The Korea Times

Bridging businesses and investors

Officials from KDDI Corp., a Japanese telecommunications operator, and Korean companies SKT, KT and LG Uplus attend Korea Development Bank (KDB) Next Round, a global corporate venture capital meeting at the bank's headquarters on Yeouido, Seoul, Nov. 2. The attendees shared experiences with a joint business model between global corporations and venture startups in Korea with the help of the state lender which organizes investment opportunities. Courtesy of KDB

Nov 5, 2018By Lee Kyung-min

Economy

IBK to invest in green energy

By Lee Kyung-min The state-run Industrial Bank of Korea (IBK) will organize an institutional fund to finance an eco-friendly initiative as part of global efforts to move toward a low-carbon economy, it said Monday. The bank will set up a 137 billion won ($121 million) fund “Kiwoom Goseong Biomass Fund” with other participating institutional investors including Lotte Insurance. The eight-and-a-half year investment fund, managed by Kiwoom Asset Management, will invest in Shinyoung Portu, a manufacturer of wood pellets in Goseong County, South Gyeongsang Province. Wood pellets, the most common type of pellet fuel, is generally considered to be a more environmentally friendly fuel for power generation, commercial or residential heating and cooking. IBK will spend 85 billion won to set up funds and organize loans in the form of “project financing” part of funds allocated by the banks to invest in power generation. “Many global entities are increasingly moving to reduce carbon emissions to better deal with global warming,” an IBK official said. “W

Nov 5, 2018By Lee Kyung-min

Others

Deliberation on economy

Bank of Korea Governor Lee Ju-yeol, third from left, speaks at the beginning of a meeting attended by the heads of the country's nine banks at the BOK building, Friday. The governor said that financial market volatility is likely to expand further in the coming months due to lingering uncertainties abroad. Courtesy of Bank of Korea

Nov 2, 2018By Lee Kyung-min

Economy

Kookmin capitalizes on BTS popularity

BTS / Courtesy of KB Kookmin BankBy Lee Kyung-min KB Kookmin Bank continues to enjoy brisk success after hiring popular boy band BTS as spokesmen for the company. The once-disputed choice to hire a young pop band to represent a financial firm, which has long sought to be associated primarily with conservative and strict values to maintain credibility with customers, turned out to be a full-fledged business strategy with much foresight, according to the bank. As of Oct. 9, the number of holders of its installment savings account, KB X BTS, jumped to 124,386, a near four-fold increase compared to other regular savings account from a year earlier. The amount in the accounts totals 67.5 billion won ($59.3 million). The number is “remarkable,” given the bank usually lands only about 30,000 accounts a year, according to an official from the bank. “Given it has been only about four months since we launched the BTS-targeted bank account, the number is expected to increase further by the end of this year,” the official said.The marketing strategy include

Nov 2, 2018By Lee Kyung-min

Economy

Korea's Bithumb to set up security token exchange in US

By Lee Kyung-min Korea's leading cryptocurrency exchange Bithumb has signed an agreement with U.S. fintech company SeriesOne to help the latter establish a security token exchange in the U.S. in 2019, the company said Thursday. Bithumb, which seeks to purchase shares of SeriesOne, may become the first Korean firm to become listed on the NASDAQ market as crypto exchange, following the U.S. firm's plan to list the envisioned entity on the U.S. bourse in the latter half of 2019. The strategic partnership is a major step forward for the Korean firm to bolster its presence in the world's largest economy with advanced financial services, amid continued struggles here over the past few years due mainly to little or nonexistent infrastructure for the unconventional method of investment. Under the agreement, Bithumb will offer technical support for and invest in the U.S. firm and manage the exchange operation in general. The U.S. firm chose the Korean firm among many other big-name, competent international crypto exchanges in Hong Kong and Singapore, according to a senior Bithumb official.&ld

Nov 1, 2018By Lee Kyung-min

Korea's Bithumb to set up security token exchange in US

Others

Shinhan acquires Asia Trust

Shinhan Financial Group Chairman Cho Yong-byoung, left, and Asia Trust Vice Chairman Jung Seo-jin, shake hands after signing a stock purchase agreement at Bae, Kim and Lee (BKL), a law firm in southern Seoul, Wednesday. Courtesy of Shinhan Financial GroupCompetition over REIT fiercer among financial institutionsBy Lee Kyung-min Shinhan Financial Group acquired Asia Trust, Korea's fifth-largest firm specializing in real estate investment trust (REIT) business, the group said Wednesday.The acquisition of Asia Trust, which posted an annual net profit of 28.2 billion won ($24.8 million) and signed a total of 90 billion won in new contracts last year, is expected to fuel the high-yield business amid a booming real-estate market, further backed by a revised law to encourage competition, Oct 24. According to the group, Shinhan's board meeting passed a motion to acquire 100 percent stake in the Asia Trust.Sixty percent stake will be immediately acquired for 193.4 billion won, with specifics on purchasing the remaining 40 percent to be determined after 2022. Soon after the board's green light

Oct 31, 2018By Lee Kyung-min

Economy

'Gov't needs to slow down pace of minimum wage hike'

Poverty top concern of social policy to address growing inequalityBy Lee Kyung-min The government should slow down raising the minimum wage, and instead use a measured approach to cushion what small- and medium-sized enterprises (SMEs) are calling “unbearable, bankruptcy-inducing” shock, three economists said. While the Moon Jae-in administration pushing for the policy as part of its “income-led growth” initiative is a step in the right direction, flexibility is required to absorb the widespread shock felt by businesses, they added. The 2019 minimum hourly wage was set for 8,350 won ($7.40), up 10.9 percent from 2018's 7,530 won, which was a 16.4 percent increase from 6,470 won in 2017. “The Moon administration launched an income-led growth initiative following concerns that growth has been hindered due to prevalent social inequality and imbalance. So it is right to seek growth while undertaking efforts to solve such problems,” said Park Chong-hoon from Standard Chartered Bank.The bone of contention is whether the implementation has been successful

Oct 31, 2018By Lee Kyung-min

'Gov't needs to slow down pace of minimum wage hike'

Economy at crossroads: What lies ahead for Korea?

Economy

Foreign currency expert

NongHyup Bank CEO Lee Dae-houn holds an award certificate with Kim Ju-ah, an official at the Busan University branch, at the bank's headquarters in Seoul, Oct. 29. Kim won the top prize in a foreign currency knowledge competition participated in by some 3,700 bank workers. Courtesy of NongHyup Bank

Oct 30, 2018By Lee Kyung-min

Economy

Hana aims to become digital leader

Hana Financial Group CEO Kim Jung-tai, center, raises his fist with KEB Hana Bank CEO Ham Young-joo, sixth from left, and senior executives from the group and its affiliates, at a ceremony to declare “digital transformation” at the group's data center in Cheongna International City in Incheon, Tuesday. Courtesy of Hana Financial GroupBy Lee Kyung-min Hana Financial Group CEO Kim Jung-tai is spearheading efforts to establish a corporate culture that facilitates digital transformation.This is aimed at cementing itself as a leading financial group amid growing demand toward tighter integration between the financial and digital sectors. At a ceremony attended by executives of the group and its affiliates, Tuesday, Kim said a group-wide effort is required to take the initiative in becoming a customer-centered, data-based information company. “What we should offer is a humanity-focused, customer-oriented service, which should be fine-tuned to best serve the needs of each customer keen on fast, smart technology that improves their daily lives,” Kim said at the ceremo

Oct 30, 2018By Lee Kyung-min

Economy

Card firms cry foul over fee reductions

Financial Services Commission Chairman Choi Jong-ku speaks at the National Assembly audit of the Political Committee Oct. 26. YonhapBy Lee Kyung-min A growing number of credit card issuers are voicing concerns over the government's plan to lower interchange fees by up to 1 trillion won ($875 million), claiming the measure lacks due consideration of the possible decrease in profitability and the resulting consequences in the financial market. While card firms have achieved sound growth over the past few years, the plan could push smaller firms into bankruptcy, according to an industry official who refused to be named. “The government says the amount cut will be 1 trillion won, but the eight card issuers in Korea expect the loss will be much larger than that amount,” the official said. “If the government pushes ahead with the plan, many card companies will have little option other than to reduce both the investment and workforce. If their conditions worsen, some of them may go bankrupt.” The government blindly demands the fee be lowered, without offering a viabl

Oct 30, 2018By Lee Kyung-min

Lee Kyung-min

Read more

Bridging businesses and investors

IBK to invest in green energy

Deliberation on economy

Kookmin capitalizes on BTS popularity

Korea's Bithumb to set up security token exchange in US

Shinhan acquires Asia Trust

'Gov't needs to slow down pace of minimum wage hike'

Foreign currency expert

Hana aims to become digital leader

Card firms cry foul over fee reductions

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