Seoul shares end down 0.91 pct on Kumho woes

By Lee Youkyung
SEOUL, Feb. 8 (Yonhap) -- South Korean shares closed 0.91 percent lower Monday as
bank and financial shares widened their losses on resurfaced concerns about the
health of Kumho Asiana Group, analysts said. The local currency fell against the
U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 14.33 points to
1,552.79, extending its losing streak to a second session. Volume was moderate at
437 million shares worth 4.11 trillion won (US$3.51 billion) with losers
outnumbering gainers 545 to 247.
"Over the weekend, market watchers saw a big opinion gap between creditors and
owners of Kumho group regarding the group's survival," said Kim Hyoung-ryoul, an
analyst at NH Investment & Securities. "Bank shares' losses reflect such concerns
that resolving the liquidity crisis may be difficult in the short term."
Concerns about bank's exposure to cash-strapped Kumho Asiana mounted after the
group's owners missed a Sunday deadline to offer their stock holdings and assets
to help the group's survival, analysts said, prompting the creditors to threaten
"extraordinary" measures in response.
Korea Development Bank (KDB), the main creditor of the group, sank 4.67 percent
to 12,250 won. The No. 5 lender Korea Exchange Bank tumbled 5.38 percent to
12,300 won.
Other financial shares were also hit hard, weighed down by the on-going concerns
about the mounting debt woes of European governments. The top financial service
company KB Financial Group dropped 2.34 percent to 45,900 won while Woori Finance
Holdings declined 5.13 percent to 12,950 won.
Tech shares closed mixed. Market heavyweight Samsung Electronics shed 0.27
percent to 748,000 won but Hynix Semiconductor, the world's second-biggest memory
chipmaker, gained 1.88 percent to 21,700 won.
The local currency closed at 1,171.90 won to the greenback, down 2.00 won from
Friday's close, as investors cut holdings of risky assets on Europe's debt
concerns, dealers said.
ylee@yna.co.kr
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