12-13-수

BOK under pressure to take more action after U.S. rate cut SEOUL, Dec. 17 (Yonhap) -- The U.S. Federal Reserve's decision to slash the key rate to near zero is widely expected to exert more pressure on South Korea's central bank to continue its monetary easing, analysts said Wednesday. In a surprise move, the Fed slashed the federal funds rate Tuesday to a range of zero to 0.25 percent from one percent, marking the lowest level since it first began to target the rate. "The Fed's larger-than-expected rate cut pointed to a deepening global recession. The Bank of Korea (BOK) cannot help but come under some pressure as it has room to cut the rate further," said Lee Sang-jae, an economist at Hyundai Securities Co. On Thursday, the BOK trimmed the benchmark seven-day repo rate by a record one percentage point to an all-time low of 3 percent in a bid to prop up the slowing economy. The Korean central bank has slashed the rate by a combined 2.25 percentage points since early October. "A possibility (for more rate cuts) is always open," BOK Gov. Lee Seong-tae told a press conference last week after the rate-setting meeting, adding that the BOK will use its policy tools to provide liquidity and to stabilize the financial markets. The move came as the South Korean economy, Asia's fourth-largest, expanded 0.5 percent in the third quarter from three months earlier, the weakest growth in four years. Last week, the BOK said the Korean economy is expected to grow 2 percent next year, down from an estimated 3.7 percent gain this year as a global recession will likely hurt exports amid stubbornly weak domestic demand. The local economy expanded a robust 5 percent in 2007. "Faltering overseas shipments would deepen the economic slump. I think that the BOK may lower the rate aggressively to 1.5 percent until the first six months of next year," said the Hyundai Securities economist. Exports account for about 60 percent of the country's economy. But some analysts pointed out that the BOK may not make potentially steep rate cuts down the road since monetary easing alone will not be strong enough to boost the economy and stabilize the financial market. "The BOK could trim the rate further, but the central bank is expected to continue to use other tools at the same time, like increasing liquidity to the financial system," said Kim Jae-eun, an economist at Hana Daetoo Securities Co. "The BOK's current moves to flood money into the financial system actually helped the frozen market to turn around."Amid the slowing economy, local banks and companies have been suffering from cash shortages as higher credit risks discouraged banks from lending to each other and to smaller firms and households, deepening a credit squeeze. On Monday, the central bank said it would pump a combined 6.5 trillion won (US$4.9 billion) in liquidity into the financial system this week by buying longer-dated repurchase agreement deals. The government and the BOK have supplied or plan to supply a combined amount in excess of 130 trillion won in liquidity into the financial system.



(2nd LD) N.K. official inspects Kaesong complex amid chilly ties SEOUL, Dec. 17 (Yonhap) -- A senior North Korean defense official inspected the joint industrial complex in the North's border town Kaesong on Wednesday, Seoul officials said, amid speculation that Pyongyang may further curtail inter-Korean business exchanges amid chilled ties. Lt. General Kim Yong-chol of the North's National Defense Commission visited South Korean businessmen operating in Kaesong and inspected their plants, said Unification Ministry spokesman Kim Ho-nyoun. The North Korean official's visit comes after Pyongyang expelled hundreds of South Koreans from the industrial complex and drastically cut traffic across the border by South Koreans as of Dec. 1. Pyongyang said it may shut down the Kaesong complex should Seoul continue its hardline policy toward it. Kim told the businessmen that the purpose of his visit was to "convey the meaning of the Dec. 1 measure, check how it has been implemented and look into the current situation of the Kaesong industrial complex," the ministry spokesman told reporters. Seoul officials were trying to learn whether Kim's visit would be a prelude to further sanctions or a simple inspection, the spokesman said. The North Korean official conducted a similar on-site survey of Kaesong on Nov. 6, about a week before Pyongyang announced the Dec. 1 measures. He will visit more than a dozen South Korean firms in the area before returning to Pyongyang Thursday, the spokesman said. North Korea has reduced to half the number of South Korean officials and managers allowed at the Kaesong complex as part of retaliatory measures against Seoul's policy. Amid the tightened controls, several South Korean companies are reportedly canceling plans to build factories at Kaesong. There are currently 88 South Korean companies employing around 36,000 North Koreans at the complex.



Hospital to appeal court order to remove respirator SEOUL, Dec. 17 (Yonhap) -- A hospital that has been treating a woman in a vegetative state decided Wednesday to appeal a court ruling ordering life-extending tubes to be removed from the patient. Severance Hospital announced that it will bypass the state's high court and file an appeal directly with the Supreme Court against a district court's decision to recognize the patients' right to "die with dignity.""We are going to lodge the appeal directly with the Supreme Court, as the decision on euthanasia has great social impact," the hospital said.



The hospital, however, must gain the plaintiff's consent before filing the appeal with the Supreme Court. Barring that, the hospital will have to go through the high court. The family of the terminally ill woman, identified only by her surname Kim, sought a court's approval in June to remove the respiratory device as she has no chance of recovery. The woman suffered cerebral damage and fell into a coma while receiving a lung examination in February. Seoul's district court ordered the hospital on Nov. 28 to turn off the life-support equipment for the 75-year-old woman, marking the country's first ruling involving a mercy killing.




State export insurer to increase coverage to 170 tln won next year SEOUL, Dec. 17 (Yonhap) -- South Korea's state export insurer said Wednesday that it will increase the size of its coverage support to 170 trillion won (US$128 billion) in 2009 to help companies ship more products overseas. The increase is a sharp gain from the 130 trillion won provided by the Korea Export Insurance Corp. this year and is timed to meet deteriorating economic conditions that could seriously hamper exports. Export insurance is critical for many companies since it helps cover possible losses related to overseas trade. Small- and medium sized enterprises (SMEs) are to be the main beneficiaries of the increase in funds along with companies that trade with developing countries in Central Asia, Latin America and Africa. Coverage will also be increased for the shipbuilding, construction and industrial plant sectors from $12.5 billion to $20.0 billion. The three industries are expected to help export growth in the new year since the country enjoys global competitiveness in those areas. The state-run company added that it will increase credit guarantees to 9 trillion won next year from 1.5 trillion won earmarked for 2008 which can ease the liquidity crunch felt by many exporters. The South Korean government said last month that it is aiming to push up exports to US$500 billion in 2009, although most think tanks claimed $450-470 billion may be more likely in the face of the worldwide economic downturn. Think tanks also said a slight trade surplus is expected in 2009 from a deficit that could exceed $13 billion this year.



S. Korea tightens quarantine control after bird flu outbreaks in mainland Asia By Lee Joon-seungSEOUL, Dec. 17 (Yonhap) -- The South Korean government said Wednesday that it has strengthened quarantine inspections at airports and harbors following several bird flu outbreaks in many mainland Asian countries. The Ministry for Food, Agriculture, Forestry and Fisheries said it has ordered customs inspectors and quarantine service officials to carefully check people and luggage arriving from China, India, Bangladesh, and Southeast Asia. Outbreaks have been reported in Thailand, Laos, India and Vietnam in November with more being confirmed this month in places like China. It also said all poultry farmers in the country have been asked to conduct preventative decontamination of facilities and watch closely for any sudden rise in bird deaths. Regional authorities have also been advised to frequently decontaminate vehicles used to transport birds and ask ordinary people not to visit bird sanctuaries. The government speculates that past outbreaks in the country were caused by migratory birds arriving in Siberia and China. South Korea maintains a year-long watch on bird flu outbreaks, although the alert level is heightened during winter. No virulent H5N1 strain of bird flu has been detected in recent months, although there have been cases of the less dangerous H5N2 types of avian influenza detected in bird sanctuaries in the Jeolla region, located on the country's southwestern coast. The country has been hit three times with H5N1 avian influenza outbreaks, with the latest outbreak occurring in April and resulting in a record 8.46 million birds being culled at the cost of around 264 billion won (US$199 million). Previous outbreaks took place in the winter months of 2003-2004 and 2006-2007. No cases of human infection were reported in the country's latest outbreak, although the government said 10 South Koreans were infected in the two previous outbreaks without developing any symptoms. Worldwide, over 240 human deaths have been reported in 48 countries.




POSCO mulls investment in Indonesia SEOUL, Dec. 17 (Yonhap) -- POSCO, the world's fourth-largest steelmaker, said on Wednesday it is considering investments in Indonesia as part of an effort to expand its overseas presence. On Tuesday, Reuters reported that POSCO is in talks with state-owned PT Krakatau Steel to build a mill with a production capacity of up to 3.1 million tons in Cilegon, West Java. "Nothing has been decided yet and we are very cautious in pushing ahead with overseas investments due to the global financial crisis," said a POSCO official. In May this year, the South Korean steelmaker said it was in talks with the Indonesian government to buy a stake in Krakatau. Steel prices and demand have fallen sharply in the face of a global downturn, which has forced producers to scale back output and slash jobs.




BOK under pressure to take more action after U.S. rate cut SEOUL, Dec. 17 (Yonhap) -- The U.S. Federal Reserve's decision to slash the key rate to near zero is widely expected to exert more pressure on South Korea's central bank to continue its monetary easing, analysts said Wednesday. In a surprise move, the Fed slashed the federal funds rate Tuesday to a range of zero to 0.25 percent from one percent, marking the lowest level since it first began to target the rate. "The Fed's larger-than-expected rate cut pointed to a deepening global recession. The Bank of Korea (BOK) cannot help but come under some pressure as it has room to cut the rate further," said Lee Sang-jae, an economist at Hyundai Securities Co. On Thursday, the BOK trimmed the benchmark seven-day repo rate by a record one percentage point to an all-time low of 3 percent in a bid to prop up the slowing economy. The Korean central bank has slashed the rate by a combined 2.25 percentage points since early October. "A possibility (for more rate cuts) is always open," BOK Gov. Lee Seong-tae told a press conference last week after the rate-setting meeting, adding that the BOK will use its policy tools to provide liquidity and to stabilize the financial markets. The move came as the South Korean economy, Asia's fourth-largest, expanded 0.5 percent in the third quarter from three months earlier, the weakest growth in four years. Last week, the BOK said the Korean economy is expected to grow 2 percent next year, down from an estimated 3.7 percent gain this year as a global recession will likely hurt exports amid stubbornly weak domestic demand. The local economy expanded a robust 5 percent in 2007. "Faltering overseas shipments would deepen the economic slump. I think that the BOK may lower the rate aggressively to 1.5 percent until the first six months of next year," said the Hyundai Securities economist. Exports account for about 60 percent of the country's economy. But some analysts pointed out that the BOK may not make potentially steep rate cuts down the road since monetary easing alone will not be strong enough to boost the economy and stabilize the financial market. "The BOK could trim the rate further, but the central bank is expected to continue to use other tools at the same time, like increasing liquidity to the financial system," said Kim Jae-eun, an economist at Hana Daetoo Securities Co. "The BOK's current moves to flood money into the financial system actually helped the frozen market to turn around."Amid the slowing economy, local banks and companies have been suffering from cash shortages as higher credit risks discouraged banks from lending to each other and to smaller firms and households, deepening a credit squeeze. On Monday, the central bank said it would pump a combined 6.5 trillion won (US$4.9 billion) in liquidity into the financial system this week by buying longer-dated repurchase agreement deals. The government and the BOK have supplied or plan to supply a combined amount in excess of 130 trillion won in liquidity into the financial system.




Broadcaster head suggests confidence vote amid appointment feud By Tony ChangSEOUL, Dec. 17 (Yonhap) -- The head of South Korea's largest cable news channel suggested holding a vote of confidence to resolve a feud sparked by his appointment, the chief of a coalition of international journalists said Wednesday. Officials at YTN, South Korea's sole 24-hour news network, said their chief executive Gu Bon-hong indicated he is considering holding a vote of confidence to settle the dispute, Aidan White, secretary general of the International Federation of Journalists, said at a press conference in SeoulAppointment of Gu, a confidant of President Lee Myung-bak, as the head of YTN in July has since triggered a bitter confrontation between the network's management and union workers. The management fired six union leaders and penalized several others who led a 90 day sit-in in October to protest the appointment. "The CEO has suggested himself having a vote," said White, who met with YTN's laid-off workers, management officials, as well as with telecommunications regulators and lawmakers over the last three days in Seoul. White suggested that the management and union leaders meet as soon as possible to discuss the terms of a confidence vote and other pending issues such as reinstatement of fired workers. YTN's unionized workers have filed complaints with the Seoul Central District Court, claiming Gu's appointment was "illegal" and thus any punitive action against union members should be withdrawn.




Hynix cleared of anti-trust charges in U.S., Europe By Kim Young-gyoSEOUL, Dec. 17 (Yonhap) -- Hynix Semiconductor Inc., the world's second-largest computer memory-chip maker, has been cleared of charges that it violated U.S. and E.U. antitrust laws, the company said Wednesday. The U.S. Department of Justice began an antitrust investigation in October 2006 into the SRAM (static random access memory) market, which produces chips used to store data in low-power devices, including handheld devices. SRAM memory is known to be faster and more reliable than dynamic random access memory, or DRAM, the most common type used in personal computers. The European Union commission also has been conducting a probe into suspected price-fixing of SRAM chips. The U.S. and E.U. regulators were reported to have closed their respective investigations into possible antitrust violations regarding SRAM. "Hynix fully cooperated with the investigations, which began in October of 2006, and maintained throughout that it had committed no wrongdoing. The investigations are now closed, and no charges have been brought against any Hynix entity," the company said in a statement. Hynix plans to focus its attention on dismissing the U.S. class action lawsuits, which were filed immediately after the investigations were made public, it said. In 2005, the company has made a US$185 million settlement with the U.S. Department of Justice over a charge of price fixing for DRAM products.




Seoul committee approves development of new multiple rocket launcher SEOUL, Dec. 17 (Yonhap) -- South Korea will develop a new multiple rocket launcher that can also fire off guided rockets, the defense procurement office said Wednesday. The new Multiple Launch Rocket System (MLRS) will be developed by 2013 to replace the country's aging rocket launcher systems. A total of 73 MLRS are scheduled to be produced under a first phase of mass production that will begin in 2014, the Defense Acquisition Program Administration said. The 154-billion won (US$117 million) development project was approved at a meeting of the Defense Acquisition Project Execution Committee, chaired by Defense Minister Lee Sang-hee. "Once the new MLRS are commissioned following a successful development, they will not only greatly improve the Army's artillery power, but will also have a great impact on our economic development through exports," an official from the acquisition agency told reporters. The developer for the new rocket launcher will be named through future biddings, according to the official.


Japan said to give up claim to Dokdo in high school guidebook By Yoo Cheong-moSEOUL, Dec. 17 (Yonhap) -- The Japanese government has decided not to include any territorial description of Dokdo, the easternmost South Korean islets, in a high school teachers' guidebook scheduled for revision early next year, a diplomatic source in Seoul said Wednesday. The alleged decision apparently reflects Tokyo's intention not to strain the South Korean-Japanese relationship amid growing signs of its normalization, said the source. "Japan's Education Ministry is moving to revise the current guidebook for its high school teachers for the first time in 10 years. But the new educational document due to be released next Tuesday will not contain any territorial claim to Dokdo," said the source on condition of anonymity. Bilateral relations hit their recent lowest ebb in July, when Japan's Education Ministry released an educational document for middle school teachers that describes the South Korean islets in the East Sea as part of Japanese territory. Since Taro Aso's inauguration as Japanese prime minister in late September, however, the two governments have attempted to normalize bilateral ties through the resumption of summit talks, foreign currency swap deals and brisk personnel and cultural exchanges. South Korean President Lee Myung-bak and Aso have agreed to resume bilateral shuttle diplomacy and pursue a "mature partnership" between their countries through several rounds of summit talks thus far. Another diplomatic official in Seoul, however, cautioned that the possibility of the Japanese territorial claim to Dokdo being inserted into other high school educational materials cannot be completely ruled out. "Contents of a high school teacher's guidebook will be finalized at Japan's Cabinet meeting. But (they) can be unilaterally determined by the Education Ministry, leaving open the possibility of Dokdo-related description being included in some textbook manuals," said the official. Dokdo lies just 90 kilometers east of South Korea's Ulleung Island in the East Sea, while the closest Japanese territory of Oki Island in Shimane Prefecture is more than 160 kilometers away. Since 1954, the South Korean Coast Guard has stationed a small contingent on Dokdo as a symbol of Seoul's ownership of the rocky islets.





(LEAD) Hospital to appeal court order on mercy killing By Kim BoramSEOUL, Dec. 17 (Yonhap) -- A hospital that has been treating a woman in a vegetative state decided Wednesday to appeal a court ruling ordering life-extending tubes be removed from the patient. Severance Hospital announced that it will bypass the state's high court and file an appeal directly with the Supreme Court against a district court's decision to recognize the patients' right to "die with dignity.""We are going to lodge the appeal directly with the Supreme Court, as the decision on euthanasia has great social impact," the hospital said.

The hospital, however, must gain the plaintiff's consent before filing the appeal with the Supreme Court. Barring that, the hospital will have to go through the high court. The family of the terminally ill woman, identified only by her surname Kim, sought a court's approval in June to remove the respiratory device as she has no chance of recovery. The woman suffered cerebral damage and fell into a coma while receiving a lung examination in February. Seoul's district court ordered the hospital on Nov. 28 to turn off the life-support equipment for the 75-year-old woman, marking the country's first ruling involving a mercy killing. The medical community welcomed the ongoing discussion, expecting it to put to rest the longstanding controversy. "The Supreme Court's decision will lift doctors' burden in deciding whether to respect patients' and families' determination to end lives," said Kim Joo-kyung, spokesman for the Korean Medical Association, referring to the hospital's appeal. "And I expect that social consensus on the issue will be achieved while the court reaches its decision," he added. The Catholic population, which opposes euthanasia, said that it understands the hospital's decision to continue with the trial but demanded the issue be approached more cautiously. "I think mercy killing or euthanasia should not be dealt with through uniform legislation," said Lee Dong-ik, a director of Catholic Bishops' Conference of Korea. "It should be dealt with on a case by case basis, as (anyone subject to) mercy killing requires a thorough and careful medical examination."brk@yna.co.kr(END)



(LEAD) Won climbs 1.86 pct vs. dollar on U.S. rate cut SEOUL, Dec. 17 (Yonhap) -- South Korea's currency rose 1.86 percent against the U.S. dollar on Wednesday as investors' appetite for riskier assets was revived on the back of the U.S. Federal Reserve's decision to cut the rate to a record low, dealers said. The local currency closed at 1,325 won to the greenback, up 24.6 won from Tuesday's close, after jumping as high as 1,310 won at one point. The Korean won gained ground for the third straight session with its value declining about 29 percent to the dollar so far this year. "A steep rate cut by the Fed led the dollar to globally weaken against major currencies," said Shin Jin-ho, a currency analyst at Woori Futures Co. "Continued liquidity supply to the financial system helped ease the money market."The U.S. Federal Reserve slashed the key interest rate Tuesday to a range of zero to 0.25 percent from one percent, marking the lowest level since it began to target the rate. South Kora's policy rate stands at an all-time low of 3 percent. U.S. stocks surged Tuesday on expectations that the rate reduction will help revive the slumping U.S. economy. The Dow Jones industrial average soared 4.21 percent, and the tech-dominated Nasdaq composite index jumped 5.41 percent. South Korea's benchmark Korea Composite Stock Price Index (KOSPI) edged up 0.71 percent to 1,169.75. Foreign investors snapped up a net 131.8 billion won (US$99.8 million) worth of local stocks on the Seoul bourse. Analysts said toward the year-end, investors seemed to bet on the gains of the local currency, which plunged a year-low of 1,513 won to the greenback on Nov. 24. "If offshore investors continue to buy local stocks and exporters unload the greenback, the possibility that the Korean currency may rise above the 1,300-won level cannot be excluded," Shin said. "But it is too early to say that the won's movement is on the upward trend next year as the slowing economy and liquidity problems facing local lenders will likely linger."sooyeon@yna.co.kr(END)







(2nd LD) N.K. official inspects Kaesong complex amid chilly ties SEOUL, Dec. 17 (Yonhap) -- A senior North Korean defense official inspected the joint industrial complex in the North's border town Kaesong on Wednesday, Seoul officials said, amid speculation that Pyongyang may further curtail inter-Korean business exchanges amid chilled ties. Lt. General Kim Yong-chol of the North's National Defense Commission visited South Korean businessmen operating in Kaesong and inspected their plants, said Unification Ministry spokesman Kim Ho-nyoun. The North Korean official's visit comes after Pyongyang expelled hundreds of South Koreans from the industrial complex and drastically cut traffic across the border by South Koreans as of Dec. 1. Pyongyang said it may shut down the Kaesong complex should Seoul continue its hardline policy toward it. Kim told the businessmen that the purpose of his visit was to "convey the meaning of the Dec. 1 measure, check how it has been implemented and look into the current situation of the Kaesong industrial complex," the ministry spokesman told reporters. Seoul officials were trying to learn whether Kim's visit would be a prelude to further sanctions or a simple inspection, the spokesman said. The North Korean official conducted a similar on-site survey of Kaesong on Nov. 6, about a week before Pyongyang announced the Dec. 1 measures. He will visit more than a dozen South Korean firms in the area before returning to Pyongyang Thursday, the spokesman said. North Korea has reduced to half the number of South Korean officials and managers allowed at the Kaesong complex as part of retaliatory measures against Seoul's policy. Amid the tightened controls, several South Korean companies are reportedly canceling plans to build factories at Kaesong. There are currently 88 South Korean companies employing around 36,000 North Koreans at the complex. hkim@yna.co.kr(END)




BOK under pressure to take more action after U.S. rate cut SEOUL, Dec. 17 (Yonhap) -- The U.S. Federal Reserve's decision to slash the key rate to near zero is widely expected to exert more pressure on South Korea's central bank to continue its monetary easing, analysts said Wednesday. In a surprise move, the Fed slashed the federal funds rate Tuesday to a range of zero to 0.25 percent from one percent, marking the lowest level since it first began to target the rate. "The Fed's larger-than-expected rate cut pointed to a deepening global recession. The Bank of Korea (BOK) cannot help but come under some pressure as it has room to cut the rate further," said Lee Sang-jae, an economist at Hyundai Securities Co. On Thursday, the BOK trimmed the benchmark seven-day repo rate by a record one percentage point to an all-time low of 3 percent in a bid to prop up the slowing economy. The Korean central bank has slashed the rate by a combined 2.25 percentage points since early October. "A possibility (for more rate cuts) is always open," BOK Gov. Lee Seong-tae told a press conference last week after the rate-setting meeting, adding that the BOK will use its policy tools to provide liquidity and to stabilize the financial markets. The move came as the South Korean economy, Asia's fourth-largest, expanded 0.5 percent in the third quarter from three months earlier, the weakest growth in four years. Last week, the BOK said the Korean economy is expected to grow 2 percent next year, down from an estimated 3.7 percent gain this year as a global recession will likely hurt exports amid stubbornly weak domestic demand. The local economy expanded a robust 5 percent in 2007. "Faltering overseas shipments would deepen the economic slump. I think that the BOK may lower the rate aggressively to 1.5 percent until the first six months of next year," said the Hyundai Securities economist. Exports account for about 60 percent of the country's economy. But some analysts pointed out that the BOK may not make potentially steep rate cuts down the road since monetary easing alone will not be strong enough to boost the economy and stabilize the financial market. "The BOK could trim the rate further, but the central bank is expected to continue to use other tools at the same time, like increasing liquidity to the financial system," said Kim Jae-eun, an economist at Hana Daetoo Securities Co. "The BOK's current moves to flood money into the financial system actually helped the frozen market to turn around."Amid the slowing economy, local banks and companies have been suffering from cash shortages as higher credit risks discouraged banks from lending to each other and to smaller firms and households, deepening a credit squeeze. On Monday, the central bank said it would pump a combined 6.5 trillion won (US$4.9 billion) in liquidity into the financial system this week by buying longer-dated repurchase agreement deals. The government and the BOK have supplied or plan to supply a combined amount in excess of 130 trillion won in liquidity into the financial system.





(LEAD) Won climbs 1.86 pct vs. dollar on U.S. rate cut SEOUL, Dec. 17 (Yonhap) -- South Korea's currency rose 1.86 percent against the U.S. dollar on Wednesday as investors' appetite for riskier assets was revived on the back of the U.S. Federal Reserve's decision to cut the rate to a record low, dealers said. The local currency closed at 1,325 won to the greenback, up 24.6 won from Tuesday's close, after jumping as high as 1,310 won at one point. The Korean won gained ground for the third straight session with its value declining about 29 percent to the dollar so far this year. "A steep rate cut by the Fed led the dollar to globally weaken against major currencies," said Shin Jin-ho, a currency analyst at Woori Futures Co. "Continued liquidity supply to the financial system helped ease the money market."The U.S. Federal Reserve slashed the key interest rate Tuesday to a range of zero to 0.25 percent from one percent, marking the lowest level since it began to target the rate. South Kora's policy rate stands at an all-time low of 3 percent. U.S. stocks surged Tuesday on expectations that the rate reduction will help revive the slumping U.S. economy. The Dow Jones industrial average soared 4.21 percent, and the tech-dominated Nasdaq composite index jumped 5.41 percent. South Korea's benchmark Korea Composite Stock Price Index (KOSPI) edged up 0.71 percent to 1,169.75. Foreign investors snapped up a net 131.8 billion won (US$99.8 million) worth of local stocks on the Seoul bourse. Analysts said toward the year-end, investors seemed to bet on the gains of the local currency, which plunged a year-low of 1,513 won to the greenback on Nov. 24. "If offshore investors continue to buy local stocks and exporters unload the greenback, the possibility that the Korean currency may rise above the 1,300-won level cannot be excluded," Shin said. "But it is too early to say that the won's movement is on the upward trend next year as the slowing economy and liquidity problems facing local lenders will likely linger."sooyeon@yna.co.kr(END)








S. Korean stocks end higher on Fed's record rate cut SEOUL, Dec. 17 (Yonhap) -- South Korean stocks ended higher Wednesday as investors scooped up financial shares following the U.S. Federal Reserve's historic interest rate cut, analysts said. The local currency rose against the U.S. dollar. Paring steep gains in early session trading, the benchmark Korea Composite Stock Price Index (KOSPI) added 8.19 points, or 0.71 percent, to close at 1,169.75. Volume was heavy at 638.44 million shares worth 6.48 trillion won (US$4.89 billion), with gainers outpacing losers 444 to 410. "The U.S. rate cut is helping to relieve investors' risk-averse sentiment and is inducing exposure to emerging markets," said Kim Seung-han, an analyst at HI Investment & Securities. The U.S. Federal Reserve Tuesday reduced its benchmark federal funds rate to a target of zero to 0.25 percent from 1 percent, the lowest on record, and pledged to use all tools available to lift the sagging economy. The Fed's historic decision instantly boosted Wall Street, with the Dow Jones industrial average surging 4.2 percent and the tech-dominated Nasdaq jumping 5.41 percent. Financial shares led the market advance, tracking overnight Wall Street gains in the financial sector. Hana Financial Group, the parent company of Hana Bank, advanced 6.57 percent to 21,900 won and KB Financial Group surged 6.15 percent to 36,250 won. Samsung Fire & Marine Insurance jumped 3.78 percent to end at 178,500 won. Steel makers followed suit with POSCO, the country's biggest mill, soaring 2.2 percent to 391,500 won and Hyundai Steel adding 0.62 percent to 40,700 won. Auto makers, however, suffered losses after two days of steep gains. Hyundai Motor shed 1.05 percent to 47,000 won and its affiliate Kia Motors lost 1.22 percent to 8,090 won. IT exporters finished mixed. Market leader Samsung Electronics gained 0.55 percent to 459,500 won while LG Electronics trimmed 0.73 percent to 81,500 won. Hynix Semiconductor, the world's second biggest memory chipmaker, gained 3.58 percent following a news report the U.S. Justice Department cleared it of charges that it violated anti-trust rules. It finished at 7,230 won. The local currency closed at 1,324.7 won to the dollar, up 24.9 won from Tuesday's close, extending its gains for a third day. The U.S. Fed's radical rate reduction also helped to boost foreign investors' won holdings, dealers said.




SEOUL, Dec 9 (Reuters) - South Korean government bond prices rose on Tuesday, lifted by the imminent launch of a bond-buying fund and hopes the central bank will cut rates sharply at a policy review on Thursday. The financial regulator said on Tuesday that it planned to launch a proposed 10 trillion won ($6.93 billion) bond fund this month after local banks and other financial firms agreed on their individual contributions to the fund. The yield on the benchmark 5-year treasury bonds fell 3 basis points to 4.44 percent, while December treasury bond futures ended up 15 ticks at 109.88. Hopes for a significant rate cut also underpinned the bond market, with a Reuters poll showing 9 of 10 economists surveyed projected a cut of half a percentage point at a review on Thursday. "Given the drastic moves in Britain and other European countries, the Bank of Korea may cut the rates even more than 50 basis points," said Choi Suk-won, a fixed-bond analyst at Samsung Securities.
A top ruling party official added pressure on the central bank, calling for a reduction in the amount of cash that local banks should set aside at the Bank of Korea against the deposits at their banks. "The Bank of Korea should lower the cash reserve ratio to pump liquidity to local banks so that they could lend the money to companies," said Lim Tae-hee, chairman of the ruling party's policy committee, at a press briefing. close prev close 5-yr treasury bonds 4.44 pct 4.47 pct 3-yr treasury bonds 4.16 pct 4.22 pct 1-yr monetary stabilisation bonds 4.52 pct 4.58 pct 3-mth certificates of deposit 5.44 pct 5.45 pct Average call rate ~ 4.03 pct 6-mth *KORIBOR 6.13 pct 6.13 pct ~ not quoted * Korea interbank offered rate ($1=1,443.9 Won) (Reporting by Seo Eun-kyung; Editing by Neil Fullick) ((eunkyung.seo@thomsonreuters.com; +82 2 3704 5648; Reuters Messaging;eunkyung.seo.reuters.com@reuters.net) Keywords: MARKETS KOREA BONDS * Reuters Terminal users can see related statistics, contributions and news by double clicking on: Korea debt guide Corporate debt Korea equities Special debt Government debt Municipal debt Hanwha Securities-25 Samsung bond index-5 Korea primary market focus LATEST KOREAN FORECASTS GDP trade account inflation RELATED NEWS AND OTHER TOPICS All Korea news Interest rate news-Korea All debt news-Korea Korea summary New issues-Korea Korean won spot rate All Reuters debt news-4 (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News, please visit http://topnews.reuters.com)









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한국은행은 17일 채권시장안정펀드(이하 채안펀드)의 1차 출자 금융기관에 대해 총 2조 692억원을 지원했다고 밝혔다. 채안펀드는 이날 총 5조원 규모로 운용 개시됐다. 한국은행은 금융기관에 대해 채안펀드 출자금액의 50% 이내에서 유동성을 지원키로 합의한 바 있다. 지원방식별로는 지난 15일 환매조건부채권(RP) 매입 1조 8694억원, 이날 국고채 단순매입 및 통안증권 환매 1998억원 지원 등이다. 한국은행의 유동성 지원을 받은 금융기관은 총 46개(RP매입 39개, 국고채 단순매입 등 7개)이며 나머지 금융기관은 채안펀드 출자자금을 기관 자체자금으로 약 4000억원을 조달했다.이에따라 한은은 장기 RP매입(91일물)을 통한 2조원의 유동성 공급으로 양도성예금증서(CD) 금리 등 단기 시장금리가 큰 폭 하락한 데 이어 채안펀드 출자 금융기관에 대한 적시 유동성 공급을 통해 채안펀드가 차질없이 출범하도록 지원함으로써 장기 크레딧물시장의 거래 활성화와 금리 안정에 기여할 것으로 예상했다.

(LEAD) Won climbs 1.86 pct vs. dollar on U.S. rate cut SEOUL, Dec. 17 (Yonhap) -- South Korea's currency rose 1.86 percent against the U.S. dollar on Wednesday as investors' appetite for riskier assets was revived on the back of the U.S. Federal Reserve's decision to cut the rate to a record low, dealers said. The local currency closed at 1,325 won to the greenback, up 24.6 won from Tuesday's close, after jumping as high as 1,310 won at one point. The Korean won gained ground for the third straight session with its value declining about 29 percent to the dollar so far this year. "A steep rate cut by the Fed led the dollar to globally weaken against major currencies," said Shin Jin-ho, a currency analyst at Woori Futures Co. "Continued liquidity supply to the financial system helped ease the money market."The U.S. Federal Reserve slashed the key interest rate Tuesday to a range of zero to 0.25 percent from one percent, marking the lowest level since it began to target the rate. South Kora's policy rate stands at an all-time low of 3 percent. U.S. stocks surged Tuesday on expectations that the rate reduction will help revive the slumping U.S. economy. The Dow Jones industrial average soared 4.21 percent, and the tech-dominated Nasdaq composite index jumped 5.41 percent. South Korea's benchmark Korea Composite Stock Price Index (KOSPI) edged up 0.71 percent to 1,169.75. Foreign investors snapped up a net 131.8 billion won (US$99.8 million) worth of local stocks on the Seoul bourse. Analysts said toward the year-end, investors seemed to bet on the gains of the local currency, which plunged a year-low of 1,513 won to the greenback on Nov. 24. "If offshore investors continue to buy local stocks and exporters unload the greenback, the possibility that the Korean currency may rise above the 1,300-won level cannot be excluded," Shin said. "But it is too early to say that the won's movement is on the upward trend next year as the slowing economy and liquidity problems facing local lenders will likely linger."


(LEAD) Bond market stabilization fund sets sail SEOUL, Dec. 17 (Yonhap)-- Banks, insurers and brokerage houses launched a 10 trillion won (US$7.57 billion) bond fund on Wednesday in an effort to stabilize the local debt market, a main asset-manager for the fund said. The bond fund will be in place for three years and used to purchase debts from banks and non-financial companies with money chipped in by a total of 91 institutional investors, KDB Asset Management Co. said in a statement. The fund will start with a 5 trillion won pool, it added. "The fund will be operated in a way that provides liquidity to companies facing temporary cash shortages," the firm said. The South Korean debt market has been frozen as local banks and companies encounter difficulty in raising funds through bond sales, as buyers have been scared off by the collapse of U.S. investment bank Lehman Brothers Holdings Inc. In a separate statement, the Bank of Korea (BOK), the country's central bank, said it has supplied 2.07 trillion won to a total of 46 financial firms to help enable them to contribute proceeds to the bond fund. In late November, the BOK said it plans to provide up to 5 trillion won to the fund or match up to 50 percent of contributions by financial firms. The BOK pumped 1.87 trillion won to the fund by buying repurchase agreements and contributed 199.8 billion won by purchasing treasury bonds held by those firms and buy back currency stabilization bonds before maturity, it added. On Monday, the central bank said it would pump a combined 6.5 trillion won in liquidity into the financial system this week by buying long-dated repurchase agreement deals. Bond prices -- which move inversely to yields -- closed slightly higher. The return on three-year Treasuries shed 0.01 percentage point to 3.84 percent and the benchmark yield on five-year government bonds also fell 0.02 percentage point to 4.19 percent.



(LEAD) S. Korean stocks end higher on Fed's record rate cut SEOUL, Dec. 17 (Yonhap) -- South Korean stocks ended higher Wednesday as investors scooped up financial shares following the U.S. Federal Reserve's historic interest rate cut, analysts said. The local currency rose against the U.S. dollar. Paring steep gains in early session trading, the benchmark Korea Composite Stock Price Index (KOSPI) added 8.19 points, or 0.71 percent, to close at 1,169.75. Volume was heavy at 638.44 million shares worth 6.48 trillion won (US$4.89 billion), with gainers outpacing losers 444 to 410. "The U.S. rate cut is helping to relieve investors' risk-averse sentiment and is inducing exposure to emerging markets," said Kim Seung-han, an analyst at HI Investment & Securities. The U.S. Federal Reserve Tuesday reduced its benchmark federal funds rate to a target of zero to 0.25 percent from 1 percent, the lowest on record, and pledged to use all tools available to lift the sagging economy. The Fed's historic decision instantly boosted Wall Street, with the Dow Jones industrial average surging 4.2 percent and the tech-dominated Nasdaq jumping 5.41 percent. Financial shares led the market advance, tracking overnight Wall Street gains in the financial sector. Hana Financial Group, the parent company of Hana Bank, advanced 6.57 percent to 21,900 won and KB Financial Group surged 6.15 percent to 36,250 won. Samsung Fire & Marine Insurance jumped 3.78 percent to end at 178,500 won. Steel makers followed suit with POSCO, the country's biggest mill, soaring 2.2 percent to 391,500 won and Hyundai Steel adding 0.62 percent to 40,700 won. Auto makers, however, suffered losses after two days of steep gains. Hyundai Motor shed 1.05 percent to 47,000 won and its affiliate Kia Motors lost 1.22 percent to 8,090 won. IT exporters finished mixed. Market leader Samsung Electronics gained 0.55 percent to 459,500 won while LG Electronics trimmed 0.73 percent to 81,500 won. Hynix Semiconductor, the world's second biggest memory chipmaker, gained 3.58 percent following a news report the U.S. Justice Department cleared it of charges that it violated anti-trust rules. It finished at 7,230 won. The local currency closed at 1,324.7 won to the dollar, up 24.9 won from Tuesday's close, extending its gains for a third day. The U.S. Fed's radical rate reduction also helped to boost foreign investors' won holdings, dealers said. Bond prices, which move inversely to yields, climbed. The return on three-year Treasuries shed 0.01 percentage point to 3.84 percent and the benchmark yield on five-year government bonds also fell 0.02 percentage point to 4.19 percent.


S. Korea revises down trade surplus for Nov. SEOUL, Dec. 17 (Yonhap) -- South Korea's trade surplus for November was revised down as exports to major trading partners shrank at a record pace amid the global economic recession, a government report showed Wednesday. According to revised data by the Korea Customs Service (KCS), South Korea inked a trade surplus of US$138 million in November, down from an earlier estimate of $297 million. Exports fell 19 percent from a year earlier to $29.02 billion last month, while imports also dropped 14.9 percent to $28.88 billion over the cited period, the customs office said. Outbound shipment to China, South Korea's biggest trading partner, nose-dived 32.9 percent on-year last month to $5.33 billion, the steepest fall since 1992. South Korean exports to the EU, its second-biggest overseas market, also sank by 20.5 percent to $4.24 billion over the cited period, and U.S.-bound shipments plunged 14.1 percent to $3.5 billion, the KCS said. The data comes on the heels of Friday's forecast by the central bank that predicted Asia's fourth-largest economy will grow by 2 percent in 2009 -- its slowest pace in 11 years -- as the historic global recession cuts both domestic consumption and exports, the nation's main growth engine.


2008년 11월 수출입 및 무역수지 동향 ◇ 신고수리기준 수출 290.2억 달러, 수입 288.8억 달러 기록
◇ 무역수지는 1.4억 달러 흑자 기록
◇ 2008년 11월 수출입 실적 총괄 ◇▣ 2008년 11월 수출입 동향 최종 분석결과, 수출은 전년 동기대비 △19.0% 감소한 290.2억 달러(출항기준 284.4억 달러), 수입은 △14.9% 감소한 288.8억 달러, 신고수리기준 무역수지는 1.4억 달러 흑자
○ 2007년 9월 이후 14개월만에 수출, 수입액 모두 300억불 아래로 내려가며 전체적인 무역량(수출액+수입액)의 감소를 나타냄 * 월 단위 최대 무역량(‘08.7월, 839.4억 달러)대비 △31.0% 감소한 578.9억 달러 기록
▣ 수출의 경우 전 세계적인 경제침체 및 소비 수요 감소로 선박(33.2%↑), 가전제품(34.4%↑)을 제외하고 대부분의 품목이 감소세를 기록하며 전년 동기대비 △19.0% 감소한 290.2억 달러를 기록○ 금년들어 높은 증가율을 기록하던 원료 및 연료는 하반기 유가하락세가 본격 반영되며 수출비중이 급격한 감소세로 전환 *석유제품의 전체수출액 비중(%): (7월)11.9→(9월)10.5→(10월)8.5→(11월)7.4
○ 식료ㆍ직접소비재는 어패류와조제품(24.0%↑) 음료및주류(27.0%↑)의 증가에 힘입어 수출증가세(11.8%↑)를 나타냄
○ 전통적인 주력수출 품목인 중화학공업품은 선박(33.2%↑)의 증가에도 불구하고, 승용차(15.2%↓), 반도체(44.0%↓)의 감소에 따라 △19.4%의 감소세로 전환
▣ 수입의 경우, 원유 등 원자재의 가격하락과 경제침체에 따른 수요감소 등의 원인으로 전년 동기대비 △14.9% 감소한 288.8억 달러를 기록○ 원자재(수입비중 62.3%)는 광물(8.1%↓), 연료(1.4%↓)의 감소에도 불구하고 철강재(19.3%↑)등의 증가로 △7.3%의 비교적 소폭 감소에 그침○ 소비재(수입비중 9.3%)는 사료(19.7%↑), 가전제품(10.3%↑)이 증가하였으나, 승용차(50.6%↓), 어류(36.7%↓)등이 감소하며 △25.2%하락○ 자본재(수입비중 28.4%)는 기계류와정밀기기(23.1%↓), 정보통신기기(27.2%↓), 반도체(33.5%↓) 등 대부분 품목이 감소하며 △25.0%하락
▣ 무역수지는, 국제유가 하락세에 따라 對중동 적자(△42.3억 달러)가 축소되고, 對동남아(16.7억 달러), 對홍콩(14.1억 달러), 對EU(18.4억 달러)의 흑자에 힘입어, 1.4억 달러 흑자 기록




The ministry of gender equality said that the actual number of suit filed for adultery case is almost equal between male and female.
Considering the fact that male tends to file for the adultery suit almost close to 100 percent if they found out their spouse’s extramarital relationship, but in case of female, they tend to hide and not file for suit. So we assume that there are more women out there who are hiding their husband’s adultery.
But according the criminal statistics collected by Justice Ministry, the female and male number division is almost 50 percent to 50 percent.

Even among women’s right activists, they are divided on whether the adultery law is being scrapped or not.
Some from progressive circle, they advocate for adultery law being scrapped and some from conservative group advocate for the existence of adultery law.