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  • Policy

    MSCI cites improved access to Korea-linked investment products ahead of review

    Morgan Stanley Capital International (MSCI) said Friday that the Korean financial market has improved in terms of the availability of investment instruments ahead of next week's annual market classification review, while noting that underlying accessibility issues remain unresolved. "Derivative products linked to Korean indexes have recently been listed on international exchanges," it wrote in its 2026 global market accessibility review, upgrading its assessment from minus to plus. A plus rating means there are no major issues, though there is still room for improvement. MSCI said some restrictions remain in Korea on the use of exchange data for the creation of financial products. The Korean market received minus ratings in six of the 18 assessment categories last year. But this year, as the availability of investment instruments category was upgraded to plus, the number of minus-rated categories fell to five: the foreign exchange market liberalization level, investor registration and account setup, information flow, clearing and settlement, and transferability. "Authorities have continu

    2 MIN READBy Lee Yeon-woo
    MSCI cites improved access to Korea-linked investment products ahead of review
  • Economy

    KOSPI slips from record high amid US-Iran uncertainty

    2 MIN READBy Lee Yeon-woo
    KOSPI slips from record high amid US-Iran uncertainty
  • Economy

    Gov't to expand supply of imported eggs amid price hikes

    1 MIN READBy Yonhap
    Gov't to expand supply of imported eggs amid price hikes
  • Economy

    Seoul stocks sharply up late Friday morning on chip rally

    1 MIN READBy Yonhap
    Seoul stocks sharply up late Friday morning on chip rally
  • Economy

    US-Iran MOU poses new opportunities, challenges for Korea: finance minister

    2 MIN READBy Yonhap
    US-Iran MOU poses new opportunities, challenges for Korea: finance minister
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Economy

Namyang owner faces doubts over attempt to sell company to Dayou

Namyang Dairy Products Chairman Hong Won-sik responds to questions from lawmakers during the National Assembly audit in Seoul, in this Oct. 21 file photo. Joint Press CorpsBy Park Jae-hyukQuestions have arisen about the hidden intention behind Namyang Dairy Products Chairman Hong Won-sik's conditional deal to sell his controlling stake to Dayou Winia Group, as there is little chance of him satisfying the conditions in the contract by defeating Hahn & Company in ongoing lawsuits, which were filed after he tried to nullify a sales agreement with the private equity firm (PEF).“He seems to be trying to avoid public criticism until his legal battle with the PEF ends in a couple of years, by making more people believe that his family members truly intend to step away from the management of Namyang,” an industry source said.The dairy firm's largest shareholder abruptly announced Friday evening that the medium-sized Dayou Winia Group would take over his company on condition of his victory in the legal battle against the PEF. Dayou has denied rumors of any familial relationshi

Nov 21, 2021By Park Jae-hyuk
Namyang owner faces doubts over attempt to sell company to Dayou
Economy

ANALYSIS 'Living with COVID-19' causes concern over golf course M&A deals

Doubts rise over profitability of PEFs betting on golf industryBy Park Jae-hyukGolf courses in Korea have begun facing skepticism lately about their soaring valuations on the M&A market, in the wake of the country's “Living with COVID-19” scheme, which has enabled Koreans to resume a wider variety of indoor activities and play golf overseas at more affordable prices.Some industry insiders have warned private equity firms (PEFs) and asset managers about a possible decline in their profits from their recent investments in the golf industry, saying that the prices of golf courses here have peaked out.“Golf tours to Southeast Asia and Saipan have been fully booked, so starting this winter, golf courses on Jeju Island and those in South Jeolla Province and regions located more than a two hour's drive away from large cities will have no choice but to lower their fees,” said Kim Ki-sae, who runs a golf course M&A consultancy named KS Leisure Development. “Considering that PEFs tend to seek an exit within five years after their investment, I'm not sure w

Nov 20, 2021By Park Jae-hyuk
[ANALYSIS] 'Living with COVID-19' causes concern over golf course M&A deals
Economy

Over 1 in 4 foreign investors concerned over 'Korea risk'

gettyimagesbankLabor issues single-highest risk factor, biz environment not improved under Moon administration By Lee Kyung-min More than one in four foreign-invested firms said Korea has particularly high risks compared to other countries, as best characterized by rigidity in the labor market and unresolved challenges in the business environment, a survey showed Friday. According to the survey conducted by the Korea Enterprises Federation on 220 foreign-investor firms with at least 50 employees, 27.7 percent said there were Korea-specific risks that hamper their businesses. Overregulation by legislation that lacks transparency topped the list at 31.1 percent.Inconsistency and unpredictability in administrative regulation ranked second (27.9 percent), followed by rigidity in labor laws and conflict-oriented management-labor relations (24.6 percent), and negative perceptions of foreign investors (16.4 percent).Those who agreed that the business environment has not improved outnumbered those who didn't, 52.3 to 42.3 percent.Almost a third, or 29.2 percent, of firms with at least 300 em

Nov 19, 2021By Lee Kyung-min
Over 1 in 4 foreign investors concerned over 'Korea risk'
Economy

Celltrion shares fall, putting extra pressure on big retail investors

Celltrion's headquarters in Incheon / YonhapBy Lee Min-hyungCelltrion's big retail investors are stuck in a dilemma over the steep fall in the firm's stock price.Shares of the biopharmaceutical company plunged early last month, but have failed to recover to previous levels even after the firm received approval for the use of its COVID-19 treatment, Leckirona, by the European Union.The stock price of Celltrion has in recent weeks remained sluggish after experiencing a sharp drop to the 200,000 won range at the start of October. Despite the approval, Celltrion shares show few signs of bouncing back, which is burdening its retail investors.The dwindling stock performance is particularly hitting big individual investors who are seeking to evade their position as major shareholders as the year-end approaches, amid fears over stock transfer taxes. Those who obtain stock worth over 1 billion won will be subject to pay stock transfer tax if they sell their shares after April of next year.Growing fears of such extra taxes will push more retail investors to engage in a selling spree of local s

Nov 19, 2021By Lee Min-hyung
Celltrion shares fall, putting extra pressure on big retail investors
Economy

Reporter's Notebook Self-serving excuse of FSC for borrowing rate hike

FSC Chairman Koh Seung-beom. Korea Times fileBy Lee Kyung-min It is incredibly hard to be a person of principle, especially when circumstances are unfavorable. It is all the more so, if you are the top policymaker or regulator in testing times with pressure mounting from those in power whose only priority ahead of the presidential election next year is to dispel the groundswell of public outcry brought on by a steep increase in housing prices. Despite ― and precisely because of ― the context, the recent series of explanations by Financial Services Commission (FSC) show how a combination of a lack of logic and desperation can end up becoming a source of embarrassment and derision. FSC Chairman Koh Seung-beom said early this month that the recent sharp increases in borrowing rates offered by commercial lenders are explained by market principles and therefore do not warrant government intervention. “How the banks set profit margins from the difference in interest between deposit and loan remains corporate policy. It is inappropriate for me to comment on private activities,”

Nov 19, 2021By Lee Kyung-min
[Reporter's Notebook] Self-serving excuse of FSC for borrowing rate hike
Economy

Inflation showing signs of spiraling out of control

Bank of Korea Governor Lee Ju-yeol, right, speaks during a National Assembly audit in Seoul, Oct. 21. Joint Press Corps-YonhapBy Lee Min-hyungThe Bank of Korea (BOK) is widely expected to revise the consumer price growth forecast up to the mid-2 percent range, amid escalating inflationary fears.The revision reflects the continued crunch from global supply chain bottlenecks and the increasing price of oil. Consumer prices here have also been affected by external uncertainties, with BOK Governor Lee Ju-yeol expressing concerns over a longer-than-expected increase in consumer prices.In August, the central bank raised its forecast on the consumer price growth rate to 2.1 percent during a monetary board meeting. It has since maintained this outlook, but the central bank is expected to increase the figure to around 2.5 percent.Readjusting its consumer price target is inevitable, according to economists and analysts, as the consumer price growth rate already exceeded the earlier forecast. According to data from Statistics Korea, consumer product prices here rose by 2.2 percent between Janua

Nov 19, 2021By Lee Min-hyung
Inflation showing signs of spiraling out of control
  • Surging costs feared to erode exporters' profitability: poll
Economy

ANALYSIS Finance ministry's reluctance towards inheritance tax revision criticized

Deputy Prime Minister and Finance Minister Hong Nam-ki. Korea Times file State think tank says 'archaic' nominal 50% tax rate out of touch with inflation By Lee Kyung-min Criticism is mounting against the finance ministry over its deliberate omission of measures to reduce the inheritance tax rate that is currently up to 50 percent, in a report submitted to the National Assembly for its tax policy revision session.The move to altogether avoid discussion on the politically charged issue ahead of the presidential election next year follows brewing public frustration over the socioeconomic inequality between the haves and have-nots, an endemic problem exacerbated further by the COVID-19 pandemic. Deputy Prime Minister and Finance Minister Hong Nam-ki reiterated at the National Assembly audit of the government in October that revisions to the highly divisive tax policy will be “among the ministry's policy reviews.” However, the comment was apparently no more than a tac

Nov 19, 2021By Lee Kyung-min
[ANALYSIS] Finance ministry's reluctance towards inheritance tax revision criticized
Economy

Surging costs feared to erode exporters' profitability: poll

gettyimagesbankSoaring costs of international raw materials are expected to eat into South Korean exporters' profitability and lead to rising product prices down the road, a poll showed Friday.The survey of 100 major exporters, taken by the Korea Economic Research Institute (KERI), showed 83 percent of the respondents saying surging raw materials costs are having a negative impact on them.Only 12 percent replied they have not been affected, with the remaining 5 percent saying rising raw materials costs having a positive impact.Nearly 84 percent of the surveyed companies answered a hike in materials costs has caused their operating margin, or the ratio of operating profit to sales, to decline this year from 2020.Those exporting companies have suffered an average 5.9 percent decrease in operating profit, with machinery makers and shipbuilders being hit hardest with an 8.8 percent drop.The exporters said purchase prices of raw materials have expanded 18.6 percent on average this year from a year earlier.Nearly 34 percent of the polled firms said they will tackle rising raw materials cos

Nov 19, 2021
Surging costs feared to erode exporters' profitability: poll
  • Producer prices up for 12th month in October amid high energy prices
  • Inflation showing signs of spiraling out of control
Economy

Producer prices up for 12th month in October amid high energy prices

gettyimagesbankSouth Korea's producer prices grew for the 12th straight month in October as a rise in oil and energy prices drove up the costs of factory products, central bank data showed Friday.The producer price index, a major barometer of consumer inflation, stood at 112.21 in October, up 0.8 percent from a month earlier, according to the preliminary data from the Bank of Korea (BOK).The reading marked the 12th consecutive month of a rise. Compared with a year earlier, it also jumped 8.9 percent, the steepest gain since October 2008 when it grew 10.8 percent on-year.The rise stemmed from high prices of commodities, including oil and coal, which drove up the costs of manufactured products. The data showed that prices of factory products rose 1.8 percent in October from a month earlier, the 17th straight month of an increase.Crude oil prices have been on the rise as demand mounts amid recovery of major pandemic-hit economies.A central bank official said that oil price hikes will likely slow this month given its recent price trends, which is expected to add less upward pressure on p

Nov 19, 2021
Producer prices up for 12th month in October amid high energy prices
  • Surging costs feared to erode exporters' profitability: poll
Economy

ANALYSIS Citi's retirement program to benefit Mirae Asset

Financial firms will join race to sell IRP products to Citi's retireesBy Lee Min-hyungMirae Asset Securities will gain an upper hand in the race to attract as many customers as possible from Citibank Korea, after the lender's planned exit from the domestic consumer banking market.A group of 2,300 Citibank Korea employees applied for voluntary retirement in exchange for receiving an attractive set of incentives valued at around 1.77 trillion won ($1.5 billion) in total. Each employee will be able to receive as much as 700 million won for their retirement payment. Citibank employees can choose to receive the amount directly to their payroll account or sign up for individual retirement pension (IRP) products from financial firms selling IRP products. Citibank Korea recently invited a group of four companies ― Samsung Life Insurance, Samsung Fire & Marine Insurance, Kyobo Life Insurance and Mirae Asset ― to introduce their products to employees.Given that IRP accounts offer a series of tax benefits to retirees, most of the employees from Citibank Korea are expected to sign up for one

Nov 18, 2021By Lee Min-hyung
[ANALYSIS] Citi's retirement program to benefit Mirae Asset
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