Business - The Korea Times

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

KB Insurance posts all-time high profits under IFRS17

Hana's asset management head committed to use art as tool for joint prosperity

By Yi Whan-wooKim Young-hun, the head of Hana Bank's asset management business, says he is committed to using art as a banking tool for joint prosperity. Kim Young-hun, head of Hana Bank's Asset Management Group / Courtesy of Hana Bank In that regard, Kim said he has been focusing on building trust with clients since taking office in December last year as well as offering opportunities for artists to showcase their works through Hana Art Bank, a range of services offered by the lender in relation to art.The services are mainly divided into four areas: offering up-to-date information on artworks for investment through seminars and art gallery tours, assessing the value of artworks and also offering advice on sales and purchases of artworks in partnership with galleries, storing and managing private artworks owned by clients, and selling such artworks on behalf of clients as a trustee.“I hope to make Hana Art Bank a tool that creates values for various interest groups i

May 8, 2023By Yi Whan-woo

Hana's asset management head committed to use art as tool for joint prosperity

Top 5 banks brace for $27 billion in potential bad loans

A passerby walks with a phone in front of a bank in Seoul / NewsisLenders operate support system for vulnerable borrowers to prevent insolvenciesBy Anna J. ParkThe total amount of loans extended by Korea's top five banks to small-and-medium-sized businesses whose deadlines on repayments of principal have been delayed for the past three years due to the COVID-19 pandemic, reached nearly 37 trillion won ($27 billion), according to financial market officials, Sunday.This has raised concerns that the loans could potentially go bad if financially-struggling businesses and self-employed people fail to meet debt payment deadlines.The five banks ― KB Kookmin, Shinhan, Hana, Woori, NH NongHyup ― are estimated to have extended 36.6 trillion won in loans whose repayments of principal have been delayed as of May 4. Over 95 percent of the loans, or 34.8 trillion won, were rolled over, while the remaining 1.8 trillion won was either from delays in installment-based repayments of principals or repayment of interest by corporations. The beginning of the rollover went back to early 2020, when the ban

May 7, 2023By Anna J. Park

Top 5 banks brace for $27 billion in potential bad loans

Hana inks global business expansion pact with Taiwan's CTBC Bank

Hana Financial Group Vice Chairman Lee Eun-hyung, right, and CTBC Bank Chairman Morris Li together hold the memorandum of understanding (MOU) document on their strategic partnership during a ceremony at Hana Global Campus, the firm's manpower development institute in the district of Cheongna International City in Incheon, May 4. Courtesy of Hana Financial GroupBy Yi Whan-wooHana Financial Group announced, Sunday, it formed a strategic partnership with CTBC Bank, a leading private lender in Taiwan, to enhance its global network for its vision to become Asia's best financial services company.The partnership will range from mutual support among their respective overseas branches to collaboration on finding business opportunities concerning corporate banking, investment banking and trade finance and sharing know-how to increase their respective assets abroad.“We expect that the deal will contribute to facilitating financial cooperation on the country-to-country level between Korea and Taiwan,” Hana Financial Group Vice Chairman Lee Eun-hyung said during the signing of the mem

May 7, 2023By Yi Whan-woo

Hana inks global business expansion pact with Taiwan's CTBC Bank

MZ Generation leads Apple Pay boom

A promotional image of Apple Pay is seen at a Hyundai Card building in Seoul in this file photo. Yonhap By Lee Min-hyungThose born in the early 1980s and 2000s ― often dubbed the MZ Generation ― have driven the popularity of Apple Pay for the past month following its belated launch here, data from Hyundai Card showed.Hyundai Card said it issued 355,000 new cards after the arrival of Apple Pay on March 21, up 156 percent from a year earlier. Hyundai Card is an exclusive card partner here for the mobile payment service of Apple.More than 90 percent of Hyundai Card's new subscribers turned out to have registered their cards for the service on their Apple devices, according to the card firm.By age group, the MZ Generation accounted for 79 percent of the card firm's new users. Of this, those in their 20s accounted for 51 percentage points, followed by 30-something subscribers whose portion reached 28 percentage points. Those in their 40s took up 12 percent.More than 9.3

May 5, 2023By Lee Min-hyung

Kiwoom chief's resignation casts ripple effect on other major shareholders

Daou Kiwoom Group's former Chairman Kim Ik-rae makes a public apology over his alleged involvement in a recent stock scandal, at its headquarters in Seoul, Thursday. YonhapBy Lee Min-hyungDeteriorating public sentiment toward Kiwoom Securities is showing no signs of letting up, even after its former Chairman Kim Ik-rae resigned for his alleged involvement in a nationwide stock manipulation scandal.Kim made the abrupt announcement Thursday afternoon and decided to donate all of his gains worth 60.5 billion won following his suspicious sell-off of 1.4 million Daou Data shares. Daou Data is an affiliate of Daou Kiwoom Group. The firm's stock price fell sharply shortly after Kim sold his shares.He claimed no responsibility for the latest scandal ― an abrupt stock fall of eight listed shares, including Daou Data ― but appeared to display such gestures to prevent further losses to other Kiwoom affiliates.Given the lingering criticism over the allegations, the group's tainted corporate image is unlikely to recover in the near future even after the donation.Even before the scandal, Kim, 73,

May 5, 2023By Lee Min-hyung

Kiwoom chief's resignation casts ripple effect on other major shareholders

K bank maintains top position in brand reputation among local internet banks

The headquarters of K bank in central Seoul / Courtesy of K bankBy Anna J. ParkK bank has topped April's monthly chart rankings among the country's internet-only banks in terms of brand reputation. The mobile bank has maintained the top spot in the monthly Brand Reputation index (BRI) ranking ― for seven consecutive months since last October. The rankings announcement was made by the Korea Corporate Reputation Research Institute.According to April's brand reputation ranking, KakaoBank took second place, and Toss Bank came in third place. The Korea Corporate Reputation Research Institute announces the Brand Reputation Index every month in various industry sectors, analyzing a great deal of big data information to determine the ranking of the reputation of various domestic brands. The institute put together 4.59 million pieces big data information regarding Korea's internet banks from March 28 to April 28 to come up with April's index result. The monthly index for mobile banks is largely comprised of two categories of indices; one for the comprehensive brand reputation index and the si

May 4, 2023By Anna J. Park

Hana Financial Group signs MOU with Sumimoto Mitsui Trust

Hana Financial Group Chairman Ham Young-joo, second from left, poses with SuMi Trust Director Takakura Toru, third from left, after signing an MOU to form a strategic business alliance between the two at the Grand InterContinental Seoul Parnas hotel in southern Seoul, Wednesday. Courtesy of Hana Financial GroupBy Yoon Ja-youngHana Financial Group signed MOU with Japan's Sumimoto Mitsui Trust Group to strengthen cooperation in global financial businesses.According to Hana, it has been cooperating with the trust in diverse business areas that include not only trust but also global, digital, investment banking and asset management since 2014 when they began their cooperative relationship. Most recently, GLN International, an affiliate of Hana Bank providing overseas payment services, received a strategic investment from SuMi Trust of the group last December. Their close cooperation in diverse areas has been cited as an example of synergy creation in the financial industry. In the MOU, the two agreed to expand cooperation in five areas of stake investments, asset management, retail, digi

May 4, 2023

Banking & Finance