The Korea Times

Policy-driven insurance products fall flat with consumers

A 62-year-old business owner surnamed Park, who has been behind the wheel for 34 years, recently learned he could have qualified for a discount on his auto insurance by participating in the government’s vehicle rotation program, a temporary energy-saving measure introduced during heightened concerns over global oil supplies following the U.S.-Iran conflict. But he doesn’t think he missed much. “I didn’t see much point in going through the hassle for a temporary policy rider that could disappear at any time,” Park said. “And even if I qualified, the discount would have been only about 10,000 won ($6.80) a year. It simply wasn’t worth it.” Introduced by nonlife insurers in May at the request of financial authorities, the special rider offered a 2 percent discount on annual auto insurance premiums to motorists who voluntarily complied with the government's five-day vehicle rotation program, under which private vehicles were asked to stay off the road one designated weekday based on their license plate numbers. To qualify, drivers had to submit proof of compliance, but for m

Jul 20, 2026By Park Han-sol

Policy-driven insurance products fall flat with consumers

Companies

MBK, Meritz strike last-ditch deal to rescue Homeplus

Homeplus, once Korea's second-largest discount store chain, secured a 200 billion won ($135 million) emergency loan, Thursday, giving itself a chance to revive its court-led rehabilitation after its largest creditor, Meritz Financial Group, approved the financing. The decision came a day after private equity firm MBK Partners, Homeplus' owner, and its chairman, Michael ByungJu Kim, agreed to provide joint personal guarantees for the full amount of the debtor-in-possession loan. The funding allows Homeplus to appeal the Seoul Bankruptcy Court's earlier decision to terminate its rehabilitation proceedings. The court ended the restructuring process on July 3, ruling that the company had failed to secure the minimum 200 billion won needed to carry out its turnaround plan. It nevertheless left the door open to reconsidering the case if the financing was secured before the July 20 appeal deadline. The breakthrough follows months of deadlock between Meritz and MBK over the size of the loan and the guarantees required to secure it. Meritz had previously agreed to lend up to 100 billion won, provi

Jul 16, 2026By Park Han-sol

MBK, Meritz strike last-ditch deal to rescue Homeplus

Policy

BOK begins tightening cycle as chip boom fuels growth, inflation concerns

The Bank of Korea (BOK) raised its benchmark interest rate Thursday, for the first time in three and a half years, as the semiconductor-driven economic recovery, stubborn inflation and lingering financial stability risks have combined to bolster the case for tighter monetary policy. The central bank lifted its policy rate by 25 basis points to 2.75 percent at its Monetary Policy Board meeting, marking its first rate increase since January 2023. BOK Gov. Shin Hyun-song also signaled that further rate increases remain on the table, saying the bank would “continue to respond through monetary policy until we are confident that inflation is converging sustainably toward our target.” A major factor behind Thursday’s move was the sharp improvement in Korea’s growth outlook, fueled by the global artificial intelligence (AI) boom and soaring demand for semiconductors. As economic momentum strengthens, the central bank has less need to support activity through ultra-accommodative policy and can instead focus on containing inflation. Shin said Korea, a key player in the global AI supply cha

Jul 16, 2026By Park Han-sol

BOK begins tightening cycle as chip boom fuels growth, inflation concerns

Economy

President orders swift measures on risks of single-stock leveraged ETFs

President Lee Jae Myung on Wednesday urged financial authorities to swiftly draw up measures to address risks posed by single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix, as the high-risk products come under mounting criticism for exacerbating volatility in the domestic stock market. Speaking at a policy briefing at Cheong Wa Dae, Lee singled out the controversial products, asking Korea Exchange Chairman Jeong Eun-bo, “Isn't there quite a stir over these ETFs?” The president then instructed the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) to “quickly put together well-crafted follow-up measures” to address the issue. Leveraged ETFs are designed to magnify the daily gains or losses of an underlying asset, typically a broad market index such as KOSPI or the S&P 500, by two or three times. Single-stock versions take that concept a step further, allowing investors to make amplified bets on the direction of an individual company rather than a diversified benchmark. While the structure can turbocharge returns

Jul 15, 2026By Park Han-sol

President orders swift measures on risks of single-stock leveraged ETFs

Economy

Stock rally lifts sales of investment-linked pension insurance

An unprecedented rally in Korean stocks this year has sparked a surge in demand for investment-linked pension insurance, according to data released by Toss Insurance, Wednesday. The insurer said variable annuities, a type of pension insurance that invests part of policyholders’ premiums in assets such as stocks and bonds, emerged as one of the standout products in the first half of the year. The findings are based on policies purchased through insurance advisers on the Toss platform. Interest accelerated as the benchmark KOSPI extended its record-breaking rally this year, topping the 9,000-point mark for the first time in June and boosting retail investors’ appetite for market-linked investment opportunities. Such momentum naturally lifted overall pension insurance sales, with new policies purchased through Toss Insurance climbing 78.1 percent from a year earlier. While customers in their 50s and older remained the largest buyers, a notable increase was seen in younger consumers, with new policies purchased by those in their 20s and younger surging 97.5 percent. The shift points to gr

Jul 15, 2026By Park Han-sol

Stock rally lifts sales of investment-linked pension insurance

Banking & Finance

AI is rewriting corporate leadership playbook: MetLife global HR chief

“The playbook just hasn’t been written yet.” That’s how Shurawl Sibblies describes the challenge confronting today’s leaders as artificial intelligence (AI) accelerates change faster than organizations can comfortably absorb it. For the MetLife executive vice president and chief human resources officer (CHRO), however, the technology itself is only part of the story. The more profound shift, she argues, lies in the nature of leadership itself. “The pace of change, the velocity, is so fast and probably unlike anything we’ve ever experienced,” Sibblies said during her first visit to Korea last week. That, she believes, calls for a different leadership instinct. In an environment where change outpaces experience, the willingness of leaders to admit they don’t have every answer is becoming as important as their ability to provide direction. “Making it OK to be vulnerable with your teams and say, ‘I don’t have all the answers, but this is what I do know, and we’re going to learn together,’ makes such a difference,” she said. “It’s a bit of humility that’s re

Jul 15, 2026By Park Han-sol

AI is rewriting corporate leadership playbook: MetLife global HR chief

Banking & Finance

Citi Korea named best global custodian in Korea for 2nd straight year

Citi Korea has been named the best global custodian in Korea at The Asset Triple A Awards for the second consecutive year, the lender said Monday. The award recognizes the bank’s custody and asset servicing capabilities, including support for domestic institutions investing overseas and international clients investing in Korea. According to The Asset, a leading business news and research organization in Hong Kong, Citi Korea stood out for its ability to facilitate cross-border investment at a time of growing interest in Korean equities, particularly in the AI and semiconductor sectors, as well as the rapid expansion of the exchange-traded fund (ETF) market. Leveraging Citi’s global network, the bank offers a range of services spanning custody, fund administration and ETF servicing, supporting institutional clients’ cross-border investment and asset management activities. Citi Korea also said it has worked closely with financial authorities and market infrastructure operators on initiatives to improve the competitiveness of Korea’s capital markets, including reforms to the foreign

Jul 13, 2026By Park Han-sol

Citi Korea named best global custodian in Korea for 2nd straight year

Companies

EXPLAINER How $133 mil. funding dispute between MBK, Meritz pushed Homeplus toward collapse

Once Korea’s second-largest discount store operator, Homeplus decided to temporarily close stores beginning Monday after running out of cash, leaving it unable to pay suppliers or even cover basic operating expenses. The retailer now faces an uncertain future after the Seoul Bankruptcy Court terminated its rehabilitation proceedings earlier this month. Without an immediate 200 billion won ($133 million) cash injection, industry observers say it is effectively on the path toward liquidation unless a last-minute rescue materializes. Why $133 million? So why has 200 billion won become the figure that could determine Homeplus’ fate? The number represents the minimum amount the court said the company needed to carry out its restructuring plan. After years of struggling with the decline of Korea’s hypermarket sector and consumers’ shift to online shopping, Homeplus — owned by private equity firm MBK Partners — initially sought a buyer. But no deal materialized. One hurdle was an accounting assessment that valued the company more highly in liquidation than as a going concern — by mor

Jul 13, 2026By Park Han-sol

[EXPLAINER] How $133 mil. funding dispute between MBK, Meritz pushed Homeplus toward collapse

Economy

EV boom brings higher insurance costs for drivers

When the owner of a Volkswagen ID.5 checked his insurance renewal quote, he had to do a double take. Despite another year of accident-free driving, his annual premium jumped from 430,000 won ($286) to 700,000 won. “Has anyone else's insurance gone up this much?” wrote the driver, who is in his late 40s, in an online forum for electric vehicle (EV) owners. Another forum user, who is waiting on a delivery of a newly ordered EV, said the insurance quote alone gave him second thoughts. “I was told it would cost 300,000 to 400,000 won more than my gasoline car,” he wrote. “I guess I’ll have to make up for it through savings on charging and vehicle taxes.” For many EV owners in Korea, those experiences are becoming increasingly familiar. As EVs gain market share in the country — helped by lower running costs, government subsidies and a growing range of models — many drivers say unexpectedly high insurance premiums are eroding much of the financial advantage of switching from gasoline-powered cars. According to the Ministry of Land, Infrastructure and Transport, 220,177 new EVs

Jul 12, 2026By Park Han-sol

EV boom brings higher insurance costs for drivers

Banking & Finance

Korea Eximbank partners with Mongolia to boost Korean consumer goods exports

The Export-Import Bank of Korea (Korea Eximbank) signed a memorandum of understanding with Mongolia's Trade and Development Bank (TDB) to provide a $30 million on-lending facility aimed at boosting exports of Korean consumer goods, the state-run lender said Sunday. Under the arrangement, Korea Eximbank will extend financing to TDB, which will then lend the funds to local importers purchasing Korean products. The indirect financing scheme is intended to improve access to trade finance while supporting bilateral commerce. The agreement comes as demand for Korean consumer goods and K-culture continues to grow in Mongolia. TDB, which operates more than 90 branches nationwide, serves a broad base of importers of Korean food, beverages, cosmetics and other products. The facility marks Korea Eximbank's first on-lending program for Mongolia since the country's 2017 foreign exchange crisis. The lender said it expects the program to help Korean exporters expand their presence in the market while easing funding constraints for companies already operating there. Leveraging TDB's nationwide network,

Jul 12, 2026By Park Han-sol

Park Han-sol

Read more

Policy-driven insurance products fall flat with consumers

MBK, Meritz strike last-ditch deal to rescue Homeplus

BOK begins tightening cycle as chip boom fuels growth, inflation concerns

President orders swift measures on risks of single-stock leveraged ETFs

Stock rally lifts sales of investment-linked pension insurance

AI is rewriting corporate leadership playbook: MetLife global HR chief

Citi Korea named best global custodian in Korea for 2nd straight year

EXPLAINER How $133 mil. funding dispute between MBK, Meritz pushed Homeplus toward collapse

EV boom brings higher insurance costs for drivers

Korea Eximbank partners with Mongolia to boost Korean consumer goods exports

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