Business - The Korea Times

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

Kyobo chief wins title as global insurance laureate

Meritz Securities sanctioned for capital market act violations

The headquarters of Meritz Securities in Yeouido, Seoul / Courtesy of Meritz SecuritiesBy Anna J. ParkThe Financial Supervisory Service (FSS) imposed a penalty of 2 billion won ($1.52 million) as well as an organizational warning to Meritz Securities for various violations of the Capital Markets Act. The financial authority also advised the firm to reprimand 64 staff members, including suspension of work, cutting wages and issuing warnings, for their diverse violations. According to the FSS, Meritz Securities was given the set of sanctions earlier this week, as a result of the financial regulator's regular on-spot inspection conducted in 2021. The securities company was found to have violated numerous obligations stipulated by the country's Capital Markets Act.For instance, the brokerage company didn't follow procedural rules for selling fund products, such as giving a full explanation on the nature of the risk accompanied when a retail investor purchases a private equity fund product. The company also instructed an employee who was not qualified to sell an investment product to advi

Mar 22, 2023By Anna J. Park

Meritz Securities sanctioned for capital market act violations

Hana Financial Group, CHA Medical Center to jointly tackle low birth rate

Hana Financial Group Chairman Ham Young-joo, second from left, poses with Cha Kwang-yul, third from left, leader of global research at CHA Medical Center, after signing a memorandum of understanding to jointly tackle Korea's low birth rate problem at CHA Bio Complex in Seongnam, Gyeonggi Province, Tuesday. With them are researchers of CHA Medical Center egg bank. Courtesy of Hana Financial GroupBy Yoon Ja-youngAmid the low birth rate pushing the country toward a demographic cliff, Hana Financial Group announced that it will tackle the problem jointly with CHA Medical Center, a globally known institute in the field of infertility treatment. Hana Financial Group said it signed a strategic business agreement with CHA Medical Center at the CHA Bio Complex in Seongnam, Gyeonggi Province, Tuesday.Through the agreement, the financial group and the medical center will expand cooperation in diverse areas, including bolstering support for the group's female employees undergoing fertility treatments, special checkups or egg freezing.The support is scheduled to be expanded to include not only Ha

Mar 22, 2023By Yoon Ja-young

Hana Financial Group, CHA Medical Center to jointly tackle low birth rate

Apple Pay service starts in Korea

Hyundai Card Vice Chairman and CEO Chung Tae-young speaks during a press conference held at Hyundai Card UNDERSTAGE in Hannam-dong in Seoul, Tuesday. Courtesy of AppleHyundai Card to focus on expanding affiliated stores for wider use of Apple PayBy Anna J. ParkApple began its near-field communication (NFC) based mobile payment service, Apple Pay, in Korea, Tuesday, under a partnership with Hyundai Card, the country's third-largest credit card company.After registering their cards on Apple Pay, Hyundai Card users can make payments at stores with their iPhones, iPads, as well as Apple Watch. Mac users can also pay through Apple Pay through the Safari web browser. “I met my first iPhone 16 years ago, and it has changed and affected millions of lives, including mine. And I am gladly announcing that Apple Pay, an integral function of iPhone, is finally available for users in Korea. I'd like to thank all of those who put efforts into the launch,” Hyundai Card Vice Chairman and CEO Chung Tae-young said during a press conference held at Hyundai Card UNDESTAGE located in Hannam-do

Mar 21, 2023By Anna J. Park

Shinhan, Woori shine in overseas business

Shinhan Bank's logo is seen outside its headquarters in central Seoul. Korea Times fileBy Yi Whan-wooShinhan Bank and Woori Bank saw an increase in the net profits of their respective offshore businesses last year, driven by strong performances in Southeast Asia, according to data, Tuesday.The Financial Supervisory Service's (FSS) electronic discourse system showed Shinhan Bank's 10 corporate bodies abroad reported a combined net profit of 426.9 billion won ($326.2 million) in 2022, up 66.24 percent from a year earlier.The increase in net profits was mainly attributed to a surge in Shinhan Bank Vietnam's year-on-year earnings, which climbed 53.1 percent to 197.7 billion won in the 2021-22 period.“Shinhan Bank Vietnam focused on localization, especially in retail banking, as well as enhancing contactless banking for remote areas in Vietnam,” the Seoul-headquartered lender said. “We're glad that such customized banking services are paying off in Vietnam.”Woori Bank's logo is seen on a window at its headquarters in central Seoul. Korea Times fileWoori Bank logged

Mar 21, 2023By Yi Whan-woo

Shinhan, Woori shine in overseas business

SVB fiasco pressures banking groups to speed up reforms

By Yi Whan-wooThe bankruptcy of Silicon Valley Bank (SVB) appears to be weighing on Korea's four largest banking groups in the lead-up to their shareholders' meetings scheduled for this week as they come under pressure to commit to reforms.Scheduled for Thursday for Shinhan and Friday for KB, Hana and Woori, the annual shareholders' meetings will come as financial regulators press the banks to manage more responsibly the financial struggles of their customers in the midst of economic unrest.The regulators are especially trying to break the oligopolistic banking system dominated by the four financial groups and are calling for transparency in management and governance structure.The government's “meddling” in private businesses can be controversial in a free market economy. In the case of the banking industry in Korea, however, such “meddling” has been witnessed repeatedly, after the major banking groups prospered through a series of restructuring efforts led by the government since the 1997-98 Asian financial crisis.“Under the circumstances, the U.S. gove

Mar 20, 2023By Yi Whan-woo

SVB fiasco pressures banking groups to speed up reforms

Apple Pay's imminent launch in Korea draws mixed responses

Apple Pay promotional image / Korea Times fileBy Lee Yeon-wooApple Pay is finally set to land in Korea on Tuesday. Despite the intense anticipation surrounding its launch, the service is expected to face challenges for some time due to a lack of necessary infrastructure and service providers.According to industry sources, Apple will release its payment service Apple Pay on Tuesday, a month and a half since the Financial Service Commission (FSC) gave permission to launch the service in February.The service allows Apple users to register their card number on Apple devices, and make payment without carrying plastic cards. Currently, the service is only available to users of Hyundai Card, as other card companies have not yet signed up to participate.The news has raised the number of debit cards issued from Hyundai Card in February by 162,000, or 7.3 percent, compared to January. The number also marked a whopping 40 percent increase compared to a year ago.Its arrival has also had a noticeable impact on the stock prices of companies related to the service. For example, Sungwoo, a producer

Mar 19, 2023By Lee Yeon-woo

Apple Pay's imminent launch in Korea draws mixed responses

Banks pressed to raise loan loss reserves over SVB, Credit Suisse fiascos

ATMs belonging to banks are lined up in a row in Seoul in this file photo. Korea Times file.By Yi Whan-wooMajor banks in Korea are under pressure to set aside more loan loss reserves amid fear of a global banking crisis prompted by the collapse of Silicon Valley Bank (SVB) and the newfound instability of Credit Suisse.Also known as bad debt reserves, loan loss reserves are a partial risk coverage provided by governments to lenders based on the estimated amount of accounts receivable that are at risk of being unpaid by customers.Financial regulators have called on expanding bad debt reserves to prevent the banking system from collapsing. But lenders find this excessive because the amount already more than doubled in 2022 from 2021 as a countermeasure against pandemic-induced economic risks.The risks center on pandemic-hit small business owners and self-employed people who are believed to be on the verge of financial default because of government-granted delays in payment on bank loans as a relief effort.The possible risk of default especially grew as the key interest rate was hiked sh

Mar 17, 2023By Yi Whan-woo

Banks pressed to raise loan loss reserves over SVB, Credit Suisse fiascos

SC, Citibank to send hefty dividends to head offices despite regulator's recommendations

Standard Chartered (SC) Bank Korea CEO Park Jong-bok, left, and Citibank Korea CEO Yoo Myung-soon / Courtesy of SC Bank Korea and Citibank KoreaBy Anna J. ParkMajor foreign banks stationed in Korea plan to send over 230 billion won ($175 million) to their overseas headquarters as dividend payments from last year's business performance. According to the financial industry, Standard Chartered (SC) Bank Korea decided to pay dividends amounting to 160 billion won at their regular board meeting on Thursday. The amount of dividends will be confirmed at its shareholders' meeting slated for March 31. The British bank posted a net profit of 390 billion won in 2022, tripling its annual net profit for the previous year. Given that SC Bank Korea paid dividends of 49 billion won in 2020 and 80 billion won in 2021, the bank's dividend payment for 2022 has doubled from the previous year.Citibank Korea also decided to pay cash dividends of 73.2 billion won at its regular board meeting held on Wednesday. The U.S. bank will confirm the amount at its shareholders' meeting on March 30, and the money wil

Mar 17, 2023By Anna J. Park

Banking & Finance