The Korea Times

One more savings bank shut down

By Kang Seung-woo The nation’s financial regulator said Tuesday that it has suspended one more savings bank reeling from massive construction financing loans defaults. The Financial Services Commission (FSC) announced it had suspended Domin Savings Bank, based in Chuncheon, Gangwon Province, for six months. The lender closed its six branches there voluntarily earlier in the day for fear of a bank run. Domin is one of five savings banks that have failed to meet the government’s recommendation of a 5-percent capital adequacy ratio. It saw a total of 18.8 billion won withdrawn, Monday. Since new FSC Chairman Kim Seok-dong took the helm of the regulator last month, eight savings banks have been ordered to halt operations. An FSC official said that Domin’s bank for international settlement (BIS) ratio had fallen below 1 percent, forcing the regulator to suspend its business. Other than the suspension of Domin, the FSC chairman’s all-out efforts to stifle lingering jitters over possible shutdowns of distressed savings banks through mass withdrawals are working, as the c

Feb 22, 2011By Kang Seung-woo

Companies

Mass withdrawals made at savings banks despite government’s assurances

By Kang Seung-woo A total of 490 billion won was withdrawn from 98 savings banks Monday, despite the financial regulator’s assurance that there will be no more shutdowns of such institutions. The amount is up 60 billion won compared with Friday, when the Financial Services Commission (FSC) suspended operations of four savings banks. Regulators are looking to see whether the mass withdrawals will continue today. The withdrawals came after the FSC confirmed that it will avoid suspending operations of additional savings banks unless in an emergency, such as a bank run. FSC Chairman Kim Seok-dong made the remarks Monday during his visit to Busan to hold a meeting with related agencies to devise measures to deal with ailing savings banks. “The shutdown of savings banks would be limited to some troubled lenders and the government will try its best to protect the depositors of the distressed small-sized banks.” His remark came after the FSC suspended operations of seven savings banks last week while putting four more on the alert list. It shut down Busan Savings

Feb 21, 2011By Kang Seung-woo

Companies

Winners picked for TJ Park Prize

The POSCO TJ Park Foundation announced the winners of its 2011 POSCO TJ Park Prize, Monday. KAIST professor Lee sang-yub was selected as the winner in the science category, while the education award went to Namhansan Elementary School. Professor Lee was recognized for his achievement in the field of systems engineering. Monk Pomnyun and the Alola Foundation claimed the community development department prize. The awards ceremony will take place on March 22 at the POSCO Center in Seoul and the winners will each receive 200 million won in prize money,. Established in 2006 and awarded initially in 2007, the POSCO TJ Park Prize commemorates the accomplishments of Park Tae-joon, the former POSCO chairman, and promotes the steel giant뭩 founding spirit of respecting creativity, nurturing talent and promoting philanthropy.

Feb 21, 2011By Kang Seung-woo

Companies

Regulators play down bank run woes

By Kang Seung-woo As troubled savings banks have been put under the knife, financial authorities are attempting to quell heightening fears about a possible bank run caused by massive cash withdrawals. On Saturday, the Financial Service Commission (FCS) suspended three affiliates of Busan Savings Bank ― Jungang Busan Savings Bank, Busan II Savings Bank and Jeonju Savings Bank ― along with Bohae Bank for six months, citing concerns over liquidity. The decision came just two days after the FSC suspended Busan Savings Bank and another affiliate, Daejeon Mutual Savings Bank, for six months each for failing to meet capital requirements. The slew of suspensions began with the clipping of Samhwa Savings Bank last month. The developments have been fueling concerns that any of the banks could be brought down by investors taking flight and depositors withdrawing their money. However, FSC Vice Chairman Kwon Hyouk-se asserted to journalists that the savings bank situation is close to being tamed. ``Things will probably settle down over the weekend,’’ Kwon said in a news confe

Feb 20, 2011By Kang Seung-woo

Companies

ACE Life aims for fast growth

By Kang Seung-woo ACE Life Korea will use insurance agents as stepping stones to emerge in the Korean market, its president said Wednesday. “ACE is proud of its Korean operations. ACE Life Korea is a start-up company ― small and nimble ― able to take advantage of market niches, and we are confident in the continued attractiveness of the Korean market,” its CEO Brian Greenberg told reporters during a press conference honoring of launch of the Korean unit. ACE Limited, the Swiss-incorporated parent company of the ACE Group, launched its life insurance unit in Korea on Feb. 1 after completing its acquisition of New York Life’s Korea operations for approximately $75 million in cash in efforts to expand its franchise in North Asia. The ACE Group is one of the world’s largest providers of insurance and reinsurance with $82 billion in assets. “ACE purchased New York Life Korea because it has a well respected and established, highly professional agency force. This provides a good foundation upon which ACE can further build,” said Greenberg, who also served as chairman of Hana Lif

Feb 16, 2011By Kang Seung-woo

Companies

Employment market for youths ever tighter

By Kang Seung-woo Despite a strong recovery in the job market young people are still facing a dismal prospect of landing a job, a government report showed Wednesday. According to Statistics Korea, the unemployment rate for those aged between 15 and 29 stood at 8.5 percent in January, up from 8 percent the previous month. The number of those out of work was 363,000 in January, up 27,000 from December. Compared with a year ago, it fell by 0.8 percentage points. The nation’s jobless rate was at 3.8 percent. The rate for youths dropped to 6.4 percent in November, as the private sector hired more workers, driven by an economic recovery, but it rose back to 8 percent the following month. Among major economies, the jobless rates for this age bracket in the United States and France were at 18.9 percent and 25.7 percent, respectively, while they remain below 8 percent in Japan and Germany. “Although major companies have recruited more people than during the global financial crisis, their demand cannot meet the soaring number of young job seekers,” said Sohn Min-jung, a fellow

Feb 16, 2011By Kang Seung-woo

Companies

Thou shalt download from official website

By Kang Seung-woo With the growing number of transactions via smartphones, the nation’s financial watchdog came up with 10 ways Tuesday of how to keep concerns at bay regarding mobile trading. As more and more Koreans carry out financial transactions on the cutting-edge handsets, fears have lingered on the possibility that they might be vulnerable to security threats. The Financial Supervisory Service (FSS) said that first of all, smartphone users have to download programs linked to financial activities from official distributors as those from unauthorized sources might breed viruses. Second, it advised users not to save financial information, such as log-in details including passwords or account numbers. In case of loss or a virus, the data may end up in the wrong hands. The automatic log-in option is also one to avoid, as well. Third, passwords should be different from those of Internet portal sites or shopping malls as users usually put their birthday or telephone number, which is easily deciphered or analogized. Fourth, people are required to have their digit

Feb 15, 2011By Kang Seung-woo

Companies

Card loans worsen household debt

By Kang Seung-woo Korean credit card companies have aggressively pushed loan services as new revenue sources. But the increasing number of loans may end up as bad to the detriment of users, which can further aggravate household debt, market watchers say. According to the Financial Supervisory Service (FSS) and the card industry Monday, local credit card issuers lent a collective 24.9 trillion won ($22.16 billion) in 2010, up 38.3 percent from the preceding year. The amount stood at just 8 trillion won in 2005, but since then, it has gained steady popularity, nearly tripling over the past five years. During the cited period, Korea, Asia’s fourth-largest economy, only saw card loans diminish in 2009, when hit hard by the global financial crisis. Shinhan Card led the field with 3.92 trillion won in card loan earnings as of the end of September 2010, while Samsung Card reaped 3.23 trillion won. Hyundai Card and Lotte Card made 2.29 trillion and 1.69 trillion won respectively. Observers say that credit card firms’ focus on lending services to cancel out falling earnin

Feb 15, 2011By Kang Seung-woo

Companies

Female workforce nears 10 million

By Kang Seung-woo The number of working Korean women neared the 10 million mark last year, as their participation in economic activities continued to surge over the past few decades, government data showed Tuesday. On top of the quantity of jobs, females saw their quality improve as well, which means their social status has substantially bettered although some would still disagree. According to the Ministry of Strategy and Finance and Statistics Korea, the female workforce averaged just shy of 10 million in 2010 at 9.91 million, up 142,000 from a year earlier. The figure hit the 9 million mark for the first time in 2002 tallying at 9.22 million. Since then, it steadily grew to 9.87 million in 2008. But the global financial crisis and the resultant economic downturn ended the upward streak in 2009, when it declined to 9.77 million. Also of note is the expanding presence of women in professional and managerial jobs ― more than a fifth of them were working in high-salaried positions such as company executive for two straight years through 2010. A total of 2.08 millio

Feb 15, 2011By Kang Seung-woo

Companies

Deficit far smaller than expected

By Kang Seung-woo Korea’s 2010 fiscal deficit is expected to be far smaller than thought as the strong economic rebound helped the government rake in more tax revenue, the finance ministry said Monday. Consequently, its national debt was estimated at lower than the government’s forecast of 400 trillion won. According to the Ministry of Strategy and Finance, the nation’s fiscal deficit was estimated at around 15-20 trillion won for the year, equivalent to less than 2 percent of gross domestic product (GDP). Seoul had projected the deficit-to-GDP ratio to be 2.7 percent for 2010. The deficit is based on the fiscal account subject to the government’s management, which excludes social welfare and public fund operations from the consolidated fiscal account that reflects the nation’s total income and expenditure. The figure is regarded as one of the major indicators measuring the health of the economy “We expected the fiscal deficit to reach 30 trillion won last year but it was much lower than that thanks to a rise in tax revenue due to improving economic conditions,” a

Feb 14, 2011By Kang Seung-woo

Kang Seung-woo

Read more

One more savings bank shut down

Mass withdrawals made at savings banks despite government’s assurances

Winners picked for TJ Park Prize

Regulators play down bank run woes

ACE Life aims for fast growth

Employment market for youths ever tighter

Thou shalt download from official website

Card loans worsen household debt

Female workforce nears 10 million

Deficit far smaller than expected

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