Business - The Korea Times

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

SK chief visits chip cluster construction site

SK Group Chairman Chey Tae-won, right, joined by SK hynix Vice Chairman and CEO Park Jung-ho, left, visits the construction site for SK hynix's semiconductor manufacturing cluster in Yongin, Gyeonggi Province, Friday. The site is part of a 300 trillion won ($225.9 billion) project initiated by the government to build the world's largest semiconductor manufacturing cluster. Yonhap

Sep 15, 2023By Yi Whan-woo

SK chief visits chip cluster construction site

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

Container freight rates for US east coast, Europe up in August

Containers are unloaded from ships at a port in Busan, 320 kilometers southeast of Seoul, Sept. 1. YonhapOutbound container shipping costs for the U.S. east coast and the European Union moved up in August from a month earlier, data showed Friday.The average rate for a 40-foot container from Korea to the U.S. east coast came to 4.68 million won ($3,527) in August, up 3.6 percent from the previous month, the data from the Korea Customs Service showed.Rates for European routes also moved up 1.7 percent over the period to 2.66 million won, while those bound for the U.S. west coast fell 3.7 percent to 4.07 million won. The shipping costs for containers bound for China shot up 19 percent on-month in August, and those for Japan gained 6.4 percent.Meanwhile, the costs for Korean importers to transport a 40-foot container from the west coast of the U.S. fell 6.4 percent to 2.48 million won, while those from the east moved up 25.6 percent to 2.31 million won.Rates from Europe and China fell 14.6 percent and 10.5 percent, respectively, to reach 1.27 million won and 958,000 won. (Yonhap)

Sep 15, 2023

Container freight rates for US east coast, Europe up in August

Banks pivot to corporate loans amid household loan restrictions

gettyimagesbankBy Lee Yeon-wooAs financial authorities apply breaks on record-high housing loans, the banking industry is pivoting its strategy to focus on corporate loans.According to sources within the financial sector, the corporate loan balance of the five major banks ― namely KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup Bank ― stood at 747.4 trillion won ($563.8 billion) as of August. This represents an increase of about 8 trillion won compared to the previous month, marking the second-highest month-to-month increase.This surge is largely attributed to financial authorities' intensified efforts to limit household loans. With household debt reaching a concerning level of 1,862.8 trillion won as of the second quarter of this year, financial authorities are tightening their grip on the banking industry, curbing the disbursement of loans.“Increasing the proportion of household loans is challenging at the moment due to the restrictions. Such an environment is prompting banks to shift toward a greater proportion of corporate loans (for profitability),” a banking indust

Sep 14, 2023By Lee Yeon-woo

Banks pivot to corporate loans amid household loan restrictions

Pioneer of world first education insurance commemorated

Shin Yong-ho, left, the founder of Kyobo Life, receives the Founders' Award from the International Insurance Society (IIS) in this 1983 file photo, becoming the first Korean to be honored with this award. Courtesy of Kyobo LifeBy Lee Yeon-wooShin Yong-ho, the founder of Kyobo Life and the innovator behind the world's first education insurance, was commemorated on the 20th anniversary of his passing.Kyobo Life reported that a memorial ceremony was held at its headquarters on Sept. 1. The event was attended by a total of 300 participants including notable figures from academia, the cultural sector and company employees. Throughout September, various side events, including memorial exhibitions and reading campaigns, will be held in his honor.“He was an entrepreneur who melded insurance with education, reflecting his deep love for the nation and its people. He was also an education leader who was committed to advancing national education,” the Daesan Shin Yong-ho Memorial Society noted during the ceremony. “His respect for individuals has become a cornerstone of Kyobo L

Sep 14, 2023By Lee Yeon-woo

Pioneer of world first education insurance commemorated

SGI to launch deal roadshow in HK, Singapore from mid-Sept. ahead of IPO

The headquarters of Seoul Guarantee Insurance (SGI) in central Seoul / Courtesy of SGI SGI submits prospectus for IPO in NovemberBy Anna J. ParkSeoul Guarantee Insurance (SGI) is scheduled to launch deal roadshows in Hong Kong and Singapore for foreign and Korean investors from Sept. 19 after submitting a prospectus earlier this week for its upcoming IPO. According to the company on Wednesday, the roadshow will meet foreign investors in Hong Kong and Singapore, as well as local investors, throughout mid-October. The roadshow will include group meetings with chief investment officers (CIOs) from major global institutional investors and foreign analysts to showcase the company's public offering plan. The Korea Deposit Insurance Corporation (KDIC), the largest shareholder of SGI with a 93.85 percent stake, is also slated to join the roadshow to meet overseas investors. Lead underwriters of the IPO deal, including Mirae Asset Securities and Samsung Securities, will be p

Sep 13, 2023By Anna J. Park

SGI to launch deal roadshow in HK, Singapore from mid-Sept. ahead of IPO

Eximbank issues $2.5 bil. in global bonds

The Export-Import Bank of Korea headquarters / YonhapBy Yoon Ja-youngThe Export-Import Bank of Korea (Eximbank) issued a total of $2.5 billion in global bonds on Monday, targeting investors worldwide.This is the first global bond issuance by a Korean entity since the reopening of the foreign currency debt markets in the second half of this year. It is expected to set benchmarks for $20 billion in overseas bonds to be issued by Korean institutions by the end of this year.The maturities and issuance amounts of the bonds are as follows: $500 million worth of two-year maturity bonds, $1 billion worth of five-year bonds, $500 million worth of 10-year bonds and four-year bonds worth 500 million euros, all offering a fixed rate. BofA, Deutsche Bank, KDB, Mizuho, Nomura, Societe Generale and Standard Chartered are in charge of the bond issuance as the lead managers. By combining various currencies and maturities, the issuance of global bonds by the Eximbank is expected to meet huge investment demand in the market. In particular, bonds with maturities of 5 years or less, which are mostly issu

Sep 12, 2023

Eximbank issues $2.5 bil. in global bonds

Only a fraction recovered from top five banks' financial crimes

gettyimagesbankBy Lee Yeon-wooDespite numerous cases of financial crime at the top five banks, the recovered monetary losses appear to be minimal, according to data released on Tuesday.According to the Financial Supervisory Services (FSS) data submitted to Rep. Yun Chang-hyun of the ruling People Power Party, such cases at the five major banks from 2019 to this July resulted in a total loss of 99.1 billion won ($74.6 million).Five banks refer to KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank.The two most significant financial crimes were identified at Woori Bank and KB Kookmin Bank. Last year, Woori Bank discovered that a senior-level employee had embezzled 60 billion won. Earlier this year, an employee of KB Kookmin Bank was found to have manipulated documents to secure a housing mortgage loan amounting to 15 billion won. As the case is still under investigation, the total loss could increase.The most common type of financial crime involves embezzlement of customer deposits or company funds. Incidents of fraud from outsiders and armed robberies at overseas

Sep 12, 2023By Lee Yeon-woo

Only a fraction recovered from top five banks' financial crimes

Banks rush to employ digital specialists

Young job seekers in the financial sector queue up for consultations with banks at a job fair in Seoul, Aug. 23. NewsisBy Lee Yeon-wooFor decades, traditional banking jobs have been predominantly dominated by those with majors in business or accounting. This trend, however, appears to be waning as traditional employees depart due to the decreasing number of physical branches, digital talent is stepping in to fill the void.Starting in September, the banking industry began its recruitment process to acquire new talent for the upcoming year. Notably, all recruiting banks are actively seeking professionals specializing in digitalization and information and communications technology (ICT).Shinhan Bank, accepting applications until Sept. 21, is on the lookout for professionals capable of developing and managing digital services. The bank has even launched a separate website specifically to guide digitalization and ICT applicants.Woori Bank and Hana Bank, who are closing their recruitment windows on Sept. 25 and 20, respectively, will also be searching for individuals to join their digital-