my timesThe Korea Times
lkm

Lee Kyung-min

Korea Times AI content 2 team Reporter

Value context and insight. lkm@koreatimes.co.kr

Go to EmailGo to URL

Read more

Banking & Finance

Low interest rate strains insurers, banks

gettyimagesbankBy Lee Kyung-min Insurers are coming under growing pressure to boost profits after the Bank of Korea (BOK) lowered its key rate July 18, a measure that has widened the spread between the rate they promised customers earlier and the one under which they borrow from the central bank.The BOK lowered its key rate to 1.5 percent, a 25 basis points cut from the previous 1.75 percent that had remained unchanged for seven months. The more “accommodative” measure aims to pre-emptively counter any fallout from the trade dispute with Japan which placed restrictions on three key materials needed by Korean manufacturers of semiconductors and flat screens. The BOK judged that the damage could be far graver than previously expected given Korea ― the leading global chipmaker ― relies heavily on Japan, which accounts for over 90 percent of the global supply of the three materials. “Our business environment has deteriorated further,” a mid-tier life insurer who refused to be identified said. “Products we sold about a decade ago ― savings-type, not protectiv

Jul 31, 2019By Lee Kyung-min
Low interest rate strains insurers, banks
Economy

Gov't to strengthen fintech customer protection

KakaoPay CEO Ryu Young-joon / Korea Times fileBy Lee Kyung-min The government will come up with measures to better protect money deposited into accounts managed by fintech firms such as Kakao Pay, Toss and Naver Pay, popular mobile payment apps.The Financial Services Commission (FSC) said Monday that efforts are underway to revise a related law governing online financial business operators. “Specifics will be finalized in the latter half of 2019 upon the passage of pending bills. Various measures are under consideration,” an FSC official said. The revision seeks to establish an institutional framework including legal measures to protect the money that customers put in the fintech firms' accounts for easy, fast and real-time wiring. Under the law enforced by the Korea Depository Insurance Corp. (KDIC), up to 50 million won ($42,000) held by each commercial and savings bank is protected. The KDIC measure seeks to prevent or limit massive confusion caused by a possible default by large financial firms, thereby limiting far-reaching consequences involving customers who will b

Jul 29, 2019By Lee Kyung-min
Gov't to strengthen fintech customer protection
Economy

Has chip industry bottomed out?

By Lee Kyung-min Expectations are growing that the not-so-vibrant chip industry will regain growth momentum, a market consensus strengthened by local chipmakers' new business strategies and reports from global investment banking powerhouses and local brokerages, Monday. SK hynix, one of Korea's major chip producers alongside Samsung Electronics, said July 26 that it will reduce the output of dynamic random-access memory (DRAM), a drastic move to deal with rapidly falling chip prices amid softening global demand. The measure is fueling expectation that Samsung will follow suit. The firm's second quarter performance will be announced July 31. SK hynix's move followed the firm's “earnings shock” in the second quarter. The firm said July 26 that its operating profit is estimated to be 637.6 billion won ($538 million) in the April-June period, 14 percent lower than market consensus which expected 744.1 billion won. The second-quarter figure is a 53 percent drop from 1.3 trillion won posted in the quarter earlier, and an 89 percent drop from 5.5 trillion won from the year

Jul 29, 2019By Lee Kyung-min
Has chip industry bottomed out?
Banking & Finance

Rooting for football players

KEB Hana Bank CEO Ji Sung-kyoo, third from left, K League Deputy Commissioner Huh Jung-moo, fourth from right, raise their fists with professional football players from the K League at the bank's headquarters in Seoul, July 25. They celebrated the bank's credit and debit cards for football fans garnering over 100,000 holders. KEB Hana Bank is the main sponsor of the K League. Courtesy of KEB Hana Bank

Jul 28, 2019By Lee Kyung-min
Rooting for football players
Economy

KOSPI trading volume falls to 30-month low

gettyimagesbankBy Lee Kyung-min The trading volume of Seoul stocks dropped to a 30-month low in July amid weak investor sentiment prolonged by growing uncertainties over trade disputes between the U.S. and China and between Korea and Japan, analysts said Sunday.This is compounded by weaker-than-expected corporate earnings in the second quarter. The benchmark KOSPI saw its daily average trading volume between July 1 and July 26 plunge to about 4.3 trillion won ($3.6 billion), the lowest in two and a half years since January 2017 when the amount was 4.1 trillion won. July's figure is less than half of the 9.5 trillion won recorded in May 2018.The stock plunge in late 2018 was triggered largely by the U.S.-China trade dispute, and adding to the woes is the fresh feud between Korea and Japan over the latter's export restrictions on key materials needed for the former to produce semiconductors. The stagnant investment sentiment is likely to drag on, according to Yun Chang-hyun, an economist at the University of Seoul.“Investors will see no major upward momentum for the time being,&r

Jul 28, 2019By Lee Kyung-min
KOSPI trading volume falls to 30-month low
Banking & Finance

Banks' net interest income drops in 2Q

Shinhan Financial Group Chairman Cho Yong-byoungBy Lee Kyung-min The net interest income of Korea's major commercial banks shrank in the second quarter, posing a risk to the record-breaking profits seen by their holding companies in the same period, data showed Sunday.Interest-based income ― traditionally the easiest way for banks to make money ― is likely to face further setbacks in the coming months as central banks in Korea and the U.S. are set to implement more “accommodative” monetary policies ― meaning key rate cuts. Adding to the bleaker prospect is strengthened lending rules over the past few months, overseen by the Financial Services Commission (FSC) to curb the overheated housing market. Korea's four leading banks ― Shinhan, KB Kookmin, KEB Hana and Woori ― saw their net interest margin (NIM) drop in the April-June period from the previous three months. NIM, the difference between the rate a bank receives from loans and what it pays for deposits, is considered a measure of profitability. Shinhan's NIM stood at 1.58 percent in the second quarter, a 0.03 percentag

Jul 28, 2019By Lee Kyung-min
Banks' net interest income drops in 2Q
Banking & Finance

Staying healthy in summer

Officials from Shinhan Card pose for a photo after packing boxes of food and daily necessities to be delivered to low-income households in Seoul, July 28. Courtesy of Shinhan Card

Jul 28, 2019By Lee Kyung-min
Economy

Blockchain changes financial landscape

Financial services firms embrace new technology for innovationBy Lee Kyung-min A growing number of financial services firms are introducing blockchain-based technology to enhance customer convenience and service quality, which many believe will change the landscape of the industry.KEB Hana Bank is seeking to boost closer cooperation with ICT firms in a broader move to strengthen its Global Loyalty Network (GLN) digital platform powered by blockchain technology, a new form of record-keeping ledger that cryptographically secures?records?of transactionsThe decentralized blockchain-based network enables customers to make digital transactions regardless of their location. Digitally convertible commodities including points and mileage can be exchanged on the integrated, digital platform network among financial services firms and member stores including retailers and card point management firms. The move is part of a collective initiative to change or expand the current role of traditional financial services enti

Jul 28, 2019By Lee Kyung-min
Blockchain changes financial landscape
Economy

Economy grows 1.1% in 2nd quarter

Gov't spending offsets sagging investment, exports By Lee Kyung-min The Korean economy grew by 1.1 percent in the second quarter from a quarter ago, a dramatic turnaround from the 0.4 percent contraction in the first quarter, the Bank of Korea said Thursday.  However, the figure should not be seen as an indication of a meaningful rebound of Asia's fourth-largest economy as the growth has been mostly led by an increase in government spending amid a slump in corporate investments and exports.Bank of Korea (BOK) advance data showed that the second-quarter growth of the gross domestic product (GDP) was the fastest in seven quarters since the third quarter of 2017 when the rate was 1.5 percent. Government spending saw a 2.5 percent increase from a quarter earlier due largely to a jump in healthcare spending, while private consumption grew 0.7 percent from the previous quarter. “The second-quarter growth came as government spending offset weak exports and private investment,” a BOK official said at a press briefing. The central bank estimated that government spen

Jul 25, 2019By Lee Kyung-min
Economy grows 1.1% in 2nd quarter
Banking & Finance

Savings banks seek major overhaul

A logo of Korea Federation of Savings BanksBy Lee Kyung-min Savings banks in Korea have set up a joint taskforce to carry out organizational reform and facilitate a long-term image makeover, an industry official said Tuesday. The move seeks to remove negative notions long associated with the lower-profile banks and find new and sustainable sources of revenue amid fast-declining profitability compounded by the prolonged economic slowdown.The Korea Federation of Savings Banks (KFSB), which represents 79 savings banks nationwide, said the taskforce will work to find ways to better implement regulatory guidelines and overcome business challenges.Working-level officials from 11 banks will meet regularly to discuss pressing issues and subsequent measures drawn up reflecting the needs of banks regardless of their locations.“We face hundreds of regulatory challenges,” a KFSB official said.“Whether we have to seek greater cooperation with fintechs will be determined later."A review is underway by a group of academic financial experts to pinpoint the most pressing issues and

Jul 24, 2019By Lee Kyung-min
Savings banks seek major overhaul
previous page
275276277278279
next page

Top 5 stories

Korea Times
About Us
Introduction
History
Contact Us
Products & Services
Subscribe
E-paper
RSS Service
Content Sales
Site Map
Policy
Code of Ethics
Ombudsman
Privacy Policy
Youth Protection Policy
Terms of Service
Copyright Policy
Family Site
Hankookilbo
Dongwha Group
FacebookXYoutubeInstagram
CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.