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Savings banks suffer earnings declines in Q2 due to higher costs

A branch of SBI Savings Bank in Seoul / Yonhap By Anna J. ParkMajor savings banks saw earnings nosedive in the second quarter of this year compared to the same period of 2022 due to soaring costs stemming from rising interest rates.According to public disclosures by the country's top five savings banks in terms of asset size, their aggregate net profit during the second quarter stood at 10.2 billion won ($7.7 million), down a whopping 94.7 percent from a year ago when their quarterly net profit reached 190.7 billion won.The top five savings banks are SBI, OK, Welcome, Pepper, and Korea Investment savings banks.Among the five, SBI Savings Bank, which boasts the largest asset size, suffered the steepest fall in net profit in the second quarter compared to the same period last year. The bank's quarterly net profit in the second quarter stood at 6.8 billion won, down 92.1 percent year-on-year. OK Savings Bank suffered a 60.5 percent decrease in net profit over the same

Sep 1, 2023By Anna J. Park
Savings banks suffer earnings declines in Q2 due to higher costs

Woori Financial Group on track for carbon neutrality by 2050

The headquarters of Woori Financial Group in central Seoul / Courtesy of Woori Financial Group By Anna J. ParkWoori Financial Group announced, Thursday, that it obtained approval from the Science Based Targets initiative (SBTi) for the group's mid- and long-term carbon reduction targets. SBTi is a global body that partners with various international organizations, including the Carbon Disclosure Project (CDP), World Resources Institute (WRI), the World Wildlife Fund (WWF) and the United Nations Global Compact, to enable more than 6,000 businesses around the world to set carbon reduction targets. Based on recommendations by SBTi, Woori Financial Group has set one of the most stringent carbon emission reduction goals in its certification method among domestic financial companies. The group, in particular, fulfilled all criteria of the global initiative, including the application of the latest SBTi reduction methodologies, in its emission reduction targets. With the com

Aug 31, 2023By Anna J. Park
Woori Financial Group on track for carbon neutrality by 2050

Korea Fintech Week 2023 brings financial giants and startups together

Sopnendu Mohanty, chief fintech officer at the Monetary Authority of Singapore (MAS), delivers a keynote speech for the opening ceremony of Korea Fintech Week 2023 at Dongdaemun Design Plaza in Seoul, Wednesday. Korea Times photo by Anna J. ParkAnnual global fintech event draws 107 domestic and foreign firms, organizations By Anna J. ParkKorea's fintech sector will be strengthening partnerships with major financial groups, seeking win-win strategies in an accelerated digital transformation era. While fintech enterprises can spur the development of traditional financial giants by providing innovative business-to-business (B2B) models, fintech venture firms' ingenious services will also reach a wider number of customers, utilizing major financial groups' platforms. The closer partnership between the fintech industry and the major financial groups is also one of the three main policy directions set by the Financial Services Commission (FSC), the country's top financial regulator, to support the sustainable growth of the local fintech sector. Financial Services Commission Vice Chairman K

Aug 30, 2023By Anna J. Park
Korea Fintech Week 2023 brings financial giants and startups together

EcoPro Materials IPO remains unclear amid lingering owner risk

EcoPro Materials' precursor materials manufacturing facility in Pohang, North Gyeongsang Province / Courtesy of EcoProBy Lee Min-hyungA timely listing of EcoPro Materials, a cathode material precursors producer, appears unlikely, as authorities have yet to grant approval for the firm's bid to go public amid lingering owner risks after its group chief was recently convicted of insider trading.EcoPro Materials submitted a preliminary application to be listed on the benchmark KOSPI in April, but the screening process ― conducted by the Korea Exchange ― has since shown little sign of progress.It typically takes 45 days for the exchange operator to finalize the procedure, but it has been delayed due to a disagreement over whether the company met an eligibility requirement for its largest shareholder. EcoPro Materials' largest shareholder is EcoPro which holds a 52.78-percent stake in the affiliate. Lee Dong-chae, founder and chairman of EcoPro, is the largest shareholder with a stake of 18.84 percent in the group.Back then, the company's listing plan was clouded by the risk factor associa

Aug 30, 2023By Lee Min-hyung
EcoPro Materials IPO remains unclear amid lingering owner risk

2 vice chairmen, Vietnamese bank chief to vie for KB Financial Group leader post

Two KB Financial Group Vice Chairmen, Hur Yin, left, and Yang Jong-hee, joined the list of three final candidates, Tuesday, in the race to choose the group's next leader. Courtesy of KB Financial Group By Yi Whan-wooKB Financial Group announced Tuesday that two of its vice chairmen ― Hur Yin and Yang Jong-hee ― and Chairman Kim Byoung-ho of Vietnam's HD Bank were shortlisted as candidates to become the group's next chairman in the second of three stages to pick the successful nominee.Hur is in charge of the group's global business and insurance business unit, while Yang is responsible for retail customer relations, pensions and small and medium enterprise business. Kim Byoung-ho, incumbent chairman of Vietnam's HD Bank and also former vice chairman of Hana Financial Group, was included on the list of three final candidates for KB Financial Group's next chairman, Tuesday.

Aug 29, 2023By Yi Whan-woo
2 vice chairmen, Vietnamese bank chief to vie for KB Financial Group leader post

KDIC resumes M&A process of MG Non-Life Insurance

The headquarters of MG Non-Life Insurance in southern Seoul / YonhapLitigation risks remainBy Anna J. ParkThe Korea Deposit Insurance Corporation (KDIC) has officially kicked off the M&A bidding process for MG Non-Life Insurance this week. Samjeong KPMG, the lead sale manager of the deal, plans to receive Letter of Intent (LOI) submissions by potential buyers by Oct. 5 in order to select preliminary bidders. Aiming to reduce burdens on potential buyers, the KDIC plans to apply the purchase and assumption (P&A) method for MG Non-Life's sale. Unlike a traditional M&A approach, P&A involves a selective transfer of assets and liabilities, allowing a potential buyer to exclude some of the non-performing assets and subordinate debts. It is also the most common and preferred method used by the U.S. Federal Deposit Insurance Corporation (FDIC) in handling failing banks. It is the KDIC's second attempt to publicly sell the company this year alone. The state-run deposit insurer initiated the sale process of the company in January, only to see no buyers show up due to concerns o

Aug 29, 2023By Anna J. Park
KDIC resumes M&A process of MG Non-Life Insurance

Internet-only banks face dilemma in expanding loans to low-credit customers

gettyimagesbankBy Lee Yeon-wooIn the second quarter of this year, internet-only banks did not meet their objective regarding loan ratios for individuals with medium to low credit scores. Although expanding loans to this demographic was originally a primary focus for these banks, they now face a dilemma as widening the loan base could compromise their financial stability.According to data from the Korea Federation of Banks, Tuesday, the proportion of such loans for medium to low credit customers at three internet-only banks ― KakaoBank, K Bank and Toss Bank ― stood at 27.7 percent, 24 percent and 38.5 percent, respectively.In 2021, financial regulators mandated that the three internet-only banks set specific targets for extending loans for such customers as a condition upon their launch. The policy stipulates that failing to meet these benchmarks could result in penalties, including restrictions on launching new business initiatives.However, each bank is currently falling short of these goals. The target ratios for this year have been set at 30 percent for KakaoBank, 32 percent for K

Aug 29, 2023By Lee Yeon-woo
Internet-only banks face dilemma in expanding loans to low-credit customers

Korean banks' Q2 net profit unchanged from 3 months earlier

The headquarters of Financial Supervisory Service (FSS) in Yeouido, Seoul / NewsisKorean banks' second-quarter net profit was flat from the previous quarter as an increase in the Korea Development Bank's (KDB) net profit offset a decline in ordinary banks' net profit, preliminary data showed Tuesday. The combined net profit of 20 banks in the April-June period was 7.1 trillion won ($5.4 billion), unchanged from the first three months of this year, according to the Financial Supervisory Service (FSS). The net profit of 19 banks, excluding the KDB, fell 10.1 percent to 5.4 trillion won over the same period, but net profit of the KDB rose 600 billion won to 1.7 trillion won largely thanks to a 1 trillion-won provision reversal of shipbuilder Hanwha Ocean, according to the FSS. The interest income of the 20 banks in the second quarter was also the same as the previous quarter at 14.7 trillion won thanks to an increase in interest-bearing assets despite a drop in the net interest margin (NIM), or the difference between interest paid and interest received. The banks' return on assets (ROA)

Aug 29, 2023
Korean banks' Q2 net profit unchanged from 3 months earlier

Korea, SP begin annual consultation meetings

This photo, provided by Korea's finance ministry, shows Finance Minister Choo Kyung-ho, left, shaking hands with an official of global rating appraiser Standard & Poor's Global Ratings in Seoul, Aug. 28. YonhapKorea on Monday began annual consultation meetings with global rating appraiser Standard Poor's Global Ratings (SP) to discuss the country's credit valuation and economic circumstances, the finance ministry said.The delegation, led by Kim Eng Tan, senior director of Asia-Pacific sovereign ratings at SP, is visiting Korea for three days of consultations through Wednesday, according to the Ministry of Economy and Finance. The delegation paid a courtesy visit on Finance Minister Choo Kyung-ho on the day, which will be followed by a series of meetings with officials from the foreign and industry ministries, the Financial Service Commission, and the Bank of Korea, it added.During a meeting, Choo said Korea will continue to push for measures to strengthen its financial soundness, which will also be the basis for next year's budget set to be announced Tuesday.The government is als

Aug 28, 2023
Korea, SP begin annual consultation meetings
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