The Korea Times

Banking customers still favor in-person consultations for key services

Jung Yoo-young, 48, a freelance translator living in northeastern Seoul’s Gangbuk District, prefers visiting bank branches in person over using mobile banking. Although relatively young and comfortable using a smartphone, she still feels uneasy about handling sensitive financial information on a mobile device. "There are constant reports of cyberattacks involving financial institutions or USIM information, so I try to avoid doing important tasks on my phone," Jung said. "Even if it takes more time, I feel more secure when a bank employee handles things right in front of me at the branch." According to a recent survey by local market researcher Consumer Insight, many financial consumers like Jung still prefer to handle high-involvement services offline, despite the rapid digital transformation of the financial sector and the growing use of internet banking. The nationwide survey, which analyzed the banking experiences of 10,917 customers aged 20 to 69, found that mobile banking is used mainly for simple tasks such as transfers and remittances, which made up 66 percent, and account inqu

May 18, 2025By Jun Ji-hye

Banking customers still favor in-person consultations for key services

Policy

Cash payment rate falls below 20% for 1st time

The use of cash has been sharply declining as more consumers turn to noncash payment options such as credit cards and mobile wallets, according to the Bank of Korea (BOK) on Thursday. The BOK nationwide survey of 3,500 adults aged 19 and older found that cash accounted for just 15.9 percent of all payments last year, ranking behind credit cards at 46.2 percent and debit cards at 16.4 percent. Cash usage has been steadily declining. It stood at 41.3 percent in 2013 and dropped to 36.1 percent in 2017. It continued to fall, dropping to 26.4 percent in 2019 and 21.6 percent in 2021. By age group, respondents in their 20s tended to prefer debit cards, while credit cards were more commonly used among those in their 30s to 50s. Individuals aged 60 and older appeared to rely more on cash, likely due to limited access to credit cards after retirement and lower familiarity with digital payment methods. With the decline in cash usage, more stores, such as unmanned kiosks, are no longer accepting cash. Buses that do not accept cash fares are also on the rise. The rapid growth of stablecoins, which ar

May 16, 2025By Jun Ji-hye

Cash payment rate falls below 20% for 1st time

Policy

Watchdog moves to revamp bonus schemes across finance sector amid public outcry

The Financial Supervisory Service (FSS) pledged to address short-term-focused incentive structures prevalent in the financial sector, warning that these practices could undermine the health of individual firms and threaten the stability of the broader financial system, officials said Thursday. The comments came as the financial watchdog conducted a review of performance-based compensation systems across the financial sector. The review follows criticism that executives and employees received excessive bonuses despite growing concerns over the financial soundness of institutions amid rising defaults in real estate project financing and other issues. According to the FSS, several institutions were found to be only nominally deferring performance bonuses or operating without clear criteria for adjusting or reclaiming them. The watchdog noted that total performance-based bonuses awarded for 2023 amounted to 1.06 trillion won ($761 million), down 8.8 percent from 1.17 trillion won in 2022. The average bonus per employee in 2023 was 139 million won. By position, CEOs received an average of 380

May 15, 2025By Jun Ji-hye

Watchdog moves to revamp bonus schemes across finance sector amid public outcry

Politics

Presidential candidates' market pledges: Lee focuses governance, Kim on deregulation

Democratic Party of Korea presidential candidate Lee Jae-myung and People Power Party candidate Kim Moon-soo have both pledged to boost the domestic stock market by addressing the so-called Korea discount, in a bid to win the support of the country’s 14 million retail investors in the June 3 presidential election. However, according to financial industry officials and politicians, Wednesday, their approaches widely differ in detail — Lee emphasizes restoring trust through improved corporate governance and stronger shareholder rights, while Kim focuses on revitalizing investment by easing regulations and overhauling the tax system. The two main candidates also show clear differences in their stances on the amendment to the Commercial Act, aimed at expanding corporate directors' fiduciary duties beyond the company to include shareholders — a topic that has recently drawn significant attention for its potential impact on the stock market. Lee expressed his intention to reintroduce the amendment, which was previously vetoed by then-acting President Han Duck-soo last month after being

May 14, 2025By Jun Ji-hye

Presidential candidates' market pledges: Lee focuses governance, Kim on deregulation

Policy

Could BOK be exempt from corporate tax under new administration?

There has been renewed interest in whether a bill exempting the Bank of Korea (BOK) from corporate tax could pass under the new administration next month, according to financial industry officials and politicians on Tuesday. Supporters of the bill argue that the exemption is necessary to eliminate the central bank’s double taxation structure and to strengthen its independence. Yun Ho-jung, chief of the Democratic Party of Korea’s (DPK) election campaign committee, noted Tuesday that discussions on the bill are likely to resume along with other pending legislation after the June 3 presidential election and the return to regular parliamentary proceedings. “It is necessary to address the central bank’s double taxation issue and enhance its institutional independence,” Yun said. In February, Yun submitted bills to amend the Bank of Korea Act and other related laws in a bid to exempt the central bank from corporate tax. Yun criticized the current system, under which the BOK, despite being a state-run entity established without capital to carry out monetary and credit policies, is sti

May 13, 2025By Jun Ji-hye

Could BOK be exempt from corporate tax under new administration?

Companies

Will Hoban attempt takeover of Korean Air?

Hoban Construction has increased its stake in Hanjin KAL to over 18 percent, narrowing the ownership gap with the largest shareholder bloc led by Hanjin Group Chairman Cho Won-tae to less than 2 percentage points, according to industry officials on Tuesday. Hanjin KAL is the holding company of Hanjin Group, best known for being the parent company of Korean Air. While the flagship construction arm of Hoban Group maintained that the acquisition is intended solely for investment purposes, many market watchers view the move as a precursor to a potential management dispute that could reshape the balance of power within Hanjin Group. On Monday, Hoban Construction reported via the Financial Supervisory Service's electronic disclosure system that its combined stake in Hanjin KAL — including shares held by Hoban Hotel & Resort and other affiliates — had increased from 17.44 percent to 18.46 percent. "The shares were acquired purely for investment purposes," a Hoban Construction official stated. Industry attention, however, is focused on whether the builder might enter into a management dispute

May 13, 2025By Jun Ji-hye

Will Hoban attempt takeover of Korean Air?

Politics

Presidential contenders’ tax cut promises raise concerns over revenue shortfall

Tax cuts are a classic example of populist pledges, making a regular appearance in every election cycle. The upcoming June 3 presidential election is no exception, with leading candidates from rival parties once again competing through generous giveaways and tax cut promises aimed at winning voter support. However, the focus on tax cuts without clear funding plans or comprehensive tax reform raises doubts about the feasibility of these pledges, especially given the current fiscal deficits. Experts warn that implementing these pledges would likely lead to an expansion of national debt and place a heavy strain on state finances. Democratic Party of Korea (DPK) candidate Lee Jae-myung and People Power Party (PPP) candidate Kim Moon-soo are both emphasizing income tax cuts for salaried workers in their election pledges. In a Facebook post on April 2, Lee, who is leading in polls, suggested the possibility of a tax cut, noting that the burden of earned income tax as a percentage of GDP rose from 1.6 percent in 2015 to 2.4 percent in 2024. "Such increases fuel ongoing complaints that wage earne

May 12, 2025By Jun Ji-hye

Presidential contenders’ tax cut promises raise concerns over revenue shortfall

Banking & Finance

Kbank to offer industry’s first full compensation for identity theft

Kbank will launch a new service aimed at protecting customers from financial fraud and offering full compensation in cases of identity theft, the internet-only bank said Monday. The new service, which takes effect on Tuesday, introduces enhanced identity verification procedures such as video calls or facial recognition whenever users change their mobile devices. Should any losses arise from identity theft despite these measures, Kbank will provide full compensation. The firm noted that although several financial institutions operate compensation programs for fraud victims, this is the first to guarantee full reimbursement of the entire amount. Identity theft scams typically involve tactics such as posing as a family member or a credit card courier, or using phishing or smishing (a form of phishing using text messages) to steal personal data or identification documents. The fraudsters then open a mobile device under the victim’s name, install financial apps and withdraw money using the stolen identity. The bank explained that by requiring additional identity verification when users chan

May 12, 2025By Jun Ji-hye

Kbank to offer industry’s first full compensation for identity theft

Banking & Finance

Fitch upgrades Hanwha Life’s credit rating to A+ with stable outlook

Fitch Ratings, a major global credit rating agency, has upgraded Hanwha Life Insurance’s rating from A to A+, reflecting the firm’s improved profitability following its adoption of International Financial Reporting Standards 17 (IFRS 17) in 2023, as well as its stable financial health and strong risk management capabilities, the insurer said Friday. The upgrade means that the outlook for the firm's rating has been revised from "positive" to "stable," reflecting expectations that the insurer will maintain financial soundness over the medium to long term. Fitch assessed that Hanwha Life’s focus on building a portfolio centered around high-margin protection-type products helped strengthen both profitability and capital adequacy. The insurer’s strategy for overseas expansion, along with a stable sales network supported by competitive distribution channels and a strong brand image, also received favorable evaluations. Fitch further cited the company’s rebalancing toward long-term bonds in anticipation of potential interest rate cuts, as well as its proactive asset-liability manageme

May 9, 2025By Jun Ji-hye

Fitch upgrades Hanwha Life’s credit rating to A+ with stable outlook

Companies

MBK, Young Poong protest Korea Zinc CEO’s reappointment amid legal probe

MBK Partners and Young Poong Group — Korea Zinc’s largest shareholder — opposed the reappointment of Park Ki-deok as CEO of the zinc smelting firm, they said Friday, citing an ongoing investigation into Park for suspected violations of the Capital Markets Act. The MBK alliance, which has long been engaged in a management control dispute with Korea Zinc Chairman Choi Yun-beom, made these remarks in a statement issued by MBK’s investment vehicle, Korea Corporate Investment Holdings, and Young Poong’s affiliate, YPC. The world’s largest zinc smelter held a board meeting the previous day and reappointed Park as CEO. "Park, along with Choi and Chief Financial Officer Lee Seung-ho, is suspected of engaging in unfair trading practices in connection with the 2.5 trillion won ($1.8 billion) capital increase announced on Oct. 30 last year," the statement read. "He was explicitly named as a suspect in the prosecution’s April 23 search-and-seizure operation at Korea Zinc, under investigation for potential violations of the Capital Markets Act." The alliance argued that reappointing an

May 9, 2025By Jun Ji-hye

Jun Ji-hye

Read more

Banking customers still favor in-person consultations for key services

Cash payment rate falls below 20% for 1st time

Watchdog moves to revamp bonus schemes across finance sector amid public outcry

Presidential candidates' market pledges: Lee focuses governance, Kim on deregulation

Could BOK be exempt from corporate tax under new administration?

Will Hoban attempt takeover of Korean Air?

Presidential contenders’ tax cut promises raise concerns over revenue shortfall

Kbank to offer industry’s first full compensation for identity theft

Fitch upgrades Hanwha Life’s credit rating to A+ with stable outlook

MBK, Young Poong protest Korea Zinc CEO’s reappointment amid legal probe

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