The Korea Times

Lotte REIT to go public on Korea Exchange today

By Lee Kyung-min Shares of Lotte Real Estate Investment Trust (REIT) will be publicly traded on the local bourse from Oct. 30, the bourse operator said Tuesday. The Korea Exchange (KRX) said that Lotte REIT will be listed on the benchmark KOSPI. A REIT refers to a company that owns, or in most cases operates, income-producing real estate ranging from apartments to various commercial buildings.The listing follows the firm's Oct. 7 announcement of an initial public offering (IPO) price of 5,000 won ($4.29) each for 86 million shares. With about 1.5 trillion won in assets under management, the real estate investment trust has set its target for a dividend yield of 6.39 percent.This firm said this is an attainable goal given most of the contracts involving the income-producing buildings under management of Korea's fifth-largest conglomerate are leased for a 10-year period on average, during which stable income is guaranteed from monthly rent. The firm has drawn over 4.7 trillion won from investors as of Oct. 11, indicating huge popularity of the alternative investment amid growing uncert

Oct 29, 2019By Lee Kyung-min

Banking & Finance

INTERVIEW Korea's dynamism drives continued innovation

Citibank Korea Consumer Banking Group head Valentin Valderrabano speaks during an interview with The Korea Times at Young City south building in Yeongdeungpo, Seoul, Oct. 22 / Courtesy of Citibank KoreaCitibank Korea MD says reinforcing positive feedback loop secret to wealth managementBy Lee Kyung-min Things change quickly in Korea. Different coffee shops, for example, open in certain busy commercial areas with hundreds of people lined up just to taste a certain new brew at a place mentioned as one of the most “hot and hip” venues by social media users. But then, customers like it or don't like it, and after 30 to 60 days they are gone. Few would draw any insight from this. But to a senior banker who constantly thinks about making customers happy, it is precisely how he integrates observation into his business philosophy. “It is exciting because it keeps us very focused,” Citibank Korea Consumer Banking Group head Valentin Valderrabano, 48, said in an interview with The Korea Times at Young City south building in Yeongdeungpo, Seoul, Oct. 22. To many, the nee

Oct 27, 2019By Lee Kyung-min

[INTERVIEW] Korea's dynamism drives continued innovation

Banking & Finance

Key rate cut provides no relief to borrowers

By Lee Kyung-min Many loan-seekers have faced disappointment after mistakenly assuming the borrowing rate at commercial banks would be cheaper after the Bank of Korea (BOK) cut its key interest rate by 25 basis points to a record-low 1.25 percent on Oct. 16. Some banks pre-emptively reduced or removed benefits for loan seekers in September, reflecting market expectations that the central bank would lower the key base rate amid sagging exports and weakening consumption due to mounting uncertainties both at home and abroad.“Am I dumb to think that taking out a cheaper loan would be possible after the BOK rate cut? If banks are steps ahead of consumers and allowed to protect their interest income, what good is it for the central bank to lower key rate? It's just senseless,” a 30-year-old man surnamed Park said. KEB Hana Bank and NongHyup Bank, two of Korea's leading commercial banks, have increased their adjustable home-backed loan rates to between 3.073 and 4.373 percent and between 2.89 and 4.10 percent, respectively, as of Oct. 25. This means NongHyup upped the rate as mu

Oct 25, 2019By Lee Kyung-min

Key rate cut provides no relief to borrowers

Banking & Finance

Shinhan outperforms KB in 3Q net profit

By Lee Kyung-min Shinhan Financial Group reported 981.6 billion won ($836 million) in net profit in the July-September period, narrowly beating its rival KB Financial which reported 940 billion won in the same period, data showed Friday.Shinhan said while the third quarter figure is a 1.5 percent drop from three months earlier, its performance in the first nine months resulted in over 2.8 trillion won in 2019, a 9.6 percent increase from the previous year when it saw over 2.6 trillion won in the January-September period. The industry leader said the better-than-expected performance came due to its successful diversification of revenue sources including global, non-banking and non-interest income businesses. The group's global business recorded a net profit of 292.1 billion won in the third quarter, up 47.1 billion won from the previous year, mostly due to the successful management of Shinhan Bank Vietnam. The group's card, life-insurance and capital subsidiaries also saw a combined 15 percent increase in net

Oct 25, 2019By Lee Kyung-min

Economy

GDP growth slows to 0.4% in 3Q

State spending fails to boost investment, consumptionBy Lee Kyung-min The economy grew at a much slower pace than expected in the third quarter, indicating that government spending has failed to bolster sluggish investment and consumption, central bank data showed Thursday.In advance estimates, the Bank of Korea (BOK) reported that the nation's gross domestic product (GDP) grew 0.4 percent in the third quarter from a quarter earlier, a major setback from the second quarter's 1 percent expansion. The economy contracted 0.4 percent in the first quarter.The slower-than-expected growth is fueling concerns that the Asia's fourth largest economy will see its annual growth rate fall below 2 percent. This has occurred four times in the past, first in 1956 when the country's agriculture industry was hit by unfavorable weather, in 1980 amid the oil crisis in the Middle East, in 1998 following the fallout of the Asian financial crisis and in 2009 after the global financial crisis. “More than 2 percent annual growth will be possible only if the economy expands over 0.97 percent on a quarte

Oct 24, 2019By Lee Kyung-min

Banking & Finance

Shinhan recognized for sustainable biz practice

Shinhan Financial Group Chairman Cho Yong-byoung, left, and Korea Productivity Center Chairman Noh Kyoo-sung pose for a photo at an award ceremony at Hotel Shilla in Seoul, Oct. 22.By Lee Kyung-min Shinhan Financial Group has been included in the Dow Jones Sustainability Indices (DJSI) for the seventh consecutive year, the group said Wednesday.This is a notable feat highlighted further by winning an award from the Korea Corporate Governance Service (KCGS) for sustainable business practices for the fifth year in a row. Created jointly by S&P Dow Jones Indices and RobecoSAM, the DJSI selects the most sustainable companies from across 61 industries every year.For this year's review, the 2,296 largest companies in terms of market cap were reviewed.According to the DJSI website, the indices serve as a benchmark for investors as they show how well a company integrates sustainability considerations into their portfolios. They also provide an effective engagement platform for investors who wish to encourage companies to improve their corporate sustainability practices. “We are happ

Oct 23, 2019By Lee Kyung-min

Shinhan recognized for sustainable biz practice

Economy

Consumption polarized amid slowdown

Sales of luxury goods, cheap necessities soar simultaneouslyBy Lee Kyung-min A man in his early 30s surnamed Lee has yet to decide which designer store he wants to shop at. Judging from the latest updates from an email alert, the fall-winter season clothing line from Gucci does not seem to be too bad a choice. Paul Smith, a popular British brand among young male “hipsters,” is his next choice for a dress shirt and a pair of brogues. “I know fashion trends are only good for about a season, and feeling good about buying new items is gone a couple of minutes or hours after you make payments. But it doesn't mean that I'm not happy when I buy them.” The recent economic slowdown is something he has heard about on the news but as someone from a wealthy background he's not feeling the pinch.“The central bank is likely to further lower the key rate, which will make loans cheaper. I don't want anything in particular at the moment, but it doesn't sound too bad if I decide to take out a loan to buy something.” By contrast, a mother of a two-year-old, surnamed

Oct 22, 2019By Lee Kyung-min

Economy

KB forges ties with Stifel to boost global IB biz

KB Financial Group Chairman Yoon Jong-kyoo, left, shakes hands with Stifel Financial Corp. Chairman Ron Kruszewski, after signing a memorandum of understanding to form a strategic alliance at the group headquarters on Yeouido, Seoul, Oct. 21. Courtesy of KB Financial GroupBy Lee Kyung-min KB Financial Group has joined hands with Stifel Financial Corp., an American financial services firm, to bolster its investment banking business abroad, the group said Monday. Through the partnership, the two parties will seek close cooperation in investment banking, and wealth and asset management while working together to find new opportunities not only in the U.S. but also in other advanced markets.“A growing number of our customers are seeking investment opportunities in the U.S. with its advanced financial system. We hope this cooperation will help us create various business opportunities thereby boosting sustainable growth,” a KB official said. Under the agreement, the two will boost cooperation in the brokerage research sector to meet the growing needs of Korean customers seeking

Oct 21, 2019By Lee Kyung-min

KB forges ties with Stifel to boost global IB biz

Economy

State-run think tanks suffer 'brain drain'

gettyimagesbankBy Lee Kyung-min More than three in four employees at state-run think tanks quit within the first three years, a trend that has continued for more than a decade, arousing concerns of a possible “brain drain” at the country's most prestigious policy institutions, a lawmaker said Monday.Data submitted to Rep. Lee Hack-young of the ruling Democratic Party of Korea from the National Research Council for Economics Humanities and Social Sciences (NRC) showed that out of the 7,385 researchers who left such think tanks since 2010, 5,677, or 76 percent, had worked there for less than three years. Among these, 2,664 worked between one and three years, while 3,013 quit less than a year after joining the institutes.This has led to the current 4,121 workers at the research bodies under the NRC publishing only 227 papers listed on the Science Citation Index (SCI) in 2018. The SCI , a citation index launched in 1964,  is known as one of the world's leading science and technology bodies of work because of its rigorous selection process. “At the risk of

Oct 21, 2019By Lee Kyung-min

State-run think tanks suffer 'brain drain'

Economy

Depositors dismayed by plunging interest rates

By Lee Kyung-min A man in his 50s surnamed Kim feels increasingly troubled every time he watches the news about falling interest rates.“The Bank of Korea (BOK) recently lowered its key rate less than two months after the last cut. And from what I have heard, it may cut the rate further in the coming months,” Kim said. “This will shrink my interest income from money I have long put in savings and installment accounts at different commercial and savings banks ― my major source of post-retirement income. I feel frustrated,” he said. The BOK cut its key interest rate by 25 basis points to a record-low 1.25 percent Oct. 16, citing sagging exports and weakening private consumption amid mounting uncertainties both at home and abroad. It also left the door open for further easing amid the deepening U.S.-China trade feud. Kim added buying high-risk, high-yield financial products including derivative-linked funds (DLF) sold by banks or insurers is not an option after he saw many people his age staging rallies in front of banks with picket signs reading: “You destr

Oct 20, 2019By Lee Kyung-min

Lee Kyung-min

Read more

Lotte REIT to go public on Korea Exchange today

INTERVIEW Korea's dynamism drives continued innovation

Key rate cut provides no relief to borrowers

Shinhan outperforms KB in 3Q net profit

GDP growth slows to 0.4% in 3Q

Shinhan recognized for sustainable biz practice

Consumption polarized amid slowdown

KB forges ties with Stifel to boost global IB biz

State-run think tanks suffer 'brain drain'

Depositors dismayed by plunging interest rates

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