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Woori Financial 2022 net hits new high on more interest income

The headquarters of Woori Financial Group in central Seoul / YonhapMajor Korean financial holding firm Woori Financial Group said Wednesday its earnings spiked nearly 23 percent on-year to an all-time high in 2022 thanks largely to higher interest income.Net income came to 3.17 trillion won ($2.52 billion) last year, up 22.5 percent from a year earlier, the financial group said in a regulatory filing. Woori Financial Group attributed the robust 2022 profit to a sharp rise in interest income amid Korea's monetary tightening to curb inflation.The group's interest income stod at 8.69 trillion won in 2022, up 24.5 percent from the previous year.Its net interest margin, or the difference between interest paid and interest received, stood at 1.84 percent in 2022, up from 1.62 percent a year earlier.In January, the Bank of Korea raised the benchmark seven-day repo rate from 3.25 percent to 3.5 percent, the seventh straight rate increase since April last year and the highest level since 2008.Woori Financial said its non-interest income shrank 15.4 percent on-year to 1.15 trillion won last ye

Feb 8, 2023
Woori Financial 2022 net hits new high on more interest income

SM's management dispute to benefit Kakao

Corporate logos of SM Entertainment and Kakao Entertainment / Yonhap By Lee Min-hyungKakao's rise to become SM Entertainment's second-largest shareholder will come as a boon for the nation's largest mobile platform operator, as its entertainment subsidiary is expected to generate synergy by using SM's intellectual property, analysts said Wednesday.The analysis came shortly after an overnight decision by top management of SM, which sold its 9.05 percent stake to Kakao. Under the deal, Kakao secured 1.14 million common shares of the entertainment firm.SM Entertainment founder Lee Soo-man expressed fierce opposition to the sale, saying that the move will “escalate a management dispute” against him. Lee holds a 19 percent stake in SM and is the largest shareholder of the company. He said he would hold SM's board of directors responsible for what he called an “illegal” decision by the firm's top management.

Feb 8, 2023By Lee Min-hyung
SM's management dispute to benefit Kakao

Key real estate owned by McDonald's Korea excluded from sale

A McDonald's branch in Seoul / NewsisBy Anna J. ParkMcDonald's Korea is up for sale, but some key pieces of real estate owned by the global fast-food chain in the country have been excluded from the deal.According to investment banking industry sources, Wednesday, three key real estate properties held by McDonald's Korea are not included in the deal currently under negotiation with Dongwon Industries. The holding company of Dongwon Group turned out to be the sole candidate that joined the bidding process last month.Given that McDonald's business model is based on acquiring land in populous commercial areas and leasing it out to franchise partners, real estate owned by McDonald's Korea has been featured as a key attraction of the sale. McDonald's Korea has maintained a vast amount of real estate across the country worth over 206 billion won ($163.5 million), comprised of buildings worth of 69.3 billion won and land worth 136.8 billion won, as of 2021.Market watchers view the decision to exclude some properties from the sale could reflect the intention of McDonald's Corporation to enjo

Feb 8, 2023By Anna J. Park
Key real estate owned by McDonald's Korea excluded from sale

KakaoBank gears up to expand loan business portfolio

KakaoBank's logo is seen in this file photo. YonhapLeading internet-only lender posts record annual revenue for 2022By Lee Min-hyungKakaoBank, the nation's leading internet-only lender, has pledged to expand its loan sales portfolio and attain double-digit growth in its lending business, as part of its key business strategy for 2023, the company said Wednesday, after reporting brisk earnings.According to its regulatory filing, the company posted a record operating profit of 353.2 billion won ($280.58 million) in 2022, up 37.5 percent from the previous year. The robust earnings growth was driven by soaring interest revenue amid global monetary tightening. The firm's interest revenue reached 1.29 trillion won last year, up 64.6 percent from a year earlier.The company expressed a rosy outlook for this year, saying that it expects a more favorable sales environment throughout this year, as was shown by the rapid stabilization of stock markets here and abroad.“KakaoBank is expected to seek more opportunities for growth in loan businesses ― such as loan repayment and lending comparis

Feb 8, 2023By Lee Min-hyung
KakaoBank gears up to expand loan business portfolio

Shinhan Financial 2022 net hits all-time high

The headquarters of Shinhan Financial Group in central Seoul. Korea Times file Shinhan Financial Group said Wednesday that its net profit hit an all-time high last year on the back of increased interest income.Net profit came to 4.64 trillion won ($3.69 billion) in 2022, up 15.5 percent from the previous year, the group said in a regulatory filing.Its revenue grew 35.33 percent on-year to 61.89 trillion won, and operational profit shrank 1.08 percent to 5.89 trillion won.Shinhan attributed the stellar performance to increased interest margins amid the central bank's hawkish rate hikes. Last month, the Bank of Korea raised the benchmark policy interest rate from 3.25 percent to 3.5 percent, the highest level since late 2008, to rein in inflation.In 2022, Shinhan Financial's net interest income jumped 4.1 percent on-year to 10.68 trillion won, with net interest margin (NIM) up 15 basis points to 1.96 percent. But its non-interest income dropped 30.4 percent to 2.53 tri

Feb 8, 2023
Shinhan Financial 2022 net hits all-time high

Shinhan Bank taps new CEO candidate

The photo, provided by Shinhan Bank, shows Shinhan Bank Vice President Jung Sang-hyuk, candidate for the bank's helm. YonhapKorean major lender Shinhan Bank said Wednesday its vice chief was recommended to lead the bank as its incumbent chief executive offered to resign due to health issues. Jung Sang-hyuk will replace CEO Han Yong-gu, who offered to step down last week for medical treatment.Born in 1964, Jung joined Shinhan Bank in 1990 and served at various departments, including management strategy, customer protection and capital markets. His final appointment may be decided in a week, the bank said, after obtaining approval from the bank's CEO recommendation committee and shareholders. (Yonhap)

Feb 8, 2023
Shinhan Bank taps new CEO candidate

KB Financial Group net profit hits new all-time high in 2022

The logo of KB Kookmin bank / YonhapKB Financial Group said Tuesday that its net profit hit an all-time high last year thanks to increased interest income.Net profit of the major Korean banking group came to 4.41 trillion won ($3.51 billion) in 2022, up 0.1 percent from the previous year, the group said in a regulatory filing.The group's net profit has hit an all-time high every year since 2020. KB Financial attributed the yearly gains to increased interest margins amid the central banks' hawkish rate hikes. Last month, the Bank of Korea raised the benchmark seven-day repo rate from 3.25 percent to 3.5 percent, the highest level since late 2008, to tame inflation.KB Financial said its net interest income in 2022 jumped 18.9 percent on-year to 11.38 trillion won, while net commission income decreased 8.4 percent to 3.32 trillion won. In the fourth quarter alone, KB Financial's net profit came to 385.4 billion won, down 39.51 percent from a year ago, according to the regulatory filing.The decline is largely blamed on a one-off cost of 229 billion won in compensating voluntary retirees.

Feb 7, 2023
KB Financial Group net profit hits new all-time high in 2022

Shinhan publishes ESG summary report

By Yi Whan-wooShinhan Financial Group has published a report summarizing its 2022 activities related to environmental, social and corporate governance (ESG) principles, the company announced on Tuesday. The 2023 edition of the ESG summary report comes as Shinhan Financial Group, for the first time in the industry, has begun publishing such reports twice a year. Other financial holding companies publish their reports once a year.Shinhan Financial Group headquarters in central Seoul / Korea Times fileThe latest report covers nine major activities carried out by the nation's second-largest banking group last year as it increasingly put emphasis on ESG values.Among the activities were the development of its own system to measure and keep track of its “financed emissions,” the development of an evaluation model for ESG management and investment in environmental startups. The report this year is noted for its front cover spotlighting artwork by THISABLED, a social enterprise dedicated to making profits for disabled painters.“ESG management is taking root as a new standard

Feb 7, 2023By Yi Whan-woo
Shinhan publishes ESG summary report

Kakao Pay achieves turnaround in annual earnings

Kakao Pay headquarters in Pangyo, Gyeonggi Province / YonhapBy Lee Min-hyungKakao Pay reported an annual net profit of 27.5 billion won ($21.87 million) for 2022, Tuesday, powered by financial revenue growth, marking the first earnings turnaround since its establishment.But the company said its operating loss widened during the same period to 45.5 billion won, up 67.2 percent from the previous year, hit hard by a service blackout following a fire that broke out at its data center in October. In the fourth quarter alone, the company reported an operating loss of 22.2 billion won.“Our earnings have been affected by an economic slowdown, market criticism [directed at management officials who cashed in on their stake holdings] following our initial public offering, and the data center fire,” Kakao Pay CEO Shin Won-geun said during a conference call. “All the members of Kakao Pay will identify such factors as an opportunity for us to reflect on our innovative growth.”The mobile payment service operator also pledged to enhance profitability by diversifying its reven

Feb 7, 2023By Lee Min-hyung
Kakao Pay achieves turnaround in annual earnings

New Shinhan Bank CEO resigns due to health reasons

By Yi Whan-wooShinhan Bank CEO Han Yong-gu stepped down just a little more than a month after taking office, the lender announced Monday.It said Han, who is in his 50s, cited his health as the reason for his resignation last week.Former Shinhan Bank CEO Han Yong-gu / Courtesy of Shinhan Financial Group“The company accepted his resignation as he is anticipated to undergo medical treatment for a long period of time, and minimizing the leadership vacuum is necessary,” the bank said. It said its management committee will convene a meeting “at the earliest date possible” to recommend candidates for a new CEO. “Our decision has been made swiftly in pursuit of stable growth and unwavering sales,” the bank said.Han was appointed as the CEO for a two-year term during Shinhan Bank's annual reshuffle of top management late last year.He succeeded Jin Ok-dong who was promoted to chairman of Shinhan Financial Group, the bank's parent company.The banking group at the time expressed hope that Han's insights and acumen on sales, risk management and communication sk

Feb 6, 2023By Yi Whan-woo
New Shinhan Bank CEO resigns due to health reasons
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