won) for the January to March period, ending a five-year stretch of losses despite KB Bank’s capital injection of 1 trillion won into the entity through 2022. The dramatic turnaround more than offset the Indonesian entity's annual net loss of over 802 billion won in 2022, followed by another significant net loss of 104.4 billion in the first quarter of last year. This is expected to help KB Kookmin Bank’s first quarter global net income turn a profit this year. In 2024, the Korean lender's global net income posted a net loss of about 2.56 billion won in the first three months, a significant contraction from the 96.2 billion won in net profit a year prior. According to the financial market, the Indonesian entity was able to turn a profit, aided by reduced

May 19, 2025By Lee Kyung-min

KB Kookmin Bank's Indonesian subsidiary posts first quarterly profit after 5 years

Busan-headquartered KSD steps up corporate responsibility in region

Korea Securities Depository (KSD) is stepping up efforts to enhance corporate social responsibility as a financial institution in Busan, a city that struggles with population decline and other economic difficulties, company officials said Monday. The institution is focusing on three areas — helping university students find jobs, operating a fund to revitalize the local economy and supporting poverty-stricken older adults. The KSD has been expanding its vocational program for university students across the city. The program aims to help candidates find jobs with the depository. It now operates at 12 universities, up from five in 2019. In addition, 1.98 billion won ($1.44 million) in scholarship funds have been distributed to more than 200 students over a 10-year period. Despite being the second-largest city in the country, Busan grapples with much of the same economic decline currently affecting rural areas, as the nation's GDP relies heavily on Seoul. To help the city overcome these challenges, the KSD donated 750 million won between 2018 and 2023 to the Busan ESG Fund, which was formed

May 19, 2025By Yi Whan-woo

Busan-headquartered KSD steps up corporate responsibility in region

Kbank’s postponed IPO undermines BC Card’s financial soundness

The delayed initial public offering (IPO) of Kbank is emerging as a stumbling block for BC Card, which is restructuring its revenue model following the departure of key member companies such as Woori Card, industry officials said Monday. BC Card, a subsidiary of KT, is the largest shareholder of the internet-only bank, holding approximately 34 percent of its shares. The card company, which is urgently seeking investment to diversify its business portfolio, reported a sharp decline in net profit for the first quarter of this year, due mainly to the fallout from the postponed Kbank IPO. With the IPO still delayed, BC Card is under growing pressure, as it may not be able to recover its initial investment and may even be forced to inject additional capital to acquire Kbank shares held by financial investors. According to the Financial Supervisory Service’s electronic disclosure system, the card firm reported a net profit of 34.1 billion won ($24.4 million) for the first quarter of this year, down 29.9 percent from 48.7 billion won a year earlier. The decline was largely attributed to a drop

May 19, 2025By Jun Ji-hye

Kbank’s postponed IPO undermines BC Card’s financial soundness

Banking customers still favor in-person consultations for key services

Jung Yoo-young, 48, a freelance translator living in northeastern Seoul’s Gangbuk District, prefers visiting bank branches in person over using mobile banking. Although relatively young and comfortable using a smartphone, she still feels uneasy about handling sensitive financial information on a mobile device. "There are constant reports of cyberattacks involving financial institutions or USIM information, so I try to avoid doing important tasks on my phone," Jung said. "Even if it takes more time, I feel more secure when a bank employee handles things right in front of me at the branch." According to a recent survey by local market researcher Consumer Insight, many financial consumers like Jung still prefer to handle high-involvement services offline, despite the rapid digital transformation of the financial sector and the growing use of internet banking. The nationwide survey, which analyzed the banking experiences of 10,917 customers aged 20 to 69, found that mobile banking is used mainly for simple tasks such as transfers and remittances, which made up 66 percent, and account inqu

May 18, 2025By Jun Ji-hye

Banking customers still favor in-person consultations for key services

Insurers' capital adequacy ratio down in Q4

The capital adequacy ratio of insurance companies in Korea fell from three months earlier in the fourth quarter of 2024, data showed Thursday. The average capital adequacy ratio of domestic insurance firms had come to 206.7 percent as of end-December, down from 218.3 percent three months earlier, according to the data from the Financial Supervisory Service. The ratio refers to the amount of available capital compared with required funds under the Korean Insurance Capital Standard (K-ICS). The decrease in the October-December period was partly attributed to a fall in available capital following dividend payouts and insurance-related debts, and a rise in required capital due to growing sales of insurance plans. Available capital under K-ICS fell 10.8 trillion won ($7.87 billion) on-quarter in the fourth quarter of last year, while required capital increased 1.4 trillion won over the cited period, according to the financial watchdog. The average capital adequacy ratio of life insurers stood at 203.4 percent as of end-December, down 8.3 percentage points from three months earlier, while that

May 15, 2025By Yonhap

Insurers' capital adequacy ratio down in Q4

Seoul shares up Wednesday morning on eased tariff woes

Korean stocks traded higher late Wednesday morning, led by gains from chips and defense shares amid eased global tariff concerns. The benchmark Korea Composite Stock Price Index (KOSPI) had added 20.49 points, or 0.79 percent, to 2,628.91 as of 11:20 a.m. On Wall Street overnight, the S&P 500 and the Nasdaq closed higher on softer-than-expected U.S. inflation and optimism from a trade deal between the United States and China. In Seoul, semiconductor shares led the early increase over news of Nvidia's plan to supply 18,000 units of its artificial intelligence (AI) chip Blackwell to Saudi Arabia. Market bellwether Samsung Electronics edged up 0.7 percent and its chipmaking rival SK hynix jumped 4.28 percent. Defense giant Hanwha Aerospace advanced 2.36 percent, and Korea Aerospace Industries (KAI) vaulted 5.23 percent. K-pop agency Hybe mounted 3.18 percent, and instant noodle maker Samyang Food went up 2.21 percent. The local currency was trading at 1,414.35 won against the U.S. dollar at 11:20 a.m., up 2.05 won from the previous session.

May 14, 2025By Yonhap

Seoul shares up Wednesday morning on eased tariff woes

Household borrowing rises sharply in April on increased home transactions

Household loans extended by Korean banks rose markedly in April, central bank data showed Wednesday, driven by a rise in housing transactions following state deregulatory measures. Banks' outstanding household loans stood at 1,150.1 trillion won ($813.65 billion) as of end-April, up 4.8 trillion won from a month earlier, according to the data from the Bank of Korea (BOK). It marked the third consecutive monthly increase and a sharp acceleration from the 1.6 trillion-won increase seen in March. "Home transactions increased markedly in February and March, and their impact on loans had materialized in the following months," BOK official Park Min-cheol said. According to the data from the land ministry, apartment transactions nationwide jumped to 50,000 cases in March from 26,000 in January and 38,000 in February. The data for April is yet to be available. In Seoul, the number of apartment contracts rose from 3,300 in January to 6,200 in February and further to 9,300 in March. The increase in housing transactions followed the loosening of regulations on household lending by banks earlier this