The Bank of Korea, the central bank, is lowering forecasts for both this year and last.
The Bank of Korea, as late as October, had predicted 0.8% growth for Q4.
South Korea, according to the Bank of Korea, faces a prolonged period of underperformance.
The Bank of Korea issued a warning in October that the local private-banking market needed to mature.
In Asia, the Bank of Korea met expectations by cutting its benchmark interest rate for the second time this year.
Reports the Bank of Korea bought 15 tons of gold last month is a bullish factor for gold Friday morning.
South Korea's Kospi index jumped 1.2 percent to 1, 972.70 after the Bank of Korea lowered its benchmark interest rate for the first time in seven months.
In South Korea President Lee Myung-bak has bluntly implored the Bank of Korea to go slow in returning interest rates, now 2%, to more normal levels.
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Lee Seong-tae, the governor of the Bank of Korea, believes that the central bank, like others elsewhere, will have to be increasingly alert to the risk of speculative bubbles.
The Bank of Korea's surprise rate cut decision on Thursday indicates that South Korea, whose net exports represent nearly 60% of its gross domestic product, has joined the global currency war.
The strength of the dollar was also felt in South Korea, where it hit a five month high against the won after the Bank of Korea decided to keep interest rates steady.
Analysts also cited continued central-bank buying of gold after news that the Bank of Korea bought 25 metric tons over the past two months, its first purchases since the 1997-98 Asian financial crisis.
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In South Korea the Kospi fell 2.2% to 1785.39, its lowest close since early June, after the Bank of Korea unexpectedly cut its benchmark interest rate by a quarter of a percentage point to 3%.
In general the bigger the institution, the more likely there is to be support, especially when the government has a direct stake (as in the Bank of Taiwan and the Industrial Bank of Korea).
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The state-run Bank of China Ltd. has notified the Foreign Trade Bank of North Korea that its account or accounts were being closed and all financial transactions suspended, said a bank spokeswoman, reading a brief statement.
We were able to source competitively-priced bank loans like our recently executed secured term loan facility with the Import-Export Bank of Korea and ABN AMRO.
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The Bank of China's suspension of business further complicates the ability of the Foreign Trade Bank, North Korea's main foreign exchange bank, to access a key financial market.
In response to overseas media reports that the Bank of China has closed the account of North Korea's main foreign exchange bank, Shi Yinhong, an international affairs expert at Beijing's Renmin University tells Hong Kong's South China Morning Post that Beijing is losing patience with Pyongyang.
Along with five others, they had been forced to draw up restructuring plans after falling short of the 8% ratio of capital to risk-weighted assets that is considered the acceptable minimum by international financial regulators (by more than six percentage points in the case of Commercial Bank of Korea).
But that would mean a bailout by the government-run Korea Development Bank exactly the sort of thing Margaret Thatcher refused to do for Britain's basket cases in the 1980s.
But Kia still hopes for a bailout by the government-run Korea Development Bank exactly the sort of thing Margaret Thatcher refused to do for Britain's basket cases in the 1980s.
The seminar, produced in partnership with the ministries of Foreign Affairs and Education, as well as Palmares Cultural Foundation, aims at contributing to the work being conducted by a consulting group made up of specialists from the United States, the United Kingdom, Belgium, the Republic of Korea, Uganda, the West Bank, South Africa, Russia, Switzerland and Brazil.
With his trusty notebook computer, the new CEO of South Korea's Housing and Commercial Bank is going around the country monitoring the performance of HCB's 446 branches and 54 offices.
The US Treasury added the Foreign Trade Bank (FTB) of North Korea and Paek Se-bong, the chairman of a committee which it said oversaw production of ballistic missiles, to the sanctions list.
With characteristic lucidness and verve, syndicated columnist William Safire enumerated in a column published Monday in the New York Times how enemies of freedom in Libya, Afghanistan, Syria, the West Bank, Iran and North Korea have all trimmed sail of late.
The 14 winners selected from that pool will now share more than a half a billion dollars from the United States, Canada, the Republic of Korea, the Inter-American Development Bank, and the Multilateral Investment Fund.
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