Business - The Korea Times

Regional banking groups suffer declining profits over rate freeze

Headquarters of BNK Financial Group in Busan / Yonhap By Yi Whan-wooRegional banking groups are struggling with falling earnings in the face of a freeze on the benchmark interest rate and a sluggish real estate project financing market concentrated in areas outside Seoul. Such declining profits are in contrast to the increased earnings reported by four of the largest banking groups in Seoul ― KB, Shinhan, Hana and Woori.Busan's BNK Financial Group and JB Financial Group headquartered in Jeonju, North Jeolla Province, suffered declines in their respective net profits in the first quarter.In a regulatory filing released Thursday, BNK Financial Group announced its quarterly net profit shed 7.1 percent year-on-year to 256.8 billion won ($191.6 million).The company noted the net profit of its flagship affiliate Busan Bank went up 13.2 percent year-on-year to 145.3 billion but that of another banking arm, Kyongnam Bank, retreated 2.5 percent to 85 billion won over the cit

Apr 28, 2023By Yi Whan-woo

Regional banking groups suffer declining profits over rate freeze

KB beats Shinhan in Q1 earnings in rivalry for top position

By Yi Whan-wooKB Financial Group led Shinhan Financial Group in earnings for the first quarter of the year, after allowing its archrival to claim the industry's top position last year for the first time in three years.In a regulatory filing, Thursday, KB Financial Group said its net profit amounted to 1.49 trillion won ($1.1 billion) in the January-March period, up 2.5 percent from a year earlier.The firm's quarterly net income was higher than Shinhan Financial Group's which inched up 0.2 percent year-on-year to 1.38 trillion won. In 2022, Shinhan Financial Group reaped an all-time-high yearly net profit of 4.64 trillion won against KB's 4.41 trillion won.By categories, the interest income of KB Financial Group in the January-March period advanced 5.1 percent year-on-year to 2.78 trillion won, while that of Shinhan Financial Group increased 2 percent year-on-year to 2.54 trillion won.KB Financial Group saw its commission income surging 21.7 percent to 918.4 billion won in the first quarter.The combined balance of commission income and other non-interest income turned black for Shinha

Apr 27, 2023By Yi Whan-woo

KB beats Shinhan in Q1 earnings in rivalry for top position

Upbit promotes Korean digital asset market at US blockchain fair

The logo of Upbit is seen in front of its headquarters in Seoul. Courtesy of DunamuBy Lee Min-hyungUpbit, the nation's largest crypto exchange, is participating in the world's largest blockchain fair, Consensus 2023, in the United States, as part of efforts to introduce Korea's digital assets market to its global counterparts. According to Dunamu, the operator of Upbit, this is the first time for a Korean digital asset exchange to take part in the world's most influential crypto event as a sponsor. The Consensus 2023 is hosted by CoinDesk from April 26 to 28 in Austin, Texas.Dunamu said it will showcase Korea's finest digital assets exchange on the global stage. Participants from 112 countries are expected to visit the event venue. Upbit's booth number is 1303 on the expo floor, located near the main stage. The company will introduce Upbit's influence here and abroad and expand its global networks by promoting its efforts to support the growth of Korea's blockchain industry.Launched in October 2017, Upbit is the largest and most dominant digital asset exchange in Korea. The crypto ex

Apr 27, 2023By Lee Min-hyung

Upbit promotes Korean digital asset market at US blockchain fair

Toss chief meets PayPal CEO on Yoon's state visit to US

Viva Republica founder and CEO Lee Seung-gun, left, poses with PayPal CEO Dan Schulman at the latter's headquarters in San Jose, California, Tuesday (local time). Courtesy of Viva RepublicaBy Lee Min-hyungLee Seung-gun, founder and CEO of Viva Republica, met with PayPal CEO Dan Schulman on Tuesday while accompanying President Yoon Suk Yeol on his state visit to the United States.Viva Republica is one of Korea's fastest-growing fintech startups, operating money transfer app Toss. In 2017, a consortium of investors, including PayPal Ventures, invested $48 million (64.3 billion won) in Toss. This was the first time for the U.S. online payment system operator to invest in a Korean company.Both sides discussed up-to-date trends in the global fintech industry and shared insights on the future of the financial industry. This also marked the first time that Lee met with the PayPal chief. Lee visited PayPal headquarters in San Jose for the meeting.“We have been able to reconfirm the unwavering trust between both sides through the latest meeting,” Lee said. “Dan Schulman has

Apr 27, 2023By Lee Min-hyung

Toss chief meets PayPal CEO on Yoon's state visit to US

Samsung Life slapped with warning for poor internal controls

Samsung's office buildings where Samsung Life Insurance headquarters are located / YonhapBy Lee Min-hyungSamsung Life Insurance was issued an administrative warning from the Financial Supervisory Service (FSS) over its poor internal control and risk management system. The watchdog recently sent the message of warning to the insurer, urging it to autonomously improve its risk management capabilities.This came after the Samsung affiliate was designated as a group of a financial conglomerate last year. Any companies classified into the group should build tighter internal control systems on their own against possible financial accidents, such as insider trading.But the FSS supervision showed that Samsung Life has not set up any specific division dedicated to fulfilling the role and has conducted internal control with only a few officials.In November 2021, the company created the division, but its specific role and responsibility have not been reflected in Samsung Life's bylaws until the FSS inspection.“Given Samsung Life's corporate size and diverse business areas, the company shou

Apr 26, 2023By Lee Min-hyung

Samsung Life slapped with warning for poor internal controls

Hana Financial Group to offer wedding venue for free

This promotional image shows Hana Grand Hall, a wedding venue offered by Hana Financial Group. Courtesy of Hana Financial GroupBy Yoon Ja-youngHana Financial Group will renovate parts of its buildings around the country as wedding venues, as part of its initiative to help lift the country's falling birthrate. The venues will be offered for free.Hana announced on Wednesday that it started the Hana Grand Hall project, under which six of the group's buildings around the country are to be renovated to include a wedding venue. It is part of the group's 2023 HANA Lifecycle Support scheme, which aims at tackling the low birthrate problem and expanding the culture of mutual growth in the finance industry. For a start, Hana Grand Hall Myeongdong, located on the fourth floor of the group's building in Myeong-dong, downtown Seoul, will be offered as a wedding venue for free. Applications will open on May 15 through the bank's mobile app Hana 1Q. Located in downtown Seoul, the site boasts good connections to public transportation as well as a spacious parking lot. Unlike other ordinary commercia

Apr 26, 2023

Hana Financial Group to offer wedding venue for free

Woori Financial Group's net profit up 8.6% on-year in Q1 on increased interest income

Woori Financial Group headquarters in Seoul / YonhapMajor Korean financial holding firm Woori Financial Group said Monday its net profit rose 8.6 percent in the first quarter from a year earlier thanks largely to higher interest income and cost-cutting efforts.Net profit for the three months ended in March rose to 911.3 billion won ($682.6 million) from 839.2 billion won during the same period of last year, the financial group said in a statement.Woori Financial Group attributed the increased net profit to cost-cutting efforts and a rise in interest income amid Korea's monetary tightening to curb inflation.The Bank of Korea raised the country's key interest rate seven straight times from 1.25 percent to 3.5 percent until it froze the rate in February.Woori Financial Group said its net interest margin, or the difference between interest paid and interest received, stood at 1.94 percent in the first quarter, up from 1.73 percent a year earlier. Woori Financial said its non-interest income shrank 13.4 percent on-year to 331.7 billion won in the first quarter due to the won's weakness ag

Apr 24, 2023

Woori Financial Group's net profit up 8.6% on-year in Q1 on increased interest income

Banks step up efforts to improve digital literacy of elderly customers

A row of automated teller machines in Seoul / Korea Times file photoBy Yi Whan-wooMajor commercial banks are bolstering efforts to offer customized services for senior citizens who find adapting to digital banking service platforms difficult amid a sharp decline in the number of offline bank branches.KB Kookmin Bank has been running a special van that moves around community centers in Seoul to help elderly clients better understand how to use digital services that banks now provide as standard.Each Shinhan Bank, Hana Bank and Woori Bank has a special branch where services using smart kiosks and other digital banking devices are simplified compared to other branches.“We believe offline services for elderly people remain crucial despite the transition to digital banking, considering the country's population is aging,” a public relations staff member at a bank said, asking not to be named. Known as the KB Senior Lounge, the van, which is operated by KB Kookmin Bank visits community centers in five districts in Seoul: Jungnang, Guro, Eunpyeong, Nowon and Gangseo every Monday

Apr 24, 2023By Yi Whan-woo

Banks step up efforts to improve digital literacy of elderly customers

Hana, Woori's Russian operations enjoy high profits despite war

A Hana Bank employee arranges bundles of rubles at the bank headquarters in downtown Seoul, in this June 2022 photo. YonhapBy Lee Yeon-wooDomestic commercial banks that have entered the Russian market are seeing their profits soar while manufacturing companies are considering pulling out due to the ongoing war in Ukraine showing no signs of a ceasefire in sight.Hana Bank's Russia operation reported total assets worth 1.28 trillion won ($959 million) for last year, up from 725.6 billion won in 2021. Its operating profit saw a significant surge as well, reaching 16.3 billion won last year ― a whopping 158 percent increase year-on-year. The bank launched its Russian operation in 2014 to expand its international portfolio and support Korean corporations entering the market there.Hana Bank was not the only bank to make significant profits in Russia last year.According to Woori Bank, its Russia operation reported total assets worth 786 billion won last year, up from 522 billion won the year before. The bank's operating profit in Russia also surged by 176 percent compared to the previous ye

Apr 24, 2023By Lee Yeon-woo

Hana, Woori's Russian operations enjoy high profits despite war

Lotte Insurance launches Korea travel insurance for foreign tourists

A promotional image of Lotte Insurance's “let:discover” Korea travel insurance / Courtesy of Lotte InsuranceBy Lee Min-hyungLotte Insurance has launched an insurance product for foreign tourists visiting Korea in partnership with Creatrip, a Seoul-based travel information platform.One key feature of the product is its simple and easy subscription service. Any foreign tourists can subscribe to the insurance by typing in their minimum information ― such as travel period, passport number, name and gender ― in the Creatrip application.Lotte Insurance said it will provide specialized services to foreign customers by increasing the convenience of insurance subscriptions and claims. In the event of an insurance accident, the insured can easily make a claim by mobile device or email before leaving Korea, according to the non-life insurer.Major documents ― including insurance terms and conditions ― will be provided in six languages ― English, Japanese, Cantonese, Taiwanese, Thai and Vietnamese. The insurer also plans to expand the number of languages supported.gettyimagesbankLotte

Apr 24, 2023By Lee Min-hyung

Banking & Finance