Business - The Korea Times

Hana Bank establishes $23 million fund for those hit by energy price hikes

Hana Bank headquarters in Seoul / YonhapBy Lee Min-hyungHana Bank established a fund worth 30 billion won ($23 million) to support the socially vulnerable suffering from escalating financial pressures caused by recent energy price hikes, the lender said Sunday.The bank's labor and management set up the joint fund to help those in need, helping to reduce the financial burden on vulnerable debtors and around 150,000 of the lender's customers, it said.The move is part of the bank's efforts to regain the trust of customers during this period of financial volatility amid steep rate hikes. This year, utility prices ― including gas and electricity bills ― have soared at an alarming pace due to lingering inflationary effects. Understandably, this came as a serious financial burden to most households, as few expected the sudden price hikes.“We will fulfill a healthy role as a representative lender operating customer-oriented services,” Hana Bank CEO Lee Seung-yeul said. “Hana Bank will also establish a culture of co-prosperity between labor and management, and spare no effor

Feb 19, 2023By Lee Min-hyung

Hana Bank establishes $23 million fund for those hit by energy price hikes

Citibank Korea to send highest dividends in 3 years to US headquarters

Citibank Korea's main office in central Seoul is seen through a window in this file photo. Korea Times file By Yi Whan-wooCitibank Korea will hand out 73.2 billion won ($56.3 million) in dividends to its shareholders this year, according to the company and the Korea Federation of Banks, Friday.The amount will mark the highest in the past three years, including 2019 and 2020 when the dividend payouts amounted to 65.2 billion won and 46.5 billion, respectively. The Korean branch of the U.S.-headquartered Citibank did not give dividends in 2021 after posting a net loss of 796 billion won in the phased wind-down of its retail banking business./ “The dividend amount will be confirmed during an annual shareholders' meeting scheduled for March 30,” the company said.It assessed it significantly improved the stability of capital by reducing loan volume and risk weighted assets and maintained the bankin

Feb 17, 2023By Yi Whan-woo

Citibank Korea to send highest dividends in 3 years to US headquarters

Hana Bank to offer 1% cash reward to low-income borrowers

The main entrance of Hana Bank's headquarters in central Seoul is seen through a window in this file photo. Korea Times fileBy Yi Whan-wooHana Bank will reward low-income borrowers with cash that is worth 1 percent of their remaining principal balance after they borrow from the bank under the government's special loan program, the company announced on Friday.The reward will come in line with the Yoon Suk Yeol administration's call on major banks to lessen the financial burden of everyday citizens, many of them struggling with repayments due to steep interest rate hikes. While the high interest rate has burdened the working class, it has also brought record earnings for the lenders, which have been giving out fat paychecks to their employees.“The cash reward reflects our will to share the pains of our customers at a time of economic uncertainty and to act as a responsible member of society,” Hana Bank said in a press release.Beginning in March, those who borrow money from the bank under the government's Sunshine Loan program will receive cash amounting to 1 percent of thei

Feb 17, 2023By Yi Whan-woo

Hana Bank to offer 1% cash reward to low-income borrowers

FTC and FSS cooperate to stem unfair financial contract terms, conditions on consumers

The Fair Trade Commission located in Sejong administrative city / YonhapFinancial regulators team up to pressure firms to improve internal control effortsBy Anna J. ParkThe Fair Trade Commission (FTC) and the Financial Supervisory Service (FSS) have decided to expand their partnership in supervising the internal control initiatives and contractual terms and conditions financial firms apply to their consumers through their products.The deepened cooperation between the two supervisory agencies is expected to lead to a higher level of evaluation expertise, further pressuring financial firms to come up with reasonable and fair contractual policies on products.The two authorities jointly hosted a meeting on Thursday afternoon, with 12 financial companies. They included the six major commercial banks ― KB Kookmin, Hana, Shinhan, Woori, NongHyup and IBK ― four credit card firms and two savings banks. Four key financial industry associations, including the Korea Federation of Banks, the Korea Financial Investment Association, the Credit Finance Association and the Korea Federation of Savings

Feb 16, 2023By Anna J. Park

FTC and FSS cooperate to stem unfair financial contract terms, conditions on consumers

Banking industry ponders ways to share profits with society

A row of automated teller machines in Seoul / Korea Times file photoPresident's remarks corner banksBy Yi Whan-wooCommercial banks are keeping a low profile following President Yoon Suk Yeol's criticism of them for sharing last year's record earnings among themselves while borrowers struggled with repayments due to a steep rate hike. “The banking industry as a whole is considering possible ways to capitalize on sales to directly help out the socially vulnerable, in addition to charity services as carried out through corporate social responsibility activities,” Korea Federation of Banks (KFB) Chairman Kim Kwang-soo told reporters, Wednesday.The KFB announced on the same day that the banking industry will fund more than 10 trillion won ($77.9 billion) for the next three years to share with society, including financing those with low income or low credit ratings. KFB is a lobby group for commercial banks nationwide. The members include the industry's four major players ― KB Kookmin, Shinhan, Hana and Woori ― whose parent groups posted a combined net interest margin ― the dif

Feb 15, 2023By Yi Whan-woo

Banking industry ponders ways to share profits with society

Regulator seeks to break up oligopoly in banking industry

Regulator seeks to break up oligopoly in banking industry

Financial Supervisory Service (FSS) Governor Lee Bok-hyun speaks during a press conference held at the watchdog's headquarters in Seoul on Feb. 6. YonhapPresident urges banks to share burden amid inflationBy Anna J. ParkThe Financial Supervisory Service (FSS) has begun to look into ways to induce further competition in the local banking industry, aiming to break up the current oligopolistic system dominated by five major commercial lenders ― Shinhan, KB Kookmin, Hana, Woori and NH NongHyup.The move follows President Yoon Suk Yeol's criticism earlier this week of local banks paying hefty bonuses to their employees as the public suffers from soaring loan interest rates. “We need to seriously examine various measures that promote further market competition in key banking businesses, including deposits and loans, so that financial consumers could use banking services at more efficient prices,” FSS Governor Lee Bok-hyun said during the watchdog agency's executive director meeting Tuesday, a day after Yoon made the comments at a meeting of senior presidential secretaries on Mon

Feb 15, 2023By Anna J. Park

Regulator seeks to break up oligopoly in banking industry

Banking industry ponders ways to share profits with society

INTERVIEW Activist fund Align aims to dispel Korean stocks' undervaluation

Align Partners CEO Lee Chang-hwan poses at his firm located in Seoul's financial district in Yeouido during a one-on-one interview with The Korea Times on Feb. 2. Courtesy of Align PartnersMission-driven CEO advocates strengthening minority shareholders' rightsBy Anna J. Park Lee Chang-hwan, the CEO of activist fund Align Partners, has recently been a vocal figure in various media outlets, calling on businesses to improve corporate governance and enhance their shareholder return policies.One of the key activist campaigns that he is focusing on aims to get Korea's major financial groups to improve shareholder returns. As a minor shareholder of Shinhan, KB, Hana, Woori and BNK financial groups and the second largest shareholder of JB Financial Group, Lee sent letters to seven banks listed on the Korean stock market, urging them to announce capital allocation frameworks and mid-term shareholder return policies, especially requesting improvements in target shareholder return ratios to over 50 percent.A low propensity for shareholder returns has long been regarded as one of the main reaso

Feb 15, 2023By Anna J. Park

[INTERVIEW] Activist fund Align aims to dispel Korean stocks' undervaluation

Securities firms expand partnership with fraction investment platform operators

Kasa promotes its real estate fractional investment platform at its homepage. Screen capture from Kasa's websiteBy Lee Min-hyungBig securities firms are in a rush to expand their partnership with fraction investment platform operators after the financial regulator granted approvals for the institutionalization of security tokens trading here. Security tokens refer to a kind of blockchain-powered cryptocurrency issued to trade fractions of assets. One major characteristic of the token is that a number of investors can fractionally purchase real estate or artworks by means of the investment.After the Financial Services Commission recently approved of its issuance and distribution, brokerage houses are moving to display their willingness to gain an upper hand in the nascent market by seeking partnerships with existing market players.Hana Securities and Korea Investment & Securities signed a partnership with Lucentblock, a local startup operating a fractional real estate securities trading platform. Kiwoom Securities also clinched ties with eight small market players ― including Kasa

Feb 14, 2023By Lee Min-hyung

Securities firms expand partnership with fraction investment platform operators

Will IPO market recover?

A promotional image of Oasis / Courtesy of OasisLucrative e-commerce platform Oasis drops IPO planBy Anna J. ParkGrocery e-commerce platform Oasis has become the latest Korean company that decided to cancel its initial public offering plans amid unfavorable market conditions since last year.Kurly, a premium grocery e-commerce, ended up dropping its IPO plan in early January, due mainly to a plunging corporate valuation. But, the firm had to give up its plan to list itself on the tech-heavy Kosdaq market, as it announced early this week that it will not seek to go public.“With uncertainties and slowdowns in both internal and external market conditions negatively influencing investment sentiments, Oasis' corporate valuation cannot be appropriately assessed,” an official from Oasis said. “As the sole e-commerce that makes annual profits, we do not find it necessary to push forward the IPO plan,” the official added.During its book-building process conducted in early February, institutional investors thought the company's market-cap of some one trillion won ($780 m

Feb 14, 2023By Anna J. Park

SM shares feared to have reached overvaluation point

Boy group Super Junior of SM Entertainment performs during the firm's online concert on Jan. 1. YonhapBy Lee Min-hyungShares of SM Entertainment are feared to have reached close to an overvaluation point, as escalating uncertainties over the management dispute look to offset the recently-bullish sentiment on the large-cap entertainment stock, analysts said Tuesday. The stock price of SM set a historic high of 118,300 won per share on Monday after an investors' buying spree propelled by hopes on HYBE's possible acquisition of the company. This is an increase of more than 60 percent in less than a month. SM shares closed at 74,300 won as of Jan. 17.But some market analysts share skeptical voices on SM's ability to extend the unexpectedly strong rally momentum, as the high-profile takeover still faces uncertainty due to the ongoing legal dispute between SM founder Lee Soo-man and the firm's management.Local brokerages' consensus on SM's stock price reached around 112 thousand won. Only two securities firms ― eBest Investment & Securities and Kiwoom Securities ― set SM's target stock