from Financial Regulatory Forum:

S.Korea takes measures to curb mortgage borrowing

September 4, 2009

Apartment houses, office buildings and residences are seen in central Seoul September 1, 2009. Housing prices across South Korea rose for a fifth consecutive month in August from July, although staying below year-earlier levels, data from the country's top lender showed on Tuesday.  REUTERS/Lee Jae-Won (SOUTH KOREA CITYSCAPE BUSINESS)    SEOUL, Sept 4 (Reuters) - South Korea said on Friday it would impose limits on mortgage borrowing in the capital Seoul and two nearby areas, effective from Monday.
   Under the move, the amount of borrowing on homes will be limited by the borrower's income rather than the value of the home. (Reporting by Yoo Choonsik; Editing by Jonathan Hopfner) ((; +82 2 3704 5580; Reuters Messaging: ((If you have a query or comment on this story, send an email to Keywords: KOREA ECONOMY/MORTGAGE 
Friday, 04 September 2009 08:15:17RTRS [nSEO324023] {C}ENDS

from Commentaries:

Tough talking for Rio on China iron ore

September 4, 2009

CHINA-IRONORE/No great surprise that Rio Tinto has acknowledged it has given up trying to fix an annual iron ore price with Chinese steel mills.

from Financial Regulatory Forum:

South Korea mulls OTC derivatives clearing house

August 26, 2009

A businessman walks past a banner promoting interest of CMA (Cash Management Account) of a local securities company in Seoul July 14, 2009. South Korea is moving to screen over-the-counter (OTC) derivative products ahead of their market debut, as regulators worldwide look to curb free-wheeling derivatives trading and protect investors.   REUTERS/Lee Jae-Won (SOUTH KOREA BUSINESS)   SEOUL, Aug 26 (Reuters) - South Korea may introduce an over-the-counter derivatives clearing house, a top regulator said on Wednesday, the latest in a series of moves to curb free-wheeling derivatives trading.
   Governments worldwide have been tightening OTC derivatives regulations in the wake of the global credit crisis, with the United States proposing laws to increase central clearing in a bid to bring transparency and liquidity to the market for credit default swaps. [ID:nN30375406]
   South Korea's OTC derivatives markets are still in the early stage of growth, although on-the-market options for the KOSPI 200 index <.KS200> ranked the world's largest by transaction volume.
   OTC derivatives markets had been viewed as the main beneficiary of a deregulated financial industry in Asia's fourth-largest economy, prompting a rush by foreign banks to apply for the licenses.
   "From a long-term perspective, we have a plan to improve the infrastructure system of over-the-counter derivatives markets," Financial Supervisory Service Governor Kim Jong-chang said in a speech prepared for a derivatives conference.
   "With a clearing house, we can reduce risks arising from counter party's settlement failures and mitigate operational risks by setting up a transaction registration place."
   Clearing houses mutualise risk, set margin requirements and make public the terms of trade.
   The outstanding nominal value of South Korean banks' OTC derivatives products reached 4.8 times gross domestic product at end-2008, compared with 12.2 times for U.S. banks and 6.6 times for Japanese banks, Kim said.
   For credit derivatives products, the outstanding value was $5 billion at South Korean banks at end-2008, versus $20 trillion for the United States and $360 billion for Japan. (Reporting by Kim Yeon-hee; Editing by Ian Geoghegan) ((; +82 2 3704 5646; Reuters Messaging: ((If you have a query or comment on this story, send an email to
     Keywords: KOREA DERIVATIVES/ 
Wednesday, 26 August 2009 02:09:03RTRS [nSEO59491 ] {C}ENDS

from Left field:

Tiger still the inspiration despite Yang’s major success

August 18, 2009


Yang Yong-eun's shock win at the PGA Championship ended an embarrassing drought in major championships for the male of the species in staunchly patriarchal South Korea, where men are men and the women -- well, the women play golf.

from Oddly Enough Blog:

These guys are special forces, huh?

August 9, 2009

Quick quiz: The guys in this photo are...

a) Practicing an ancient Asian cure for backaches

b) Rehearsing for a production of "Oklahoma" at a men's penitentiary

c) Still trying to get the hang of a wheelbarrow race

d) Attending that annual Siamese twin convention in Raleigh

e) They're doing - oh, PLEASE don't make me say it here!

Join the Oddly Enough blog network

Follow this blog on Twitter at rbasler

South Korean special warfare command soldiers exercise before they conduct a sea infiltration drill during a photo call in Taean, South Korea, August 5, 2009. REUTERS/Choi Bu-Seok

from Financial Regulatory Forum:

S.Korea eyes curbs on FX margin trading from Sept

July 16, 2009

KOREA    SEOUL, July 16 (Reuters) - South Korea will sharply lower the leverage investors can employ when trading currencies via margin trading to discourage speculative trading, the top financial regulatory agency said on Thursday.
   Investors will be required from September to deposit 5 percent of the value of their bets as collateral with brokers, up from the current 2 percent. Maximum leverage will be lowered to 20 times from 50 times at present.
   The Financial Services Commission said in a statement the move was aimed at putting the brakes on sharply increasing margin trading by mainly individual investors on the back of a jump in online trading.
   Margin trading allows investors to make leveraged bets on currencies and has grown increasingly popular in recent years among retail investors in South Korea and Japan.
   Such trading is carried out over the counter and the agency's move will have no impact on the spot currency market, the commission said.
   It said the value of foreign exchange margin trading amounted to 357.7 trillion won ($281.5 billion) for the first five months of this year, compared with 418.8 trillion won for all of last year and only 55.9 trillion won in 2007.
   South Korean investors, 99 percent of them individuals, lost 45.5 billion won from the margin trading for the January-May period. ($1=1270.6 Won) (Reporting by Yoo Choonsik; Editing by Jonathan Hopfner) ((; +82 2 3704 5580; Reuters Messaging: ((If you have a query or comment on this story, send an email to Keywords: KOREA FOREX/MARGIN
Thursday, 16 July 2009 04:00:06RTRS [nSEO213834] {C}ENDS

from Global News Journal:

How Ill is Kim Jong-il?

July 15, 2009

Photo:A compilation by Reuters of pool photographs and images provided by North Korea's KCNA news agency showing North Korean leader Kim Jong-il from 2004 to 2009. The photograph in the lower right was released this week by KCNA

from Financial Regulatory Forum:

S.Korea toughens rules over cash-managing accounts

July 9, 2009

    SEOUL, July 9 (Reuters) - South Korea will tighten supervision over cash-managing accounts provided by brokerage companies, a regulator said on Thursday, as concerns rise about heightened competition for banking services.
   Under the move, the Financial Services Commission (FSC) will step up monitoring of cash management accounts' (CMA) marketing and risk management by introducing a certain ratio of cash assets at brokerage firms, the industry watchdog said in a statement.
   Cash management accounts of securities houses have lured individual investors with higher yields in the past few years, and started money transfer services from July.
   CMAs' outstanding value stood at a combined 39 trillion won ($30.54 billion) as of July 6, up from 30.7 trillion won at the end of December.
  (Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner)
  ((; +82 2 3704 5646; Reuters Messaging:
  ((If you have a query or comment on this story, send an email to ($1=1276.7 Won) Keywords: KOREA BROKERAGES/ACCOUNTS
Thursday, 09 July 2009 04:00:05RTRS [nSEO174980] {C}ENDS

from Financial Regulatory Forum:

S.Korea considers FX margin trading curbs -official

July 8, 2009

A South Korean bank clerk shows new 5,000-won ($4.93) bank notes at the headquarters of Woori Bank in Seoul    By Kim Yeon-hee and Lee Chang-ho
   SEOUL, July 8 (Reuters) - South Korea is considering imposing limits on currency margin trading to curb speculation, a senior official of the country's financial authority said on Wednesday, a move that may dent brokerage houses' efforts to expand into forex services.
   Margin trading allows investors to make leveraged bets on currencies and has grown increasingly popular in recent years among retail investors in South Korea and Japan.
   "We are considering a number of measures and will make an announcement soon," the official told Reuters, asking not to be identified until a decision was made.
   Steps to be taken could include raising the amount of collateral investors must park with margin brokers from the current 2 percent.
   Margin trades involve leverage of around 100 times or more than the amount of collateral, leaving the forex market more speculative and exposed to deep swings.
   Currently, about 20 currencies are traded via margin trading in South Korea, with the yen <JPY=> and euro <EUR=> the most popular.
   In April, the Nikkei business daily reported that Japan's Financial Services Agency was looking at limiting the maximum amount of leverage investors can employ for currency margin trading.
   Officials of futures trading firms are concerned about the upcoming curbs, saying they would limit their trading activity.
   But Chung Hae-geun, an executive managing director of Daewoo Securities, said the possible rules would bring forex margin trading into the regulatory boundary and help protect investors.
   South Korean brokerage companies, including Daewoo Securities <006800.KS> and Mirae Asset Securities <037620.KS>, have applied for licenses to offer forex margin and other futures trading, under a new capital markets law introduced in February.
   The won currency <KRW=> trimmed losses to close domestic trade at 1,273.50 against the dollar.
 (Additional reporting by Lee Soo-jung and Shin Jieun; Editing by Chris Lewis)
  ((; +82 2 3704 5646; Reuters Messaging:
  ((If you have a query or comment on this story, send an email to
Wednesday, 08 July 2009 08:29:26RTRS [nSEO103521] {C}ENDS

from Financial Regulatory Forum:

South Korea says to toughen home-backed lending

July 6, 2009

   SEOUL, July 6 (Reuters) - South Korea will toughen mortgage lending by broadening tight loan ceilings to the whole of Seoul and surrounding cities from Tuesday, a regulator said on Monday, amid signs of possible asset price bubbles.
   The move by the Financial Supervisory Service (FSS) follows a survey by the Bank of Korea, which showed South Korean banks were more willing to expand lending to companies and households in the current quarter on expectations for an improving business environment. [ID:nSEO325874]
   "With a surge in home-backed loans raising concern about a possible deterioration in the debt-servicing abilities of households and instability in the financial system, the Financial Supervisory Service called on banks to strengthen risk management against rising home-backed loans," the regulatory agency said in a statement.
   Under the guidance, banks will be required to cut the ceiling to 50 percent of the market price of a home worth 600 million won ($472,800) or more, from 60 percent at present, starting from new loans provided from Tuesday onwards.
   Currently, the rule limiting mortgage loans on the basis of loan-to-value ratios is applied to three areas in Seoul where speculative trade has caused a spike in housing prices.
   The decision comes after the country's policymakers cautioned against increased liquidity in financial markets after a string of interest rate cuts and government stimulus spending, which sparked speculation of an interest rate increase.
   Financial regulators have tried to stem rising home-backed loans, which increased by a net 3 trillion won per month from January through May.
   South Korea's housing prices in June rose for a third consecutive month, data showed last week. [ID:nSEO144812]
 ($1=1269.0 Won)