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Lee Kyung-min

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Economy

North Korea urged to embrace 'privatization'

gettyimagesbankBy Lee Kyung-min Experts have called for North Korean leader Kim Jong-un to embrace “privatization” to address his country's economic challenges rather than just to wait until international sanctions are lifted. They said the reclusive regime will come under mounting pressure to opt for privatization following gradual yet notable changes in its economy toward marketization.These comments came after a recent report by South's Korea Development Institute which said the North's economy is increasingly ruled by “dollarization,” an inevitable result of a weak economy whereby the North Korean won fails to function as a currency. The experts see dollarization ― moving toward an economy largely ruled by U.S. currency ― as a sign of the Kim regime pursuing more complete and full integration into the global economy. Bill BrownWhile Pyongyang badly needs sanctions relief, privatization could be another ― even better ― way, although the regime's ideology will not easily allow it, according to Bill Brown, an adjunct professor at Georgetown University School

Jul 23, 2019By Lee Kyung-min
North Korea urged to embrace 'privatization'
Banking & Finance

Standard Chartered Bank Korea issues Sigma Card

A model holds a sign promoting Standard Chartered (SC) Bank Korea's Sigma Card. Courtesy of SC Bank KoreaBy Lee Kyung-min Standard Chartered (SC) Bank Korea has rolled out a credit card that meets the needs of frequent overseas travelers, the firm said Tuesday.Holders of the new Sigma Card will be able to use some 850 airport lounges worldwide, the use of which is strictly limited to priority pass holders. Up to three people are allowed to accompany the card holder into the lounge. Entrance is granted up to three times a year. Other privileges include a favorable foreign currency exchange rate as well as an exemption of a 0.35 percent overseas transaction fee. “The card is gaining popularity among vacationers that travel overseas during summer,” an SC official said.“The exclusive access to lounges with up to three accompanying travelers is a benefit that has received great reviews from our customers, especially parents with children on a trip during summer or winter vacations,” the official added. The card offers many other benefits in proportion to the amount

Jul 23, 2019By Lee Kyung-min
Standard Chartered Bank Korea issues Sigma Card
Banking & Finance

Financial groups strengthen IT capabilities

KEB Hana Bank Innovation & ICT Group Deputy President Kwon Gil-joo, second from right, poses with officials from the bank and SK C&C at the bank's headquarters in Seoul, July 19. Courtesy of KEB Hana BankBy Lee Kyung-min Financial groups are rushing to beef up their IT capabilities in a move to facilitate digitization, a much-prioritized initiative among global financial services firms. KEB Hana Bank said Monday that it has set up a big data platform, the first Korean bank to do so. The platform will become a hub where data specialists are able to collect, share, analyze and utilize stored data in a more integrated way.This will help the bank outline a long-term, consistent and goal-oriented work process, mainly through greater and faster access to what has widely remained privileged information exclusive to select groups of workers at certain departments.“Data management will be improved significantly,” a KEB Hana official said. “Not only data that had long been shared in-house including accounting or performance figures, but also those on user activities i

Jul 22, 2019By Lee Kyung-min
Financial groups strengthen IT capabilities
Banking & Finance

'We are nothing without history'

Kim Hyun-jinBy Lee Kyung-min Kim Hyun-jin, a senior manager at Shinhan Financial Group, said organizing a food market to commemorate the heroes of the Independence Movement helped him learn the significance of remembering the “easily forgotten,” Monday. “It is in line with the well-known saying: there is no future for people who forget history. We are nothing without history. We are where we are because of the struggles made by those who lived before us,” Kim said. Organized by the Shinhan Dream Foundation, the one month event, which took place from June 19 to July 21, was part of Shinhan Financial Group's efforts to better honor independence fighters on the occasion of the 100th anniversary of the establishment of the country's China-based provisional government. At the food market in Jongno, Seoul, officials from the group wearing clothes from the early 1900s served food frequently eaten by the independence fighters. The menu included zongzi, a traditional Chinese rice dish made of glutinous rice stuffed with different fillings and wrapped in bamboo leaves.

Jul 22, 2019By Lee Kyung-min
'We are nothing without history'
Banking & Finance

IBK, Woori expect hefty returns from investment into 'Parasite'

A movie poster of ParasiteBy Lee Kyung-min Woori Bank and the Industrial Bank of Korea (IBK) are expecting hefty returns from their investment in the Korean film “Parasite,” this year's Palme d'Or winner at the Cannes Film Festival. Their non-traditional investment method in local movie productions is emerging as a great way for banks to generate profit amid growing pressure to reduce their heavy dependence on net interest margins (NIM).Woori and the state-run IBK made an indirect investment of 300 million won ($254,000) and 120 million won, respectively, in the movie, through investment vehicles. Given the break-even point is estimated at 4 million viewers, the two lenders are set to enjoy high returns given the film has drawn over 10 million viewers as of July 21. The IBK is well known for having the Midas touch in the film industry, as it has enjoyed a series of successes with its investments in domestic films. Its successful investment portfolio includes “Extreme Job” a mega-hit that attracted over 13 million people to theaters, a resounding success given

Jul 18, 2019By Lee Kyung-min
IBK, Woori expect hefty returns from investment into 'Parasite'
Economy

BOK cuts key interest rate to 1.5 percent

2019 Growth rate revised down to 2.2%By Lee Kyung-min The Bank of Korea (BOK) cut its key interest rate by 25 basis points to 1.5 percent Thursday, in a pre-emptive measure to tackle slowing growth amid growing uncertainties caused by a trade feud with Japan.The central bank also revised its 2019 growth outlook to 2.2 percent from its previous forecast of 2.5 percent made in April. The surprise rate reduction, the first since June 2016, came as Asia's fourth-largest economy faces growing downside risks due to a series of headwinds, such as a prolonged U.S.-China trade feud and Japan's export restrictions on Korea coupled with sluggish exports and investment here.The central bank had kept the benchmark rate unchanged since November, when it hiked it by 25 basis points to 1.75 percent.The BOK said there has been a growing need for a more accommodative stance following escalating trade disputes and a delayed recovery in the semiconductor sector. . Bank of Korea Governor Lee Ju-yeol speaks during a press conference at the central bank's headquarters in Seoul, July 18. Courtesy of Bank of

Jul 18, 2019By Lee Kyung-min
BOK cuts key interest rate to 1.5 percent
  • 'Japan's export control to further strain Korean economy'
  • Skepticism growing over Korean economy
Economy

Gold, dollar favored amid growing uncertainties

By Lee Kyung-min The balance of U.S. dollar-denominated deposits at banks and gold bar sales have been on a sharp increase over the past few months as investors prefer safe assets amid growing uncertainties caused by the U.S.-China trade feud and Japan's export restriction measures.According to the Bank of Korea (BOK), U.S. dollar-denominated deposits at banks jumped to $59.9 billion (70.5 trillion) in June, up $4.25 billion from a month earlier. The figure was up $6.44 billion from two months before when it was $53.4 billion. The deposits are the sum of the U.S. dollars held by Koreans, foreign businesses and foreigners that have lived in Korea for over six months.The amount was part of $70.38 billion held in foreign currency including Chinese yuan, Japanese yen and euros, which also jumped $4.77 billion from a month before. Most notable was an increase of $830 million in deposits held by individuals which reached $14.71 billion. Corporate savings also increased by $3.94 billion to $55.67 billion during the same period. Companies and individuals upped their foreign currency holdings

Jul 17, 2019By Lee Kyung-min
Gold, dollar favored amid growing uncertainties
Economy

Hana to set up W1 tril. fund with China's sovereign fund

Hana Financial Group Chairman Kim Jung-taiBy Lee Kyung-min Hana Financial Group will team up with China Investment Corporation (CIC) to set up a 1 trillion won ($847 million) fund to invest in Korean companies operating in China, the group said Wednesday. CIC operates about $941.4 billion in funds, one of the world's largest sovereign wealth funds with business partners including Goldman Sachs, HSBC, Deutsche Bank and Nomura. “We are in talks to finalize details on when the fund should be launched and how much it should be,” a Hana official said. The fund will be used to help Korean firms seeking business opportunities, or expansion of their current presence in China. Part of it could be used for Chinese companies seeking to enter Korea. “Apart from boosting profits from global investment, the joint project carries more meaning as the two sides will be able to strengthen business relationships,” a Hana official said. The project boasts mutual benefits as Korean firms are able to find easier ways to enter the Chinese market with its huge customer base and grow

Jul 17, 2019By Lee Kyung-min
Hana to set up W1 tril. fund with China's sovereign fund
Banking & Finance

Boosting ties with Indonesia

Officials from Korea Deposit Insurance Corp. (KDIC) and its Indonesian counterpart Indonesia Deposit Insurance Corp. (IDIC) pose at IDIC headquarter in Jakarta, July 10. The IDIC officials attened a KDIC-organized consulting session there to learn about Korea's deposit insurance payment system. Third from left is IDIC Chairman Halim Alamsyah. Courtesy of KDIC 

Jul 17, 2019By Lee Kyung-min
Boosting ties with Indonesia
Banking & Finance

Banks rush to adopt 'open banking'

gettyimagesbankBy Lee Kyung-min Banks are rushing to embrace “open banking,” a new financial data management and operating system that will go into effect in October, in order to get the upper hand in the rapidly-developing area. Open banking is a comprehensive joint payment system based on an application programming interface (API), an intermediary program that enables various software to interact.Under the new system, fintech firms will get broader access to financial data, and customers will be able to transfer cash using any app operated by any banks or fintech firms.?Given fintechs will provide far greater services in user interface (UI) and user experience (UX), traditional market players ― mostly banks ― are under growing threat of being reduced to a mere developer and seller of financial products. UX focuses on how something works and how people interact with it, and UI on the look and layout. Woori Bank has included key open banking functions into WiBee Bank, its online platform which will be strengthened as a comprehensive marketing and distributing channel of n

Jul 16, 2019By Lee Kyung-min
Banks rush to adopt 'open banking'
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