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Lee Kyung-min

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Bad loans at 4 major financial groups surge amid ‘inclusive finance’ drive

Bad loans at the country’s four largest financial groups have increased at record pace over the past year as a government-led push for “inclusive” and “productive” finance collides with an economic slowdown and weakening asset quality, according to industry officials Tuesday. Critics say the seemingly well-intentioned policy is amplifying credit risk in a weakening economy, long under strain due to years of sluggish postpandemic economy. With bad loans on the rise, financial groups’ profits could be undermined by growing credit risk management concerns. According to financial market data, KB Kookmin, Shinhan, Hana and Woori banks posted a combined net profit of nearly 14 trillion won ($10.4 billion) last year. This was the highest on record, with each lender earning more than 3 trillion won. However, as of the fourth quarter, precautionary loans at the four institutions surpassed 7.9 trillion won, up 11 percent from a year earlier and nearly 49 percent compared with 2021. Those loans are between one and three months late. Similarly, non-performing loans that are overdue by more

Feb 10, 2026By Lee Kyung-min
Bad loans at 4 major financial groups surge amid ‘inclusive finance’ drive
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Retirement pension revision draws lukewarm response amid concerns over low returns

Ahn Soo-myung, who is in her 50s, said her retirement savings of more than 20 years should be spent and managed however she wants without any government intervention. “My retirement fund is mine, not public money for the government to manage,” she said. “It is my private property I have earned over many decades, and I don’t agree with the idea of using that in a fund that could be managed according to the government's policy goals rather than my individual choice.” She is among many Koreans expressing skepticism over the recent tripartite agreement between labor groups, management and the government to introduce a fund-type retirement pension where workers’ retirement savings are pooled into a single fund to be professionally managed. Supporters say it can improve returns in an aging society, while critics say it could limit individual control and expose retirement savings to losses. The major difference between the fund-type and the existing defined contribution plan is that the latter allows workers to individually choose investment products such as deposits, insurance and

Feb 9, 2026By Lee Kyung-min
Retirement pension revision draws lukewarm response amid concerns over low returns
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Insurers' poor performance poses burden on financial groups

Korea’s major financial groups’ weak insurance subsidiaries dragged down profits last year, no longer functioning as the growth driver they once were, market watchers said Monday. The insurers’ investment income improved last year, but their profitability weakened as loss ratios rose. Regulatory shifts also led to revised projections reflecting lower expected future earnings, which translated to an increase in loss-making contracts and tax-related expenses. Sluggish new sales also played a role, compounded by little success in new products, with a continued bull equity market rally drawing more consumer funds away from insurance. According to financial market data, the insurance arms of the country’s four top financial groups saw profits fall last year, despite the holding firms' overall record profits. KB Financial Group's non-life insurer, KB Insurance, reported net profit of 778.2 billion won ($530 million) in 2025, down 5.3 percent from a year earlier. KB Life posted 244 billion won in net income, down 9.4 percent from the previous year. Shinhan Financial Group's life insurer

Feb 9, 2026By Lee Kyung-min
Insurers' poor performance poses burden on financial groups
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Tightened lending leads to record profits for ‘Big 4’ financial groups

Korea’s top four financial groups posted a combined net profit of more than 18 trillion won ($12 billion) last year, aided paradoxically by aggressive government measures to curb household lending, market watchers said Friday. The record figure came after the banks raised lending rates through higher discretionary add-ons in line with policy guidance to rein in loan growth, while keeping deposit rates below 3 percent. This effectively charged more on loans and paid less on savings. Market conditions were favorable, notably due to a weak won relative to the U.S. dollar. However, the four firms recorded double-digit growth in non-interest income, driven by rising sales and management fees involving equity-related products amid the KOSPI rally. Also strong were foreign exchange derivatives trading and bancassurance businesses, in which banks sell insurance products through their branch networks or digital channels. According to financial market data, KB Financial recorded a net profit of over 5.8 trillion won last year, maintaining its position as the industry leader. Shinhan Financial fol

Feb 6, 2026By Lee Kyung-min
Tightened lending leads to record profits for ‘Big 4’ financial groups
Others

Upbit operator Dunamu donates $68,000 in bitcoin to support Korean Olympic athletes

Dunamu, operator of Korea’s largest crypto exchange Upbit, donated 100 million won ($68,000) in bitcoin to support Korean athletes at the 2026 Milan Cortina Olympics, the firm said Friday. The donation comes amid the growing role of digital assets in sports sponsorship. Dunamu said it made the donation to the Korean Sport & Olympic Committee to help boost morale for the national team and contribute to the long-term development of Korea’s winter sports. The donation was delivered Wednesday at 6 p.m. (local time) in Milan, one of the host cities for the upcoming Games. The donation ceremony was attended by Sunghoon of K-pop group ENHYPEN, a former figure skater who currently serves as a promotional ambassador for the committee. As part of its Olympic partnership, Dunamu plans to roll out a series of promotional campaigns during the Games from Friday to Feb. 22. These include sending messages of support to all 71 Korean athletes and hosting Olympic-themed events through the Upbit app. The donation follows Dunamu’s broader sponsorship agreement with the committee signed in October last y

Feb 6, 2026By Lee Kyung-min
Upbit operator Dunamu donates $68,000 in bitcoin to support Korean Olympic athletes
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Customs agency to strengthen ‘bonded processing’ system for exporters

The Korea Customs Service (KCS) said Thursday it plans to strengthen the "bonded processing" export system to help high-potential growth industries boost their global competitiveness amid a rapidly changing trade environment. The system allows companies to import foreign raw materials without paying duties or taxes right away, instead allowing them to process or manufacture them domestically. This enables them to export the finished products tax-free or at a significantly lower cost. The measure not only lowers costs and tax burdens for manufacturers but also streamlines production, boosting efficiency and enabling faster, more autonomous operations. This is part of the growth strategy announced by the agency at its Seoul office, attended by officials from seven major companies, including Samsung Electronics, SK hynix and Celltrion. The primary goal is to help companies better navigate growing external uncertainties, notably U.S. tariffs under the Trump administration and intensifying competition over advanced technologies among major economies. The move comes as Korea’s exports topped

Feb 5, 2026By Lee Kyung-min
Customs agency to strengthen ‘bonded processing’ system for exporters
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Kbank seeks IPO for 3rd time as it lowers offering price by 20%

Kbank is seeking its third KOSPI-listing attempt with a sharp initial public offering (IPO) price cut of about 20 percent, in a move to lock in investor demand after two failed listings, the internet-only lender said Thursday. The “highly conservative” pricing prioritizes market acceptance over ambition, reflecting challenging capital market conditions. “The offering price is significantly discounted compared with the previous attempt, reducing investor burden and improving market receptiveness,” Kbank CEO Choi Woo-hyoung said during a press conference at Conrad Hotel Seoul. “We have designed an IPO structure that is more realistic, factoring in current capital market conditions and ongoing valuation adjustments," he said. The downsized IPO coincides with a broader revision in Korea’s capital markets, where high-growth financial and tech firms are increasingly forced to reset expectations amid higher interest rates and cautious institutional sentiment. “For Kbank, the third attempt is less about maximizing valuation and more about ensuring execution,” he added. Kbank plans

Feb 5, 2026By Lee Kyung-min
Kbank seeks IPO for 3rd time as it lowers offering price by 20%
Others

Card firms turn to foreign customers amid demographic changes, market saturation

Credit card firms are increasingly turning to foreign customers, prompted by demographic shifts and declining growth prospects in the domestic consumer base, market watchers said Tuesday. Low birth rates and eroding household purchasing power due to rapid aging have also weighed on the local market. The industry has identified foreign residents as a key growth driver, expanding non-face-to-face card issuance, financial products and payment infrastructure tailored to non-Korean users. According to financial industry data, card spending by foreign customers came to about 19.2 trillion won ($13.2 billion) in 2025, up more than 80 percent from 10.5 trillion won in 2023. Card companies are simplifying issuance processes through digital channels to make things more convenient for foreign customers. Woori Card recently launched a mobile card application service for foreign customers. They can apply and have their card issued without in-person visits. Visa eligibility checks and income verification are automated and services are available in English. Shinhan Card is targeting not only foreign resi

Feb 3, 2026By Lee Kyung-min
Card firms turn to foreign customers amid demographic changes, market saturation
Others

Seoul stocks rebound sharply from short-lived Warsh shock

Seoul stocks jumped nearly 7 percent to reach a record high Tuesday, brushing off the previous session’s steep fall caused by uncertainty involving the nomination of a hawkish figure as the new chair of the U.S. Federal Reserve. According to the Korea Exchange (KRX), the benchmark KOSPI closed at 5,288.08 points, up 6.84 percent from the previous trading day. The tech-heavy Kosdaq closed at 1,144.33 points, up 4.19 percent. The rebound was driven largely by institutional and foreign buying of large-cap semiconductor shares. Samsung Electronics and SK hynix shares closed at 167,500 won ($116) and 907,000 won, up 11.37 percent and 9.28 percent from the previous session, respectively. Soon after the KOSPI opened at 5,114.81 points, up 3.34 percent from the previous session, the bourse operator activated a KOSPI buy-side circuit breaker, otherwise known as a “sidecar,” at 9:26 a.m. The measure came after the KOSPI 200 Futures jumped more than 5 percent. The five-minute measure was the first activation since April 10 last year. This was a dramatic shift from the previous session when a s

Feb 3, 2026By Lee Kyung-min
Seoul stocks rebound sharply from short-lived Warsh shock
Others

Fed chair designation renews fears of won weakening

Fears of renewed weakness in the Korean won against the U.S. dollar are growing, amplified by the dollar strengthening and foreign investors dumping Korean stocks, market analysts said Monday. Fueling the won's weakness was the designation of Kevin Warsh, a former Federal Reserve governor, as the next chair of the U.S. central bank. He was considered “less dovish” than other Fed candidates, a view that pushed up the value of the dollar. He was long known for his hawkish stance, but since last year voiced support for monetary easing, citing productivity gains from artificial intelligence (AI). A dovish Fed would in theory give the Bank of Korea (BOK) room to maneuver, since the interest rate differential of 1.25 percentage points between the two would be narrowed. This would reduce risk of capital outflow, partially stabilizing the Korean currency. In case of a prolonged economic slowdown in the coming quarters, the central bank would then be able to cut rates without fear of currency depreciation. “The recent won weakening is driven by overall strength in the global reserve currency

Feb 2, 2026By Lee Kyung-min
Fed chair designation renews fears of won weakening
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