The Korea Times

Can Hana bring peace to defiant KEB union?

By Oh Young-jin Hana Financial must overcome a couple of challenges to make its acquisition of the Korea Exchange Bank (KEB) a success, according to analysts and industry watchers. First, it has to make the best use of its bigger size while at the same time attain efficiency. After absorbing KEB, with assets of 107 trillion won, Hana’s assets will total 331 trillion won, making it the second largest in Korea behind Woori with 372 trillion won. This ranking will enable Hana to compete with the existing big three of Woori, KB and Shinhan. It also raises the combined staff on the Hana-KEB payroll to 16,962, a figure higher than Woori’s 15,000. The added wage burden is expected, especially considering KEB employees receive the industry’s top salaries and Hana employees will want to raise their pay scale to the level of their KEB counterparts. Hana Chairman Kim Seung-yu already ruled out any drastic rationalization, saying during last week’s news conference that KEB will be run independently under Hana’s wing for the time being. Kim’s remarks are obviously

Jan 29, 2012By Oh Young-jin

Companies

Hana chief likely to seek new term

By Oh Young-jin Will Hana Financial Chairman Kim Seung-yu want a job extension after his current term expires in March? This question is relevant because his decision will have a sizable impact not just on Hana’s consolidation with the Korea Exchange Bank (KEB), which finally received regulatory approval last week but also on the governance of Korea’s banking industry. Kim kept his cards close to his chest, while indicating he had asked the management improvement committee to make a recommendation about who is suitable to be the next Hana chief during a news conference following the government’s approval of Hana’s KEB acquisition. It remains uncertain whether he has ruled himself out of the running. The committee is composed of Kim and four other members who are close to him, raising questions about whether it would recommend anyone else. “The committee members are trying to persuade Kim to take another term,” a Hana official told The Korea Times. “We should let Kim finish what he started.” He led the efforts to acquire KEB in order to attain an “economy of

Jan 29, 2012By Oh Young-jin

Companies

Hana chief likely to seek 4th term

By Oh Young-jin Will Hana Financial Chairman Kim Seungyu want the fourth term after his third term expires in March? This question is relevant because his decision will have a sizable impact not just on Hana’s consolidation with the Korea Exchange Bank (KEB), which finally received regulatory approval last week but also on the governance of Korea’s banking industry. Kim kept his cards close to his chest, while indicating he had asked the “management improvement committee” to make a recommendation about who is suitable to be the “next Hana chief” during a news conference following the government’s approval of Hana’s KEB acquisition. It remains uncertain whether he has ruled himself out of the running. The committee is composed of Kim and four other members who are close to him, raising questions about whether it would recommend anyone else. “The committee members are trying to persuade Kim to take another term,” a Hana official told The Korea Times. “We should let Kim finish what he started.” He led the efforts to acquire KEB in order to attain an “economy of scale

Jan 29, 2012By Oh Young-jin

Companies

How will Hana affair affect KEB bid?

Two possible scenarios surface By Oh Young-jin Wednesday’s resignation of Hana Financial President Kim Jong-yeol came at a time when the fourth largest financial group can’t afford any new distractions in its protracted bid to take over the Korea Exchange Bank (KEB). It is hard to tell what caused Kim’s sudden resignation but he as the No. 2 man in the group he had been heavily involved in Hana’s negotiations to buy a controlling stake of KEB from the Texas-based Lone Star fund. Although Hana Chairman Kim Seung-yu is leading the bid, Kim Jong-yeol’s departure may disrupt the takeover effort at a time when the deal is at a make-or-break stage. Regulators appear to be dragging their feet in giving their final approval. Some worry that election-year politics may derail the Hana-Lone Star deal. Hana needs to contain the fallout from Kim’s resignation to a minimum. If there are any follow-up developments such as bombshell statements that fuel speculation that Hana is embroiled in an internal power struggle, it would be as good as helping naysayers among regulators.

Jan 12, 2012By Oh Young-jin

Opinion

What are Lee Kun-hee’s new challenges?

By Oh Young-jin Samsung Group leader Lee Kun-hee once told his executives to change everything except for their wives and children in an all-out effort to be No. 1 in the world. Now, as chairman of Samsung Electronics, the conglomerate’s flagship, said through an aide that his goal of becoming No. 1 has been at least partially achieved. Lee is in Las Vegas for the International Consumer Electronics Show (CES). His top aide Choi Gee-sung played the role of Lee’s mouthpiece. The vice chairman and CEO of the technology giant said that Samsung has passed Nokia in terms of sales, although is behind in terms of number of handsets sold. Samsung’s strength lies in its smartphone business, the present and future of the mobile industry, compared with Nokia, which is stuck with feature phones, failing to adjust to the change of paradigm. Samsung was top last year in unofficial tallies in terms of the number of smartphones sold ahead of Apple. In operating profit, it is estimated to be fifth behind Apple and Microsoft. It goes without saying that the Korean firm has come a

Jan 11, 2012By Oh Young-jin

Companies

SK gets one up on prosecutors

By Oh Young-jin It was a case of two parties, one trying to outsmart the other with a clear winner. On Thursday, prosecutors announced its decision to indict SK Chairman Chey Tae-won without physical detention for alleged irregularities involving his futures investments. Hours earlier, Korea’s third-largest conglomerate announced its investment plan, the biggest in its history, amounting to 19 trillion won. Who was the winner between prosecutors and SK? The answer was plain to see in Friday’s newspapers. Chosun Ilbo, the largest vernacular daily, went down the middle. Chey’s indictment was covered with a two-column article, while SK’s investment plan had one three-column article in its economic section highlighting its hiring objectives and another five-column article regarding investment details. Hankyung, an influential economic daily, had one story on the front page dealing with SK’s business plan as the main headline with its chairman’s indictment as a sub-headline. Inside, a banner article praised Chey’s bold action with a sidebar underscoring the lac

Jan 6, 2012By Oh Young-jin

Opinion

Hana chief’s last roll of dice

By Oh Young-jin Hana Financial Chairman Kim Seung-yu knows there can be no backtracking in the move to buy a controlling stake in the Korea Exchange Bank (KEB) from Lone Star. For the leader of the smallest of the four local financial groups, it is a now-or-never chance to fulfill his dream of building up Hana to compete with KB, Shinhan and Woori. With this do-or-die spirit, the 68-year-old rolled the dice, maybe for the last time, to push his luck once again. In a rare move of defiance against the nation’s regulators, Kim made a statement that was widely taken as a threat, insisting the Financial Services Commission (FSC) approve the deal right away. He added that unless prompt approval is granted, the deal could unravel. Kim’s public call comes on the heels of a pressure tactic at the end of the last year, calling Hana employees from across the nation to demonstrate at the National Assembly as a blow for blow attempt to counter efforts by KEB unionists to thwart the deal. Can Kim’s tactics apply enough pressure on FSC Chairman Kim Seok-dong? An offici

Jan 5, 2012By Oh Young-jin

Opinion

Undoing KEB sale

By Oh Young-jin It may be the last hurdle to the nearly-completed sale of a controlling stake in the Korea Exchange Bank (KEB) by U.S. private equity fund Lone Star to Hana Financial. Taking into account the quirkiness of election-year politics, Hana and Lone Star can’t tread lightly. One misstep may provoke a backlash that could torpedo the deal. The cast in what is widely seen as the last chapter of the Lone Star saga includes lawmakers who are ready to do just about anything to be elected in April as well as a significant constituency of unionized workers. Throw into the mix voters’ rage peaking at the turn of a four-year election cycle, a perfect storm may just evolve that could even turn the steadiest hand into Captain Ahab, threatening to upend a done deal. In this perfect storm, it remains to be seen whether Kim Seok-dong, chairman of the Financial Services Commission (FSC), can prevail. Kim may be regretting his lead role in the Lone Star-Hana deal. Still, if it were not for Kim, the Lone Star saga would have been stuck where it was. Also supporting Kim’s m

Jan 2, 2012By Oh Young-jin

Economy

Power of Han’s hands

Chairman wants to give Shinhan warm heart By Oh Young-jin The power of Han Dong-woo, chairman of Shinhan Financial Group, comes from his hands. One handshake is all it needs to appreciate it. It is not the strength of his grasp but the warmth one will feel. His hands are thick but tender, conveying a sense of trust to the one who holds it. So immediately after a brief handshake, I asked him about his hands, half out of curiosity and half in an attempt to warm the atmosphere for a more serious conversation during a recent interview at his office. He revealed that I was the first to talk about his power of his hands. The 63-year-old career banker remembered his salad days when one of his seniors told him that his hands would be his asset. He liked to believe they helped but knew that no help would have enabled him to reach the top of his banking group, unless he has not done his best. He makes it a rule to do his best, which brought him back out of the mothball. He was almost crossed out as a candidate for the top job but he came back not by his cho

Dec 25, 2011By Oh Young-jin

Companies

Corporations take social benevolence seriously

By Oh Young-jin, Kim Yoo-chul Hyundai Motor Group is going big-scale in its social benevolence initiative. The carmaker, led by Chairman Chung Mong-koo, has just launched multiple efforts aimed at reaching 84,000 individuals. From talented students on a financial shoestring, the underprivileged, the jobless, the indebted and startups, the company aims to give them their first break or a second chance. The Hyundai initiative, spread over five years, will first target talented but needy students to help them realize their potential in areas they excel. For this, Chung personally gave 500 billion

Dec 21, 2011By Oh Young-jin

Oh Young-jin

Read more

Can Hana bring peace to defiant KEB union?

Hana chief likely to seek new term

Hana chief likely to seek 4th term

How will Hana affair affect KEB bid?

What are Lee Kun-hee’s new challenges?

SK gets one up on prosecutors

Hana chief’s last roll of dice

Undoing KEB sale

Power of Han’s hands

Corporations take social benevolence seriously

Top 5 stories