The Korea Times

S&P Global sees no turnaround for Korean firms

S&P Global Ratings Asia Pacific Corporate Ratings Director Park Jun-hong speaks to reporters at the Seoul Finance Center, Thursday.By Lee Kyung-min Korean firms are unlikely to see a major turnaround in 2019 due to their debt burden and lingering uncertainties, global ratings appraiser S&P Global said, Thursday.It said that an overall decrease in profit compounded by an increase in debt are posing major risks to big companies in key industries, including electronics, IT, petrochemical and steel.“The determinant in the credit ratings are profit and debt. First, the number of firms that will see profits decrease compared to last year far outweighs those that will not,” S&P Global Ratings Asia Pacific Corporate Ratings Director Park Jun-hong said at a meeting with reporters at the Seoul Finance Center. “In terms of profit, this year will see a greater loss compared to last year or the year before. If you ask which Korean companies will see performance improvement from last year, the answer is close to none.” The agency expects that a substantial numbe

Apr 4, 2019By Lee Kyung-min

S&P Global sees no turnaround for Korean firms

Economy

KEB expands mobile banking service in Vietnam

Korea's national football team captain Son Heung-min promotes KEB Hana Bank's new mobile banking app service “Global 1Q” to be introduced in Vietnam. Courtesy of KEB Hana BankBy Lee Kyung-min KEB Hana Bank will launch its Global 1Q flagship mobile service in Vietnam, the bank said Wednesday. The Southeast Asian country is among seven countries where the bank's “easy” app is available along with Canada, China, Japan, Indonesia, Brazil and Panama..The new service will enable immediate cash wiring with a one-time passcode issued upon the user's request. The bank said the code will be sent directly to the user without having to download an additional app, a process necessary when using similar services provided by other banks. The simplified cash transfer service will be made available if transactions are sought by account holders with whom the user has previous transfer records. “The service is expected to draw popularity from locals as well as Korean government officials and business people living there. The newly added function of checking the status on a

Apr 3, 2019By Lee Kyung-min

KEB expands mobile banking service in Vietnam

Economy

Insurers cry foul over KDIC premium

KDIC headquarters in SeoulBy Lee Kyung-min Insurers want a reduction in the premiums charged by the Korea Deposit Insurance Corp. (KDIC).The collective demand by life and non-life insurers has resurfaced after Korea Life Insurance Association (KLIA) Chairman Shin Yong-gil recently claimed they were unreasonable. “The premium has doubled over the past five years,” Shin said. “If the current increase rate continues, the annual premium for life insurers will far surpass 1 trillion won ($880 million) in 2022. Measures are needed to lower the premium given the adverse business circumstances for the industry.”Insurers and non-life insurers paid over 1.1 trillion in 2017, up from 564 billion won in 2013. According to Shin, life insurers will have to pay 851 billion won this year and the amount will soar to 1.8 trillion won in 2022. The insurers are even calling for a separate deposit protection scheme, given they are not exposed to the risk of a “bank run,” the main reason the KDIC requires a high premium. A bank run occurs when a large number of customer

Apr 3, 2019By Lee Kyung-min

Others

Alliance for farmers

NHCard CEO Lee In-kee, center, poses with heads of international card issuers, including UnionPay International, JCB International, Visa and Mastercard, at the bank's headquarters in Seoul, April 1. The five card issuers formed a business alliance to support the nation's farmers and agricultural industry. Courtesy of NHCard

Apr 2, 2019By Lee Kyung-min

Economy

Natixis may delay opening securities branch in Seoul

gettyimagesbankBy Lee Kyung-min Natixis, one of France's major financial services providers, is expected to delay its plan to open a securities branch in Seoul in the second half of 2019, industry sources said Monday. “Natixis was scheduled to open its securities operation in the first half of this year. But the plan has been delayed to the latter half in the wake of its failed investment in Korea's derivatives,” an industry source close to the matter said on condition of anonymity. The delay came after the company suffered losses of about 330 billion won ($300 million) stemming from its investment in equity-linked securities (ELS) here in late 2018.“The return of the firm's investment depended largely upon the performance of the benchmark KOSPI with variables including market volatility. But the investment incurred a huge loss due to wild fluctuation of the benchmark index in the latter half of last year,” the source said.The source added that the poor performance has affected an overseas business expansion plan pursued by the French company's headquarters in

Apr 2, 2019By Lee Kyung-min

Natixis may delay opening securities branch in Seoul

Economy

NTS chief promotes Korea's electronic tax administration

By Lee Kyung-min National Tax Service (NTS) Commissioner Han Sung-hee has gained recognition for his speech on Korea's electronic tax system to his global peers at a recent global forum held in Santiago, Chile, the tax agency said Monday. Tax commissioners from 53 countries gathered for the three-day forum organized by the Organization for Economic Cooperation (OECD) from March 26 to 28 to discuss ways to boost efficient tax administration. Han was asked to share Korea's knowledge and experience in the effective management of electronic tax administration, widely known as e-filing. The invitation from the OECD is the latest illustration of how the country has implemented a tax system for other countries to model, according to the agency. “Last year, 174 tax officials from 10 countries came to Korea to learn about our system and the number of visitors will grow in the coming months,” an NTS official said. A number of nations have adopted the e-filing system, but many of them struggle because the tax authorities have no effective means to enforce its use. “Not only of

Apr 1, 2019By Lee Kyung-min

Economy

BOK chief calls for more radical regulatory reform

By Lee Kyung-min Bank of Korea Governor Lee Ju-yeol has called for financial regulators to push more radical regulatory reform to foster innovative market players. To that end, he stressed the government needs patience in allowing financial firms to try new, innovative attempts in the creation of services and products.Citing a recent meeting with Bank for International Settlements (BIS) heads on the topic of fintech, Lee shared an insight about how China was able to become a leader in the global fintech industry.“A large scale fintech is called big tech, the greatest number of which are in China. When asked the reason behind it, they said government patience,” Lee said at a press conference at the bank in Seoul.He added until some major side effects occurred the government simply let them run wild, adding this bears some significance for Korea. The remarks were part of his suggestions on ways to facilitate structural reform. This is one of the most frequently cited factors hindering growth. Consistent, cohesive and long-term plans should be prioritized in achieving struct

Apr 1, 2019By Lee Kyung-min

BOK chief calls for more radical regulatory reform

Economy

'Korea is my second home country'

BNP Paribas Cardif Life CEO Benoit Meslet speaks during a recent interview in his office in Seoul. / Korea Times photo by Choi Won-sukBNP Paribas Cardif Life CEO values emotional intelligence By Lee Kyung-min BNP Paribas Cardif Life CEO Benoit Meslet, a father of two children and a husband to a Korean wife, believes having a family with two different cultural backgrounds has helped him become more understanding about others, a principle for his personal life that extends to his business philosophy. The much-desired but easily overlooked quality has helped him successfully lead a company that prioritizes diversity, a much-touted value among leading global firms. “Having a multi-cultural family has taught me that there are always different ways to look at a situation and that it is important to understand others’ perspectives and motivations before rushing to conclusions,” he said in an interview with The Korea Times. Born in France, Meslet have lived overseas for the past 20 years including in Korea, the U.S. Hong Kong and Japan.His first experience wi

Mar 31, 2019By Lee Kyung-min

Economy

Industrial output hits six-year low

Asia's fourth-largest economy hit hard by falling global chip, auto demandsBy Lee Kyung-minKorea's industrial output dropped at the steepest rate in six years in February as semiconductor, auto and other manufacturers reduced production in line with falling global demand, data showed Friday.According to Statistics Korea, industrial output slid 1.9 percent compared to January. The decline was the biggest since March 2013, when industrial output fell 2.1 percent from a year earlier. In particular, facility investment slumped 10.4 percent, the steepest decline in five years and three months, mostly due to reduced investment in machinery and transport equipment.The sharp drop followed a 1.9 percent increase in January, but was largely in line with a previous decline that continued for two consecutive months. The figure dropped 4.7 percent in November and 2.8 percent in December 2018.Retail sales fell 0.5 percent from a month earlier due to decreased sales of food and beverages and automobiles. It dropped 2 percent compared to a year earlier. While manufacturing posted an increase in tele

Mar 29, 2019By Lee Kyung-min

Goods account surplus hits 55-month low

Economy

Bankers with global experience take the helm

KEB Hana Bank CEO Ji Sung-kyoo By Lee Kyung-min Newly appointed CEOs of Korea's major commercial banks have one thing in common: extensive overseas experience. A broad perspective gained from overcoming challenges in countries with different cultures which requires extreme agility to strategize client orientation and market approach is crucial to setting a long-term vision to identify a firm's sustainable future growth. It is not an option but a requirement to solidify global presence as the local market is fast nearing saturation. KEB Hana Bank CEO Ji Sung-kyoo is a known China specialist. Of his 30 years of experience, he spent half of them in China, where he learned the basics of becoming a “true banker.”The thought of working in a foreign country was “daunting” to say the least to a man born and raised in Miryang, South Gyeongsang Province, all his life. But the company's decision to send him there was a priceless experience through which he learned how to turn a

Mar 28, 2019By Lee Kyung-min

Lee Kyung-min

Read more

S&P Global sees no turnaround for Korean firms

KEB expands mobile banking service in Vietnam

Insurers cry foul over KDIC premium

Alliance for farmers

Natixis may delay opening securities branch in Seoul

NTS chief promotes Korea's electronic tax administration

BOK chief calls for more radical regulatory reform

'Korea is my second home country'

Industrial output hits six-year low

Bankers with global experience take the helm

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