July 30, 2021

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EDITOR'S PICKS

• Markets 
  

  Housing market may face sharper-than-expected price correction: minister

  South Korea’s fiscal policy chief said on July 28 that the nation’s heated housing market may see a sharper-than-expected drop in prices in the near-future, with the possibility of an interest rate hike by the end of the year growing. “With the early subscriptions for houses scheduled in the second-half of the year, experts’ remarks indicating a price peak, a looming interest rate hike and liquidity control, there is a possibility of a partial housing price correction,&

• Markets 
  

  Moody‘s ups credit outlook for JB Financial’s banking units from stable to positive

  Global ratings firm Moody’s has raised its rating outlook for JB Financial Group’s commercial banking units -- Jeonbuk Bank and Kwangju Bank -- from stable to positive, while keeping the provincial lenders’ ratings at A1, the banking group said on July 29. “The outlook upgrade came as Jeonbuk Bank and Kwangju Bank have improved business performance by building various growth strategies centered on improving profits, while maintaining financial soundness,” JB Finan

• Markets 
  

  Wine imports hit record high in H1 over growing drinking-at-home culture

  Wine imports to South Korea hit an all-time high in the first half of this year, with a growing number of people enjoying drinks at home due to the prolonged pandemic, data showed on July 29. According to data compiled by the Korea Customs Service, Korea imported $236.9 million worth of wine in the January-June period, up 110 percent from a year earlier. The figure not only broke the previous first half record, but also accounted for 86 percent of yearly wine imports in 2020. Following the g

• Markets 
  

  IMM in final stage of W1.1tr deal to buy stake in SK Lubricants

  IMM Credit Solution, a wholly owned arm of South Korean firm IMM Private Equity, is in the final stages of a deal to buy a 40 percent stake in SK Lubricants for 1.1 trillion won ($953 million) in cash, a filing showed on July 28. 　 According to the filing, a deal is expected to be reached on July 30, and would make IMM Credit Solution a minority shareholder of the lube base oil maker that is currently fully owned by refiner SK Innovation. The filing, submitted by SK Innovation, indicates that t

• Markets 
  

  E-mart’s profitability to surge after Starbucks Korea acquisition: analysts

  Acquiring additional shares in Starbucks Korea could boost E-mart’s operating profit to near 1 trillion won ($864.4 million) within years, analysts said on July 28. Several analysts praised E-mart’s decision to buy an additional stake in Starbucks Korea, which will become a subsidiary of the supermarket chain once the deal is closed. On July 27, E-mart, the supermarket chain under retail giant Shinsegae, announced that it bought an additional 17.5 percent stake in Starbucks Korea

• Markets 
  

  Number of young stock investors triples in 18 months: KB Securities

  Amid the continuing market frenzy surrounding stocks, the number of young retail investors in South Korea has surged more than three times over the past 18 months, a local brokerage’s recent data showed on July 28. The number of small domestic investors under 20 years old came to 125,000 as of end-June, up 214 percent from the 39,000 marked at the end of 2019, according to clients’ data released by KB Securities. The brokerage house attributed the rising figures to not only a rec

• Markets 
  

  KakaoBank fails to set new record in IPO subscription

  South Korea’s mobile-only KakaoBank attracted nearly 58 trillion won ($50.21 billion) from retail investors during the two-day subscription for its much anticipated public listing, falling short of market expectations of setting a new record. The company drew 57.78 trillion won in deposits for the stock offering from some 1.86 million retail investors via the four IPO managers -- KB Securities, Korea Investment and Securities, Hana Financial Investment, Hyundai Motor Securities. The sub

• Markets 
  

  SK joins consortium for AirAsia’s digital banking business in Malaysia

  South Korean conglomerate SK Group’s Southeast Asian investment arm has joined a consortium for AirAsia’s digital bank business in Malaysia, reports said on July 27. SK South East Asia Investment has participated as a financial investor in a consortium led by the Malaysian budget airline’s financial technology unit BigPay vying for a digital banking license in the Southeast Asian country, according to Malaysian news reports. Due to SK’s nondisclosure agreement with Bi