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Largest embezzlement case in Korean history exposed at BNK Kyongnam Bank

A customer enters a branch of BNK Kyongnam Bank in Seoul, Aug. 2. Yonhap By Lee Yeon-wooThe Financial Supervisory Service (FSS) has confirmed that the extent of embezzlement in the recent real estate project financing (PF) scandal at BNK Kyongnam Bank is significantly larger than initially thought, with the total amounting to 298.8 billion won ($224 million). This stands as the largest embezzlement case ever recorded in the Korean financial market.According to the FSS on Wednesday, an employee identified only by his surname, Lee, embezzled 298.8 billion won while working in the PF department from 2009 to July 2022. He fabricated documents for loan transactions for real estate developers that had never actually requested loans, totaling 102.3 billion won. He also unlawfully diverted loan repayments from developers, amounting to 196.5 billion won.Lee then transferred the embezzled funds to accounts belonging to his family, acquaintances or accounts he had opened witho

Sep 20, 2023By Lee Yeon-woo
Largest embezzlement case in Korean history exposed at BNK Kyongnam Bank

Hollys Coffee moves on IPO

A Hollys Coffee shop in Seoul / Newsis Hollys plans to become first local coffee franchise to achieve IPOBy Anna J. ParkHollys Coffee's franchiser KG Hollys F&B has recently initiated procedures to go public, sending a request for proposal (RFP) earlier this month to major securities firms known for expertise in managing initial public offerings (IPOs).According to the investment banking industry, the firm will soon host presentation bids to appoint the main underwriters of the public offering process. Once the underwriters are selected, a series of procedures, ranging from due diligence, corporate valuation assessment and submission of a preliminary IPO review to the Korea Exchange (KRX) will follow over the next months. It is largely expected that the IPO of Hollys Coffee will be completed next year in line with the firm's original timeline set for 2024. “Until the end of 2024, I will extend our businesses horizontally and vertically to achieve the IPO goal,” Lee

Sep 20, 2023By Anna J. Park
Hollys Coffee moves on IPO

Naver, Kakao engage in fierce payment competition in China, Japan

gettyimagesbankBy Anna J. ParkNaver Pay and Kakao Pay, the two leading mobile payment service businesses in Korea, are pit against each other in the Chinese and Japanese markets, as their domestic growth rates have somewhat slowed due to market saturation. Naver Pay announced on Tuesday that its mobile payment service can now be widely utilized in China, by scanning a QR code, at all affiliated stores of Alipay, a leading digital payment service in China.Naver Pay and Alipay+ logosThe company said customers can make payments by presenting Naver Pay's QR codes at every store which displays the “AliPay+” logo, including airports, department stores, retail shops and taxis in China. Customers can also make payments by scanning the QR code provided using Naver Pay's in-app camera. As Alipay+ is one of the official sponsors of the 2023 Hangzhou Asian Games, which will take place from Sept. 23 to Oct. 8, the Chinese digital payment app will be exclusively used at key event locations of the Asian Games venues, such as the athletes' villages. It means Korea's national team athlete

Sep 19, 2023By Anna J. Park
Naver, Kakao engage in fierce payment competition in China, Japan

Policy banks expand coal power funding despite ESG emphasis

gettyimagesbankBy Lee Yeon-wooDespite their emphasis on sustainable finance, the Korea Development Bank (KDB) and the Export-Import Bank of Korea (Eximbank) have been increasing their financial support for coal-based power generation.According to data from the National Assembly Budget Office (NABO), Monday, the annual loan volumes dedicated to coal-fired power plant projects by these policy financial institutions have consistently been on the rise.KDB's loan commitments related to coal amounted to 1.4 trillion won ($1.05 billion) as of 2022, marking a 15.1 percent increase compared to the previous year. This loan volume marked a significant jump from 776.3 billion won in 2019 to 1.07 trillion won in 2020 and has sustained its upward momentum since.As a result, the share of coal power projects in KDB's total loan portfolio is also rising. The proportion was 0.4 percent in 2019, but it climbed to 0.5 percent in 2020 and reached 0.6 percent as of this July.KDB's loan volume for this portfolio is expected to increase further, as its financial support for the Indonesian coal-fired power p

Sep 18, 2023By Lee Yeon-woo
Policy banks expand coal power funding despite ESG emphasis

K bank, KakaoBank and Toss Bank's delinquency rates rise to all-time high

gettyimagesbankInternet-only banks' financial soundness deterioratesBy Anna J. ParkWith interest rates remaining high, the financial soundness of three internet-only banks ― K bank, KakaoBank and Toss Bank ― has begun to deteriorate, as their delinquency rates continue to soar to highs. The fact that the banks provide a larger proportion of their credit loans to medium- and low-credit borrowers is even more concerning. According to the latest data submitted by the banks to Rep. Yang Kyung-sook from the main opposition Democratic Party of Korea, the average delinquency rate for credit loans at the three banks stood at 1.2 percent. Delinquency rate refers to the percentage of loans within a bank's entire loan portfolio of which payments are delinquent. The three mobile-based lenders' credit loan delinquency rates have been rising sharply since June of last year. Prior to then, the figure was maintained at roughly 0.3 percent during 2021. But it rose to 0.42 percent in late June 2022, and spiked up to 1.04 percent in June this year. The figure rose further to 1.2 percent at the end of A

Sep 18, 2023By Anna J. Park
K bank, KakaoBank and Toss Bank's delinquency rates rise to all-time high

Deutsche Bank to allocate additional $150 mil. for its Seoul business

Financial Supervisory Service (FSS) Governor Lee Bok-hyun, third from left, speaks to Deutsche Bank's global management team during a meeting at the bank's headquarters in Frankfurt, Germany, Friday. Courtesy of FSSBy Lee Yeon-wooDeutsche Bank announced a capital allocation increase for its Seoul branch of 211.5 billion won ($150 million), Sunday, to support the bank's growth in the country and undertake more activities for its clients. The plan was outlined at the meeting between Deutsche Bank's global management team and Financial Supervisory Service (FSS) Governor Lee Bok-hyun, who visited the headquarters of Deutsche Bank in Frankfurt last Friday. The parties discussed the current state of Korea's financial market, its investment environment and the direction of the country's financial supervisory policies.Deutsche Bank's decision to allocate additional capital to its Korean business is underscored by the confidence it has in the stability and growth potential of the Korean market, according to the bank. “Korea is one of the leading economies in Asia and a cornerstone for t

Sep 17, 2023By Lee Yeon-woo
Deutsche Bank to allocate additional $150 mil. for its Seoul business

Citibank Korea CEO Yoo Myung-soon to serve another term

Citibank Korea CEO Yoo Myung-soon / Courtesy of Citibank KoreaYoo successfully reshapes profit model by focusing on corporate financeBy Anna J. ParkYoo Myung-soon, CEO of Citibank Korea, will be serving another three-year term, being the sole candidate for the position.The bank's executive candidate recommendation committee highly recognized Yoo for her management capacity in strengthening corporate finance, while spearheading the gradual reduction of its consumer banking operation. Yoo has been the head of Citibank Korea since November 2020.“The committee highly evaluated Yoo's successful strategic reshaping of the bank's profit model during her term as CEO by focusing on corporate finance, while implementing the gradual reduction of consumer finance,” the bank's executive candidate recommendation committee said. “Improvements in key financial indicators have become visibly evident in 2023, with the effects of the strategic reshaping of the bank's profit model taking place,” the committee said of the reason for recommending Yoo to serve another term. Citibank

Sep 15, 2023By Anna J. Park
Citibank Korea CEO Yoo Myung-soon to serve another term
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