Business - The Korea Times

Samsung heiresses pay inheritance tax with secured loans

From right, late Samsung chief Lee Kun-hee's wife, Hong Ra-hee, and her children ― Jae-yong, Boo-jin and Seo-hyun attend Lee's funeral in Suwon, Gyeonggi Province in this photo taken on Oct. 28, 2020. Korea Times fileBy Yi Whan-wooThree heiresses of late Samsung chief Lee Kun-hee took out more bank loans to pay massive inheritance taxes by putting up their respective shares in the company as collateral, according to a business think tank, Wednesday. Such increases in money lending from banks suggest that “chaebol,” or conglomerates family members could be struggling to pay inheritance taxes, which are being disputed for being excessively high compared to that of other OECD member countries.A Seoul-based think tank on corporate analysis, Leaders Index, said the combined amount of loans taken out by Lee's wife, Hong Ra-hee, and his two daughters ― Boo-jin and Seo-hyun ― with their company stocks as collateral, increased by 2.19 trillion won ($1.66 billion) to 4.78 trillion won for the past one year.The loans account for 40.4 percent of the value of Samsung stocks belonging

Aug 9, 2023By Yi Whan-woo

Samsung heiresses pay inheritance tax with secured loans

FSS warns private equity firms over employee irregularities

The headquarters of the Financial Supervisory Service (FSS) in Seoul / NewsisBy Anna J. ParkThe Financial Supervisory Service (FSS) has sent a warning message to local private equity firms (PEF) operating trillions of won of funds entrusted to them by institutional investors. The move comes as the state-run financial watchdog cracks down on irregularities by employees as well as major shareholders of asset management companies. According to the financial industry, an FSS bureau in charge of inspecting asset management firms recently sent an official document to the local association of private equity firms in the country. Titled “Guidelines for preventing actions that pursue illicit interests of major shareholders or employees,” the document detailed the financial authorities' policy directions aiming to uncover unlawful deeds by private equity firm members. “There have been continuous occurrences by major shareholders or employees of some financial investment firms pursuing private interests unlawfully and unfairly,” the official letter stated. “To crac

Aug 8, 2023By Anna J. Park

FSS warns private equity firms over employee irregularities

3 KB vice chairmen make 6-candidate list as next group CEO

From left, KB Financial Group Vice Chairman Hur Yin, Vice Chairman Yang Jong-hee, Vice Chairman Lee Dong-cheol and Park Jeong-rim, KB Securities co-CEO and head of capital markets, corporate and investment banking and asset management / Courtesy of KB Financial GroupBy Yi Whan-wooKB Financial Group said Tuesday it included three of its vice chairmen ― Hur Yin, Yang Jong-hee and Lee Dong-cheol ― on the list of six candidates for its next chairman and CEO, in the first of three stages to select the successful candidate.Hur is in charge of the group's global business and insurance business unit, while Lee, the former CEO of KB Kookmin Card, currently oversees the group's digital and IT businesses. Yang, meanwhile, is responsible for retail customer relations, pensions and small and medium enterprise business.It also said the six-member list includes one of its executives, Park Jeong-rim, who is KB Securities co-CEO and heads capital markets, corporate and investment banking and asset management, plus two additional outside figures. The banking group did not disclose the names or other d

Aug 8, 2023By Yi Whan-woo

3 KB vice chairmen make 6-candidate list as next group CEO

FSS to conduct on-site inspection on Meritz Securities' mezzanine business

Meritz Financial Group headquarters in southern Seoul / Courtesy of Meritz Financial GroupBy Anna J. ParkThe Financial Supervisory Service (FSS) plans to conduct an on-site inspection of Meritz Securities later this month to check for any unethical business practices on the part of the firm.According to the financial industry on Tuesday, the financial authority will conduct an ad hoc inspection in mid-August to closely look into practices surrounding the firm's overall convertible bonds and bond warrant businesses. The financial watchdog agency's ad hoc inspection of the firm was somewhat expected, as Rep. Lee Yong-woo, a lawmaker from the main opposition Democratic Party of Korea, pointed to the need for further investigation during an Assembly committee meeting in June over the firm's controversial sale of Ehwa Technologies Information stocks. FSS Governor Lee Bok-hyun responded to the lawmaker's point, vowing to take further measures to investigate the aforementioned matter. Earlier this year Meritz Securities sold off its entire stakes in Ehwa Technologies Information, E-trons, E

Aug 8, 2023By Anna J. Park

FSS to conduct on-site inspection on Meritz Securities' mezzanine business

Financial giants mull acquiring KDB Life, ABL Life to beef up non-banking revenues

The headquarters of KDB Life in central Seoul / Courtesy of KDB LifeM&A market for insurance companies to expand in H2By Anna J. ParkAiming to expand their non-banking business portfolios, major financial firms, including local financial groups, are closely examining whether to add new insurance subsidiaries, as two insurers ― KDB Life Insurance and ABL Life ― are currently looking for new owners.Lotte Insurance and Tongyang Life Insurance are also deemed as candidates that are likely to be put up for sale within the next several months, attracting the interest of potential buyers. According to industry sources on Monday, many financial companies, including Kyobo Life, Industrial Bank of Korea (IBK), Mirae Asset, Korea Investment Holdings, as well as Hana Financial Group, are mulling the acquisition of the insurance companies.Hana Financial Group is one of the most active potential buyers, showing clear interest in acquiring KDB Life Insurance. Since the major financial group was tapped as the preferred bidder of the insurance firm in mid-July, the company is currently conducting

Aug 7, 2023By Anna J. Park

Financial giants mull acquiring KDB Life, ABL Life to beef up non-banking revenues

KB, Shinhan, Hana donate sports drinks to Scouts

Participants of the World Scout Jamboree in Buan, North Jeolla Province, play table football, Monday. YonhapBy Yi Whan-wooKorea's three largest banks ― KB Kookmin, Shinhan and Hana ― each announced on Monday the urgent donation of sports drinks to participants of the World Scout Jamboree in Saemangeum, North Jeolla Province.KB Kookmin Bank and Shinhan Bank donated 100,000 bottles, while Hana Bank donated 200,000 bottles, all distributed via the Korean Red Cross, for tens of thousands of teenage Scouts struggling with severe temperatures.“We hope the scouts, their instructors and other guests to the Korea jamboree enjoy the remaining days of their stay in Korea, and return home safely,” KB Kookmin Bank said.Shinhan Bank said that its support “hopefully helps participants to go on with scheduled programs in a safe manner.”It also said it will open its in-service training center in Yongin, Gyeonggi Province, which is 206 kilometers north of Saemangeum, for participants to stay for free.“We want the young scouts from all over the world to bring back home goo

Aug 7, 2023By Yi Whan-woo

KB, Shinhan, Hana donate sports drinks to Scouts

Brokerages remain pessimistic over another EcoPro rally

EcoPro BM's manufacturing facility in Ochang, North Chungcheong Province / YonhapBy Lee Min-hyungBrokerage houses are breaking their silence concerning the volatile EcoPro share, releasing pessimistic reports as to the possibility of additional rallies for the battery material producer. This sentiment is due to its “excessive” market capitalization compared to that of global battery cell manufacturers here.Most securities firms have so far remained reluctant to share a target stock price for EcoPro and its key affiliate EcoPro BM, as their stock prices continue a surprisingly robust rally for the past few weeks by shattering a once-prevalent overvaluation outlook. However, with a large number of such battery stocks exhibiting an end to their respective bullish runs with recent price adjustments, brokerage houses have started issuing underwhelming reports about further growth of red-hot secondary battery stocks.Eugene Investment & Securities set EcoPro BM's target stock price at 200,000 won ($153) per share, almost half of the current price, citing the lingering overva

Aug 7, 2023By Lee Min-hyung

Brokerages remain pessimistic over another EcoPro rally

KB Financial chief decides not to seek another term

KB Financial Group Chairman Yoon Jong-kyoo By Yoon Ja-youngKB Financial Group Chairman Yoon Jong-kyoo chose to wrap up his third three-year term which is ending in November instead of seeking another term as the group's chief.According to the financial group's CEO recommendation committee, the chairman informed the committee of his intent not to run again. His term ends on Nov. 20.He told the committee that it is time to hand over the “baton of KB Financial Group for a new future and change.” He added that he hopes “a capable person is appointed as his successor, to lead the group's sustainable growth so that it can leap forward as a leading financial group representing Asia beyond Korea.”The committee is scheduled to make a shortlist of six candidates for the group's next chairman on Tuesday, and narrow down the list to three on Aug. 29 following interviews. As Yoon has decided not to seek another term, he will not be included in the shortlist. The final candidate

Aug 6, 2023By Yoon Ja-young

KB Financial chief decides not to seek another term

Hana to broaden global reach with State Bank of India

Vice Chairman of Hana Financial Group Lee Eun-hyung, left, poses with State Bank of India Chairman Dinesh Kumar Khara, center, and State Bank of India Executive Director Challa Sreenivasulu Setty during an MOU signing ceremony in Mumbai, India, Aug. 2. Courtesy of Hana Financial GroupBy Lee Yeon-wooHana Financial Group is set to broaden its global reach by joining forces with the State Bank of India, the biggest state-run commercial bank in India.According to the group, Sunday, Hana Financial Group and the State Bank of India signed a memorandum of understanding in Mumbai, India, Aug. 2. The two agreed to establish a strategic partnership during the 56th annual meeting of the Asian Development Bank (ADB), which was held in Korea in May.They plan to broaden their scope of cooperation, including co-financing in foreign financial markets, supporting each other's foreign branches together and collaborating in global business sectors such as trade finance.Currently, Hana Financial Group operates two bank branches in India, one in Chennai and the other in Gurugram. The group is considering

Aug 6, 2023By Lee Yeon-woo

Hana to broaden global reach with State Bank of India

Banks revamp services to support foreign workers in Korea

Customers consult clerks at a bank in downtown Seoul, in this August 2022 photo. YonhapLocal lenders asked to streamline administrative proceduresBy Lee Yeon-wooAs Korea's foreign workforce continues to grow, Korean banks are introducing an array of advanced services designed to better meet the diverse needs of clients.In addition to operating specialized branches for foreign nationals, they are expanding their boundaries by making it easier to open of bank accounts without the necessity of in-person visits, increasing the number of language services and offering nationality-specific transfer options.“The population is indeed considered very important, as they are the foundation for banks to grow into global financial institutions. It's not just that they go back to their country and halt transactions with the bank. Even after their return, they might still maintain transactions (with the bank's foreign branch),” an official from a bank said.As of 2022, the number of non-Koreans working in Korea reached 843,000, compared with 791,000 in 2012. Factoring in those who are al