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Korean Air CEO Woo Ki-hong, left, shakes hands with Hyundai Card Vice Chairman Chung Tae-young after signing a memorandum of understanding to issue a Korean Air-labeled credit card, Dec. 17. Under the agreement, Hyundai Card will start issuing the private label card in late March. Courtesy of Hyundai Card
Economy and Finance Minister Hong Nam-ki / Korea Times fileBy Lee Kyung-min Economy and Finance Minister Hong Nam-ki should modify economic policies in a way that can minimize state intervention and rehabilitate the sluggish private sector in 2020, according to economists, Friday.They have called for the finance minister, who concurrently serves as the deputy prime minister, to take more action to speed up regulatory reform and foster entrepreneurship to make Asia's fourth-largest economy more productive and innovative.These are views of four economic experts The Korea Times interviewed as Hong just passed his first anniversary on Dec. 10.Seoul National University Economics professor Kim So-youngSeoul National University Economics professor Kim So-young said that the government should not dictate which areas should be prioritized. “The government subsidy requirements simply lack principle, vision and understanding,” he said.“Businesses should be able to invest and allocate resources where they best see fit to boost corporate profit. The government's meddling on
JB Financial Group Chairman Kim Ki-hongBy Lee Kyung-min JB Financial Group has taken over a brokerage in Vietnam owned by a global investment bank in a bid to strengthen its global business, the group said Monday.The Korean financial group said it signed a share purchase agreement (SPA) with Hanoi-based Morgan Stanley Gateway Securities (MSGS), a provider of a range of financial services including advisory and brokerage services, investment banking, research and principal investing.Following the agreement, JB Financial will hold a 100 percent stake in the brokerage with an equity capital of 300 billion Vietnamese Dong (VND) ― roughly about 15 billion won ($12.7 million). “We acquired the brokerage to identify the firm's future growth engine amid saturation of the domestic market with competition becoming fiercer among local financial firms,” JB Financial Group CEO Kim Ki-hong said. “This will not only help us with a diversified business portfolio but also provide us with sustainable growth."The group plans to expand its business portfolio in the Southeast Asian coun
NH NongHyup Financial Group Chairman Kim Gwang-soo, front row third from left, raises his fist with tennis, soft tennis and golf players at a year-end gathering at a conference room on Yeouido in Seoul, Dec. 13. Kim said the spirit of fair play exhibited by the players goes to the heart of the group's management philosophy. / Courtesy of NongHyup Financial Group
By Lee Kyung-min A growing number of insurance subscribers are expressing displeasure with planned premium hikes as many households struggle to cope with the ongoing economic downturn. “I received a notice from an insurance company that I will have to pay more for my subscriptions next year,” a 45-year-old office worker surnamed Kim said. “The news reports say the premiums will be hiked up to 20 percent. The combined hikes of a handful of insurance products I signed up for will be an unexpected, unwanted extra expenditure, especially since my salary is likely to stay more or less the same.” The frustration is shared by many subscribers amid the current slowdown. Insurers with soaring loss rates can resort to premium hikes ― the easiest and most convenient way to recuperate snowballing losses. Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, DB Insurance and Meritz Fire & Marine Insurance have sent out notifications to customers whose subscriptions need to be renewed in January 2020. Hanwha and NongHyup are expect
gettyimagesbankBy Lee Kyung-min Japan's exports to Korea have dropped at a rate twice as fast as Seoul's shipments to Tokyo since the trade feud began in July, indicating the world's third-largest economy is suffering more, according to government data Sunday.Data from the Ministry of Trade, Industry and Energy showed Korea's exports to Japan slid to $9.48 billion (1.1 trillion won) in the July-October period, down 7 percent from the previous year. By contrast, Japan's exports to Korea fell to $15 billion (17 trillion won) in the same period, a 14 percent drop from the year before. The data comes about four months after Japan restricted exports to Korea, July 4, of three key materials needed to produce semiconductors and displays ― photoresist, fluorinated polyimide and hydrogen fluoride. Hydrogen fluoride includes etching gas and liquid hydrogen fluoride. In the months following the measure, curbs on photoresist and etching gas were lifted in August. The restrictions on fluorinated polyimide and liquid hydrogen fluoride were lifted in September and November, respectively.No major di
The headquarters of Toss in Seoul / Korea Times fileBy Lee Kyung-min The Financial Services Commission (FSC) said Thursday that it began the screening process of the applications from two consortia for a license to open a third internet-only bank, yesterday.One is led by Toss, a mobile money transfer app owned by Viva Republica, and the other by Soso Smart Bank, backed by a coalition of 6.7 million small merchants nationwide. The FSC is expected to disclose the outcome as early as Sunday. The review process is carried out by an external evaluation committee whose members are chosen by the Financial Supervisory Service (FSS).Seven members with expertise in finance, the law, consumer protection, fintech, accounting, IT security and risk management will conduct a review to determine whether the consortia's business proposals meet requirements. Evaluation criteria will include innovation, stability, inclusiveness, financing plans, infrastructure, human resources and shareholder makeup.Toss, seeking approval for the second time, has largely dissipated lingering concerns over financing, a
The head office of the-K NON-Life Insurance in Seoul / Korea Times fileBy Lee Kyung-min Mergers and acquisitions (M&A) in the insurance market are heating up as several life insurance firms operating here have been put up for sale.Some financial groups are keen to buy insurers to bolster non-banking sectors, while major private equity funds, such as MBK Partners and Hahn & Co., are looking for potential targets after raising trillions of won over the past few months.Hana Financial Group is in talks with the Korea Teachers Credit Union (KTCU) about a takeover of The-K Non-Life Insurance, following due diligence conducted by Samjong Accounting Corp. KTCU is the owner of the non-life insurer.Hana plans to acquire the non-life insurer specializing in auto insurance if they are able to iron out differences over the takeover price, which many expect will be set at somewhere between 100 billion won ($84 million) and 150 billion won.The-K Non-Life Insurance posted a net loss of 11.1 billion won in the first nine months of 2019 following a net loss of 10.5 billion won in 2018. If the
By Lee Kyung-min The number of jobs for breadwinners, mostly those in their 30s and 40s in the manufacturing sector, continued to drop in November, while jobs for those in their 60s and older have been on the increase, data showed Wednesday.This indicates that the nation's workforce has become older as a result of the government's policies to create more part-time jobs for older people. Companies have been reluctant to hire new employees due to rigid labor policies amid economic slowdown.Statistics Korea data showed over 27 million people were employed in November, up 331,000 from a year earlier, the fourth consecutive month of increases.The jobless rate stood at 3.1 percent, down 0.1 percentage points from the year before. The employment rate for those aged between 15 and 64 stood at 67.4 percent, the highest November figure since the agency began compiling data in 1989.However, many economists said that the improvement in overall job data should not be taken as an indicator of job market recovery because jobs for those in their 30s and 40s, the backbone of the economy, have continu
Korea Customs Service (KCS) Commissioner Kim Yung-moon speaks at his office in Daejeon, Dec. 9. Courtesy of KCSKCS chief vows to place top priority on helping SMEs By Lee Kyung-min Korea is seeking to become a leader in global customs services by offering solutions to complex international clearance procedures in a bid to foster trade relations between local businesses and partner nations worldwide, the head of the state-run customs service agency said Tuesday. “We have been and will continue to devote the agency's manpower and resources to provide full support for export firms, especially the small- and medium-sized enterprises (SMEs) that underpin the economy,” Korea Customs Service (KCS) Commissioner Kim Yung-moon said in an interview with The Korea Times. The commitment was well-illustrated as the KCS under his leadership helped limit the fallout following the ongoing Korea-Japan trade feud that has led to major losses for Korean exporters. Since March, KCS officials have been dispatched to 30 customs offices nationwide to offer various forms of support, including con