October 27, 2021

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EDITOR'S PICKS

• Markets 
  

  S. Korea’s economy sees slower-than-expected growth in Q3

  South Korea’s economy has expanded at a slower-than-expected pace in the July-September period due to lackluster private consumption despite a recovery in exports, central bank data showed Oct. 26. The economy grew 0.3 percent in the third quarter, compared with a 0.8 percent growth in the second quarter and the corresponding figure of 1.7 percent in the first quarter, preliminary data released by the Bank of Korea showed. The third-quarter reading falls short of the BOK’s August

• Markets 
  

  IMM inks deal to buy stake in Hanssem for W1.45tr

  IMM Private Equity said Oct. 25 it has signed a binding term to become the largest shareholder of South Korean kitchen goods and homeware manufacturer Hanssem in a 1.45 trillion won ($1.24 billion) deal. Under a sales and purchase agreement, the third-largest buyout firm based in Seoul, with $5.4 billion in assets under management, will buy 6.5 million ordinary shares -- or 27.7 percent of voting rights -- owned by sellers comprising founder Cho Chang-gul and his seven specially affiliated enti

• Markets 
  

  Stricter income-based lending rules to be imposed to curb snowballing household debt

  South Korea’s top financial regulator on Oct. 26 said it will implement stricter lending calculations for mortgage loans, called the “debt-service ratio,” or DSR, months earlier than expected as part of additional debt control measures. The DSR gauges how much borrowers pay for principal and interest in proportion to yearly income. Since July, a 40 percent DSR has been the rule for borrowers seeking loans to buy properties valued at over 600 million won ($513,000), down fro

• Markets 
  

  Teachers’ fund denies Bitcoin ETF investing rumor

  The Korea Teachers’ Credit Union, an institutional investor responsible for 40 trillion won ($34.3 billion) of assets as of end-June, denied Oct. 26 rumors that it was considering exposure to Bitcoin, the world’s largest cryptocurrency, through an exchange-traded fund created by a Korean external partner. “The KTCU has never reviewed an investment in a Bitcoin-related ETF, and will never have a plan to do so,” KTCU said in a statement. The remark came after it was rep

• Markets 
  

  South Korea has fourth-highest rate of relative poverty among OECD members

  　South Korea ranked No. 4 among 38 global economies in terms of the percentage of its population living on less than half the median disposable income, data showed Oct. 25, reflecting significant wealth disparities in the country. 　According to the Organization of Economic Cooperation and Development, Asia’s fourth-largest economy posted a relative poverty rate of 16.7 percent in 2018-2019, the fourth-highest rate among its 38 member nations. In general, most OECD members are high-income

• Markets 
  

  IMM Private Equity inks deal to buy stake in Hanssem

  　IMM Private Equity said Oct. 25 that it has signed a binding term to become the largest shareholder of South Korean kitchen and interior furniture goods manufacturer Hanssem. 　Under a sales and purchase agreement, the third-largest buyout firm based in Seoul, with $5.4 billion in assets under management, will buy 6.5 million ordinary shares owned by sellers including founder Cho Chang-gul. The transaction will give IMM Private Equity rights to control a 37.8 percent stake in Hanssem. 　IMM Pr

• Markets 
  

  Kakao Pay to speed up global expansion after IPO: CEO

  　Kakao Pay, the fintech arm of mobile giant Kakao Corp., plans to accelerate its global expansion drive after its market debut slated for Nov. 3, the company’s CEO said on Oct. 25. 　“In five years, overseas businesses will become an important part of Kakao Pay,” Ryu Young-joon said during an online press conference Monday, adding that his company plans to target both the cross-border payment industry and other opportunities in finance in the overseas market after the initial

• Markets 
  

  [Market Eye] SK Telecom outlook rosy after spinoff, stock split: analysts

  　The stock value of South Korea’s top wireless carrier SK Telecom could go up if the company’s nontelecom spinoff and 5-for-1 stock split plans take effect in November, analysts of major brokerage houses said Oct. 25. 　“The spinoff plan will boost SK Telecom’s corporate value. Its affiliated companies’ values will likely be reevaluated as well. ... We highly recommend investors to buy the stock before the trading suspension” ahead of the spinoff, Ahn Jae-min