The Korea Times

State-backed AI fund sees sellouts amid strong interest, but returns remain uncertain

Korea’s state-backed investment fund targeting next-generation industries such as artificial intelligence (AI) is drawing strong interest as investors flocked to banks and brokerages to secure allocations on Friday, the first day of public subscriptions. Within hours, online quotas at major platforms were fully subscribed, with some selling out just 10 minutes after the 8 a.m. opening. According to the Financial Services Commission (FSC), the country’s top financial regulator, 522.4 billion won ($344 million), about 87 percent of this year’s 600 billion won retail allocation, had already been taken up by Friday afternoon. Yet despite the buying rush, experts warn that the fund’s eventual returns remain far from guaranteed since its structure effectively locks investors’ money away for five years — a lengthy commitment in fast-moving technology sectors. They pointed to earlier policy funds that delivered underwhelming returns. The fund is part of the 150 trillion won Korea National Growth Fund program launched late last year as one of President Lee Jae Myung’s key economic i

May 22, 2026By Park Han-sol

State-backed AI fund sees sellouts amid strong interest, but returns remain uncertain

Banking & Finance

SC Bank Korea expands premium lifestyle services from golf lessons to children's education

Standard Chartered (SC) Bank Korea said Thursday that its latest lifestyle-focused offerings for high net worth clients included a masterclass featuring golf legend Pak Se-ri. Building on the success of the program, which is tailored for affluent customers, the lender is now looking to extend its premium program to their children’s education. On May 15, the bank invited ultrahigh net worth clients and prospective customers with more than 1 billion won ($664,000) in assets to a special session with Pak, who shared her insights on sports, leadership and performance. One of the event’s highlights was when a handful of attendees selected through an on-site drawing received personalized coaching from the golf star. Having wrapped up the masterclass, the bank will next launch its 2026 Global Future Leader Program for its clients’ children from July 31 to Aug. 2. The mentoring camp will bring together undergraduates from the University of Oxford and University of Cambridge with 40 middle and high school students whose parents hold more than 500 million won in assets and deposits at SC Bank

May 21, 2026By Park Han-sol

SC Bank Korea expands premium lifestyle services from golf lessons to children's education

Policy

Head of financial regulator vows to overhaul lending system for low-credit borrowers

As part of the government’s broader push to expand access to mainstream lending for vulnerable and lower-credit borrowers, the Financial Services Commission (FSC) is set to launch a task force next month aimed at reshaping a finance system that has long favored super-prime clients, its chairman said Thursday. During a press conference, FSC Chairman Lee Eog-weon said government efforts have so far focused largely on emergency relief measures for people pushed outside the institutional lending system, including state-led debt relief programs and credit forgiveness initiatives. “But now, we plan to go a step further. We want to address the underlying structures that continue to create these social and economic vulnerabilities in the first place,” he said. The task force will be divided into four working groups. Its agenda includes ways to embed inclusive finance more deeply into corporate governance — such as the appointment of chief inclusive finance officers — as well as reviewing whether rigid prudential regulations can be made more flexible to better support underserved borro

May 21, 2026By Park Han-sol

Head of financial regulator vows to overhaul lending system for low-credit borrowers

Business

Public Procurement Service deepens cooperation with IDB to support reform in Latin America

Korea’s Public Procurement Service (PPS) and the Inter-American Development Bank (IDB) have renewed a memorandum of understanding (MOU) aimed at deepening cooperation in public procurement across Latin America and the Caribbean, the agency said Wednesday. The MOU, signed by PPS Vice Administrator Kang Sung-min and André Soares, chief of the office of the presidency at the IDB at the PPS’ Seoul regional office, seeks to expand the sharing of Korea’s digital procurement expertise while supporting reform efforts across the region. The renewed partnership builds on the first phase of cooperation between the two sides, which began in 2023. Under the initial agreement, the PPS and the IDB supported e-procurement development and institutional capacity-building efforts in countries including Honduras, El Salvador and Panama. The two organizations also jointly hosted the International Public Procurement Workshop twice, bringing together 39 senior officials from 14 Latin American and Caribbean nations to exchange insights on global procurement trends and policies supporting small and mediu

May 20, 2026By Park Han-sol

Public Procurement Service deepens cooperation with IDB to support reform in Latin America

Economy

Financial firms face oversight pressure over rising consumer complaints

Financial authorities are stepping up efforts to strengthen consumer protection by urging financial firms to take a more proactive approach to managing customer complaints before disputes escalate, industry officials said Wednesday. As part of the broader regulatory push, the Financial Supervisory Service (FSS) has requested major banks, brokerages, insurers and card issuers to submit detailed reports by this week on the status of their complaint and dispute cases, along with plans to reduce them. It marks the first time the financial watchdog has systematically gathered both complaint data and company-led response strategies across the industry. Under the new guidelines, firms are being asked to assess their complaint-handling workloads across departments and call centers, including the number of cases processed per employee, while also drawing up semiannual plans to reduce consumer grievances. Additionally, companies are expected to analyze whether increases in complaints are structural or temporary in nature and establish quarterly and annual reduction targets accordingly. “The goal

May 20, 2026By Park Han-sol

Financial firms face oversight pressure over rising consumer complaints

Economy

Rate jitters, controversies, weak earnings deepen slump in Korea's biotech stocks

While the benchmark KOSPI has surged to fresh highs over the past month, powered by a semiconductor-led rally, biotech shares on the secondary Kosdaq bourse largely continue to struggle to regain momentum, industry officials said Tuesday. Investor sentiment surrounding Korean biotech stocks appears to have weakened amid a combination of renewed rate jitters, sector-specific controversies and lackluster earnings. The contrast has become increasingly stark in recent trading sessions, with many of the Kosdaq’s heavyweight biotech names lagging behind the broader market rebound. Sam Chun Dang Pharm, once the bourse’s largest company by market capitalization, closed at 365,500 won ($242), Tuesday, down 2.14 percent from the previous session, according to the Korea Exchange. Other major stocks including ABL Bio, PharmaResearch, LigaChem Biosciences, Oscotec and HLB also traded lower. Market watchers note that one of the biggest pressures weighing on the sector is the growing expectation that global interest rates could remain elevated for longer due to persistent inflation and oil-price pr

May 19, 2026By Park Han-sol

Rate jitters, controversies, weak earnings deepen slump in Korea's biotech stocks

Banking & Finance

Citibank Korea, Korea Eximbank back KoMiCo's US chip expansion with $100 mil. financing

Citibank Korea said Tuesday that it will jointly provide a $100 million syndicated financing package with the state-run Export-Import Bank of Korea to support semiconductor equipment parts maker KoMiCo’s expansion in the United States. KoMiCo is known for its precision cleaning and advanced coating technologies for semiconductor equipment components, supplying essential parts and services for increasingly sophisticated chip production. The company counts major global chipmakers among its key clients. The funding will support facility expansion and operations at KoMiCo’s U.S. subsidiaries in Austin, Phoenix and Hillsboro, Oregon — key semiconductor clusters located near manufacturing sites operated by leading chip companies. According to Citibank, the investment is expected to strengthen KoMiCo’s foothold in the U.S. while also helping bolster the position of Korean suppliers within the global semiconductor value chain. Beyond the latest financing support, the lender has also assisted KoMiCo’s overseas expansion growth in markets including Taiwan, Singapore and the Czech Republi

May 19, 2026By Park Han-sol

Citibank Korea, Korea Eximbank back KoMiCo's US chip expansion with $100 mil. financing

Banking & Finance

From fuel discounts to fitness coverage, card issuers and insurers roll out everyday perks amid rising living costs

As inflation reshapes consumer priorities, Korea’s card and insurance sectors are rolling out more products tailored to everyday spending habits, industry officials said Monday. Rather than offering broad, one-size-fits-all benefits, these firms are sharpening their focus on customized products that reflect real-world consumption patterns — from fuel and transportation to fitness — as households grow more selective about where they spend. For card issuers, that has meant expanding discounts and rewards across essential spending categories such as gas and commuting. Amid prolonged concerns over global oil supply disruptions tied to the U.S.-Israeli war on Iran, Lotte Card introduced a fuel-focused card aimed squarely at drivers grappling with high energy costs. Customers who spend between 500,000 won ($333) and 1 million won on gas in a month receive a cashback up to 30,000 won, while those exceeding 1 million won receive one capped at 50,000 won. Hana Card has similarly strengthened its gas savings offerings through its MULTI Oil card, which provides a 10 percent discount up to 30,

May 19, 2026By Park Han-sol

From fuel discounts to fitness coverage, card issuers and insurers roll out everyday perks amid rising living costs

Banking & Finance

Woori Financial Group expands inclusive lending push for young adults, lower-credit borrowers

Woori Financial Group is ramping up efforts to expand support for young adults and lower-credit borrowers, positioning inclusive finance as a broader social safety net, the group said Monday. At its monthly council meeting at its headquarters in Seoul, Friday, Woori laid out plans to strengthen financial support for younger generations working to build economic independence, while broadening protections for low- and mid-credit consumers who remain underserved by traditional finance. Woori Bank has been at the forefront of that push. In the first quarter alone, the bank supplied 218.6 billion won ($160 million) in customized credit loans for lower-income and lower-credit borrowers, the highest level among major commercial banks. Since introducing a 7 percent annual interest rate cap on unsecured personal credit loans in January, Woori has reduced borrowing costs by roughly 1 billion won for 40,000 customers. In March, the bank also suspended debt collection for certain long-term small-scale distressed borrowers while granting 32.2 billion won in interest relief. To address more immediate fi

May 18, 2026By Park Han-sol

Woori Financial Group expands inclusive lending push for young adults, lower-credit borrowers

Economy

Brokerages hit jackpot as retail investors borrow more to chase Korea's stock rally

A single post uploaded May 8 by a Korean civil servant on Blind, the anonymous workplace community app, quickly set off a frenzy online. The post included a screenshot of his brokerage account showing he had poured a staggering 2.3 billion won ($1.7 million) into shares of semiconductor giant SK hynix, one of the key driving forces behind Korea’s roaring stock market. Even more striking, 1.7 billion won of that investment was financed through margin loans borrowed from his brokerage. “I believe the semiconductor market will continue its upward climb through 2028, but I’m taking a more aggressive approach to grow my assets faster,” he wrote. Four days later, on May 12, he returned with an update claiming he had already locked in 267 million won in profits. That same day, another Blind post surfaced — this time from a Seoul Metro employee in her 20s, who wrote that rather than missing out on the rally, she would “risk complete collapse,” adding that she had used 150 percent margin financing to fully leverage into stocks. As Korea’s bull market barrels ahead, more retail inve

May 17, 2026By Park Han-sol

Park Han-sol

Read more

State-backed AI fund sees sellouts amid strong interest, but returns remain uncertain

SC Bank Korea expands premium lifestyle services from golf lessons to children's education

Head of financial regulator vows to overhaul lending system for low-credit borrowers

Public Procurement Service deepens cooperation with IDB to support reform in Latin America

Financial firms face oversight pressure over rising consumer complaints

Rate jitters, controversies, weak earnings deepen slump in Korea's biotech stocks

Citibank Korea, Korea Eximbank back KoMiCo's US chip expansion with $100 mil. financing

From fuel discounts to fitness coverage, card issuers and insurers roll out everyday perks amid rising living costs

Woori Financial Group expands inclusive lending push for young adults, lower-credit borrowers

Brokerages hit jackpot as retail investors borrow more to chase Korea's stock rally

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