12-19-금요일

South Korea Plans Fund to Boost Lenders’ Capital (Update2)
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By Bomi Lim
Dec. 18 (Bloomberg) -- South Korea plans to raise 20 trillion won ($15 billion) from the central bank and investors to boost bank capital as rising bad loans force lenders including Kookmin Bank and Woori Bank to shore up their balance sheets.
The government will set up a fund in January to buy lenders’ preferred stocks and bonds, the Financial Services Commission said today. The central bank may provide half the money to be made available to banks seeking injections, Lim Seung Tae, the regulator’s secretary-general, told reporters in Seoul.
Rising bad loans are eroding South Korean banks’ capital as the nation edges closer to its first recession in a decade. The fund may provide a way for banks to maintain their buffer against losses and writedowns even as the government pressures them to increase lending amid the global credit freeze.
“The government move will surely give lenders a cushion,” said Mo Jae Sung, who helps manage almost $1 billion at Hanwha Investment Trust Management Co. in Seoul. Still, “there’s no way of knowing whether this will be enough, since no one’s able to guess how much the banks’ assets will deteriorate.”
The Bank of Korea will decide whether to contribute 10 trillion won to the fund at its policy board meeting, the central bank said in a separate statement. The FSC said Korea Development Bank will provide 2 trillion won, and the remaining 8 trillion won will come from individual and institutional investors.
Banks ‘Continue to Deteriorate’
The fund, which will run at least until the end of 2009, is a “back-up facility in bracing for an emergency, not because banks’ operations have worsened,” the chief executive officers of banks in South Korea said in a joint statement.
FSC’s Lim also stressed any capital injection through the fund should not be considered an injection of public funds.
KB Financial Group Inc., the parent of Kookmin Bank, was unchanged at 36,250 won as of the 3 p.m. close of Seoul trading. KB Financial plans to buy 500 billion won of new shares in Kookmin, the nation’s largest lender, to shore up its capital.
Woori Bank, the nation’s second-biggest, is getting 700 billion won from parent Woori Finance Holdings Co. The parent company fell 2.3 percent while the benchmark Kospi index rose 0.5 percent.
Moody’s Investors Service maintained its negative outlook on the financial strength ratings of seven South Korean banks this week, citing the weakening economy and the global credit crisis. The seven are Kookmin Bank, Woori Bank, Shinhan Bank, Hana Bank, Korea Exchange Bank, Pusan Bank and Daegu Bank.
Additional Measures
“The banks’ financial and operating trends continue to deteriorate on the back of the global credit crisis and weaker domestic economy, with no major signs yet of a reversal,” Moody’s said in a Dec. 16 report. “It is difficult to assess how effective the government measures will prove.”
South Korea is also guaranteeing $100 billion of banks’ overseas debts. The government has pooled a 10 trillion won fund to buy unsold corporate bonds and plans to inject funds into state-owned banks to boost lending.
The nation’s regulator is considering doubling the amount of hybrid bonds banks can issue, the FSC’s Lim said. Lenders currently can’t issue hybrid bonds worth more than 15 percent of their shareholder equity.
The government will also help buy deteriorating loans that banks have extended to finance real-estate projects, said the regulator, which announced similar plans for smaller banks earlier this month. The total amount of project-financing loans stands at 100 trillion won, half of which comes from commercial banks, the agency said.
Separately, the finance ministry said it plans to allow Korea Investment Corp., the country’s $30 billion sovereign wealth fund, to invest in overseas private equity funds and real estate.
To contact the reporter on this story: Bomi Lim in Seoul at blim30@bloomberg.net
Last Updated: December 18, 2008 03:04 EST


기업들이 다양한 목적으로 상환우선주를 발행하는 사례가 나타남에 따라 금융감독원은 기존의 상환우선주 발행사례에 대한 분석을 통해 상환우선주의 성격 및 그 발행에 따른 경제적인 효과와 현행 공시제도상의 문제점은 없는지 살펴보았다. 우선, 상환우선주는 주식의 일종으로서 상법 및 회계기준상 자본으로 분류되나 만기(상환기간)가 존재하는 등 부채의 성격도 동시에 지니고 있어서 그 경제적 실질은 후순위채무와 유사하다는 특징이 있다. 이런 양면적인 특성으로 인하여 상환우선주는 다양한 용도로 유용하게 활용되고 있으므로, 중소.벤처 및 초창기기업의 경우 투자자에 대한 다양한 투자옵션을 제공함으로써 자금조달을 용이하게 할 수 있고, M&A 등 일시적으로 대규모의 자금이 필요한 경우 조달후 장기에 걸쳐 상환할 수 있어서 유용하며, 구조조정 기업에 있어서는 금융기관의 출자전환 수단으로서도 활용되는 등 그 순기능이 매우 컸다. 실제 2001년 이후 상환우선주의 발행실적을 살펴본 결과, 벤처기업 자금조달을 위하여 880억원, M&A 자금조달을 위하여 2.5조원, 그리고 구조조정을 위하여 1,110억원에 해당하는 상환우선주가 발행되는 등 다양한 용도로 이용된 것으로 나타났다. 상환우선주의 유용성에도 불구하고 투자자 보호의 측면에서 볼 때, 상환우선주 주주 외의 보통주 주주, 채권자 등 다른 투자자에게 유용한 정보로서 상환우선주의 발행내역, 구체적 권리내용 및 상환현황 등의 공시는 상대적으로 미흡한 것으로 나타났다. 일반적으로 유가증권과 관련한 공시는 당해 유가증권 투자자를 위한 공시이지만, 상환우선주의 경우 인수자는 주로 소수의 기관투자자로서 상환우선주 투자에 따른 위험의 분석과 감수(risk taking)가 가능하다는 점에서 상환우선주 투자자보다는 다수의 소액 보통주 주주 또는 채권자에 대한 보호 필요성이 더 큰 것으로 분석하였다. 이와 관련하여 금감원은 상환우선주의 상환과 관련된 정보를 사업보고서 등의 공시사항으로 추가하는 한편 그 외 회사가 발행한 다양한 주식의 세부권리내용에 관한 공시도 대폭 정비할 계획이며, 이를 통해 투자자가 특정 유가증권의 발행, 상환 또는 전환이 회사의 재무상태 및 현금흐름 등에 미치는 영향에 관한 정보를 상시 투자판단자료로 이용할 수 있게 되기를 기대하였다.


· Possible benefits will include payment rescheduling, debt-for-equity swaps and fresh loans. (출처: The Korea Herald)
상환기간 재조정, 부채의 출자전환 그리고 신규대출 등의 혜택이 주어질 것으로 보인다.
· LG Group has argued that outside directors of affiliates would consider it a breach of trust if they approved the debt-for-equity proposal that goes against market principles. (출처: The Korea Herald)
엘지그룹은 “시장원칙에 위배되는” 채권의 출자전환을 승인할 경우 계열사 사외이사들이 신뢰 위반으로 간주할 것이라고 주장했다.
· But two affiliates - LG Chem Ltd. and LG Electronics Inc., which hold a combined 250 billion won in LG Card bonds - vowed last week not to join the debt-for-equity scheme. (출처: The Korea Herald)
그러나 모두 합쳐 LG카드의 회사채 2,500억원을 보유하고 있는 LG그룹 내 두 계열사인 LG화학과 LG전자는 지난 주 출자전환 계획에 참여할 의사가 없음을 천명했다.
· We`ve proposed the cash buyout option for LG Group to completely withdraw if they really cannot join the debt-for-equity scheme. (출처: The Korea Herald)
“정말 출자전환에 참여할 수 없다면 엘지그룹이 완전히 손을 뗄 수 있도록 현금매수 옵션을 제안했다.
· Their initial request was for 875 billion won - the debt it holds minus 300 billion won in corporate bonds held by two LG holding companies that cannot be converted into equity under the fair trade law. (출처: The Korea Herald)
당초 요구액은 8,750억원으로 채권액에서 공정거래법에 의해 출자전환이 불가능한 엘지 2개 계열사가 소유하고 있는 회사채 3,000억원을 차감한 액수였다.
· But the LG Group is reportedly against carrying out such a large debt-equity swap. (출처: The Korea Herald)
그러나 보도에 따르면 LG 그룹은 그러한 대규모 출자전환에 반대하고 있다고 한다.
· But we still believe there`s room for LG Group to reconsider the debt-for-equity proposal, as it should be a better choice than anything else. (출처: The Korea Herald)
“그러나 우리는 LG그룹이 최선의 옵션인 출자전환 제의를 재고할 여지가 있다고 여전히 믿고 있다.”
· However, if the group agrees to the debt-for-equity conversion, it will recover all its investment within the next three years, Park asserted. (출처: The Korea Herald)
그러나 만일 LG그룹이 출자전환에 동의한다면 LG그룹은 향후 3년 이내에 투자 비용을 모두 회수하게 될 거라고 박 사장은 주장했다.
· Meanwhile, creditors, who swapped about 4.8 trillion won of debt for an 81.4 percent stake since 2001 to bail out the chipmaker, will continue to have the right to participate at board and shareholder meetings to decide important management issues. (출처: The Korea Herald)
한편 하이닉스 구제를 위해 2001년 이후 약 4조 8000억원의 대출금을 81.4퍼센트의 지분으로 맞바꾼(출자전환) 채권단은 이사회와 주주총회 참가권을 계속 보유하여 중대한 경영상의 결정에는 계속 관여하게 된다.
· The deal effectively made the junior Lee the largest shareholder of Everland, which acts as the group`s de facto holding company through cross-affiliate holdings. (출처: The Korea Herald)
전환사채 거래를 통해 이재용 씨는 순환출자 구조를 통해 삼성 그룹의 명실상부한 지주회사인 에버랜드의 최대주주가 되었다.





본문요약
Ceiling on Total Equity Investment" regulates that any company belonging to a designated enterprise group, whose Total Amount amount of assets is over 6 trillion Won, shall be prohibited from acquiring or owning stocks of another domestic companies in excess of a quart of its net asset.This rule was enacted on December, 1986 under the "Amended Monopoly Regulation and Fair Trade Act" in order to restraint indiscreet expansion of affiliate companies, reinforce core capability, prohibit companies from accumulating fake capital through circular holdings of equity among affiliate companies, prevent simultaneously insolvent situation in the whole affiliate companies and constraint controlling shareholder's gaining of unjust private interest by distorting the shareholding system.Presently, the abolition of Ceiling on Total Equity Investment is desirable because the regulation lacks justification in terms of legal purpose, and many other methods look more practical to obtain its objective. According to legal perspective, Ceiling on Total Equity Investment is very problematic from the viewpoint of equality among companies and excessive regulatory measures. Furthermore, this regulation exists only in Korea. Korean companies might get unduly discriminatory treatment against foreign companies by the regulation.


“재벌 사모펀드 의결권 제한 풀고 일반지주사에 금융자회사 허용”
공정위, 금산분리 추가완화안 대통령에 보고‘재벌 총수들 지배권 확장 수단’ 악용될 우려

곽정수 기자


이르면 내년 하반기부터 재벌들이 사모투자펀드(PEF)를 통해 기업 지분을 인수해 경영권을 행사할 수 있고, 일반지주회사도 금융자회사를 거느릴 수 있게 되는 등 산업자본의 금융 지배를 막는 금산분리 원칙이 더 완화된다. 이는 재벌들의 여유자금으로 기업·금융 구조조정을 활성화하고 지주회사 체제로의 전환을 손쉽게 할 수 있도록 하자는 취지이지만, 재벌 총수들이 이를 악용해 지배권을 확대할 경우 경제력 집중이 더욱 심화할 것이라는 우려도 나온다.
공정거래위원회는 18일 청와대에서 이명박 대통령에게 기업투자 활성화를 위해 재벌에 대한 규제를 더욱 완화하는 것을 뼈대로 한 내년도 업무계획을 보고했다.
업무계획을 보면, 자산 5조원 이상 대기업집단이 만든 사모투자펀드는 비금융계열사 주식에 대한 의결권 행사를 15%로 제한하는 현행 공정거래법 규정을 5년간 적용받지 않는다. 또 (일반)지주회사에 속한 사모투자펀드에 대해서는 자회사 최소지분 보유 의무(상장사 20%·비상장자 20%), 비금융사 소유금지와 같은 지주회사 규제가 적용되지 않는다. 공정위는 내년 3월 이런 내용의 공정거래법 개정안을 국회에 제출한다.
금융지주회사가 비금융자회사를 거느릴 수 있도록 하는 금융지주회사법 개정안과 산업자본의 은행지분 취득 제한을 완화한 은행법 개정안이 국회에 발의된 데 이어 제2의 금산분리 완화방안이 추진되는 셈이다. 이동훈 공정위 사무처장은 “대기업집단의 사모투자펀드 설립과 운영이 쉬워지면 여유자금을 활용해 경제가 어려운 상황에서 매물로 나오는 기업들을 인수해 구조조정을 원할히 하는 데 도움이 될 것”이라고 말했다.
또 일반지주회사가 은행 이외의 금융자회사를 두는 것이 허용되며, 손자회사가 증손회사를 소유할 수 있게 된다. 공정위는 다만 대주주 사금고화의 부작용을 방지하기 위해 금융자회사와 비금융자회사간의 출자는 금지하기로 했다. 이에 따라 이미 지주회사로 바뀐 에스케이와 씨제이는 각각 에스케이증권과 씨제이창업투자의 지분을 계속 보유할 수 있게 됐다. 또 두산과 동양, 한화, 코오롱 등 금융계열사를 거느린 재벌의 지주회사 전환도 쉬워진다.
김상조 경제개혁연대 소장(한성대 교수)은 이에 대해 “정부가 추진하는 출자총액제한제 폐지가 이뤄지면 재벌들이 사모투자펀드를 마음대로 만들 수 있게 되는데, 사모투자펀드가 투자한 주식에 대한 의결권 제한까지 풀어주면 재벌의 지배력 확장 수단으로 악용될 위험성이 있다”고 말했다. 공정위는 그러나 사모투자펀드는 한시적 투자목적으로 운용하게 돼 있어 지배력 확장에 이용하는 데는 한계가 있다고 말했다.
곽정수 대기업 전문기자 jskwak@hani.co.kr



Preferred stock, also called preferred shares or preference shares, is typically a higher ranking stock than voting shares, and its terms are negotiated between the corporation and the investor.
Preferred stock usually carry no voting rights,[1][2] but may carry superior priority over common stock in the payment of dividends and upon liquidation. Preferred stock may carry a dividend that is paid out prior to any dividends to common stock holders. Preferred stock may have a convertibility feature into common stock. Preferred stockholders will be paid out in assets before common stockholders and after debt holders in bankruptcy. Terms of the preferred stock are stated in a "Certificate of Designation".
Contents
[hide]
1 Rights
2 Users
2.1 Canada
2.1.1 Canadian issuers
2.1.2 Canadian investors
2.2 United Kingdom
2.2.1 United Kingdom issuers
2.3 United States
2.4 France
2.5 South Africa
2.6 Czech Republic
3 Common types
4 Notes
5 External links
//
[edit] Rights
Unlike common stock, preferred stock usually has several rights attached to it:
The core right is that of preference in the payment of dividends and upon liquidation of the company. Before a dividend can be declared on the common shares, any dividend obligation to the preferred shares must be satisfied.
The dividend rights are often cumulative, such that if the dividend is not paid it accumulates from year to year.
Preferred stock may or may not have a fixed liquidation value, or par value, associated with it. This represents the amount of capital that was contributed to the corporation when the shares were first issued.[3]
Preferred stock has a claim on liquidation proceeds of a stock corporation, equivalent to its par or liquidation value unless otherwise negotiated. This claim is senior to that of common stock, which has only a residual claim.
Almost all preferred shares have a negotiated fixed dividend amount. The dividend is usually specified as a percentage of the par value or as a fixed amount. For example Pacific Gas & Electric 6% Series A preferred. Sometimes, dividends on preferred shares may be negotiated as floating i.e. may change according to a benchmark interest rate index such as LIBOR.
Some preferred shares have special voting rights to approve certain extraordinary events (such as the issuance of new shares or the approval of the acquisition of the company) or to elect directors, but most preferred shares provide no voting rights associated with them. Some preferred shares only gain voting rights when the preferred dividends are in arrears for a substantial time.
Usually preferred shares contain protective provisions which prevent the issuance of new preferred shares with a senior claim. Individual series of preferred shares may have a senior, pari-passu or junior relationship with other series issued by the same corporation.
Occasionally companies use preferred shares as means of preventing hostile takeovers, creating preferred shares with a poison pill or forced exchange/conversion features that exercise upon a change in control.
The above list, although including several customary rights, is far from comprehensive. Preferred shares, like other legal arrangements, may specify nearly any right conceivable. Preferred shares in the U.S. normally carry a call provision,[4] enabling the issuing corporation to repurchase the share at its (usually limited) discretion.
Some corporations contain provisions in their charters authorizing the issuance of preferred stock whose terms and conditions may be determined by the board of directors when issued. These "blank check" preferred shares are often used as takeover defense (see also poison pill). These shares may be assigned very high liquidation value that must be redeemed in the event of a change of control or may have enormous supervoting powers.
[edit] Users
Preferred shares are more common in private or pre-public companies, where it is more useful to distinguish between the control of and the economic interest in the company. Government regulations and the rules of stock exchanges may discourage or encourage the issuance of publicly traded preferred shares. In many countries banks are encouraged to issue preferred stock as a source of Tier 1 capital. On the other hand, the Tel Aviv Stock Exchange prohibits listed companies from having more than one class of capital stock.[citation needed]
A single company may issue several classes of preferred stock. For example, a company may undergo several rounds of financing, with each round receiving separate rights and having a separate class of preferred stock; such a company might have "Series A Preferred", "Series B Preferred", "Series C Preferred" and common stock.
In the United States there are two types of preferred stocks: straight preferreds and convertible preferreds. Straight preferreds are issued in perpetuity (although some are subject to call by the issuer under certain conditions) and pay the stipulated rate of interest to the holder. Convertible preferreds--in addition to the foregoing features of a straight preferred--contain a provision by which the holder may convert the preferred into the common stock of the company (or, sometimes, into the common stock of an affiliated company) under certain conditions, among which may be the specification of a future date when conversion may begin, a certain number of common shares per preferred share, or a certain price per share for the common.
There are income tax advantages generally available to corporations that invest in preferred stocks in the United States that are not available to individuals.
Some argue that a straight preferred stock, being a hybrid between a bond and a stock, bears the disadvantages of each of those types of securities without enjoying the advantages of either. Like a bond, a straight preferred does not participate in any future earnings and dividend growth of the company and any resulting growth of the price of the common. But the bond has greater security than the preferred and has a maturity date at which the principal is to be repaid. Like the common, the preferred has less security protection than the bond. But the potential of increases of market price of the common and its dividends paid from future growth of the company is lacking for the preferred. One big advantage that the preferred provides its issuer is that the preferred gets better equity credit at rating agencies than straight debt, since it is usually perpetual. Also, as pointed out above, certain types of preferred stock qualifies as Tier 1 capital. This allows financial institutions to satisfy regulatory requirements without diluting common shareholders. Said another way, through preferred stock, financial institutions are able to put on leverage while getting Tier 1 equity credit.
Suppose that an investor paid par ($100) today for a typical straight preferred. Such an investment would give a current yield of just over 6%. Now suppose that in a few years 10-year Treasuries were to yield 13+% to maturity, as they did in 1981; these preferreds would yield at least 13%, which would knock their market price down to $46, for a 54% loss. (In all probability, they would yield some 2% more than the Treasuries--or something like 15%, which would take the market price down to $40, for a 60% loss.)
The important difference between straight preferreds and Treasuries (or any investment-grade Federal agency or corporate bond) is that the bonds would move up to par as their maturity date is approached, whereas the straight preferred, having no maturity date, might remain at these $40 levels (or lower) for a very long time.
Advantages of straight preferreds posited by some advisers include higher yields and tax advantages (currently yield some 2% more than 10-year Treasuries, rank ahead of common stock in the case of bankruptcy, dividends are taxable at a maximum 15% rather than at ordinary income rates, as in the case of bond interest).



Capital Requirement
What Does Capital Requirement Mean?
The standardized requirements in place for banks and other depository institutions, which determines how much liquidity is required to be held for a certain level of assets through regulatory agencies such as the Bank for International Settlements, Federal Deposit Insurance Corporation or Federal Reserve Board. These requirements are put into place to ensure that these institutions are not participating or holding investments that increase the risk of default and that they have enough capital to sustain operating losses while still honoring withdrawals. Also known as "regulatory capital".
Investopedia explains Capital Requirement...
In the United States, the capital requirement for banks is based on several factors, but is mainly focused on the weighted risk associated with each type of asset held by the bank. The capital requirements guidelines are used to create capital ratios, which can then be used to evaluate and compare lending institutions based on their relative safety. An adequately capitalized institution, based on the Federal Deposit Insurance Act, must have a Tier 1 capital-to-risk weighted assets ratio of at least 4%. Institutions with a ratio below 4% are considered undercapitalized and those below 3% are significantly undercapitalized.



· All year, major business groups have pressured the government to drop the bill or at least agree to a compromise. (출처: The Korea Herald)
올해 내내 주요 재계 단체들은 공정거래법 개정안을 철회하거나 최소한 타협을 볼 것을 정부에 강력히 요구해 왔다.
· In May, the FTC and the ruling Uri Party agreed to push legal revisions to assist chaebol restructuring and last month, the antitrust regulator submitted a bill to the National Assembly to amend the fair trade law for chaebol reform. (출처: The Korea Herald)
지난 5월 공정위와 여당인 열린우리당은 재벌의 구조조정을 지원하기 위한 법률 개정을 추진한다는 데 합의했고 지난달 공정위는 재벌 개혁을 위한 공정거래법 개정안을 국회에 제출했다.
· Finalizing the revised Fair Trade Act that will take effect in April, the two parties also decided to exempt groups with a debt-to-equity ratio of below 100 percent from the regulations for one more year until 2007. (출처: The Korea Herald)
4월부터 실시되는 공정거래법 개정안을 확정한 정부여당은 또 부채비율이 100퍼센트 이하인 그룹에 대해서는 이 법규의 적용을 2007년까지 1년 더 유예하기로 결정했다.
· The watchdog is to implement a revised ordinance on the nation`s fair trade act as of April to leave the asset threshold at the current level. (출처: The Korea Herald)
공정위는 자산 한도를 현 수준으로 유지한 채 4월부터 공정거래법 개정안을 시행할 계획이다.
· The Fair Trade Commission`s newly drafted regulations to the Monopoly Regulation and Fair Trade Act tightens restrictions of chaebol, or family-owned conglomerates, and on state-invested corporations with assets exceeding 5 trillion won. (출처: The Korea Herald)
공정거래위원회는 새로운 공정거래법 개정안을 통해 재벌 그룹과 자산 규모 5조원이 넘는 공기업에 대한 규제를 강화할 방침이다.
· The Uri Party is set to railroad a set of strengthened trade regulations, including the investment ceiling, through parliament on Nov. 12. (출처: The Korea Herald)
우리당은 11월 12일 이번 정기국회 회기 내에 출자총액제한제도를 포함해 보다 강화된 공정거래법 개정안을 통과시킬 예정이다.
· The revised Fair Trade Act is sure to suppress corporate investment in the future. (출처: The Korea Herald)
“공정거래법 개정안은 향후 기업 투자를 저해할 것이 분명하다.
· The Korean business community expressed strong disappointment over the National Assembly`s passage of the revised Fair Trade Act aimed at curbing the power of family-run conglomerates, or chaebol. (출처: The Korea Herald)
국내 재계는 재벌의 힘을 약화시킬 목적의 공정거래법 개정안이 국회에서 통과되자 강한 실망감을 표명했다.
· The ruling party`s proposed revision of the antitrust law aimed at restricting investments by big business groups ran into protests from the main opposition Grand National Party and business circles. (출처: The Korea Herald)
대기업의 출자총액제한제도를 담고 있는 열린우리당의 공정거래법 개정안은 야당인 한나라당과 재계의 반대에 부딪혔다.
· Though having a debt-to-equity ratio of below 100 percent will no longer suffice as a condition for being exempt from the investment limit, conglomerates already benefiting from the standard will continue to enjoy the status even after the amended fair trade act takes effect in April. (출처: The Korea Herald)
부채비율이 100퍼센트 이하라도 더 이상 출자제한에서 예외가 아니지만 기존에 이 기준의 혜택을 받고 있는 재벌들은 공정거래법 개정안이 4월부터 실시되더라도 예외 자격을 유지하게 된다.
· However, the ruling Uri Party has been adamant in pushing the bill, which it says was necessary to make chaebol management more transparent. (출처: The Korea Herald)
그러나 지배여당인 열린우리당은 재벌의 경영을 보다 투명하게 하기 위해 필요하다며 공정거래법 개정안 통과를 적극 추진해 나갔다.
· The controversial trade bill, a major sticking point between the administration and the business community, calls for reducing the voting rights of financial companies of conglomerates with assets of more than 2 trillion won from the current 30 percent to 15 percent by 2008. (출처: The Korea Herald)
정부와 재계간 핵심 쟁점이 되고 있는 논란의 공정거래법 개정안은 자산 규모 2조원이 넘는 대기업집단 금융계열사의 의결권을 현재 30%에서 2008년까지 15%만 행사할 수 있도록 하고 있다.
· Twelve business groups are expected to face stricter equity investment restrictions under amended fair trade regulations that go into effect in April. (출처: The Korea Herald)
12개 재벌 그룹이 4월 발효되는 공정거래법 개정안 하에서 출자총액 규제를 받게 될 전망이다.
· As the Grand National Party is repeating the same words over the three thorny issues, we have failed to narrow the differences of opinions, Uri Rep. Moon Hak-jin, a member of parliament`s National Policy Committee, was quoted as saying by Yonhap News Agency. (출처: The Korea Herald)
우리당 정무위 간사인 문학진 의원은 연합뉴스와 통화에서 “공정거래법개정안의 쟁점 사항을 놓고 한나라당이 같은 말을 반복하고 있어 이견이 전혀 좁혀지지 않고 있다”며 단독 처리 가능성을 피력했다.
· Under the proposal, voting rights of financial institutions controlled by chaebol or family-owned conglomerates would be limited to from the current 30 percent to 15 percent by 2008. (출처: The Korea Herald)
공정거래법 개정안에 따르면 재벌이 소유한 금융기관의 의결권은 현행 30%에서 2008년까지 15%로 축소된다.
· If the law is passed, the combined voting rights of Samsung affiliates in Samsung Electronics would eventually be reduced to 15 percent from the current 22 percent, giving foreigners the upper hand. (출처: The Korea Herald)
공정거래법 개정안이 통과되면 삼성그룹 계열사의 의결권은 현재 22%에서 15%로 축소되어 외국인 투자자의 의결권에 못미치게 된다.
· The federation also released a report yesterday saying the new Fair Trade Act, which goes into effect in April 2005, has removed the minimum safeguards with which domestic companies can defend management (against hostile takeover attempts). (출처: The Korea Herald)
전경련은 또 어제 발표한 보고서를 통해 내년 4월부터 발효되는 공정거래법 개정안이 국내 기업들이 적대적 인수합병으로부터 경영권을 보호할 수 있는 최소한의 안전 장치마저 제거했다고 말했다.
· A spokesman for Samsung Group, the conglomerate seen most affected by the revision, declined comment on the passage of the bill. (출처: The Korea Herald)
공정거래법 개정안으로 인해 가장 큰 영향을 받게 될 것으로 보이는 삼성그룹의 대변인은 개정안 통과에 관한 논평을 거부했다.
· More importantly, we advise the ruling party to reconsider its plan to pass this week its bill on revising the Fair Trade Act. (출처: The Korea Herald)
더욱 중요한 것은 여당에 들려 주고 싶은 말로 이번 주로 벼르고 있는 공정거래법 개정안 통과를 재고하라는 것이다.
· About 10 business groups, including LG and Hanjin, are expected to be relieved from restrictions that bar conglomerate subsidiaries from investing in affiliates or other companies when a new set of standards take effect in April. (출처: The Korea Herald)
공정거래법 시행령 개정안이 4월 발효되면 LG, 한진 등 10개 기업집단이 출자총액제한 대상에서 벗어나게 될 전망이다.




· The arrest warrant was based on a few primary charges against Kim - masterminding 41 billion won in accounting frauds, borrowing about 10 billion won based on fraudulent books between 1997-98, and smuggling 25 trillion won abroad during 1997-99 through the group`s secret financial arm, British Finance Center. (출처: The Korea Herald)
구속영장은 김 전 회장에 대한 몇 가지 주요혐의를 근거로 하고 있는데 410억원 회계분식 주모, 1997-98년 사이에 분식장부를 근거로 100억원 차입, 1997-98년 사이에 그룹의 비밀 금융자회사인 브리티시 파이넌스 센터를 통한 25조원 해외밀반출이 그것이다.
· General Motors Acceptance Corporation, financing affiliate of world`s biggest carmaker General Motors Corp., said it would open its Korean arm in the first week of April. (출처: The Korea Herald)
세계 최대의 자동차회사인 제너럴 모터스의 금융 자회사인 GMAC(General Motors Acceptance Corporation)는 오는 4월 첫째 주에 한국 자회사를 설립할 예정이라고 발표했다.
· In addition to the two banking units, Shinhan Financial has a regional bank and nine nonbank financial subsidiaries. (출처: The Korea Herald)
신한지주는 두개의 은행 계열사 이외에도 지방 은행과 9개의 비은행 금융자회사를 보유하고 있다.
· The investigators summoned an official at the British Finance Center, a London-based secret financial arm of the group, for questioning, the authorities said. (출처: The Korea Herald)
수사관들이 대우그룹의 비밀 금융 자회사로 런던에 있는 브리티시 파이넌스센터(BFC)의 한 간부를 심문을 위해 소환했다고 당국은 말했다.
· ING Life Korea aims to capture the No. 3 position in Korea`s life insurance market, currently dominated by three home-grown giants, within the next three years, the local head of the Dutch financial group said yesterday. (출처: The Korea Herald)
네덜란드계 금융그룹의 자회사인 한국 ING생명은 현재 국내 생명보험회사가 지배하고 있는 국내 생명보험시장에서 3년 안에 3위를 차지하려는 목표를 가지고 있다고 어제 이 회사의 사장이 말했다.
· Hana Bank plans to launch a financial holding company that would encompass 10 units ranging from securities and asset management to life insurance. (출처: The Korea Herald)
하나은행은 증권, 자산운용, 생명보험 등 10개 자회사를 포괄하는 금융지주회사 설립을 계획하고 있다.
· Shinhan Card Co., a credit card unit of South Korea`s second-largest financial services group, is expected to merge with the credit card division of Chohung Bank in the first quarter next year. (출처: The Korea Herald)
국내 2위의 금융회사의 카드 자회사인 신한카드는 내년 1분기 조흥은행의 신용카드 사업부와 합병할 것으로 보인다.
· The ruling Uri Party appears to be leaning toward exempting Samsung Group and other conglomerates from a new bill forbidding them from using their financial units to maintain control over their subsidiaries. (출처: The Korea Herald)
열린우리당은 대기업이 금융계열사를 통해 자회사의 지분을 보유하지 못하도록 하는 내용을 골자로 하는 새로운 법안에서 삼성그룹과 여타 대기업을 면제시켜주자는 방향으로 나아가고 있는 듯 보인다.
· The group`s subsidiary, Hyundai Capital Services Inc., has been revamped as a 62:38 joint venture with GE Consumer Finance. (출처: The Korea Herald)
동 그룹의 자회사인 현대캐피탈은 GE 소비자금융과 62:38의 합작법인으로 재탄생했다.
· Under the new Fair Trade Act, financial affiliates of conglomerates will have their voting rights in other affiliates slashed to 15 percent by 2008 from the current 30 percent. (출처: The Korea Herald)
새로운 공정거래법에 따르면 대기업 금융계열사들의 여타 자회사에 대한 의결권은 현행 30%에서 2008년까지 15%로 낮아진다.
· In a surprise move last week, Citigroup Financial Products Inc., a unit of U.S.-based financial services giant Citigroup, made a last-minute entry in the bid for Thrunet last week, joining Korean competitors Hanarotelecom Inc. and Dacom Corp. (출처: The Korea Herald)
지난 주 미국계 거대 금융기업인 시티그룹의 자회사인 시티그룹 파이내션 프로덕트는 국내 업체 하나로통신, 데이콤에 이어 막판에 두루넷 인수전에 전격 참가했다.
· The company is also the subject of an ongoing investigation by the prosecution into whether it may have engaged in other irregularities over the years, such as getting illegal loans from financial institutions and bailing out other subsidiaries. (출처: The Korea Herald)
하이닉스는 또 지난 수년간 금융기관 불법 대출과 자회사 부당 지원 등과 같은 여타 비리를 저지른 혐의로 검찰 수사를 받고 있다.
· Woori Finance Holdings Co., the nation`s third-largest financial group is expected to complete the merger of its brokerage unit with LG Investment & Securities Co., in which it is acquiring a controlling interest by the end of this year. (출처: The Korea Herald)
한국 3위의 금융그룹인 우리금융지주는 자회사인 증권회사와 지배지분을 인수하게 될 LG투자증권과의 합병을 올 연말까지 완료할 것으로 보인다.
· According to the regulatory body, Lone Star has allegedly collected debts it took over from local lenders since June last year, when the fund acquired a 49 percent stake in Shinhan Credit Information Co., a debt-collecting unit of Shinhan Financial Group, the nation`s second-biggest group of financial institution. (출처: The Korea Herald)
금감원에 따르면 론스타는 지난 해 6월 신한금융지주의 채권추심 영업자회사인 신한신용정보의 지분 49%를 인수한 뒤 자신들이 인수한 채권에 대한 추심을 해왔다.
· Citibank Korea porfit higher Citibank Korea Inc., the local unit of U.S. financial giant Citigroup Inc., said yesterday that its net profit rose by more than 10 percent in the first quarter from a year earlier, helped by a merger between Citibank`s local office with a local lender last year. (출처: The Korea Herald)
미국의 거대 금융기업인 씨티그룹의 국내 자회사인 한국씨티은행은 어제 올 1분기 순익이 지난해 씨티은행 국내 사무소와 국내 은행과의 합병에 힘 입어 전년동분기대비 10% 이상 증가했다고 밝혔다
· A financial holding company is a type of paper company with stocks in sister companies that exceed half its assets. (출처: The Korea Herald)
금융지주회사란 자산의 절반이 넘는 자회사 주식을 보유하고 있는 일종의 서류상 기업을 말한다.
· The Korea Financial Industry Union, an umbrella group for 80,000 financial-service workers, said yesterday that it will push for legislation that would force any Korean subsidiary of a foreign bank to be listed on the local bourse. (출처: The Korea Herald)
8만 금융근로자의 상위 노동단체인 한국금융산업노조는 어제 외국계은행 한국 자회사의 국내 증시 상장을 의무화하는 법규의 입법화를 추진할 것이라고 말했다.
· Nonperforming loans at Korean banks increased sharply during the first three months of this year, as some lenders merged with their troubled credit-card subsidiaries, according to the Financial Supervisory Service yesterday. (출처: The Korea Herald)
금융감독원에 따르면 일부 은행들이 경영난에 처한 신용카드 자회사를 합병하면서 은행권의 부실채권이 급증하고 있다.
· They have often used their financial units, such as insurers or brokerages, to control and sometimes fund subsidiaries. (출처: The Korea Herald)
이들은 자회사를 통제하거나 가끔씩은 자금지원을 위해 보험회사나 증권회사 같은 금융 계열사를 이용하는 일이 자주 있었다.
· Woori Finance, the nation’s No. 3 financial services company earning 80 percent of its revenue from banking, is eager to enhance its non-banking businesses to match its flagship lending unit, Woori Bank, the country’s second-largest bank. (출처: The Korea Herald)
한국 3위의 금융서비스회사로 매출의 80퍼센트가 은행업에서 발생하는 우리금융은 비은행 부문을 대표적 자회사인 국내 2위의 우리은행에 걸맞게 키우기 위해 고심하고 있다.

· Hana, which received preliminary approval from the nation`s financial regulators last week, has to sell part of its stake received from its shareholders and its units to form the holding company. (출처: The Korea Herald)
지난주 금융감독위원회의 금융지주회사 예비인가를 받은 하나은행은 지주회사 설립을 위해 자사와 자회사 지분의 일부를 매각해야만 한다.
· Samsung Card, a wholly owned unit of Samsung Group, the nation`s largest family-run conglomerate, received a 1.2 trillion won bailout in March this year from shareholders including Samsung Electronics Co., Samsung Life Insurance Co., Samsung Electro-Mechanics Co. and Samsung Corp. (출처: The Korea Herald)
국내 최대의 재벌인 삼성그룹의 100퍼센트 자회사인 삼성카드는 올 3월에 삼성전자, 삼성생명, 삼성전기, 삼성물산 등의 주주로부터 1조 2000억원의 구제금융을 받았다.



· Samsung Everland Inc., the country`s largest amusement park, will no longer be subjected to financial holding company rules after the government has applied new accounting methods to reevaluate some company holdings. (출처: The Korea Herald)
국내 최대의 놀이동산인 삼성에버랜드는 정부가 일부 기업출자를 재평가함에 있어 새로운 회계방식을 적용함에 따라 더 이상 금융지주회사법에 적용을 받지 않게 됐다.
· The one-year grace period on such violators was the central part of the financial holding company law revision the Finance Ministry decided to pursue. (출처: The Korea Herald)
그러한 불법 지주회사에 대해 1년의 유예기간을 부여하기로 한 것은 재경부가 추진하기로 결정한 금융지주회사법 개정안의 골자이다.
· We have discovered that Samsung Everland became a financial holding company as defined in the Financial Holding Company Act at the end of 2003 but the company had not received state approval, the Financial Supervisory Commission said in a statement yesterday. (출처: The Korea Herald)
“2003년 말 기준으로 삼성에버랜드가 금융지주회사법에 의거 금융지주회사가 된 것을 발견했으나 동사는 정부의 인가를 받지 않았다”고 금융감독위원회가 어제 발표문에서 말했다.




· Legally, industrial capital cannot hold more than 10 percent of a local bank while their voting rights are limited to less than 4 percent. (출처: The Korea Herald)
법적으로 산업자본은 국내 은행의 지분을 10퍼센트 이상 소유할 수 없으며 의결권은 4퍼센트 미만으로 제한된다.
· The toughened measures are intended to protect the financial sector from being negatively influenced by unhealthy industrial capital in the first place, the ministry explained. (출처: The Korea Herald)
“이 조치는 산업자본과 그 금융 자회사간의 상호감시 메커니즘을 강화하기 위한 것”이라고 재경부의 한 관리가 설명했다.
· Analysts said that the Korean economy is facing increasing risks of jobless growth as its industrial structure focuses more on capital and technology rather than labor. (출처: The Korea Herald)
분석가들은 한국경제의 산업구조가 노동력보다는 자본과 기술에 더 비중을 둠에 따라 고용 없는 성장의 위험이 갈수록 증대되고 있다고 말했다.
· Pudong is the new industrial center of China that housed more than $2 billion of foreign capital during the first eight months of this year. (출처: The Korea Herald)
푸동은 올 8월까지 20억불 이상의 외국자본이 들어온 중국의 신 산업중심지다.
· We need to differentiate between good and bad foreign capital, said Rep. Bae Ki-sun, a member of the parliament`s industry and energy committee who led bill. (출처: The Korea Herald)
좋은 외국자본과 나쁜 외국자본을 구분해야 한다”고 법안 발의를 이끌었던 배기선 국회 산업자원위원회 위원이 말했다.
· The government, he said, plans to submit a bill to the National Assembly this year to revise the nation`s Banking Law. (출처: The Korea Herald)
정부는 은행법의 개정안을 올해 국회에 제출할 계획이라고 그는 말했다.
· In a separate move, a group of Korean legislators last month submitted a revision to the banking law aimed at limiting the number of foreign board members at local lenders. (출처: The Korea Herald)
이와는 별도로 일단의 한국 국회의원들이 지난 달에 국내 은행의 외국인 이사 수를 제한하기 위한 은행법의 개정안을 제출하기도 했다.
· The Financial Supervisory Service said it was consulting with the Ministry of Finance and Economy on the proposed regulation changes, hoping they will be passed by the National Assembly within the year. (출처: The Korea Herald)
금융감독원은 외국인 이사수를 제한하기 위해 은행법을 개정하는 방안을 재정경제부와 협의하고 있다며 올해 안에 개정안이 국회에서 통과되기를 바란다고 말했다.




· Under current rules, these companies are prohibited from purchasing stakes in their affiliates or other companies in excess of 25 percent of their net worth, while all chaebol with assets of more than 2 trillion won are subject to mutual investment bans among affiliates and are barred from providing companies in the same group with debt guarantees. (출처: The Korea Herald)
현행 출자총액제한제 하에서 재벌의 계열사는 자기 회사 순자산의 25%를 넘어 다른 국내 회사의 주식을 취득 또는 보유하지 못하며 자산 규모가 2조원이 넘는 대기업은 채무 보증 하에 계열사간 상호지분을 취득하지 못하도록 되어 있다.





South Korea earmarks $15 billion to encourage bank lending
Reuters
Thursday, December 18, 2008
SEOUL: South Korea said Thursday that it was forming a $15 billion fund to encourage banks to lend into the cash-strapped economy and help prevent it from being dragged into recession by the global economic downturn.
The government also pledged to keep pumping liquidity into the local money market, which has been squeezed dry by the international credit crunch that has made banks afraid to lend to local companies and to struggle themselves to raise funds from foreign lenders.
The authorities have begun to heed warnings by international investors that the domestic economy and the financial system are not as healthy as they believe, said Kim Kyeong Won, senior vice president of Samsung Economic Research Institute, a leading private research institute.
"They learned a lesson over the past two months that a series of incremental steps was not effective in this financial crisis," he said. "They are now trying to outpace the market to quell any lingering fears, as can be seen in the Bank of Korea's unprecedented rate cuts and the huge bank support plan."
Rhee Chang Yong, vice chairman of top South Korean financial regulator, the Financial Services Commission, stressed that the 20 trillion won, or $15.1 billion, bank recapitalization fund would be voluntary, and that direct injection of taxpayers' money into the banks would only worry foreign investors, who on average hold more than 50 percent of the shares in South Korean banks.
"This is not government intervention in bank management or a dilution of shares," he said.
Of the total, the Bank of Korea would provide half once it had approval from its monetary policy committee.
The central bank has reduced interest rates by a total of 2.25 percentage points to a record low of 3.0 percent since October, but banks have been reluctant to lower their market rates, fearful of putting their capital base at risk.
Banks can tap the fund, will begin in January, through the sale of new preferred shares and equity-type bonds from next year to help improve their Tier 1 capital, the core measure of a bank's financial strength, which excludes debt-like instruments like subordinated debt.
"If we pump in a total of 20 trillion won into the banking sector, we estimate their BIS ratio would rise by 2.6 percentage points on average," the regulatory commission said in the statement, referring to the Bank for International Settlements.
Public investors, like pension funds, will inject an additional 8 trillion won by purchasing securities the fund issues. The state-owned Korea Development Bank will put in the remaining 2 trillion won.
"It's a second line of defense," Rhee said. He also said that unlike in a number of countries in the West, banks in South Korea were not in bad enough shape to need direct capital injection.
Rhee said that if South Korea did do that, apart from frightening foreign investors, it could also be unsettling at home, where memories are still strong of the 1997-98 Asian financial crisis that almost pushed South Korea into default, and required it to seek substantial aid from the International Monetary Fund.
The latest measures come two days after the Finance Ministry cut its forecast for economic growth next year to 3 percent, though most economists say it will be difficult to reach even 2 percent. GDP growth in 2007 was 5 percent.
The ministry said it would continue what it called aggressive open market operations like repurchase agreements to help ease the liquidity squeeze.
It said it expected local banks to be able to roll over all their external debts due in the first half of 2009, helped by the government and central bank's plans to supply a combined $55 billion in foreign currency liquidity to the money market.
A large portion of that money will come from a U.S. Federal Reserve credit line of $30 billion dollars. The central bank has injected a combined $7 billion into banks via the facility so far and plans to lend another $4 billion next week.
South Korea last week also signed currency swap deals with Japan and China.



· Neither may make capital investments in affiliates or other firms in excess of 25 percent of their net worth. (출처: The Korea Herald)
해당 재벌과 공기업은 계열사나 다른 회사에 순자산의 25% 이상을 투자할 수 없다.
· Currently, companies with assets of more than 5 trillion won are barred from making equity investments in sister or other companies in excess of 25 percent of their net worth. (출처: The Korea Herald)
현재 자산 5조원 이상 기업집단과 그 계열사는 순자산의 25% 이상을 다른 계열사 등에 출자하지 못하도록 되어 있다.
· However, the Finance Ministry slipped in extra clauses when revising the rule in July this year allowing an exception for holdings in excess of the 5 percent limit that were acquired before the law was enacted. (출처: The Korea Herald)
그러나 재정경제부는 올 7월 금산법 개정시 법률이 발효되기 전에 획득한 5% 초과 지분은 계속 보유할 수 있도록 하는 별도의 예외 조항을 포함시켰다.
· It said that water in the proposed reservoir will be of too low a quality for agricultural use and the costs required to maintain its quality at a level suitable for irrigation are far in excess of those claimed by the government. (출처: The Korea Herald)
행정법원은 제안된 저수지의 수질이 농사용으로는 너무 낮고 관개에 적절한 수준으로 수질을 유지하는 데 드는 비용이 정부의 주장보다 훨씬 많이 든다고 말했다.
· Excluding Samsung, 17 business groups with total assets exceeding 5 trillion won are now banned from buying stakes in their affiliates or third-party companies in excess of 25 percent of their net combined assets. (출처: The Korea Herald)
삼성을 제외하고 총자산이 5조원을 넘는 17개 기업집단은 현재 계열사의 전체 순자산의 25퍼센트를 초과하여 계열사나 다른 회사의 지분 취득이 금지되어 있다.
· Under current rules, these companies are prohibited from purchasing stakes in their affiliates or other companies in excess of 25 percent of their net worth, while all chaebol with assets of more than 2 trillion won are subject to mutual investment bans among affiliates and are barred from providing companies in the same group with debt guarantees. (출처: The Korea Herald)
현행 출자총액제한제 하에서 재벌의 계열사는 자기 회사 순자산의 25%를 넘어 다른 국내 회사의 주식을 취득 또는 보유하지 못하며 자산 규모가 2조원이 넘는 대기업은 채무 보증 하에 계열사간 상호지분을 취득하지 못하도록 되어 있다.
· Subsidiaries of conglomerates with assets of 5 trillion won ($2.85 billion) or more are barred from making equity investments in affiliates or unrelated companies in excess of 25 percent of their net worth. (출처: The Korea Herald)
자산규모 5조원 이상 기업집단 소속 회사는 순자산의 25%를 초과해 다른 회사 주식을 취득 또는 소유할 수 없도록 한 현행 출자총액제한 규제를 받게 된다.
· According to the Korea Development Institute, only 43 of 328 companies subject to the equity ceiling have invested an amount in excess of 20 percent of their assets. (출처: The Korea Herald)
한국개발연구원 (KDI)에 따르면 출자총액제한제도 하에서 328개 기업 중 불과 43개 기업만이 자산의 20% 이상을 투자하고 있다고 한다.
· At the same time, the ministry suggested limiting the voting rights of the stocks that Samsung Card holds in Samsung Everland in excess of the legal limit of 5 percent. (출처: The Korea Herald)
그와 동시에 재경부는 삼성카드는 법적 소유한도 5%를 초과해 보유하고 있는 삼성에버랜드 지분에 대한 의결권을 제한하는 방안을 권고하고 있다.
· At present, the big business groups, or chaebol, with assets exceeding 5 trillion won are barred from investing in affiliates or other companies in excess of 25 percent of their net worth. (출처: The Korea Herald)
현재 재벌이라고 불리는 기업집단이 자산이 5조원을 넘을 경우 순자산의 25퍼센트를 초과하여 계열사나 다른 기업에 출자하는 것이 금지되어 있다.
· The Fair Trade Commission said in a report yesterday that each chairperson of the country`s 36 chaebol with assets in excess of 2 trillion won ($1.91 billion) owned an average 1.95 percent of the total shares as of April 1, while their relatives held 2.66 percent. (출처: The Korea Herald)
공정거래위원회가 어제 발표한 보고서에 따르면 지난 4월 1일 현재 자산 규모 2조원이 넘는 국내 36개 재벌 그룹의 총수들은 평균 1.95%의 지분을 보유하고 있고 그 친인척들의 지분 보유율은 2.66%인 것으로 나타났다.
· We had a favorable trade balance of one hundred million dollars in October. or The excess of exports over imports in October was one hundred million dollars. (출처: 동아 프라임 한영사전)
10월에는 1억불이 출초하였다
· That's far in excess of any capacity loss from the introduction of convoying. (출처: USENET)
· In March of 2005, the album was certified gold with sales in excess of 500,000. (출처: Wikipedia)
· All tires in excess of five per driver were confiscated by the government, because of rubber shortages. (출처: Wikipedia)
· Screaming jets roar through the upper atmosphere, at speeds in excess of a thousand miles an hour. (출처: Internet Book List)
· Action served in excess of 750,000 customers every week and employed over 7,800 staff. (출처: Wikipedia)
· These were "far in excess of any obligation" Blackstone has under the merger agreement. (출처: Reuters)
· There were in addition in excess of 250,000 men enlisted in the various Freikorps. (출처: Wikipedia)
· The hurricane also produced waves in excess of 70 feet in height. (




· I am now preparing to file a suit with the Constitutional Court and will seek an injunction order as well. (출처: The Korea Herald)
“나는 현재 헌법재판소에 권한쟁의 심판청구와 집행 정치 가처분 신청를 준비 중에 있다.”
· The court issued an injunction that picketing (should) not take place. (출처: BBI Word Combi)
법원은 피켓 금지령을 내렸다.
· In the suits, the Japanese company also sought an injunction against the import and sale of Samsung-made plasma panels in Japan. (출처: The Korea Herald)
소장에서 후지쓰는 삼성 PDP의 수입 및 판매금지 가처분 신청을 제기했다.
· Civic groups working with the comfort women who were exploited by the Japanese army during World War II said yesterday they filed for an injunction with the Seoul District Court to prevent actress Lee Seung-yeon`s comfort-women themed nude pictures from being made public. (출처: The Korea Herald)
2차 세계대전 당시 일본군 ‘위안부’ 피해자를 위한 시민단체는 어제 탤런트 이승연씨의 `위안부` 누드에 대한 사진, 동영상 인터넷서비스 제공금지 가처분 신청을 서울 중앙지법에 냈다.
· The statement came a day after Matsushita, the maker of Panasonic products, filed an injunction with the Tokyo District Court on Monday. (출처: The Korea Herald)
이번 성명은 월요일 파나소닉 제품 제조업체인 일본 마쓰시타가 도쿄 법원에 LG전자 PDP 모듈에 대한 수입금지 가처분 신청을 낸 이후에 나온 것이다.
· It has applied for a court injunction, claiming unfair competition and consumer confusion caused by Maeil`s product. (출처: The Korea Herald)
남양유업은 매일유업 제품이 야기한 불공정 경쟁과 소비자 혼란을 사유로 법원에 ‘불가리아’ 판매 금지 가처분 신청을 냈다.
· The decision came 11 days after SK Telecom sought an injunction against the advertisement campaign in which the smallest of Korea`s three mobile operators claimed that its larger rival was poaching its subscribers by providing illegal handset subsidies. (출처: The Korea Herald)
이번 법원의 판결은 SK텔레콤이 불법 휴대전화 보조금을 지급해 자사 가입자들을 빼앗아갔다는 LG텔레콤의 주장에 대해 SK텔레콤이 제기한 LG텔레콤 광고금지 가처분 신청을 낸지 11일만에 내려진 것이다.
· An online-based consumer group said it will seek a court injunction this month to halt sales of the 2004 model of Kia Motors Corp.`s Sorento. (출처: The Korea Herald)
한 인터넷 소비자 단체는 이달 중 기아차의 2004년형 쏘렌토 모델에 대한 판매금지 가처분 신청을 내기로 했다고 밝혔다.
· The dispute between LG Electronics and Matsushita, the maker of Panasonic goods, broke out in November last year when Matsushita filed a court injunction against LG-made PDPs for allegedly infringing its patents. (출처: The Korea Herald)
LG전자와 파나소닉 제품의 제조업체인 마쓰시타간 분쟁은 지난해 11월 마쓰시타가 특허 침해를 사유로 LG전자의 PDP에 대해 수입금지 및 통관보류 신청을 일본 법원과 세관에 제기하면서 불거졌다.
· The Japanese electronics maker also filed an injunction with the Tokyo District Court to ban sales. (출처: The Korea Herald)
마쓰시타는 또 일본 법원에 대해서도 LG전자 PDP 판매를 금지시켜 달라는 가처분 소송을 제기했다.
· The move came a day after LG Electronics vowed to take firm counteraction against Matsushita, which ignited a patent war on Monday by filing an injunction with the Tokyo District Court requesting a halt of the sales of PDPs made by LG Electronics. (출처: The Korea Herald)
이번 조치는 월요일 도쿄 지법에 LG전자의 PDP 판매를 중단시켜 달라는 가처분 소송을 제기한 마쓰시타에 대해 LG전자가 강경 대처를 천명한 지 하루만에 나온 것이다.
· The Daejon District Court on Saturday ruled against Taihan`s application on Jan. 19 for a provisional injunction to halt Jinro-Cable`s restructuring plan. (출처: The Korea Herald)
대전고등법원은 1월 19일 대한전선이 신청한 진로산업 정리계획안 수행정지 가처분을 어제 기각했다.
· Then came Matsushita Electric Industrial Co.`s filing of an injunction to halt sales in Japan of LG Electronics Co.`s PDPs, claiming they infringed on the Japanese company`s patents on heat-radiation technology. (출처: The Korea Herald)
그 후 마쓰시타전기공업은 LG전자가 자사의 열복사 기술 특허권을 침해했다고 주장하며 LG전자 PDP의 일본 내 판매금지 가처분 소송을 제기했다.
· So why didn't the neighbours take civil action and seek an injunction against the behaviour of their neighbour? (출처: USENET)
· Officials indicated that the group was creating a public nuisance and asked for an injunction in court. (출처: Wikipedia)
· On that first day, a judge issued an injunction against the strike. (출처: USENET)
· In the end, the Court voted by six to three to affirm the District Court's injunction barring the President from seizing the steel plants. (출처: Wikipedia)
· The union went to court seeking an immediate federal injunction to stop such attacks on its workers. (출처: USENET)
· This was followed by a Federal court injunction against union interference with the operation of the trains. (출처: Wikipedia)
· A judge issued an injunction on the two students to prevent them from publishing their research. (출처: Wikipedia)




South Korea To Set Up a $15.5 Billion Fund To Help Banks
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NEW YORK -- South Korea's government said Thursday that it plans to set up a 20 trillion won ($15.5 billion) fund next year to help bolster local banks and encourage them to lend, the Associated Press reported. Korea's Financial Services Commission said that the new fund, which is due to start operations from Jan. 1, is aimed at helping lenders boost their capital adequacy ratios by purchasing certain shares and bonds, according to the report. About 10 trillion won for the fund is expected to come from the Bank of Korea at low interest rates, the report said.


Sovereign Wealth Fund - SWF
What Does Sovereign Wealth Fund - SWF Mean?
Pools of money derived from a country's reserves, which are set aside for investment purposes that will benefit the country's economy and citizens. The funding for a Sovereign Wealth Fund (SWF) comes from from central bank reserves that accumulate as a result of budget and trade surpluses, and even from revenue generated from the exports of natural resources. The types of acceptable investments included in each SWF vary from country to country; countries with liquidity concerns limit investments to only very liquid public debt instruments.
Investopedia explains Sovereign Wealth Fund - SWF...
Some countries have created SWF to diversify their revenue streams. For example, United Arab Emirates (UAE) relies on its oil exports for its wealth; therefore, it devotes a portion of its reserves in an SWF that invests in other types of assets that can act as a shield against oil-related risk. The amount of money in these SWF is substantial. As of May 2007, the UAE's fund was worth more than $875 billion. The estimated value of all SWF is pegged to be $2.5 trillion.


The Korea Export Insurance Corporation, established in 1992, has provided comprehensive support in export from consulting, contract and shipping to final payment by operating an export credit insurance program, the only policy tolerated under the free trade system.Export credit insurance policies protect against both the political and commercial risks of a foreign buyer defaulting on payment. They are employed by 78 countries in the world in order to enhance their export and the policy`s significance and reputation in the national economy is growing every year.Guarantees by the Export Insurance Corporation have shown gradual growth with the increasing export by Korean firms to overseas. Our guarantees reached 100 trillion won ($68 billion) this September, up more than 55 times from 1.8 trillion won of 16 years earlier. This takes up 26.4 percent of the gross national export and the fifth largest among export credit organizations in the world.Export Insurance Corporation has recently expanded its sphere of support from product support to overseas investment and natural resources development in an aim to nurture new high value-added industries in the already saturated market. The corporation has provided exporters such financial tools as overseas business financing insurance, overseas natural resources development fund insurance, overseas investment insurance and medium and long-term export credit insurance to guarantee exporters` losses in overseas investment and natural resources development.In February, the corporation covered the nation`s first oil development fund, "Korea Vietnam 15-1 Oil Development Fund" by collecting 467.4 billion won of public fund, which well exceeded our goal. In March, we provided an $800 million-insurance to the nation`s largest plant export by Hyundai Heavy Industries. The project played a pivotal role in providing a high-return overseas financial project to home-based company and Shinhan Bank.While fulfilling our goal as raising domestic economy by supporting export, we reported profits of three consecutive years by conducting systematic risk management and enhanced credit collection. Our solid management and devotion has been acknowledged with such awards and government recognition as "the best governmental organization" for three years in a row and "the best public corporation" in terms of public fund management for five consecutive years.





What Does Reserve Currency Mean?
A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate.
Investopedia explains Reserve Currency...
Currently, the U.S. dollar is the primary reserve currency used by other countries. A very large percentage of commodities such as gold and oil are usually priced in U.S dollars, causing other countries to hold this currency to pay for these goods. A large debate still continues about whether or not the U.S. dollar will stay the main reserve currency or if it will shift over to the euro.




South Korea Plans Fund to Boost Lenders’ Capital (Update2)
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By Bomi Lim
Dec. 18 (Bloomberg) -- South Korea plans to raise 20 trillion won ($15 billion) from the central bank and investors to boost bank capital as rising bad loans force lenders including Kookmin Bank and Woori Bank to shore up their balance sheets.
The government will set up a fund in January to buy lenders’ preferred stocks and bonds, the Financial Services Commission said today. The central bank may provide half the money to be made available to banks seeking injections, Lim Seung Tae, the regulator’s secretary-general, told reporters in Seoul.
Rising bad loans are eroding South Korean banks’ capital as the nation edges closer to its first recession in a decade. The fund may provide a way for banks to maintain their buffer against losses and writedowns even as the government pressures them to increase lending amid the global credit freeze.
“The government move will surely give lenders a cushion,” said Mo Jae Sung, who helps manage almost $1 billion at Hanwha Investment Trust Management Co. in Seoul. Still, “there’s no way of knowing whether this will be enough, since no one’s able to guess how much the banks’ assets will deteriorate.”
The Bank of Korea will decide whether to contribute 10 trillion won to the fund at its policy board meeting, the central bank said in a separate statement. The FSC said Korea Development Bank will provide 2 trillion won, and the remaining 8 trillion won will come from individual and institutional investors.
Banks ‘Continue to Deteriorate’
The fund, which will run at least until the end of 2009, is a “back-up facility in bracing for an emergency, not because banks’ operations have worsened,” the chief executive officers of banks in South Korea said in a joint statement.
FSC’s Lim also stressed any capital injection through the fund should not be considered an injection of public funds.
KB Financial Group Inc., the parent of Kookmin Bank, was unchanged at 36,250 won as of the 3 p.m. close of Seoul trading. KB Financial plans to buy 500 billion won of new shares in Kookmin, the nation’s largest lender, to shore up its capital.
Woori Bank, the nation’s second-biggest, is getting 700 billion won from parent Woori Finance Holdings Co. The parent company fell 2.3 percent while the benchmark Kospi index rose 0.5 percent.
Moody’s Investors Service maintained its negative outlook on the financial strength ratings of seven South Korean banks this week, citing the weakening economy and the global credit crisis. The seven are Kookmin Bank, Woori Bank, Shinhan Bank, Hana Bank, Korea Exchange Bank, Pusan Bank and Daegu Bank.
Additional Measures
“The banks’ financial and operating trends continue to deteriorate on the back of the global credit crisis and weaker domestic economy, with no major signs yet of a reversal,” Moody’s said in a Dec. 16 report. “It is difficult to assess how effective the government measures will prove.”
South Korea is also guaranteeing $100 billion of banks’ overseas debts. The government has pooled a 10 trillion won fund to buy unsold corporate bonds and plans to inject funds into state-owned banks to boost lending.
The nation’s regulator is considering doubling the amount of hybrid bonds banks can issue, the FSC’s Lim said. Lenders currently can’t issue hybrid bonds worth more than 15 percent of their shareholder equity.
The government will also help buy deteriorating loans that banks have extended to finance real-estate projects, said the regulator, which announced similar plans for smaller banks earlier this month. The total amount of project-financing loans stands at 100 trillion won, half of which comes from commercial banks, the agency said.
Separately, the finance ministry said it plans to allow Korea Investment Corp., the country’s $30 billion sovereign wealth fund, to invest in overseas private equity funds and real estate.






Korean Won Gains as Stock Purchases Increase Demand; Bonds Fall
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By Kim Kyoungwha
Dec. 18 (Bloomberg) -- South Korea’s won strengthened for a fourth day as overseas investors added to purchases of the nation’s stocks, increasing demand for the currency. Bonds fell.
The currency, Asia’s worst performer this year, reached a six-week high as global funds bought 585 billion won ($453 million) more Korean shares than they sold this month. The Kospi index of equities climbed 0.5 percent to the highest close since Nov. 5 on speculation global interest-rate cuts and economic stimulus packages will boost demand for emerging-market assets.
The won rose 2.6 percent to 1,292 per dollar as of the 3 p.m. close of trading, according to Seoul Money Brokerage Services Ltd. It touched 1,281, the strongest since Nov. 5.
“Asia seems to be attracting an uptick in equity flows,” said Dwyfor Evans, a strategist with State Street Global Markets in Hong Kong. “There’s just a lot of cheap money out there at the moment.”
Korea’s won is still down 28 percent this year, headed for its worst annual performance since the Asian financial crisis in 1997. Investors reduced holdings of the country’s assets as the global recession took hold, prompting flight to less risky investments. The Kospi has lost 38 percent.
South Korea should use rate cuts and fiscal stimulus to cushion the economy from a recession and avoid depleting its foreign-currency reserves to prop up the won, the Organization for Economic Cooperation and Development said yesterday.
“Intervention is likely to be costly and ineffective in the face of global financial turbulence that is driving the won’s depreciation and should therefore be limited to smoothing operations,” the OECD said. “This would also limit any further decline in foreign-exchange reserves, which provide a cushion against Korea’s short-term foreign debt.”
Bonds Decline
Central banks intervene by buying or selling foreign exchange. Korea’s reserves dropped to $200 billion in November compared with $262 billion at the end of 2007.
Korean government bonds fell, snapping a five-day advance. The yield on the five-year note has slid 1.70 percentage points this quarter as the Bank of Korea lowered borrowing costs four times, taking the seven-day repurchase rate to a record low of 3 percent to support the economy.
The decline in yield during the quarter is the biggest since at least 2000, according to data compiled by Bloomberg.
The yield on the bond due September 2013 climbed five basis points to 4.17 percent, according to the Korea Exchange. The price of the 5.75 percent security fell 0.21, or 21 won per 10,000 won face amount, to 108.29. A basis point is 0.01 percentage point.
To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net;
Last Updated: December 18, 2008 02:13 EST



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Financial authorities are examining the possibility of introducing a ‘protection fund for fund investors’ as a way to protect investors from suffering losses due to acts of incomplete sales on the part of financial firms as well as to prepare against large repurchases of funds. The Financial Services Commission (FSC) disclosed on Thursday that creating such a fund to promptly deliver the rights of fund investors is currently under consideration. FSC seeks to push a plan to reflect incomplete sales in its assessment of sales systems at banks and to place restraints on executives and employees of financial firms that are found to systematically promote the act of incomplete fund sales. With regard to this matter, the Financial Supervisory Service (FSS) has been carrying out special examinations on fund sales at several commercial banks since the beginning of this month. “We are checking whether incomplete fund sales are being made by dispatching an examination team to several commercial banks from early on in this month, while inspections on securities firms will also be conducted in the near future” said a FSS official. FSS will place restraints on banks in the form of a warning when they are caught violating the law and will also strictly punish the respective executives and employees. According to FSS, fund related civil petitions have been on the rise with 40 cases filed in June; 83 cases in July; 88 cases in August; and 154 cases in September. [Eun-young Sa / JYJ][ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]



Uptick
What Does Uptick Mean?
A transaction occurring at a price above the previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. This term is commonly used in reference to stocks, but it can also be extended to commodities and other securities.
Investopedia explains Uptick...
For example, suppose stock ABC previously traded at $10. If its next trade occurred at a price above $10, ABC would be on an uptick.




(2nd LD) S. Korea to set up 20-tln-won fund to boost bank capital By Kim Soo-yeonSEOUL, Dec. 18 (Yonhap) -- South Korea's financial watchdog said Thursday it plans to set up a 20 trillion won (US$15.4 billion) fund aimed at helping local banks raise the capital base to improve their financial health. The Financial Services Commission (FSC) said it plans to create a fund in January that will be used to buy preferred stocks, subordinated bonds and hybrid debt sold by lenders. The fund will be operated until the end of 2009. "The creation of the fund will help local banks beef up their capacity to absorb possible losses in the face of a prolonged economic downturn and industrial revamp," the FSC said in a policy report to President Lee Myung-bak. According to the FSC, the Bank of Korea (BOK), the country's central bank, would contribute 10 trillion won to the envisioned fund if its board approves the plan. Institutional and individual investors would put 8 trillion won into the fund, with state-run Korea Development Bank (KDB) chipping in 2 trillion won. The move comes as South Korean lenders are struggling to bolster their falling capital adequacy ratio, a key barometer of financial soundness, as the slowing economy and a credit squeeze are increasing the amount of bad loans. The average capital adequacy ratio of 18 commercial and state banks came in at 10.79 percent as of the end of September, the lowest in more than seven years and down from 11.36 percent three months earlier. The ratio measures the percentage of a bank's capital to its risk-weighted credit. Local banks are making their own efforts to shore up the ratio mainly by selling subordinated bonds. In selling such debts, lenders record the proceeds from the debt offering as supplementary capital, which helps raise their capital adequacy ratio. "By improving banks' financial heath, the fund will help local lenders increase their capacity to support smaller firms or exporters," the FSC said. In return for the capital injections, banks will be required to beef up their own self-help efforts by cutting costs and increasing support to smaller firms. They should also refrain from using the money to increase their assets through takeovers or other means, it added. The FSC also added that the country's state-run Korea Housing Finance Corp. plans to buy mortgage loans worth 7 trillion won, while the state-owned debt clearer Korea Asset Management Corp. will purchase 3 trillion won in bad debts from banks in a move to help clean banks' balance sheets. "On the back of the fund, local banks could have more room to support the real economy even if bad debt increases," said Shin Dong-kyu, chairman of the Korea Federation of Banks (KFB), an association to promote the interests of the banking industry. "But it should be noted that recapitalization through the fund is to secure a back-up system in the face of a possible emergency. It does not mean that lenders' business conditions have deteriorated," he emphasized. The watchdog said the government plans to increase the capital base of state-run lenders KDB and the Industrial Bank of Korea by 2.3 trillion won to boost their lending capacity. The measure would expand the two lenders' total corporate lending by 14 trillion won to 68 trillion won, the FSC added. The government also plans to expand its debt guarantee capacity for state-owned credit guarantee agencies by 11.7 trillion won by boosting their capital base. Amid the slowing economy, local banks and companies have been suffering from cash shortages as higher credit risks discourage banks from lending to each other or to smaller firms and households, tightening a credit squeeze.




(2nd LD) Korea-U.S. FTA tabled in parliament amid partisan collision By Shin Hae-inSEOUL, Dec. 18 (Yonhap) -- Hammers, fire extinguishers and fists flew in the South Korean parliament on Thursday, but they were not enough to stop the ruling party from introducing a free trade pact with Washington to the legislative agenda. Determined to ratify the controversial South Korea-U.S. free trade agreement (KORUS FTA) before the end of this year, the conservative Grand National Party (GNP) physically barred opposition lawmakers from a committee room and put the motion before parliament. The trade deal has been sitting idle in the legislatures of the two countries since June last year. "We have managed today to pave the way for this critical deal," GNP floor leader Hong Joon-pyo said. "It will be ratified by the end of the year. There will be no further delay." Scores of lawmakers from the largest opposition Democratic Party and the minority Democratic Labor Party scuffled for hours with security officials, who had been guarding the hall since Wednesday. "No FTA for the country!" "No dictatorship in the parliament!" opposition legislators called out, shaking their fists in the air at the National Assembly. As security officials, mobilized by President Lee Myung-bak's GNP, continued to bar them from entering the committee room, some lawmakers used hammers and chisels to tear the back door down. They still could not enter, however, as a fire extinguisher blast broke up the scuffling. No one was seriously hurt. "The law has been ignored and the Constitution has been trampled down by violence," GNP lawmaker Park Jin, who heads the parliamentary committee on trade, said before putting the motion up for vote Thursday. Only 10 out of 29 committee members were present and voted in favor of paving the way for early ratification of the FTA in the absence of opposition party members. The timing of the legislature's FTA approval has turned into a source of intense political dispute here, especially after Democrat Barack Obama, who is critical of the FTA, won the U.S. presidential election last month. While the conservative ruling party wants immediate ratification to bolster the government's market-oriented economic initiatives, opposition parties say South Korea should take more time and observe the changes in the U.S. Congress. President Lee's party controls an absolute majority of 172 seats in the 299-member parliament, enough to approve the bilateral deal without opposition party legislators. The party's floor leader on Thursday asked members not to leave the country this month to ensure they are on hand for voting. The GNP plans to put the FTA will be put to a final vote at the full parliamentary session this month. The main opposition, holding 83 seats, accused its rival of disavowing democracy and threatened to take their protest to the streets with civic groups, who call the deal unfair. The party has been boycotting Assembly sessions since Monday. "The ruling party has declared war on the people of the Republic of Korea," the liberal party said in a statement. "Today's vote is invalid, and we will fight against it using every possible means." The KORUS FTA, struck between then South Korean President Roh Moo-hyun and his counterpart, George W. Bush, is the single biggest trade pact between the two longtime allies. It is expected to boost two-way trade, which totaled US$79 billion in 2007, by as much as $20 billion in the coming years. Business groups here want early ratification of the agreement, complaining that the delay is causing heavy losses for South Korean exporters of manufactured goods in the world's biggest market. Farmers, however, are demanding sufficient compensation and countermeasures, fearing they will not be able to compete with cheaper imported products once the deal is finalized. Obama is fundamentally pro-free trade, but views the deal with South Korea as flawed, especially in the auto trade sector.



Family of terminally ill woman rejects hospital plea to appeal mercy killing SEOUL, Dec. 18 (Yonhap) -- A family seeking the "mercy killing" of a woman in a vegetative state decided to block a hospital's bid to appeal a court's ruling to cut off her life support system, the family's attorney said Thursday. "We will exercise the patient's rights in accordance with the legal procedures stipulated in the Constitution," said Baek Kyung-hee, a legal representative of the family. The Severance Hospital needs the consent of the family, the plaintiffs, in order to appeal directly to the Supreme Court. The hospital announced on Wednesday that it will bypass the state's high court and go straight to the Supreme Court against a district court's decision recognizing the patients' right to "die with dignity.""The hospital said that it wanted to save time, but we are focused on natural death for the patient under the right procedures, not on how fast the artificial respiratory device is removed," the attorney said in a statement. "It should respect the patient and drop the appeal," she added. The case now would go to the state's high court, should the hospital still want to appeal. 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.





Sanctions on Kaesong to remain until Seoul shifts course: NK official By Kim HyunSEOUL, Dec. 18 (Yonhap) -- North Korea will continue to curtail South Korean operations at the Kaesong joint industrial complex until Seoul changes its attitude toward Pyongyang, a Seoul official quoted a senior North Korean military figure Thursday. Lt. Gen. Kim Yong-chol, head of the policy planning office of the North's National Defense Commission, was making a rare inspection this week of the complex just north of the inter-Korean border amid speculation that further sanctions could follow earlier restrictions imposed on Dec. 1. "If there's no change of attitude by the South, current measures will not be lifted," the military official was quoted by Unification Ministry Spokesman Kim Ho-nyoun as telling South Korean businesses there. The North Korean official met with about 150 representatives from South Korean business operating in Kaesong on Wednesday and was scheduled to continue his inspection of their plants on Thursday before returning to Pyongyang later in the day, the spokesman said. The visit came amid speculation that Pyongyang may further curtail operations after evicting hundreds of South Koreans from the industrial complex and cutting border traffic over the past weeks. The North also halted a cross-border railway service as well as tours to a mountain resort on the North's east coast. Pyongyang has indicated it may shut down the Kaesong complex if Seoul continues its hard-line policy toward the North. Seoul officials, meanwhile, are trying to ascertain whether Kim's visit could be a prelude to further sanctions or a simple inspection. The official conducted a similar on-site survey of Kaesong on Nov. 6, about a week before Pyongyang announced the Dec. 1 measures. "The visit is still ongoing, and it seems too early to make an assessment. We should wait and see what the North does later on," the ministry spokesman said. The North Korean official said Wednesday that the current sanctions "are not temporary, emotional or symbolic," but made no mention of additional sanctions, the spokesman added.






(LEAD) Won hits six-week high against U.S. dollar SEOUL, Dec. 18 (Yonhap) -- The South Korean won rose to a six-week high on Thursday, extending its gains for a fourth consecutive day as overseas investors continued to buy local stocks, dealers said. The won finished at 1,292.00 won versus the dollar, up 33 won from Wednesday's close. It marks the first time the won has risen above 1,300 against the dollar since Nov. 5, when it was quoted at 1,266. The Korean currency rose to as high as 1,289.90 won in early trading, but retreated later on bargain hunting for the greenback. The won remained firm due to the steady buying of South Korean stocks by foreign investors following a historic interest rate cut by the U.S. Federal Reserve this week. "A rally in the local stock market fueled the won's strength," a dealer said. South Korea's benchmark stock index gained 0.5 percent to close at 1,175.91 on Thursday, the highest level since Nov. 5. The Federal Reserve cut its benchmark rate to as low as zero on Tuesday, underscoring worsening conditions in the U.S. economy. The won, one of world's worst-performing major currencies, has shown signs of stabilizing recently. (END)





S. Korea's farm exports may miss US$4.5 bln target this year SEOUL, Dec. 18 (Yonhap) -- South Korea's farm export target may fall short of the US$4.5 billion goal set last month, the head of the state-run Agro-Fisheries Trade Corp. said Thursday. Youn Jang-bae told reporters that under normal circumstances, exports in the last two months of the year grow by about 11 percent on-year, which could push this year's total up to $4.4 billion. However, the executive pointed out that a growing number of overseas buyers are canceling orders because of the drop in demand and difficulty in getting financing amid the current liquidity crunch. Originally, Seoul projected total exports to hit $4.1 billion, up from $3.7 billion last year, but the depreciation of the Korean won against foreign currencies made locally grown produce cheaper abroad. In addition, the Chinese melamine scare caused a reassessment of growth. The president said it may be possible to reach the target if $70-80 million can be added to the usual export total for December, but conceded that such gains may not be easy. "At present, it would be best to remain neither optimistic nor pessimistic about this month," he said. He said talks have been carried out with executives of E-Mart, which has its own distribution network and stores in China, to fuel exports. Youn said that while efforts by the corporation's employees and exporters probably contributed $70 million to exports last month, cooperative efforts with foreign missions may also contribute to this year's total. The agriculture ministry signed a deal with the foreign ministry to use overseas embassies and consulates to sell locally grown farm goods abroad, he said. On future prospects, he said that even if the $4.5 billion target is reached this year, next year may be harder. The Korean won has started to rise compared to the past few weeks and the global economic slump may sap demand, making it harder to export goods, he said.




S. Korea clears 50,000 tons of U.S. beef this year By Lee Joon-seungSEOUL, Dec. 18 (Yonhap) -- South Korea's quarantine service said Thursday it has cleared 50,803 tons of U.S. beef since late June, with 90.5 tons having been rejected for poor quality and failure to meet import requirements. The National Veterinary Research and Quarantine Service (NVRQS) said the total as of Monday includes the 42,707 tons of beef brought into the country under revised inspections rules reached in April. The revised rules, which permit bone-in beef like ribs and various by-products, triggered nationwide protests as consumers expressed concerns associated with mad cow disease. After additional talks that limited the age of animals that can be butchered for shipment to South Korea, Seoul effectively ended the country's import ban on U.S. beef on June 26. Seoul stopped quarantine inspections on U.S. beef in 2003 after the confirmation of a case of mad cow disease in the state of Washington. The NVRQS said that of the meat sent back, 87.4 tons involved the entire shipment being rejected for bad meat, with other shipments failed to clear inspections because they did not have proper tags identifying them as specially prepared meat packaged for South Korea. The agency under the farm ministry said it has called for a halt of future shipments from meat packers than sent the 58.9 tons of bad meat.





Diplomats seek immunity from reform drive By Lee Chi-dongSEOUL, Dec. 18 (Yonhap) -- South Korea's foreign ministry sought to distance itself on Thursday from a wave of personnel reshuffles being carried out under the Lee Myung-bak administration, which critics say is trying to purge figures selected by its liberal predecessor. The conservative Lee government has recently accelerated its drive to reform those ministries it views as occupied by liberal-minded bureaucrats, according to media reports, as a tumultuous first year in office draws to an closeIn a possible sign of such a campaign, dozens of top-ranking officials from the education ministry and the national tax office tendered their resignations earlier this week. The presidential office denied any involvement in the resignations, saying the ministries had made the decision, but many expect similar moves at other government agencies. The foreign ministry argues it is in a unique situation. "We have continually replaced senior officials every six month as there are 154 diplomatic missions abroad," ministry spokesman Moon Tae-young said in his twice-weekly press briefing when asked whether officials plan to resign. The foreign ministry is apparently sensitive to change as it has a total of 261 positions that are formally categorized as "high-tier" under the government hierarchy. The ministry accounts for 17 percent of all high-level posts in the government. The Lee administration has already reshuffled its Cabinet, but has delayed making changes in non-political offices amid a slew of other challenges, including massive public protests over a decision to lift an import ban on U.S. beef and an ailing domestic economy.







Finance Authorities Brief President Lee on 2009 Plans

The government is injecting 30 trillion won or over 23 billion US dollars to reinvigorate the nation's capital market.It is also ensuring Korean conglomerates put their cash assets to good use by operating private equity funds.The Ministry of Strategy and Finance along with the financial services and fair trade commissions briefed the president Thursday on their key strategies for next year.Under the new plans to ease the credit squeeze the government is looking to set up a 20 trillion won fund for 2009 with the Bank of Korea and the Korea Development Bank along with institutional and individual investors.And the fund will be spent on purchasing banks' preferred stocks, bonds and debts while also conditioning lenders to provide more loans to small and medium-sized businesses.The Financial Services Commission says the cash injection would bolster the falling capital adequacy ratio among Korean lenders by two-point-six percentage points.The new plan also includes buying up 10-trillion won in insolvent bonds from banks.Additionally the government is easing regulations for conglomerates to set up and operate private equity funds so they will spend their cash assets estimated at some 43 trillion won to buy and restructure mismanaged businesses.The briefing on new year policy plans usually takes place at the start of the year, but the Presidential Office decided to move up its schedule to deal with the urgent economic situation while grouping together relevant ministries.[Reporter : kimbumsoo@arirang.co.kr] "After three more joint briefings in December on regional development, welfare and employment initiatives the top office will shift its focus to science, education and foreign affairs in January.Kim Bumsoo, Ariquirerang News."DEC 18, 2008

Reporter : kimbumsoo@arirangtv.com




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