The Korea Times

Reporter's Notebook Is 'Mofia' always bad for lobby groups?

gettyimagesbankBy Kim Bo-eunCriticism has always existed over the dominance of ex-finance ministry officials in key positions in the financial sector.A term has even been coined and in use for some years in reference to this ― Mofia, which is a combination of the Ministry of Finance (MOF) and mafia.Former finance ministry officials not only sit in the chief positions of state-run financial institutions, but also banks and even interest groups.Whenever a ministry official is nominated for the chief position, there is a strong internal backlash.Employees take issue with "parachuting" and state that these figures are not appropriate for leadership of their institutions given their lack of inside knowledge and expertise.They say it is demotivating to see government figures picked over internal figures, as this demonstrates the limit to where internal figures are able to climb the corporate ladder.The issue has been reignited at a time when major interest groups in the financial sector wait for their chief positions to be determined. There are separate lobby groups representing banks, bro

Nov 20, 2020By Kim Bo-eun

[Reporter's Notebook] Is 'Mofia' always bad for lobby groups?

Banking & Finance

Yoon Jong-kyoo tightening leadership of KB

KB Financial Group Chairman Yoon Jong-kyooBy Kim Bo-eunYoon Jong-kyoo is solidifying leadership of KB Financial Group, after shareholders approved him to continue the current job for a third term. Yoon became the financial group's chairman in November 2014 and served two terms, the second of which ends today. His third term will run through November 2023. An extension for KB Kookmin Bank CEO Hur Yin's term was also approved at the meeting. Hur took his position in November 2017. His first term lasted two years followed by another one-year term that ends today. His next term will last for a year, running through 2021.Two candidates for outside director positions forwarded by KB employees, however, did not get the votes they needed to take the positions.Yoon is seen to have secured a third term based on the achievements the group has made under his leadership.KB has taken digital innovation initiatives and is expanding its non-banking sector to reduce reliance on the group's flagship bank.This year, KB acquired Prudential Life Insurance Company of Korea, strengthening its life insuranc

Nov 20, 2020By Kim Bo-eun

Yoon Jong-kyoo tightening leadership of KB

Tech & Science

Park Jung-ho leads 'Work Anywhere' initiative at SKT

SKT CEO Park Jung-ho speaks in a meeting with executives and employees on innovating ways of working that was held both offline and online, at the telecommunications company's headquarters in central Seoul, Tuesday. / Courtesy of SKTBy Kim Bo-eunSK Telecom CEO Park Jung-ho is pioneering new ways of working at the telecommunications giant.The company has set up offices throughout Seoul to offer employees more places they can work from, in addition to the existing office in central Seoul and their homes.The new offices are located in Jongro, Seodaemun, Bundang and Panggyo. As the offices are dispersed throughout the city and in neighboring Gyeonggi Province it keeps commute times to below 20 minutes for employees. Park said this reduces carbon emissions, which brings down pollution levels."Because we cannot return 100 percent to how things were in the past, we need to look into how we can develop the ways we work and communicate. We will attempt a way of working freely regardless of time and place with the data and technology we have accumulated," Park said in a meeting with executives

Nov 19, 2020By Kim Bo-eun

Park Jung-ho leads 'Work Anywhere' initiative at SKT

Economy

Shinhan, KB in dilemma over dividend payments

By Kim Bo-eunShinhan Financial Group Chairman Cho Yong-byoung, left, and KB Financial Group Chairman Yoon Jong-kyoo / Korea Times fileMajor financial groups are weighing up whether to boost shareholder value after making record profits in this year's third quarter.But the authorities have warned the groups against the move amid uncertainties due to COVID-19.Shinhan and KB Financial Groups reported over 1 trillion won in quarterly earnings ― a first for both. Shinhan posted 1.14 trillion won in net profit, up 16.6 percent on the same quarter last year, while KB recorded 1.17 trillion won (up 24.1 percent).Shinhan and KB groups' accumulated net profit was 2.88 trillion won and 2.96 trillion won, respectively, up 3.5 percent and 1.9 percent from the same period of 2019.Given the boost in earnings and the groups' inclination to increase shareholder value, they have been preparing to expand dividend payments.With the exception of Hana Financial Group, the other three major groups only pay dividends to shareholders annually, at the end of the year. Hana makes its interim payments in July.S

Nov 18, 2020By Kim Bo-eun

Shinhan, KB in dilemma over dividend payments

Tech & Science

Industry-academia cooperation burgeons at IFEZ

Incheon Global Campus, a cluster of foreign universities' campuses in Korea, is on Songdo in the Incheon Free Economic Zone (IFEZ). / Courtesy of IFEZBy Kim Bo-eunCooperation between foreign universities and local businesses is growing in the Incheon Free Economic Zone (IFEZ), after revisions to regulations on promoting industry-academia collaboration went into effect in recent months.The revisions which include classifying foreign universities as institutions able to collaborate with businesses went into effect in September, enabling foreign universities to set up related units and offer relevant programs.The latest developments could turn the IFEZ into a base for industry-academia cooperation, which could become a potential engine for innovative growth in Incheon.State University of New York (SUNY) Korea, which opened its Songdo campus in the cluster of foreign universities in the IFEZ in March 2012, became the first school to establish a division in charge of collaboration between industry and academia on Sept. 25.The school has taken on 135 research projects worth 34.4 billion wo

Nov 17, 2020By Kim Bo-eun

Industry-academia cooperation burgeons at IFEZ

Economy

Maximum interest rate cut to deal blow to savings banks

Democratic Party of Korea floor leader Kim Tae-nyeon, center, speaks during a meeting with government officials at the National Assembly on lowering the maximum interest rate, Monday. / YonhapBy Kim Bo-eunLocal savings banks are set to bear the brunt of the government's decision, Monday, to lower the maximum interest rate to 20 percent from 24 percent."We decided to lower the interest rate amid an era of low interest rates and to alleviate the burden on low-income households," the Financial Services Commission stated, following a meeting between government officials and members of the ruling Democratic Party of Korea (DPK)."The era of low interest rates is continuing, with the Bank of Korea's key rate down to 0.5 percent. Keeping the maximum interest rate at 24 percent is not aligned with the latest developments," DPK floor leader Kim Tae-nyeon said at the meeting.Revised regulations containing the changes will go effect in the latter half of next year. The FSC said the government has allowed for some time until regulations on the lowered interest rate go into effect, given the time

Nov 16, 2020By Kim Bo-eun

Maximum interest rate cut to deal blow to savings banks

Economy

Demographic crisis looming large over Korea

Embracing foreign talent, raising birthrate key to tackling challengesBy Kim Bo-eunKorea often refers to the course Japan's economy has taken, as the slowdown in growth and diminishing population that preceded in the neighboring country is currently taking place here as well. Japan's population has been shrinking for over a decade, and the world's third-largest economy is the most-aged society, with the highest percentage of elderly people among countries around the world.Its population of people aged 65 and above comprised a record 28.41 percent of Japan's population last year, and the birthrate stood at 1.42 in 2019, in a fourth consecutive year of decline.Korea's situation is not much different. While the people aged 65 and above account for 15.7 percent of the population, as of this year, the figure is forecasted to rise to 20 percent in five years. Korea's total birthrate, the total number of children that would be born to a woman if she were subject to the prevailing rate of age-specific fertility in the population, however, is lower than that of Japan. The figure stood at 0.92

Nov 15, 2020By Kim Bo-eun

Demographic crisis looming large over Korea

Banking & Finance

What will Toss' brokerage look like?

By Kim Bo-eunAs Toss' brokerage unit nears its launch, attention is growing over its business model and the services the brokerage will offer.The Financial Services Commission recently approved Toss Securities' launch and the firm is planning to begin operations this month. This will be the first local securities firm to be set up here in 12 years.Toss, Korea's first fintech unicorn, is a mobile platform offering more than 40 financial services.A securities firm is the latest addition to its line of affiliates. Toss has an insurance sales unit and an affiliate that processes payments, and is also preparing to launch a digital bank next year.Toss is expected to launch its brokerage business as soon as possible, given the surge in individuals who joined the local stock market as investors this year, amid low interest rates and high liquidity following an expansionary monetary policy.According to Toss, the securities firm will focus on offering brokerage services in trading stocks for retail investors. The brokerage has been referred to by industry sources as resembling the mobile app-b

Nov 13, 2020By Kim Bo-eun

Companies

BCG Korea names managing director partners

By Kim Bo-eunLee Kang-wook, left, and Im Jang-gyunBoston Consulting Group (BCG) Korea has named Lee Kang-wook and Im Jang-gyun as managing directing partners.According to the global consulting firm's local office on Friday, it now has 16 managing director partners, five of whom are senior partners.Lee specializes in retail and the consumer goods industry. He joined BCG Korea as a partner in November 2019. Earlier he was with BCG Korea from 2010 to 2016.Lee has been a growth strategies consultant for Asia's major retailers and consumer goods companies and has focused on raising sales through digital innovation. Lee is co-founder of Tridge.com, a B2B platform for food and agricultural goods. He also headed beauty and personal care startup MBX. At Hong Kong Credit Suisse Private Equity, he was in charge of investing in the Asian region.Lee obtained a bachelor's degree in mechanical engineering from Seoul National University and an MBA from Stanford Graduate School of Business.Im's areas of expertise are electronics, telecommunications and media. He joined BCG Korea in 2012.Im has provid

Nov 13, 2020By Kim Bo-eun

BCG Korea names managing director partners

Economy

Samsung's financial affiliates declare end to coal investments

Samsung Life Insurance's headquarters in southern Seoul. Samsung's financial units announced Thursday that they would phase out coal-related investments. / Korea Times fileBy Kim Bo-eunSamsung's financial affiliates have declared an end to new coal-related investments amid growing criticism from environmental groups. In a joint statement released Thursday, the affiliates said that they would phase out coal-related investments. This is the first time for a collective statement to be issued by the chaebol's financial units indicating an end to their investments in coal-related projectsSamsung has two insurance units ― Samsung Life and Samsung Fire & Marine Insurance ― which had been singled out by environmental groups as having invested the largest amount in local coal-fired power plants. Other financial affiliates are Samsung's brokerage, asset management unit and card firm.Samsung Life, which had decided to stop such investments in 2018, said the affiliates will draw up ESG management strategies, which will be finalized at a board meeting in December.The insurance units stated th

Nov 12, 2020By Kim Bo-eun

Kim Bo-eun

Read more

Reporter's Notebook Is 'Mofia' always bad for lobby groups?

Yoon Jong-kyoo tightening leadership of KB

Park Jung-ho leads 'Work Anywhere' initiative at SKT

Shinhan, KB in dilemma over dividend payments

Industry-academia cooperation burgeons at IFEZ

Maximum interest rate cut to deal blow to savings banks

Demographic crisis looming large over Korea

What will Toss' brokerage look like?

BCG Korea names managing director partners

Samsung's financial affiliates declare end to coal investments

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