Business - The Korea Times

Toss Bank's AI system spots fake IDs, prevents fraud

Toss Bank logo / NewsisBy Anna J. ParkToss Bank announced that its real-time artificial intelligence (AI) system has contributed to preventing financial fraud. Since launching earlier this year, the digital bank said its AI-based detection system has spotted over 600 fake IDs during the past six months, undermining attempts to open up fraudulent accounts. The bank explained that its ID detection system can determine in real time whether an ID photo submitted by a new customer opening an account is an authentic image or not. If the system detects that the information in a submitted ID photo does not match the customer's information or if it is a re-photographed image from a smartphone screen or a printed ID, all financial transactions, including the opening of the account, are restricted until re-verification is completed. The system's accuracy rate is reported to exceed 94 percent, the internet-only bank said. Toss Bank began developing the AI detection system in May last year and underwent field tests in October the same year. The system was officially launched in February this year

Aug 15, 2023By Anna J. Park

Toss Bank's AI system spots fake IDs, prevents fraud

K bank posts 41.4 percent jump in quarterly net profit in Q2

The headquarters of K bank in central Seoul / Courtesy of K bankBy Anna J. ParkK bank has achieved a net profit of 14.7 billion won ($11 million) during the second quarter of this year, due mainly to expanded business operations as well as diversified loan portfolios. This marks a whopping 41.4 percent increase in net profit from the previous quarter, maintaining profitability for the ninth consecutive quarter since the second quarter of 2021. According to the internet-only bank on Monday, the number of customers as of the end of the second quarter stood at 8.9 million, an increase of 190,000 customers from 8.71 million recorded at the end of the first quarter. The bank's outstanding loan balance rose to 17.3 trillion won, a 4.4 percent jump compared to the end of the previous quarter, while the deposit balance increased to 12.6 trillion won, up 6.1 percent over the same period. The bank explained that the impressive quarterly growth in its loans is led by its apartment-exclusive mortgage loan products. With its competitive advantages in interest rate cuts, the bank attracted 900 bil

Aug 14, 2023By Anna J. Park

K bank posts 41.4 percent jump in quarterly net profit in Q2

Hana joins hands with financial watchdog to nurture young digital experts

Hana Financial Group Chairman Ham Young-joo, third row 11th from left, and Financial Supervisory Service (FSS) Governor Lee Bok-hyun, third row ninth from left, pose with other participants of the ceremony to mark the 2023 Hana Digital Power On Project at a training center in Incheon's Cheongna International City, Aug. 10. Courtesy of Hana Financial Group By Yi Whan-wooHana Financial Group and the Financial Supervisory Service (FSS) are co-hosting the second edition of a project aiming to foster young workers skilled in digital technologies after successfully completing the first edition last month, the banking group said Sunday.Also joined by Google Korea, Amazon Web Services Korea, Microsoft Korea and SK Telecom, the Hana Digital Power On Project was launched in October 2022 to cope with the rapidly increasing demand for digital competency in all sectors of society and to offer relevant educational opportunities.This year's project will attract 50 candidates, whic

Aug 13, 2023By Yi Whan-woo

Hana joins hands with financial watchdog to nurture young digital experts

Bank CEOs may face liability for lax internal controls

The entrance to a Seoul branch of BNK Kyongnam Bank is seen on Aug. 2. Based in South Gyeongsang Province, the bank is being investigated by prosecutors for an embezzlement case involving its manager-level employee. YonhapBy Yi Whan-wooCommercial bank CEOs could face liability if their companies are caught committing forgery, embezzlement and other financial crimes, all of which have been rampant lately in the banking industry, according to financial industry officials, Sunday.No bank CEOs have so far been held accountable for the above-mentioned crimes. Frustratingly, few of the CEOs have succeeded in finding ways to tighten measures and procedures so as to stop employee misconduct.As a consequence, the Financial Services Commission (FSC) is pushing to legally define and document the responsibilities of executives at financial firms, according to their rank, regarding internal control measures, officials said.They said the FSC is working with the ruling People Power Party (PPP) to draft a relevant bill.Its possible enactment will require amendments to the law on the governance struc

Aug 13, 2023By Yi Whan-woo

Bank CEOs may face liability for lax internal controls

EcoPro joins MSCI Korea Index

EcoPro BM's manufacturing facility in Korea's southeastern city of Pohang / YonhapBy Lee Min-hyungEcoPro joined the much-sought-after MSCI Korea Index, Friday, rekindling hopes for additional foreign capital inflow to the red-hot secondary battery materials producer.According to the August index review by MSCI, four Korean firms ― EcoPro, Hanmi Semiconductor, Hanwha Ocean and JYP ― were all included in the index. However, CJ and E-mart were excluded following the latest decision.Brokerage houses expected EcoPro to attract 1.2 trillion won ($906 million) worth more capital after the firm's inclusion in the index.According to data from Eugene Investment & Securities, the figure also comes in at 197 billion won for JYP. Hanwha Ocean and Hanmi Semiconductor are forecast to attract 120 billion won and 113 billion won, respectively, after their MSCI inclusions.Despite the MSCI announcement, EcoPro shares suffered a slight decline from the previous trading day. The company closed down 2.49 percent at 1.137 million won per share. But shares of JYP and Hanmi closed with a gain of 1.97 per

Aug 12, 2023By Lee Min-hyung

Watchdog raids Kakao founder's office on suspicion of stock manipulation

By Lee Min-hyungKakao founder Kim Beom-su / YonhapThe Financial Supervisory Service (FSS) raided the office of Kakao founder Kim Beom-su, Thursday, for his alleged involvement in stock manipulation.Kim and some other members of Kakao's top management are suspected of having manipulated the price of SM Entertainment shares early this year. Back then, the mobile platform operator was involved in a dispute with HYBE to secure management rights to SM Entertainment.The FSS is looking into whether Kakao violated a local capital market act while trading SM Entertainment stocks.“We are conducting an investigation into the incident by analyzing diverse data,” FSS Governor Lee Bok-hyun said last month. “We are confident about revealing the truth, so the authority will be able to share details soon.”In February, SM Entertainment's stock price started soaring for no apparent reason. HYBE submitted a petition to the watchdog, arguing that some traders were possibly engaged in unfair stock transactions for a certain purpose.HYBE bought a stake in SM Entertainment from its f

Aug 10, 2023By Lee Min-hyung

Watchdog raids Kakao founder's office on suspicion of stock manipulation

Hana, Incheon, FSS to support small companies' ESG efforts

From left, Financial Supervisory Service Governor Lee Bok-hyun, Incheon Mayor Yoo Jeong-bok and Hana Financial Group Chairman Ham Young-joo pose after signing a memorandum of understanding to support small and medium-sized enterprises with environmental, social and corporate governance efforts at Hana Financial Group Global Campus in Incheon, Thursday. Courtesy of Hana Financial GroupBy Yoon Ja-youngHana Financial Group signed a memorandum of understanding (MOU) with Incheon Metropolitan City and Financial Supervisory Service (FSS) to support small and medium-sized enterprises (SMEs) with environmental, social and corporate governance (ESG) efforts.In the first collaboration between a financial company and a local government to support SMEs' ESG efforts, they agreed to share information, provide advice and hold education sessions and seminars related to ESG.The agreement aims to strengthen the competitiveness of SMEs in exports by supporting them with ESG efforts.Incheon will be in charge of selecting SMEs located in the city that are in need of ESG support. The financial regulator w

Aug 10, 2023By Yoon Ja-young

Hana, Incheon, FSS to support small companies' ESG efforts

Banking industry loses trust due to illicit activities of some employees

DGB Daegu Bank's headquarters in Daegu / YonhapDGB Daegu Bank workers allegedly forge documents to open 1,000 customer accountsBy Lee Yeon-wooAmid a sharp drop in public trust sparked by the unethical behavior of some bank employees, DGB Daegu Bank is facing scrutiny for allegedly forging customer documents in order to open up accounts. Such impropriety has raised serious concerns about the industry's apparent lack of effective internal controls, further eroding trust in the banking industry.According to the Financial Supervisory Service (FSS), Thursday, the financial regulator has initiated an investigation into DGB Daegu Bank. The move comes after discovering that some bank employees allegedly forged customer documents and covertly opened accounts in customers' names without notifying them, aiming to boost their performance for upcoming employee evaluations.Since August 2021, the bank has introduced a service that facilitates the use of the bank's accounts as a way to open securities accounts with various securities firms.It is understood that bank employees duplicated the applicat

Aug 10, 2023By Lee Yeon-woo

Banking industry loses trust due to illicit activities of some employees

KB workers accused of making $9 mil. in unfair profits using confidential information

The Financial Services Commission's headquarters / YonhapBy Lee Yeon-wooKB Kookmin Bank employees and their acquaintances allegedly made 12 billion won ($9.6 million) in illicit profits by stock trading using confidential information, financial authorities said Wednesday.The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) jointly announced that they have notified the prosecution after identifying some KB Kookmin Bank employees, responsible for the securities business of listed companies, having used undisclosed crucial information for stock trading.The authorities allege that these employees leveraged confidential information from 61 corporations, such as details and timings of capital increases, in their trading activities. Once the information was publicly announced, they sold their shares for a profit, realizing illicit gains estimated at 6.6 billion won.Furthermore, these employees are believed to have shared pertinent information with colleagues, family members, and acquaintances. These individuals also gained unfair profits amounting to 6.1 billion w

Aug 9, 2023By Lee Yeon-woo

KB workers accused of making $9 mil. in unfair profits using confidential information

Kiwoom Securities reports double-digit earnings growth

Kiwoom Securities headquarters in the financial district of Yeouido in Seoul / YonhapBy Lee Min-hyungKiwoom Securities reported a net profit growth of 70.5 percent in the first half of 2023 from a year ago, on rising stock trading commission revenues driven by retail investors snapping up secondary battery shares.The brokerage reported an operating profit of 569.7 billion won ($434.22 million) for the first six months combined, up 67.3 percent from a year earlier. The firm also chalked up a net profit of 425.9 billion won during the same period.The company set aside a bad debt allowance of 70 billion won in the second half due to its involvement in a stock manipulation scandal, but this was offset by a recovery in stock market sentiment represented by the robust battery rally.The daily average stock transaction volume reached 24.3 trillion won in the second half, up 24 percent from the previous year. Kiwoom's stock commission profit also increased to 95.1 billion won between April and June from a year earlier.But the brokerage's overseas stock trading commission is on the decline. Ki

Aug 9, 2023By Lee Min-hyung

Banking & Finance