Business - The Korea Times

Regulators urge financial groups to minimize interest rate hikes

Financial authorities and financial group leaders held a meeting at the Korea Press Center in central Seoul, Friday. From left, KB Financial Group Vice Chairman Yang Jong-hee, Hana Financial Group Chairman Ham Young-joo, NongHyup Financial Group Chairman Lee Suk-joon, Financial Services Commission (FSC) Chairman Kim Joo-hyun, Financial Supervisory Service (FSS) Governor Lee Bok-hyun, Woori Financial Group Chairman Yim Jong-ryong, Shinhan Financial Group Chairman Jin Ok-dong and Korea Federation of Banks Chairman Kim Kwang-soo. YonhapFSC chief stresses internal control and risk management By Anna J. ParkFinancial authorities have called on major financial group leaders to shield borrowers from the impact of interest rate hikes, urging the companies themselves to absorb the rising costs from global interest rate increases as much as possible. The message came during a meeting between the financial authorities ― top financial regulator Financial Services Commission (FSC) and financial watchdog Financial Supervisory Service (FSS) ― and chiefs of the country's five major financial groups

Mar 31, 2023By Anna J. Park

Regulators urge financial groups to minimize interest rate hikes

Mirae Asset, SK Telecom team up for security token business

Mirae Asset Securities headquarters in central Seoul / Courtesy of Mirae Asset SecuritiesBy Yi Whan-wooMirae Asset Securities has teamed up with SK Telecom to work together on security tokens. A form of cryptocurrency, security tokens can represent fractions of real-world assets such as real estate or equity.The nation's No. 1 securities firm said it signed a memorandum of understanding (MOU) with SK Telecom, the nation's largest wireless carrier, in late March to form a consortium called the Next Finance Initiative.The joint project aims to create a business ecosystem on security tokens by capitalizing on Mirae Asset Securities' expertise in financial investment and SK Telecom's mobile technology. It will also draw on SK Telecom's expertise in Web3, a new kind of internet service based on concepts such as decentralization, blockchain technology and token-based economics.The MOU will allow the two sides to work together on selecting real-world assets that can be traded using security coins and also on developing relevant financial services. “We expect to create excellent result

Mar 31, 2023By Yi Whan-woo

Mirae Asset, SK Telecom team up for security token business

Euromoney recognizes Hana as best Korean bank

Premier League footballer Son Heung-min poses in this promotional image for Hana Bank which won Best Private Bank in Korea 2023 from Euromoney, an internationally-recognized business and finance magazine. Courtesy of Hana BankBy Yi Whan-wooHana Bank has been recognized as Korea's best private bank by Euromoney, a U.K. magazine internationally known for offering information on business and finance, the bank said on Friday.The 2023 honor means that Hana Bank has won the Best Private Bank in Korea category more times than any other bank. The company has won the category 16 times so far, with the first one coming in 2005.In addition, the company was also named the best private bank in digital innovation this year.“The honors we received this year show that we excel in wealth management,” the company said.It noted that Euromoney gave it credit for its art-related banking services, digital asset management and contactless consulting services for wealthy customers.“We will constantly make efforts to offer tailor-made services for our customers in the face of a rapidly-evol

Mar 31, 2023By Yi Whan-woo

Euromoney recognizes Hana as best Korean bank

4 candidates nominated for Woori Bank CEO post

Woori Financial Group Chairman Yim Jong-ryong speaks during an opening ceremony of a branch intended to serve senior citizens in Seoul, Thursday. YonhapBy Anna J. ParkAfter Woori Financial Group swore in Yim Jong-ryong as its new chairman last week, attention is now focused on who will lead Woori Bank. The leading post at the banking subsidiary of Woori Financial Group has been empty for nearly a month, following the sudden resignation of former Woori Bank CEO Lee Won-duk early this month. The financial group's executive recommendation committee has recently confirmed a list of four nominee candidates for the CEO post of the bank ― corporate and investment banking division managing director Kang Shin-kook, local business division managing director Lee Seok-tae, Woori Card CEO Park Wan-sik and Woori Financial Capital CEO Cho Byung-kyu. All born between 1964 and 1965, the four candidates started their careers at either the Commercial Bank of Korea or Hanil Bank, both of which are former institutions of the current Woori Bank. Since the two banks merged in 1998, Woori Bank has been led

Mar 30, 2023By Anna J. Park

4 candidates nominated for Woori Bank CEO post

KT&G triumphs over activist funds

KT&G CEO Baek Bok-in speaks at the 36th annual shareholders meeting held at the Human Resources Development Institute in Daejeon, Tuesday. Courtesy of KT&GShareholders opt for tobacco firm's future growth over higher dividendsBy Anna J. ParkKorea Tobacco & Ginseng Corporation (KT&G) management has succeeded in defending itself from activist fund investors' demands at its annual shareholders' meeting earlier this week. The tobacco company's shareholders voted down all proposals suggested by activist funds, except their agenda item calling for quarterly dividends. Instead, shareholders of KT&G approved all agenda points raised by the firm's board at the annual shareholders meeting held in Daejeon on Tuesday. As activist fund investors' suggestions for board members were also all voted down, the leadership of incumbent CEO Baek Bok-in is expected to be strengthened. For the dividend payout, 68.1 percent of shareholders voted for the board's suggested 5,000 won ($3.85) per share, confirming management's original plan. Flashlight Capital Partners' (FCP's) proposal of a

Mar 29, 2023By Anna J. Park

Kakao Pay officially launches ESG committee

The headquarters of Kakao Pay located in Seongnam, Gyeonggi Province / Courtesy of Kakao PayBy Anna J. Park Kakao Pay has officially set up its ESG committee under its board, laying a solid foundation for the sustainable growth of the mobile payment firm. The mobile payment subsidiary of big tech firm Kakao announced Wednesday that the launch of the ESG committee came 10 months after the company kicked off a preparatory move to initiate the committee under its board.The incumbent CEO of Kakao Pay, Shin Won-geun, is to lead the ESG committee as chair, aiming to develop unique, sustainable management strategies for the firm.The new committee plans to draw up sustainable growth strategies and risk management policies and will publish annual reports on sustainability and corporate governance. The committee also plans to strengthen communication with shareholders, investors and customers as well as regional communities. “With the ESG committee, the company will strive to lead ESG management in the fintech industry by putting continuous efforts into it,” CEO Shin said. Kakao Pa

Mar 29, 2023By Anna J. Park

Kakao Pay officially launches ESG committee

KB wins highest ESG rating from MSCI

By Lee Min-hyungKB Kookmin Bank headquarters in Seoul / Courtesy of KB Kookmin BankKB Financial Group has won the highest rating of AAA in MSCI's 2022 environmental, social and corporate governance (ESG) evaluation, the company said Wednesday.According to KB, MSCI conducts a seven-grade ESG management evaluation on listed companies around the globe. Only about the top 6 percent of 198 banking industry players here and abroad can achieve the top rating, KB said.“KB won the top rating for the first time among Korean financial companies,” a spokesman at KB said. “We will keep fulfilling our social responsibility and enhance our role in ESG management.”The latest feat was the result of KB's diverse group-wide ESG efforts ― including its drive to become a carbon-free financial holding company ― KB said. The company displayed outstanding performance in evaluation areas such as corporate governance, eco-friendly finance and customer protection.One of KB's representative ESG initiatives is the Green Wave 2030 strategy. Under the drive, the company pledged to expand it

Mar 29, 2023By Lee Min-hyung

Will KB be 1st bank to set foot in other industries?

gettyimagesbankBy Lee Yeon-wooFinancial authorities are set to decide on Thursday whether to grant formal approval to KB Kookmin Bank's mobile phone services, despite opposition from local carriers. If approved, this would be the first instance of a bank being allowed to expand into other industries.The Financial Service Commission (FSC) will hold a committee meeting on Thursday to discuss the approval of Livv M, a mobile virtual network operator (MVNO) offered by KB Kookmin Bank, according to sources.Promotional image of Liiv M, a mobile virtual network operator (MVNO) offered by KB Kookmin Bank / Courtesy of KB Kookmin BankUnder the country's Banking Act, financial companies are not allowed to own non-financial subsidiaries. However, in 2019, the service was recognized as an “innovative financial service” and guaranteed exception from regulations for a maximum of four years. April 16 is the closing date of the demonstration.Market watchers are anticipating approval.The service has received positive market evaluation due to its competitive pricing, made possible because

Mar 29, 2023By Lee Yeon-woo

Will KB be 1st bank to set foot in other industries?

Will dismantling oligopoly result in successful bank industry reform?

Experts advise gov't to focus on overhauling corporate governanceBy Yi Whan-wooThe government's drive to dismantle Korea's oligopolistic banking industry structure is raising questions over the consequences of such reforms in the face of increasing turmoil in global financial markets this month.Financial authorities want to dismantle the market dominance held by a handful of large banks by bringing in more competition, in a bid to prevent mainstream players from reaping excessive profits while being lax on serving customers responsibly.Under the circumstances, the global banking turmoil sparked by the sudden collapses of Silicon Valley Bank (SVB) in the United States and Credit Suisse in Europe hint that the government's anti-oligopoly campaign can rather backfire or disrupt the positive influence of large banks.Experts said the bankruptcy of startup-focused SVB, March 10, displayed risks associated with creating smaller yet specialized lenders ― a possible solution brainstormed by the administration of President Yoon Suk Yeol to diversify the banking sector.In the case of Credit Sui

Mar 29, 2023By Yi Whan-woo

Will dismantling oligopoly result in successful bank industry reform?

Samsung Pay partners with Hana Financial to issue student IDs

An image of a high school student's ID issued by Hana Financial Group is shown in the Samsung Pay application. / Courtesy of Samsung ElectronicsBy Anna J. Park Samsung Pay can now feature a student ID in its mobile application, as it partners with Hana Financial Group to strengthen its digital wallet functions. The move is part of a series of steps that Samsung Pay is taking to expand its versatility, following Apple Pay's recent launch in Korea. Samsung Electronics, the operator of Samsung Pay, and Hana Financial Group announced Tuesday that they formed a strategic partnership earlier this week to cooperate on the digital wallet project. The two companies will work jointly on activating mobile ID functions, such as student IDs and employee IDs, with further plans to launch a futuristic model of financial services. With the strategic agreement, students of 108 high schools across the country partnered with Hana Financial as their main financial company will be able to use their student IDs through Samsung Pay, if the schools decide to do so. Students can use the mobile ID to access t

Mar 28, 2023By Anna J. Park

Banking & Finance