Business - The Korea Times

Internet-only banks urged to keep innovating

From right, TossBank CEO Hong Min-taek, KakaoBank CEO Yun Ho-young and K bank CEO Suh Ho-sung participate in a seminar titled “Five Years after the Internet-Only Banks: New Banking, Make Money,” held at the National Assembly, Monday. Courtesy of Rep. Yun Chang-hyun from People Power PartyTossBank, KakaoBank, K bank CEOs pledge further innovationBy Lee Yeon-wooIn 2017, the Korean government approved the launch of internet-only banks, aiming to boost competition in the industry and increase customer convenience. As five years have passed since then, it is time to ask, “Have internet-only banks successfully played their expected roles?” At a seminar titled “Five Years after the Internet-Only Banks: New Banking, Make Money,” held at the National Assembly, Monday, experts acknowledged that these banks have successfully settled in the market with distinctive services. But still, they raised concerns that internet-only banks need to innovate further to disrupt the current oligopolistic banking industry and become true game-changers.“If internet-only

Mar 27, 2023By Lee Yeon-woo

Internet-only banks urged to keep innovating

Hana chairman suggests guidelines for joint prosperity

Hana Financial Group Chairman Ham Young-joo, center in the front row, poses with the firm's executives during their meeting to mark the first anniversary of Ham's term at the banking group's headquarters in central Seoul, Monday. Courtesy of Hana Financial GroupBy Yi Whan-wooHana Financial Group Chairman Ham Young-joo suggested a set of guidelines, Monday, for employees of the banking group and its affiliates to observe for joint prosperity with society. The guidelines came as Ham marked his first year in office, Monday, in the wake of a global banking turmoil that has raised questions about the Korean banking industry's ability to withstand such turmoil and act responsibly.The guidelines consist of four suggested principles. The first is the recovery of public trust which Ham called “a fundamental value to lay the groundwork for joint prosperity.”He underlined that losing public trust was “decisive” in the 36-hour collapse of Silicon Valley Bank (SVB) which has operated for 40 years. The SVB's downfall has triggered concerns over the global banking industry.A

Mar 27, 2023By Yi Whan-woo

Hana chairman suggests guidelines for joint prosperity

JB Financial, KT&G brace for proxy fights at shareholders' meetings

JB Financial Group holds an annual shareholders' meeting at the headquarters of Jeonbuk Bank in March 29, 2019. NewsisMinor shareholders' voices getting louder through proxy votingBy Anna J. ParkMore than seven out of 10 listed Korean companies are set to hold annual shareholders' meetings throughout this week and market watchers are paying particular attention to JB Financial and KT&G, whose annual meetings are expected to become the settings of proxy fights initiated by activist funds. JB Financial Group is facing a showdown in a proxy battle with Align Partners, a local activist fund, at its annual shareholders' meeting on Thursday. Align Partners is the financial giant's second-largest shareholder with a 14.04 percent stake.As a key shareholder, the activist fund has been urging the group to increase dividends since early this year. Yet the group's shareholder return policy announced in early February, deciding to pay 715 won ($0.55) of dividend per share, failed to satisfy the activist fund's demand, prompting it to submit a shareholder proposal urging the group to pay 900 w

Mar 26, 2023By Anna J. Park

JB Financial, KT&G brace for proxy fights at shareholders' meetings

Banks at loss over regulator's demands contradictory to upcoming key rate hike

Financial Supervisory Service Governor Lee Bok-hyun, second from right, speaks at the meeting held at Shinhan Bank's headquarters in Seoul, Friday. NewsisShinhan Bank announces interest rate cut for loans By Lee Yeon-wooWhile banks are announcing plans to lower interest rates on loans one by one following visits by the top financial regulator, concerns are being raised that the “pressure” on the banks to lower interest rates contradicts the recent key interest rate hikes and possibly more rises in the future.Since last month, the Financial Supervisory Service (FSS) Governor Lee Bok-hyun has been making visits to commercial banks, urging them to lower current loan interests and “share the pain felt by the public.”His latest visit was to Shinhan Bank in Seoul, Friday. “I'm grateful that banks are announcing a series of voluntary plans for mutual growth. I hope the industry could continue these efforts,” Lee said at the visit.Following Lee's visit, Shinhan Bank announced plans to lower interest rates on several loan products, including housing mortgag

Mar 24, 2023By Lee Yeon-woo

Banks at loss over regulator's demands contradictory to upcoming key rate hike

KB Financial fails again to appoint outside director endorsed by labor union

The headquarters of KB Financial Group in Seoul / Courtesy of KB Financial GroupBy Lee Yeon-wooAn outside director nominee endorsed by the labor union of KB Financial Group was once again unsuccessful in securing enough votes at the general shareholders meeting. The nominee in question, Lim Gyeong-jong, was rejected as an outside director at the general shareholders meeting held at KB's headquarters in Seoul, Friday. He previously served as the head of Koexim Mandiri Finance, which is co-owned by Export-Import Bank of Korea (Eximbank) and the Pengelola Investama Mandiri Indonesia in Jakarta.This marks the sixth time since 2017 in which a labor union-backed candidate for an outside director was rejected at a shareholders meeting.In January, KB Financial Group's union recommended Lim as a candidate for an outside director, citing his ability to normalize sales operations at KB Bukopin Bank, a subsidiary of KB Kookmin Bank in Indonesia.However, the Institutional Shareholder Services (ISS), the world's largest proxy adviser, opposed Lim's appointment and recommended that shareholders vot

Mar 24, 2023By Lee Yeon-woo

KB Financial fails again to appoint outside director endorsed by labor union

Yim Jong-ryong takes office as Woori chairman

Woori Financial Group Chairman Yim Jong-ryong answers questions from reporters at the group's headquarters in Seoul, Friday. Yim was selected as the group's next leader, replacing outgoing leader Son Tae-seung. YonhapBy Lee Min-hyungYim Jong-ryong, a former chief of the Financial Services Commission (FSC), took office Friday as the next chairman of Woori Financial Group under a three-year tenure. He pledged to revamp Woori's corporate culture and enhance the firm's competitiveness by realigning relations between the holding company and its affiliates“I will focus on building a fresh corporate culture, leveling up Woori's competitiveness and reorganizing relationships with our affiliates,” Yim said.?Yim's stepping into the role comes amid a leadership vacuum at Woori Bank after its former leader, Lee Won-duk, recently offered to resign, about nine months before the end of his tenure.?The new chairman also promised to enhance its non-banking portfolio through the acquisition of a securities firm. Woori's lack of securities and insurance arms has been cited as its biggest we

Mar 24, 2023By Lee Min-hyung

Yim Jong-ryong takes office as Woori chairman

BOK to move back into renovated headquarters in central Seoul from late March

The Bank of Korea headquarters in central Seoul /Korea Times fileThe Bank of Korea (BOK) said Friday that it will move back into its headquarters in central Seoul from late this month as over three-year remodeling and reconstruction work has been completed. The remodeling of the BOK's main building and reconstruction of its main annex building have been under way since the second half of 2019. During the period, the BOK temporarily moved most of its offices into a nearby Samsung Life Insurance building, with an office in charge of issuing notes relocated in Gangnam, southern Seoul.The BOK's return to the newly reconstructed headquarters will start from late March and be completed before the end of April, the central bank said in a press release. The schedule for the return of the Gangnam office will be later determined.The BOK said that it will do its best to minimize inconvenience to financial institutions and other customers during the process. In a related move, it plans to relocate offices handling services to customers such as foreign exchange transactions on public holidays. (Y

Mar 24, 2023

BOK to move back into renovated headquarters in central Seoul from late March

Will Credit Suisse cut back investment banking operation in Seoul?

Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland on March 20. Reuters-YonhapSwiss bank absent in bidding for advisory role in HMM deal By Anna J. Park As talks continue over UBS' acquisition of Credit Suisse, questions are being raised about the Korean operations of the collapsed Swiss bank, which has long been known for its unique forte in investment banking (IB), particularly in the M&A market in Korea.Market watchers view that the acquisition will result in a major cut in Credit Suisse's Seoul office personnel, who mostly have strengths in the IB business. This is expected to subsequently create a massive shift in experienced IB professionals in Seoul, once the specifics of the deal take shape by the end of this year. According to media reports and industry sources, the IB section of Credit Suisse's Seoul office is facing major personnel cuts, as UBS has decided to reduce the size of the newly-acquired branch. Sources say that appears to be the reason why Credit Suisse did not participate in a recent bid to select the financial advisor for an estimate

Mar 23, 2023By Anna J. Park

Will Credit Suisse cut back investment banking operation in Seoul?

New chairman takes helm of Shinhan vowing to spearhead growth

Jin Ok-dong, the new chairman of Shinhan Financial Group, waves the company's flag during his inauguration ceremony held at the group headquarters in Seoul, Thursday, Courtesy of Shinhan Financial GroupShareholders' meetings for big 4 financial groups kick offBy Lee Yeon-wooJin Ok-dong, a former CEO of Shinhan Bank, officially took the helm of Shinhan Financial Group and started his tenure on Thursday, according to the financial company. He will serve in the position until March 2026.Jin's appointment was decided at a general shareholders' meeting held at the headquarters of the group in Seoul.“I feel a scary sense of responsibility to lead Shinhan's growth and to resonate with our customers' and shareholders' expectations,” Jin said in his acceptance speech. “I will build a bigger Shinhan inheriting former Chairman Cho Yong-byoung's business direction.”Jin is known as one of the rare self-made men in the industry. He started as a bank clerk in 1980 after graduating from a commercial high school and worked his way up to become the CEO of Shinhan Bank after 39

Mar 23, 2023By Lee Yeon-woo

New chairman takes helm of Shinhan vowing to spearhead growth

Kyobo chief wins title as global insurance laureate

From left are Kyobo Life Insurance's late founder Shin Yong-ho and his son and incumbent Kyobo Chairman Shin Chang-jae. Courtesy of Kyobo Life InsuranceBy Lee Min-hyungKyobo Life Insurance Chairman Shin Chang-jae has been named as the laureate of the 2023 Insurance Hall of Fame for his management philosophy that values people, the International Insurance Society (IIS) said in a statement, Wednesday.“Dr. Shin Chang-jae embodies the spirit of the Insurance Hall of Fame through his innovative management, visionary leadership and people-first approach,” Josh Landau, president of the IIS, said.James Vicker, chair of the IIS Honors program, also spoke highly of Shin's leadership focusing on humanity and environmental, social and corporate governance (ESG).“Dr. Shin's commitment to leading with love, affection and respect for all humans based on stakeholder relationship management has established Kyobo as one of Korea's most successful insurers and a pioneer in ESG and sustainability initiatives,” he said.Shin's father, Shin Yong-ho ― the founder of the insurer ― is

Mar 22, 2023By Lee Min-hyung

Banking & Finance