The Korea Times

First-ever strike looms at KakaoBank. What's at stake?

Unionized workers at KakaoBank are set to stage what would be the first strike at a Korean internet-only bank on Friday, putting the spotlight on labor relations across the country's digital banking sector, industry officials said Monday. The walkout follows seven months of wage and collective bargaining talks that began in January but ended without an agreement. The union said 95 percent of participating members voted in favor of a one-day walkout. Instead of holding rallies, employees plan to use their annual leave to join the strike. Ahead of the strike, the union on Monday said more than half of the total employees at the bank joined the group, noting that this reflected growing employee dissatisfaction with management's approach to negotiations and the compensation system. Additional talks remain possible before Friday but if no last-minute agreement is reached, the walkout would mark the first strike at a Korean internet-only lender since the industry was launched in 2017. Although neither management nor the union has disclosed details of the negotiations, the union is seeking highe

Jul 27, 2026By Lee Hyo-jin

First-ever strike looms at KakaoBank. What's at stake?

Banking & Finance

Financial groups post record earnings, boost shareholder returns

Korea’s major financial groups extended their strong earnings momentum in the second quarter, as KB, Shinhan and Hana posted record quarterly and first-half profits, industry officials said Friday. Woori Financial Group also staged a turnaround in the second quarter, delivering year-on-year growth in first-half net profit despite market forecasts for a decline. The four largest groups' combined first-half of the year net profit of more than 11 trillion won ($7.5 billion) was supported by higher interest rates and a strong stock market rally. The strong performance prompted the companies to announce enhanced shareholder return plans, including larger share buybacks and higher cash dividends. According to company filings, KB Financial Group reported a record quarterly net profit of 1.99 trillion won in the second quarter, up 14.6 percent from a year earlier. First-half net profit also hit a record 3.88 trillion won, increasing 13.1 percent year-on-year. Its nonbanking affiliates accounted for 44 percent of first-half earnings, with KB Securities contributing about one-fifth of total prof

Jul 24, 2026By Lee Hyo-jin

Financial groups post record earnings, boost shareholder returns

Banking & Finance

Align Partners' BNK-JB merger proposal draws fierce regional opposition

Activist fund Align Partners Capital Management's proposal to merge BNK Financial Group and JB Financial Group has sparked fierce opposition from regional business groups and labor unions, which argue the deal would prioritize short-term shareholder returns at the expense of the public role and regional identity of local lenders, industry officials said Friday. Align holds a 14.83 percent stake in JB Financial, making it the group's second-largest shareholder, and owns more than a 1 percent stake in BNK Financial. JB Financial is the holding company of Jeonbuk Bank and Kwangju Bank, while BNK Financial controls Busan Bank and Kyongnam Bank. The activist fund has urged the two regional financial groups to review the strategic merits of a merger, arguing that consolidation would strengthen their long-term competitiveness. At a July 14 press conference, Align CEO Lee Chang-hwan asked the companies to announce by Aug. 7 whether they would begin a formal review and disclose any implementation plan when they report third-quarter earnings. The proposal has since faced mounting opposition from r

Jul 24, 2026By Lee Hyo-jin

Align Partners' BNK-JB merger proposal draws fierce regional opposition

Economy

Lee signals tougher property holding taxes to curb housing speculation

President Lee Jae Myung on Thursday signaled stronger property holding taxes to curb housing speculation, saying speculative real estate investors owning multiple homes should bear a heavier tax burden than owner-occupiers. Lee pointed to Japan's housing bubble as a cautionary case, saying soaring real estate prices eventually led to what became known as the country's "lost 20 years" or "lost 30 years." "Some people worry that we are heading toward the same peak," he said. The remarks came during a televised public forum on housing policy ahead of the government's tax reform package expected later this month. The package is aimed at reining in runaway housing prices, as many people are unable to afford to own their own homes due to speculative purchases driving up home prices. "To bring Korea's property holding taxes in line with those of advanced economies, they would have to be raised at least threefold. But if we tripled them now, it could trigger something close to a public uprising," Lee said. "If we leave things as they are, the problem will deal a massive blow to the country. We ne

Jul 23, 2026By Lee Hyo-jin

Lee signals tougher property holding taxes to curb housing speculation

Economy

Korea's economy grows 0.6% in Q2 on strong chip exports, beating forecasts

Korea’s economy expanded 0.6 percent in the second quarter from the previous quarter, extending its stronger-than-expected recovery on the back of booming semiconductor exports and a rebound in domestic demand despite Middle East-related risks, the Bank of Korea (BOK) said Thursday. The back-to-back surprise expansions in the first and second quarters have raised the prospect of annual growth exceeding 3 percent, which would mark the fastest pace in five years. Preliminary data from the central bank showed that real gross domestic product (GDP) rose 0.6 percent in the April-June period. The reading beat both the median market forecast of 0.3 percent and the BOK’s own projection of 0.2 percent for the quarter. Quarterly growth rebounded sharply from a 0.1 percent contraction in the fourth quarter of last year to 1.8 percent in the first quarter, before maintaining a solid pace in the second quarter despite a high base effect. The expansion was supported by a 1.4 percent increase in exports, driven by semiconductors and machinery and equipment, while private consumption rose 0.4 percen

Jul 23, 2026By Lee Hyo-jin and Jun Ji-hye

Korea's economy grows 0.6% in Q2 on strong chip exports, beating forecasts

Banking & Finance

Bank deposits rebound as higher rates draw funds back

A 31-year-old office worker in Seoul surnamed Lee says she has recently stopped putting new money into stocks and instead plans to park her spare cash in a bank deposit. "Most of my investments are in semiconductor stocks like Samsung Electronics and SK hynix, and I'm in the red," she said. "After seeing some banks offering deposit rates of more than 3 percent, I decided to move some cash from my brokerage account and other spare funds into a one-year deposit." Lee is among a growing number of investors shifting money back into bank deposits as lenders raise deposit rates following the central bank's latest interest rate hike. The Bank of Korea (BOK) last Thursday raised its benchmark interest rate by 0.25 percentage points to 2.75 percent, marking its first increase in three and a half years. Commercial banks have since lifted deposit rates above 3 percent for the first time in more than a year. KB Kookmin Bank said Wednesday it would raise rates on major deposit and savings products by up to 0.3 percentage point. The rate on its flagship one-year KB Star Deposit will increase to 3.2 per

Jul 23, 2026By Lee Hyo-jin

Bank deposits rebound as higher rates draw funds back

Economy

Shareholder group files criminal complaints over Samsung, SK hynix bonus deals

A shareholder advocacy group representing individual investors on Wednesday filed criminal complaints against the chief executives of Samsung Electronics and SK hynix, claiming profit-linked bonus agreements reached with labor unions were unlawful. The group, whose name translates roughly as the "Republic of Korea Shareholder Activism Headquarters," filed police complaints accusing SK hynix CEO Kwak Noh-jung, Samsung Electronics Vice Chairman Jun Young-hyun and CEO Roh Tae-moon of breaching their fiduciary duties to shareholders. It also filed a complaint against Labor Minister Kim Young-hoon with the Corruption Investigation Office for High-ranking Officials, alleging he abused his authority by intervening in Samsung's wage negotiations in May. Speaking at a press conference, Min Kyung-kwon, head of the group, argued that performance bonuses tied to corporate earnings should be treated as profit distributions, and thus should not be subject to collective bargaining. "Any profit-sharing arrangement should require shareholder approval, rather than being negotiated through collective barga

Jul 22, 2026By Lee Hyo-jin

Shareholder group files criminal complaints over Samsung, SK hynix bonus deals

Economy

Korea to launch pilot offshore won settlement network in September

The Bank of Korea (BOK) plans to launch a pilot of its 24-hour offshore won settlement network in September, the central bank said Tuesday, in a move aimed at making the currency more widely used overseas. The pilot program will involve four major commercial banks — KB Kookmin, Shinhan, Hana and Woori — which are currently conducting tests with the central bank. The BOK said it expects to complete revisions to its payment and settlement regulations by August, ahead of the pilot launch. Full-scale operations are expected to begin in January. The network, officially named the Bank of Korea Won International Wire Network (BOK-WireInt), will operate 24 hours a day on business days, from 9 a.m. to 9 a.m. the following day, excluding weekends and public holidays. The system will allow foreign investors to settle Korean won transactions through accounts held at banks in their home countries during local business hours, rather than waiting for Korean banks to open. The BOK expects the new settlement network to improve foreign investors' access to Korea's won settlement infrastructure and supp

Jul 21, 2026By Lee Hyo-jin

Korea to launch pilot offshore won settlement network in September

Banking & Finance

SC Bank Korea rolls out new incentives for private banking clients

Standard Chartered (SC) Bank Korea has expanded its private banking offerings for high-net-worth clients, introducing new incentives for first-time customers, the bank said Tuesday. New private banking customers can receive benefits worth up to 15 million won ($10,100) under a welcome program. The bank said first-time customers who qualify for its private banking service will receive a one-time bonus of 1 million won. Existing customers who are upgraded to private banking status can receive 300,000 won if they meet additional requirements. The bank is also offering rewards based on the amount invested in its wealth management products. Eligible customers can receive between 500,000 won and 15 million won under the welcome program. The program will run through the end of the year. Existing private banking clients can earn rewards by referring new customers. Those who introduce friends or family members who subsequently qualify as private banking clients with at least 1 billion won in deposits can receive gift certificates worth up to 1.5 million won, depending on the amount of new assets b

Jul 21, 2026By Lee Hyo-jin

SC Bank Korea rolls out new incentives for private banking clients

Economy

Customs officer honored for busting $73 mil. illegal FX scheme

When Kim Min-hye, an official at the Busan Regional Customs' financial investigation division, was assigned to investigate a suspected illegal foreign exchange scheme involving cryptocurrency, she had little experience with digital assets. "The term stablecoin itself was unfamiliar to me, and I had never personally traded cryptocurrency. Understanding how cryptocurrency transactions worked was quite a challenge," Kim told The Korea Times in a written interview, Tuesday. Yet that challenge ultimately led to one of this year's largest foreign exchange crime busts at the Korea Customs Service. Kim was named customs officer of the month in June after uncovering an unregistered foreign exchange business that illegally transferred about 108 billion won ($73 million) using Tether (USDT), a U.S. dollar-pegged stablecoin, according to the customs agency. The monthly award is presented to officers recognized for outstanding achievements in customs administration and investigations. According to Kim, the suspect received USDT from an overseas accomplice and sold it through a domestic cryptocurrency

Jul 21, 2026By Lee Hyo-jin

Lee Hyo-jin

Read more

First-ever strike looms at KakaoBank. What's at stake?

Financial groups post record earnings, boost shareholder returns

Align Partners' BNK-JB merger proposal draws fierce regional opposition

Lee signals tougher property holding taxes to curb housing speculation

Korea's economy grows 0.6% in Q2 on strong chip exports, beating forecasts

Bank deposits rebound as higher rates draw funds back

Shareholder group files criminal complaints over Samsung, SK hynix bonus deals

Korea to launch pilot offshore won settlement network in September

SC Bank Korea rolls out new incentives for private banking clients

Customs officer honored for busting $73 mil. illegal FX scheme

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