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Seoul to continue push for MSCI developed market status bid after remaining in emerging category
South Korea will continue its push for inclusion in the developed-market category under the Morgan Stanley Capital International (MSCI) index after the provider decided to keep Asia's No. 4 economy in the emerging-market category, the finance ministry said Wednesday. Overnight, MSCI said South Korea will remain in the emerging-market category despite Seoul's efforts to be placed on the watch list for inclusion in the developed-market category, citing the limited convertibility of the Korean won in offshore currency markets. "MSCI acknowledged the government's efforts to advance the foreign exchange and capital markets, but for some of the remaining tasks, efforts to improve the system are still under way," the Ministry of Finance and Economy said in a statement in response to the announcement. The finance ministry added that South Korea was not included in the developed-market category this year as the market also needed time to fully reflect the impact of the completed reforms. "If we continue to implement reforms in the foreign exchange and capital markets on our own schedule, we belie
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Korean crypto exchanges Upbit and Bithum shine after Coinbase's Nasdaq debut

gettyimagesbankBy Anna J. ParkMajor cryptocurrency exchanges based in Korea, including Upbit and Bithumb, are in the spotlight following the successful Nasdaq debut Wednesday of U.S.-based cryptocurrency exchange Coinbase, which closed up 31.3 percent at $328.28 on its first day of trading.Given that Coinbase's market cap was valued at over $87 billion based on the first day's closing price, expectations are mounting over the growth potential and possible increased market valuation of Korea's largest cryptocurrency exchange operator, Dunamu.According to the CoinMarketCap site, Upbit's 24-hour transaction amount stood at $14.5 billion as of 2:10 p.m. Korea time, which is 2.8 times higher than Coinbase's $5.1 billion. Upbit's 24-hour trading volume has constantly ranked among the world's top three lately, far exceeding the U.S.-headquartered crypto exchange.Bithumb is right behind Upbit in terms of its 24-hour transaction amount at $3.4 billion. Coinone took the third spot among the country's local cryptocurrency exchanges with $1.3 billion traded.The total trading volume of these top

Apr 15, 2021By Anna J. Park

Korean crypto exchanges Upbit and Bithum shine after Coinbase's Nasdaq debut

Bank of Korea revises up Korea's growth target

By Kim Yoo-chulThe central bank revised up its growth outlook for the country's economy this year, reflecting expectations that demand for IT products will remain strong with investments in related facilities growing.Bank of Korea (BOK) Governor Lee Ju-yeol told reporters, Thursday, he views a lot of quite favorable “external factors” in terms of helping the country's economy, Asia's fourth-largest, beat the earlier market forecast.Specifically, the central bank chief said South Korea's economy could reach the “mid-3 percent” level this year from an earlier projection of 3 percent it presented back in February. As widely expected, the BOK left its benchmark rate unchanged at a record 0.5 percent this month.“When it comes to the growth rate curve during the first three months of this year, the growth pace of the country's economy will run faster than expected earlier. Thus, it seems achievable for the economy to reach a mid-3 percent level in terms of annual growth rate this year,” Lee told reporters in a briefing after holding its policy rate stead

Apr 15, 2021By Kim Yoo-chul

Bank of Korea revises up Korea's growth target

Kakao shares soar after 5-for-1 stock split

Kakao headquarters on Jeju Island / YonhapBy Lee Min-hyungKakao shares finished sharply higher, Thursday, when trading resumed of stocks issued by the nation's leading mobile platform operator after its 5-for-1 stock split.The stock price of Kakao closed at 120,500 won ($107.82), up 8,500 won or 7.59 percent from the previous session. Trading of Kakao shares was suspended for three days from Monday due to its stock split.Kakao's stock value remained in the doldrums for years until early 2020. But it has since been on a steep rise throughout last year when big tech stocks here and abroad flourished amid pandemic-sparked changes, such as telecommuting and online purchases.The strong investor response following the stock split enabled Kakao to become Korea's fifth-largest company by market capitalization as of Thursday, surpassing Hyundai Motor and Samsung Biologics.In February, Kakao decided to divide existing stocks into multiple new ones as part of efforts to keep boosting share volume in the local stock market. Kakao shares set a new high by closing at 558,000 won on April 9, the la

Apr 15, 2021By Lee Min-hyung

Kakao shares soar after 5-for-1 stock split

Food authorities accuse Namyang over irregularities

Namyang Dairy Products' Bulgaris drinking yogurt is on display at a supermarket in Seoul, Wednesday. YonhapKorea Exchange investigates dairy firm over stock price irregularitiesBy Park Jae-hyukThe Ministry of Food and Drug Safety accused Namyang Dairy Products of breaching the Act on Labeling and Advertising of Foods, Thursday, by announcing Bulgaris yogurt drinks were supposedly effective against COVID-19.“Without animal experiments or clinical trials, Namyang announced Bulgaris was effective against COVID-19,” the ministry said in a press release.This came after the Korea Exchange (KRX) started an investigation into the dairy firm for alleged insider trading, following a momentary hike in its stock price which came following the announcement.“Regarding the company's press release about the announcement, we are looking into the trading of its stocks to find out whether there were any unfair transactions based on undisclosed information,” KRX market oversight department head Nam Seung-min said. “If we discover any suspicious conduct, we will request the

Apr 15, 2021By Park Jae-hyuk

Food authorities accuse Namyang over irregularities

Bank of Korea stands pat on fragile recovery as 4th wave of infections looms

Bank of Korea Gov. Lee Ju-yeol / YonhapSouth Korea's central bank on Thursday held its benchmark policy rate unchanged at a record low of 0.5 percent, as an economic recovery remained patchy and the country is at risk of being hit with another wave of COVID-19 infections. As widely expected, the monetary policy board of the Bank of Korea (BOK) voted to leave the base rate steady in this year's third rate-setting meeting.Low inflationary pressure and rising home prices also appeared to prod the BOK board to stand pat, analysts said.In February, the BOK froze the key rate as economic uncertainty heightened amid a flare-up in new coronavirus cases. To bolster the pandemic-hit economy, the BOK slashed the key rate to the all-time low of 0.5 percent in May last year after delivering an emergency rate cut of half a percentage point. Despite signs of a recovery in exports, weaker consumption has weighed on employment and increased pressure on policymakers. This week, the nation's daily virus tally hit the highest level in more than three months as cluster infections continued to emerge in t

Bank of Korea stands pat on fragile recovery as 4th wave of infections looms

Foreign investors rake in local tech stocks ahead of short-selling resumption

gettyimagesbankBy Anna J. Park Foreign investors are raking in Korean stocks this month on expectations that the market will remain bullish, as global interest rates as well as the so-called fear gauge or CBOE Volatility Index (VIX) are showing signs of stabilization.The robust first-quarter earnings performances of Korean tech, semiconductor and new energy companies, as well as a strengthening Korean won, have also propelled foreign investors to return to Korean stock markets. Korea's benchmark KOSPI ended at 3,182.38, Wednesday, up 0.42 percent from the previous trading session. Compared to a month ago, the KOSPI has risen by more than 136 points, or 4.4 percent. Foreign investors continued buying Korean stocks to the tune of 104 billion won ($93 million) during Wednesday's trading, and net purchased 2.55 trillion won worth of Korean stocks this month. Foreign investors resumed their buying spree of local stocks after pausing for about five months, after they net purchased over 5 trillion won in Korean stocks last November. Since then, foreign investors turned to net sellers of Kor

Apr 14, 2021By Anna J. Park

Foreign investors rake in local tech stocks ahead of short-selling resumption

Hanwha chief's brother-in-law behind SillaJen, Mason Capital deals

Leadcorp Chairman Seo Hong-minMoneylender Leadcorp grabs attention in local M&A marketBy Park Jae-hyukLeadcorp Chairman Seo Hong-min, the younger brother of Hanwha Group Chairman Kim Seung-youn's wife, Seo Young-min, has been the focus of attention recently, as the nation's third-largest private money lender he owns has been cited as the cash supplier for buyers of two troubled Kosdaq-listed companies ― SillaJen and Mason Capital.According to SillaJen, Wednesday, Kosdaq-listed steel product manufacturer M2N was chosen as the preferred negotiator to take over the biotech company, after presentations given earlier this week by three bidders ― M2N, BDI and Huvexel.The largest shareholder of M2N is DK Marine, which is owned by the Leadcorp chairman. The Hanwha chairman's wife also invested 1 billion won ($894,000) in M2N last year. The company has therefore been regarded as the strongest candidate to acquire SillaJen due to its ability to raise a significant amount of cash through its affiliates.SillaJen described M2N as a company that can “maximize future value and represent s

Apr 14, 2021By Park Jae-hyuk

Hanwha chief's brother-in-law behind SillaJen, Mason Capital deals

Grab to list in US via $40 billion merger with Altimeter Growth

In this May 24, 2017, file photo, applicants fill in forms to join Grab Vietnam at the company's office in Hanoi, Vietnam. Southeast Asia's largest ride-hailing company, Grab Holdings, said Tuesday that it plans to merge with U.S.-based Altimeter Growth Capital in a deal that would value it at nearly $40 billion in preparation for an initial public offering in the U.S. APSoutheast Asia's largest ride-hailing company, Grab Holdings, said Tuesday that it plans to merge with U.S.-based Altimeter Growth Capital in a deal that would value it at nearly $40 billion and allow it to trade on the Nasdaq Stock Market.That would make it the largest SPAC merger ever, more than double current record-holder United Wholesale Mortgage's $16 billion merger in January.The deal is the latest milestone in the booming business of SPACs, as investors race to find the next hot, young company when stock prices of big, established companies are already at records. SPAC stands for ``special purpose acquisition company,'' but they are often better known as ``blank-check companies.'' With a SPAC, investors plug

Grab to list in US via $40 billion merger with Altimeter Growth

Korea basks in 1st job additions in 13 months amid recovery hope

Visitors wait inside Seoul Dongbu Employment Information Service in Seoul in this Feb. 10 file photo. Korea reported the first job additions in 13 months in March in the latest sign that the job market is recovering after a yearlong slump caused by the pandemic. YonhapSouth Korea reported the first job additions in 13 months in March in the latest sign that the job market is recovering after a yearlong slump caused by the pandemic, data showed Wednesday.The number of employed people reached 26.9 million last month, 314,000 more than a year earlier, according to the data compiled by Statistics Korea.It marked the first time that Asia's fourth-largest economy added jobs since February 2020, when the number of employed people grew by 492,000.The COVID-19 pandemic has dealt a severe blow to the job market, with the country reporting job losses for the 12th straight month in February. For all of 2020, the nation shed 218,000 jobs, the most since 1998.But the base effect and increased economic activity following relaxed social distancing rules helped create more jobs last month, according

Korea basks in 1st job additions in 13 months amid recovery hope

Efficacy of punishment for naked short-selling measures remains questionable

By Lee Min-hyungRetail investors and civic groups are raising doubts over the efficacy of a move by financial regulators to introduce tougher punitive measures against people engaging in naked short-selling of shares. The dispute centers on a decision by the Financial Services Commission (FSC) to slap heavier punishment ― including fines and imprisonment ― on those who are caught engaging in illegal short-selling practices on the local stock market. Naked short-selling refers to a trading practice where investors sell stocks without owning or borrowing them. This is generally illegal in most countries, including Korea.The regulation took effect April 6. Violators will be slapped with fines of up to 5 times their undue profits or face at least a year behind bars.The watchdog banned the short-selling of shares starting in mid-March last year for six months in the aftermath of an unprecedented stock fall triggered by the COVID-19 pandemic. The temporary ban has since been extended to May 2.With the much-controversial short-selling of stocks set to resume as of May 3, retail investors ar

Apr 14, 2021By Lee Min-hyung

Efficacy of punishment for naked short-selling measures remains questionable

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