Business - The Korea Times

Kakao Pay aims for 10 bil. annual transactions by 2026

Kakao Pay CEO Shin Won-keun speaks during a press conference held at Conrad Seoul Hotel in Yeouido, Seoul's financial district, Monday. Courtesy of Kakao PayMobile payment available in 11 overseas countriesBy Anna J. Park Kakao Pay, the mobile payment subsidiary of tech conglomerate Kakao, has proclaimed its goal to achieve 10 billion transactions per year within the next three years, and step up as the country's most frequently used financial application platform that caters to customers' financial needs. During a press conference held at Conrad Seoul Hotel, Monday, Kakao Pay CEO Shin Won-keun highlighted that the mobile payment firm is aiming to create a close-knit financial ecosystem centering on Kakao Pay's platform. “The targeted number of aggregated transactions of 10 billion per year would mean that every Korean over the age of 15 would use Kakao Pay at least once every day to solve their various financial needs,” Shin said during the press conference. As of last year, the annual number of app users stood at 30 million, with an annual transactional amount of 118 tr

May 15, 2023By Anna J. Park

Kakao Pay aims for 10 bil. annual transactions by 2026

KDB seeks to bolster capital as KEPCO's deficit grows

Korea Development Bank headquarters in downtown Seoul / Korea Times fileBy Lee Yeon-wooKorean Development Bank (KDB) is seeking to bolster its capital base in order to improve its financial stability, which has been faltering primarily due to the growing deficit of the Korea Electric Power Corp. (KEPCO) in which the bank holds a 32.9 percent stake.According to the KDB on Sunday, the bank is planning to hold an extraordinary shareholders' meeting on Thursday to decide on the issuance of new stocks. They are expected to be worth around 120 billion won ($89.28 million), but the exact amount is still under consideration, a bank official told The Korea Times.“The cash investment we are planning this time is part of this year's budget, which was approved by the National Assembly for government policy projects such as the innovative growth fund,” KDB noted in its statement.The decision comes as the bank is making concerted efforts to boost its Bank for International Settlements (BIS) ratio.According to Rep. Kim Hee-gon of the ruling People Power Party, KDB's BIS ratio stood at 1

May 15, 2023By Lee Yeon-woo

KDB seeks to bolster capital as KEPCO's deficit grows

Hana promotes LINE Bank in Indonesia

Hana Financial Group Chairman Ham Young-joo, left, poses with an Indonesian employee of LINE Bank at an event promoting LINE Bank's digital services in Jakarta, Indonesia, Thursday. Courtesy of Hana Financial GroupBy Lee Yeon-wooHana Financial Group promoted its digital banking service, LINE Bank, in Indonesia through a collaboration with Samsung Electronics. The bank announced on Sunday that it hosted a hands-on experience event where local customers could learn about LINE Bank's innovative digital services while experiencing cutting-edge smart devices from Samsung Electronics.The event took place on Thursday at Senayan Park, a shopping mall located in Jakarta, Indonesia.LINE Bank is a digital-banking service that was launched in Indonesia in 2021 through a partnership between KEB Hana Indonesia and the international messenger platform company LINE. The bank provides a range of convenient services, such as commission-free remittance, mobile-based account opening and loan applications, all without the need to visit a physical bank branch.During the event, visitors had the opportunity

May 14, 2023By Lee Yeon-woo

Major Korean financial firms seek to strengthen foothold in Indonesia

Financial Supervisory Service (FSS) Governor Lee Bok-hyun, far left, stands with South Korean Ambassador to Indonesia Lee Sang-deok, second from left, Hana Financial Group Chairman Ham Young-joo, fifth from left, Mirae Asset Securities Chairman Choi Hyun-man, sixth from left, along with other key participants of the “K-Finance Week in Indonesia 2023” at the St. Regis Jakarta in Indonesia, Thursday. Courtesy of KB Financial Group FSS holds K-Finance Forum in Southeast Asian countryBy Anna J. ParkCelebrating the 50th anniversary of diplomatic ties between Korea and Indonesia, Korean financial leaders from Korea's supervisory authority and private financial firms have vowed to strengthen financial cooperation and partnerships with the Southeast Asian country.Seven Korean financial firms ― KB Financial Group, Hana Financial Group, Mirae Asset Securities, Korea Investment & Securities, Samsung Fire & Marine Insurance, Hanwha Life Insurance and KB Insurance ― jointly host

May 12, 2023By Anna J. Park

Major Korean financial firms seek to strengthen foothold in Indonesia

Hearing-impaired insurance planner continues to blaze trail

Choi Jung-min, a master planner at AIA Life Insurance, communicates using sign language during a recent YouTube interview uploaded by the Korea Life Insurance Association (KLIA). Courtesy of KLIABy Anna J. ParkChoi Jung-min, 38, is AIA Life Insurance's star planner. He has pioneered his path, shattering the prejudices against the hearing-impaired.With 13 years of experience under his belt, Choi has become the first life insurance planner with a hearing impairment to receive the Golden Fellow Award, an annual award granted by the Korea Life Insurance Association (KLIA) to outstanding planners across the country.The KLIA launched the award back in 2017 and life insurance planners must meet various strict criteria regarding ethical behavior and solid performance to be one of the 1,000 recipients of the annual award. On average, the recipients possess more than 21 years of experience as life insurance planners.The country's life insurers' association released YouTube video interviews with 14 outstanding awardees, including Choi, earlier this month and his trailblazing story captured the

May 12, 2023By Anna J. Park

Hearing-impaired insurance planner continues to blaze trail

KB bolsters startup support campaign to nurture growth engines

Representatives of the companies selected for KB Financial Group's KB Starters program pose in this photo released by the banking group, Thursday. Courtesy of KB Financial GroupBy Yi Whan-wooKB Financial Group is bolstering efforts to support startups in line with the country's plan to nurture the next growth engines. The banking group announced on Thursday that it picked 25 firms from those who applied for the KB Starters program, which is aimed at discovering promising startups and offering them tailor-made support for their respective growth strategies.The program runs in the first and latter half of every year.The 25 startups were chosen after a screening process that was conducted by executives of KB Financial Group's affiliates and also in cooperation with the Korea Institute of Startup & Entrepreneurship Development, which operates under the wing of the Ministry of SMEs and Startups.The areas of focus for the selected firms vary from artificial intelligence (AI) to mobility, renewable energy, health care and proptech _ the use of information technology in dealing with sale

May 11, 2023By Yi Whan-woo

KB bolsters startup support campaign to nurture growth engines

Hana chairman discusses Korean economy with Jim Rogers

Hana Financial Group Chairman Ham Young-joo, right, poses with Financial Supervisory Service Governor Lee Bok-hyun, left, and Rogers Holdings Chairman Jim Rogers after a meeting in Singapore, Wednesday. Courtesy of Hana Financial GroupBy Yoon Ja-youngHana Financial Group Chairman Ham Young-joo had a discussion over the global and Korean economies as well as financial industries with renowned investor Jim Rogers.According to Hana, Ham had a meeting with Jim Rogers, chairman of Rogers Holdings, in Singapore, Wednesday. He was accompanied by Financial Supervisory Service (FSS) Governor Lee Bok-hyun. At the meeting, Ham introduced the group's digital strategies, including the establishment of a cooperative paradigm with Big Tech firms and the creation of innovative financial models through partnership with other industries. They also shared ideas on new growth engines in Korea, including the plan to set up a global hub of green hydrogen on Jeju Island. Ham said that Hana established its Singapore asset management operation in 2021 while expanding core businesses such as investment bankin

May 10, 2023

Hana chairman discusses Korean economy with Jim Rogers

Shinhan Bank's internal controls undergo testing

Shinhan Bank headquarters in downtown Seoul / Yonhap By Lee Yeon-wooShinhan Bank is facing additional challenges in addressing internal control risks, after one of its employees reportedly embezzled customer deposits. This comes in addition to an investigation over the alleged mis-selling of funds. On Tuesday, the Seoul Metropolitan Police searched the bank's headquarters in downtown Seoul to obtain data related to sales of the Fidelis Private Fund. This investigation follows a lawsuit filed last September by the fund's investors against the bank and Fidelis Asset Management.The police suspect that the bank sold the fund to customers without fully explaining its profit structure or the possibility of losing the principal. The investors claim that 385 investors lost around 180 billion won ($135.79 million).A Shinhan Bank official told The Korea Times that the police search was expected. “The bank reached a private settlement with most of the fund investors between Se

May 10, 2023By Lee Yeon-woo

Shinhan Bank's internal controls undergo testing

Kyobo Life considers entering non-life insurance market

Kyobo Life Insurance headquarters in central Seoul / Courtesy of Kyobo Life InsuranceKyobo Life steps back on acquisition rumor of Kakao Pay InsuranceBy Anna J. ParkBoth Kyobo Life Insurance and Kakao Pay Insurance denied a market rumor that they are in talks. Media reports said earlier this week that Kyobo Life has begun due diligence into Kakao Pay Insurance to acquire a 51 percent stake in the digital non-life insurance firm for around 60 billion won to 70 billion won ($45 million to $53 million).According to both firms on Tuesday, nothing specific has been going on regarding the alleged deal. Kyobo Life Insurance, the country's third-largest life insurer, acknowledged that it aims to make a foray into non-life insurance markets in the future, but it denied the ongoing acquisition deal of Kakao Pay Insurance, saying that every option is fully open. “It is true that Kyobo Life Insurance is mulling over expansion beyond the life insurance market. Yet, as of now, nothing has been specifically determined as to which non-life insurance firms could be options for acquisition. More

May 9, 2023By Anna J. Park

Kyobo Life considers entering non-life insurance market

KB Insurance posts all-time high profits under IFRS17

The headquarters of KB Insurance in Seoul / Courtesy of KB InsuranceNew accounting standard benefits large non-life insurersBy Anna J. ParkKB Insurance has posted a record-high quarterly profit of 253.8 billion won ($192 million) in the first quarter this year, a 25.7 percent jump from the same period last year. The hike is mainly attributed to the implementation of the International Financial Reporting Standard (IFRS) 17, a set of new global accounting standards, starting this year.Aiming to increase transparency and consistency in the accounting practices of insurance companies, IFRS 17 requires that insurance liabilities be calculated at present value, not book value. Also under the accounting standards, the Contractual Service Margin (CSM), which is the unearned profit from an insurance contract that an insurer will recognize over the coverage periods, is recalculated in earnings reports every year. As a result of the changed accounting system, the earnings of KB Insurance ― KB Financial Group's non-life insurance affiliate ― have mostly been favorably affected by the IFRS 17 imp

May 8, 2023By Anna J. Park

Banking & Finance