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Lee Kyung-min

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Economy

SC Korea, Toss Bank hit by internal control failures

Standard Chartered (SC) Korea and Toss Bank are facing growing criticism over their internal control failures, due to repeated irregularities concerning loan approvals, industry officials said Thursday. SC Korea reported a financial fraud case of over 13 billion won ($9 million) in a Financial Supervisory Service (FSS) disclosure made Tuesday. The misconduct continued for a little more than two years, from February 2022 to June 2024, and was uncovered in the lender’s recent internal investigation. The lender said the case had “improper loan transactions involving fraudulent documentation.” It said in the FSS regulatory filing that the loss has not been exacted. Whether the amount would be recovered remains uncertain. In February, the bank reported fraudulent applications for jeonse housing deposits and unsecured loans totaling 1.47 billion won. Jeonse is a leasehold unique to Korea. The home-renting system allows tenants to pay a refundable lump sum in lieu of monthly rent. “The matter is currently under probe. We are unable to provide details other than what has been disclosed,”

Jun 26, 2025By Lee Kyung-min
SC Korea, Toss Bank hit by internal control failures
Economy

Can Korea learn from Japan to tackle low growth?

Korea should learn from how Japan overcame the period of real estate bubble-triggered economic stagnation — often called the "lost decades" — as Asia's fourth-largest economy grapples with low economic growth and high inflation, according to a Japan expert. Lee Chang-min, a professor at Hankuk University of Foreign Studies, said structural reform under Abenomics, the economic mantra of the former leader of Japan, laid the foundation for the country's recent equity market rally, underpinned by improved corporate competitiveness. Japan's success is strengthening calls made over the last three years by Bank of Korea (BOK) Gov. Rhee Chang-yong for Korea to undertake similar painstaking steps. According to the central bank on Thursday, Lee recently gave a lecture about the era of long-term low growth and its policy implications. He said the share of independent outside directors at Japanese firms in the “prime market,” defined by market capitalizations of over 10 billion yen, came to 100 percent last year, jumping from 47 percent in 2014. Also notable was the number of active sharehold

Jun 26, 2025By Lee Kyung-min
Can Korea learn from Japan to tackle low growth?
Economy

Singles left frustrated with gov’t tax incentive plans for married couples with children

A woman in her 40s surnamed Kim couldn’t help but feel frustrated when she heard that the government plans to revise the tax code to expand incentives for married couples with children. “Why should I be punished for not getting married? It’s my decision and mine alone. Greater tax benefits for married couples mean that people like me should be excluded. Is that fair? I don’t think so.” A man in his 40s surnamed Park, who works at a commercial bank, also shared the sentiment. “I am not happy about how I feel about not getting married. The government plan is not making it any better.” He said he has yet to find a person he feels a strong enough connection to spend the rest of his life with. “The feeling of being in control of my life is very important to me. I don’t see myself getting married anytime soon — probably never will — and that will not change. A significant portion of my income is taken from me in the form of taxes, and I have to pay more? This is infuriating, since the prices of everything are going up, but not my monthly income.” The feeling followed the

Jun 25, 2025By Lee Kyung-min
Singles left frustrated with gov’t tax incentive plans for married couples with children
Economy

BOK, banks at odds over central bank digital currency drive due to cost-sharing

Commercial and state-run lenders are expressing concerns about the Bank of Korea’s (BOK) central bank digital currency drive (CBDC), characterized by many as the central bank's unilateral push without specifics about shouldering a combined funding cost of 30 billion won ($22 million), market watchers said Tuesday. Also lacking are a long-term strategy outlining the measures to address suspicious transaction reporting and fraud detection systems. Further spending to fortify IT issues and previously approved business plans remains unresolved. According to financial industry sources, the member banks of the Korea Federation of Banks (KFB) shared a report ahead of a meeting between BOK Gov. Rhee Chang-yong and the CEOs of 18 commercial banks on Monday. Central to the concern was project Hangang, the BOK-commissioned digital currency pilot program. Many said the first phase of the pilot had major shortfalls, and the second phase should proceed with a full review of how the expectations vary between the central bank and the participating lenders. “We are of the opinion that a centralized bo

Jun 24, 2025By Lee Kyung-min
BOK, banks at odds over central bank digital currency drive due to cost-sharing
Economy

Meeting of banking leaders

Bank of Korea Gov. Rhee Chang-yong, front row fourth from right, Korea Federation of Banks (KFB) Chairman Cho Yong-byoung, front row fourth from left, and heads of Korea's commercial and state-run lenders pose before a meeting at the KFB building in Seoul. The meeting was organized by Rhee to exchange views on the rapidly changing domestic and global economic environment, geopolitical tensions and household debt management, support for the real economy and financial market stability. Courtesy of KFB

Jun 23, 2025By Lee Kyung-min
Meeting of banking leaders
Economy

Internet-only lenders rush to accelerate overseas expansion drives

Korea’s three internet-only lenders are rushing to strengthen their overseas market expansion, in a collective move to identify a new source of long-term robust revenue, market watchers said Sunday. The Southeast Asian market in particular has high growth potential, since the region’s relatively lagging digital transformation provides room for close cooperation with the experience and expertise of advanced Korean peers. According to the financial market, Thailand’s finance ministry selected a consortium led by Korea’s KakaoBank and Thailand’s leading financial group SCBX as one of three operators to establish a “virtual bank,” June 19 (local time). This makes KakaoBank the first Korean bank to succeed in reentry to Thailand since the late 1990s, when most Korean lenders withdrew in the aftermath of the Asian financial crisis. The virtual bank will essentially function as an internet-only lender. It will have no physical branches, and will offer financial services on digital platforms. The new virtual bank is set for launch in the latter half of 2026, after a preparatory entit

Jun 22, 2025By Lee Kyung-min
Internet-only lenders rush to accelerate overseas expansion drives
Economy

Will Korea establish its own version of US SEC?

Expectations are growing over whether Korea will be able to establish its own version of the U.S. Securities and Exchange Commission (SEC), a powerful securities exchange oversight body that guarantees fair trading and fraud prevention, market watchers said Sunday. Fueling the momentum is President Lee Jae Myung’s campaign pledge to introduce a policy whereby first-time organizers of stock manipulation schemes will be permanently banned from market participation in a stern zero-tolerance crackdown to bolster healthy market dynamics. This was part of capital market reform measures he said would advance “the era of KOSPI 5000,” coupled with reduced concerns over the “Korea discount,” a chronic undervaluation of Korea’s equity market. Central to the establishment of the oversight body will be integration of functions spread across the Financial Services Commission (FSC), Financial Supervisory Service (FSS) and Korea Exchange (KRX), which has contributed to delays in investigations, reviews and penalties. According to many who deal with the financial market, unfair trading invest

Jun 22, 2025By Lee Kyung-min
Will Korea establish its own version of US SEC?
Economy

Eximbank targets Central, Eastern Europe with new Warsaw office

Export-Import Bank of Korea (Eximbank) has opened an office in Warsaw, Poland, as part of efforts to expand in Central and Eastern Europe, the state-run lender said Thursday. Areas of focus will include the Czech Republic, Slovakia, Hungary and Ukraine, countries that have significant market demand for Korea's battery, auto and electronics players. Also promising are the defense, nuclear energy, plant construction and rail infrastructure sectors. The Warsaw office will help the lender with prompt investments, relationship building with key project organizers and support for Korean firms engaging in large-scale contracts. The office will also help Korea join postwar reconstruction projects in Ukraine. It will serve as a key communication hub for Ukraine, as well as other countries and international organizations for effective cooperation. “Central and Eastern European countries are expanding investment in defense, energy and infrastructure,” an Eximbank official said. “More opportunities will materialize for Korean firms, and Eximbank will continue to assist.” Eximbank CEO Yoon Hee-s

Jun 19, 2025By Lee Kyung-min
Eximbank targets Central, Eastern Europe with new Warsaw office
Economy

Fed rate freeze gives BOK room to maneuver

The Bank of Korea (BOK) will have more room to maneuver in the pace of monetary easing in the coming months, aided by the U.S. Federal Reserve’s fourth consecutive rate freeze, market watchers said Thursday. The Fed holding steady allows the BOK to pay more focus on the trajectory of the Korean currency relative to the U.S. dollar. If the BOK cuts the rate with the Fed pause, the record-widest rate differential between the two countries of 2 percentage points will widen further. This in turn could trigger a capital outflow from the Korean economy, brought on by a weaker won. Also coming into greater focus are housing prices in Seoul climbing and an uptick in household borrowing, a major financial stability consideration for the central bank. According to the financial market, the Fed decided to keep the federal funds rate at between 4.25 and 4.50 percent during the two-day Federal Open Market Committee (FOMC) meeting that ended Wednesday (local time). The Fed decision came despite U.S. President Donald Trump and Treasury Secretary Scott Bessent calling for a faster pace of easing. The U

Jun 19, 2025By Lee Kyung-min
Fed rate freeze gives BOK room to maneuver
Economy

Blanket cash assistance not desirable: BOK head

Bank of Korea (BOK) Governor Rhee Chang-yong said Wednesday that blanket cash payouts as part of a short-term growth stimulus is not desirable, compared to targeted assistance for low-income earners and the self-employed, stressing effective government resource allocation. Lee also said won-based stablecoins are needed, but only in the context of stable foreign exchange (FX) management, given the interchangeability of won-based and U.S. dollar-based coins. “The government should prioritize targeted assistance for the self-employed and small businesses,” he said during a press briefing. “I cannot make an assessment yet because I am not privy to the government’s extra budget details. But the measure will bolster growth, while its impact on price hikes are limited.” As for the much-debated stablecoins, granting payment and settlement functions to non-banks will lead to a fundamental change in the financial landscape, Rhee said. “I am not against the issuance of won-based stablecoins. We need to be mindful of a bigger picture on how non-banks and banks will reorient their busine

Jun 18, 2025By Lee Kyung-min
Blanket cash assistance not desirable: BOK head
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