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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

SVB collapse adds to woes of NPS' record investment loss

A client receives assistance from a National Pension Service (NPS) employee at an NPS branch office in Seoul's Jongno District, Jan. 27. Korea Times fileBy Yi Whan-wooThe National Pension Service (NPS) had more than 100,000 shares in the Silicon Valley Bank (SVB) that has been suspended from trading as it became the largest U.S. bank to collapse since the 2008-09 global financial crisis, according to industry sources, Monday. The shares owned by the NPS were valued at over $230 million as of the end of 2022.While it is uncertain how many shares the NPS still has, whether it can recover the investment remains doubtful in the wake of the SVB's downfall, adding to public concerns in Seoul after it suffered a record investment loss last year as the state-run pension operator.Public concerns have been rising, especially as the pension fund is expected to be depleted faster over time in the midst of a rapidly aging population. It has been estimated that the fund, which was worth nearly 900 trillion won, might be fully drained by 2055.According to industry sources, the NPS owned 100,795 sha

Mar 13, 2023By Yi Whan-woo
SVB collapse adds to woes of NPS' record investment loss
  • Financial markets show resilience to SVB collapse
  • Biden tells US to have confidence in banks after collapse
  • Bank stocks tumble; others rise on hopes for easier rates
  • Biden promises 'whatever needed' for US bank system

FSC expedites globalization of financial sector

Financial Services Commission Vice Chairman Kim So-young speaks during a taskforce meeting on globalization of Korea's financial industry in Seoul, Monday. Yonhap By Lee Min-hyungThe Financial Services Commission (FSC) pledged Monday to spur the globalization of Korean financial firms and revamp the rules to increase foreign capital inflow to the country.As part of its moves, the authority decided to set up a special team focusing on the tasks amid growing saturation of the local financial market, it said.“Globalization is key for local financial firms to overcome the domestic market saturation and secure new growth momentum,” FSC Vice Chairman Kim So-young said during a task force meeting with a group of financial associations, institutions and research bodies. “We will actively support their overseas expansion and help them widen foreign investment.” The watchdog also promised to ease complex financial regulations to induce more foreign investors to invest here.Ki

Mar 13, 2023By Lee Min-hyung
FSC expedites globalization of financial sector

BOK closely monitoring impact of SVB collapse on markets, economy

Visitors read a message iposted on the lobby door of the Silicon Valley Bank in Santa Clara, California on Saturday, March 11. UPI-YonhapThe Bank of Korea (BOK) said Monday that it will closely monitor any impact of last week's collapse of a U.S. tech startup-focused lender on domestic financial market and economic conditions, though it dismissed worries that the issue could turn into a systemic risk.On Friday, U.S. banking regulators shut down Silicon Valley Bank (SVB) and took control of its customer deposits in the largest failure of a U.S. bank since the 2008 financial crisis. It was followed by the collapse of another U.S. bank, Signature Bank. The regulators have announced measures to protect depositors, a move aimed at stemming the possibility that those events could turn into a systemic risk for the overall banking system and financial institutions. "At this time, the likelihood of SVB and Signature Bank closures spilling over into systemic risk across banks and other financial institutions is not determined to be significant." the BOK said in a release after holding a market

Mar 13, 2023
BOK closely monitoring impact of SVB collapse on markets, economy
  • US stems SVB fallout by backing customer deposits
  • Regulators close Signature bank, say depositors will be made whole
  • Large exposure limits for banks to be extended again amid SVB fallout

UBS, ESK sanctioned for violating short-selling rules

The Financial Services Commission in central Seoul / YonhapBy Anna J. ParkKorea's financial regulators recently imposed a total of 6 billion won ($4.5 million) worth of penalties on two foreign financial companies ― UBS and ESK Asset Management ― for violating local short-selling rules.It is the first time that the financial authorities actually imposed penalties on financial firms for violating short-selling regulations, since the country's capital market act was revised in April 2021 to strengthen short-selling rules. Financial regulators are also currently investigating 10 other local and foreign financial companies for similar violations.According to industry sources, the Securities and Futures Commission (SFC), a decision-making body under the top financial regulator, the Financial Services Commission (FSC), decided last Wednesday to impose fines of 2.18 billion won for UBS and 3.87 billion won for ESK due to illegal short-selling practices. UBS AG was caught by the financial authorities for naked short-selling. The company placed orders in 2021 to sell 7.3 billion won worth of

Mar 12, 2023By Anna J. Park
UBS, ESK sanctioned for violating short-selling rules

How Kakao won takeover battle against HYBE for K-pop pioneer SM

Kakao's logo is seen in its offices in Seongnam, Gyeonggi Province in this undated photo. Courtesy of KakaoKorean K-pop pioneer SM Entertainment is poised to fall under the grip of social media giant Kakao after HYBE, the agency representing boy band BTS, on Sunday dropped a bid to take control.Why is SM attractive? SM, founded in 1995 by Korean folk song singer Lee Soo-man with just 50 million won ($37,600) of capital, was the K-pop industry's trailblazer, preceding two rival agencies ― JYP Entertainment and YG Entertainment ― that sprang up in later years.For more than two decades, the K-pop industry was dominated by the trio until BTS rose to global fame in recent years, making its agency HYBE the largest music label in the country.SM, branded with Lee's initials, is credited with setting the groundwork for K-pop's global success, including the first breakthrough in 2002 when SM artist BoA topped Japan's music charts.After BoA's achievement in Japan, other Korean pop groups began overseas activities in earnest, starting in Asia and later expanding to the U.S. and Western Europe.SM

Mar 12, 2023
How Kakao won takeover battle against HYBE for K-pop pioneer SM
  • HYBE to halt SM takeover bid, seek platform cooperation

JB Financial set for battle against activist fund

JB Financial Group's headquarters in Jeonju, North Jeolla Province / Korea Times file By Lee Yeon-wooJB Financial and activist fund Align Partners are set to face off at the upcoming general stockholders' meeting, as JB Financial rejected proposals from its second-largest shareholder to increase dividends and appoint an outside director.According to JB Financial, the firm will hold a general stockholders' meeting in Jeonju City, North Jeolla Province on March 30 to discuss the agenda regarding profit sharing for 2022. The proposals made by Align Partners will also be voted on during the meeting.Last month, Align Partners proposed that JB Financial increase its dividend from 715 won ($0.54) to 900 won and nominate Kim Ki-seok, the founder of CROWDY, as an outside director. On Thursday, however, JB Financial announced that it was opposed to Align Partner's proposals to increase dividends and appoint an outside director.“We believe that increasing dividends can actuall

Mar 11, 2023By Lee Yeon-woo
JB Financial set for battle against activist fund

BlackRock becomes Samsung Securities' third-largest shareholder

Samsung Securities headquarters in Seoul / Yonhap By Lee Min-hyungBlackRock, the world's largest asset manager, has become Samsung Securities' third-largest shareholder as of the end of February, data showed. According to data from the Financial Supervisory Service, the U.S. investment firm secured a 5.46 percent stake in the Samsung affiliate as of Feb. 28. No other global asset managers possess more than a 5 percent stake in a Korean securities firm.BlackRock already secured around 440,000 shares in Samsung Securities on Feb. 27, but then acquired more than 300,000 shares the following day.Samsung Securities' largest shareholder is Samsung Life Insurance ― holding a 29.62 percent stake in the brokerage house. The National Pension Service is the second-largest shareholder with around a 10 percent stake.

Mar 10, 2023By Lee Min-hyung
BlackRock becomes Samsung Securities' third-largest shareholder

Securities firms find opportunities in tender offer market

gettyimagesbank By Anna J. ParkWith a series of tender offers grabbing recent headlines, local securities firms' investment banking departments seem to be perking up, after months of recessional declines due to plunged asset prices. A tender offer is a type of public takeover bid to purchase some or all of shareholders' stocks in a corporation, inviting shareholders to sell their shares at a specified price within a particular window of time. This year alone, the so-called big four brokerages in Korea ― Mirae Asset Securities, Korea Investment, NH Investment and Samsung Securities ― have already conducted a total of four tender offers so far. This is similar to the number of their tender offers throughout all of last year. In particular, three out of the four tender offer cases were initially brought up amid management rights disputes, triggered by activist funds' shareholder proposals. For instance, the Korea Corporate Governance Improvement (KCGI), a local activi

Mar 10, 2023By Anna J. Park
Securities firms find opportunities in tender offer market

Eximbank donates cars to charity organizations for multicultural families

Export-Import Bank of Korea (Eximbank) Chairman and President Yoon Hee-sung, second from left, poses with other participants during a ceremony to mark its donation of 12 cars to charity organizations at its headquarters in Yeouido, Seoul, Wednesday. Courtesy of Eximbank KoreaBy Yi Whan-wooExport-Import Bank of Korea (Eximbank) donated cars to charity organizations dedicated to supporting multicultural families in Korea, the state-run bank announced on Thursday.The lender said it donated a total of 12 cars, one each to charity organizations for migrant wives, their children and other members of multicultural families across the country.Community Chest of Korea, a Seoul-based non-profit organization, cooperated with Eximbank to choose the charity organizations that need cars.The donation was made in line with Eximbank's campaign since 2011 to improve the well-being of multicultural families. It has donated cars worth 2.2 billion won ($1.67 million) to more than 100 charity organizations nationwide.“Eximbank's campaign hopefully can help multicultural families to successfully sett

Mar 9, 2023By Yi Whan-woo
Eximbank donates cars to charity organizations for multicultural families

Proxy adviser ISS opposes KB union-backed outside director

The lobby entrance of KB Financial Group's headquarters can be seen through a window in Seoul in this file photo. Korea Times fileBy Yi Whan-wooThe Institutional Shareholder Services (ISS), the world's largest proxy adviser, has recommended shareholders of KB Financial Group vote against the nomination of an outside director endorsed by the group's labor union, according to industry sources, Thursday.The ISS' advice came ahead of the annual shareholders' meeting that is scheduled for March 24. If disapproved by shareholders, it will mark the sixth time since 2017 that KB's union failed to get an outside director they endorsed.On Jan. 30, KB's union recommended Lim Gyeong-jong, who formerly headed Koexim Mandiri Finance co-owned by Export-Import Bank of Korea (Eximbank) in Seoul and Pengelola Investama Mandiri Indonesia in Jakarta, as a candidate for the outside director position.Accordingly, it submitted a proposal and a letter that authorizes shareholders to decide on Lim's candidacy on its behalf to the KB board of directors.“And after going over the proposal, ISS said it doe

Mar 9, 2023By Yi Whan-woo
Proxy adviser ISS opposes KB union-backed outside director
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