Business - The Korea Times

KIRI president to serve another term

Korea Insurance Research Institute (KIRI) President Ahn Chul-kyung / Courtesy of KIRIBy Anna J. Park Ahn Chul-kyung, the incumbent president of the Korea Insurance Research Institute (KIRI), has been selected as the research institute's next president this week, after a nine-month delay in appointing the head of the institute.The KIRI president recommendation committee announced earlier this week that current president Ahn will be serving another three-year term. It is the research institute's first time ever to reappoint a president. The appointment will be confirmed at the general assembly meeting of the institute, scheduled for Dec 23. The recommendation committee first started its task back in March this year, selecting three nominees, including incumbent president Ahn for the president of the institute position. The appointment was supposed to be completed by the end of March, as Ahn's term was slated to end in early April. However, the selection process was delayed by nine months. Industry insiders say there has been a request to pause the process by the financial authorities,

Dec 15, 2022By Anna J. Park

KB chooses stability in reshuffle

From left are KB Securities co-CEOs Park Jeong-rim and Kim Sung-hyun and KB Insurance CEO Kim Ki-hwan. Courtesy of KB Financial GroupBy Lee Min-hyungKB Financial Group has carried out a year-end reshuffle of the top management of its eight affiliates, focusing on stabilization by extending the terms of seven incumbent leaders, the company said Thursday. According to the nation's top financial holding firm by market capitalization, KB decided to recommend keeping the seven leaders of its key affiliates ― such as KB Securities, KB Insurance and KB Asset Management ― allowing them to lead the companies for another year until the end of 2023 upon approval at an upcoming shareholders' meeting.The seven leaders include KB Securities co-CEO Park Jeong-rim, who has led the company for almost four years since January 2019. Park is in charge of leading the firm's wealth management business. KB spoke highly of her stable management capability even during this period of financial uncertainty sparked by the U.S. Federal Reserve's rate hikes and stock doldrums.It was also recommended to extend the

Dec 15, 2022By Lee Min-hyung

Hana Financial Group nominates new bank chief

From left are Lee Seung-yeul, Kang Seong-muk and Lee Ho-seoung, the CEO nominees for Hana Bank, Hana Securities and Hana Card. Courtesy of Hana Financial GroupYi Whan-wooHana Financial Group has nominated Lee Seung-yeul, the chief of Hana Life Insurance, as the new CEO of Hana Bank in the first reshuffle of heads of the group's key affiliates after its Chairman Ham Young-joo took office early this year, the company said Wednesday.The group also said it nominated Hana Alternative Asset Management CEO Kang Seong-muk and Hana Bank Vice President Lee Ho-seoung to lead Hana Securities and Hana Card, respectively.Decided by the group's executive candidate recommendation committee, the nomination of the three will need approval from the group's shareholders and board of directors.“The recommendation committee found each nominee as the right man to enhance sales capabilities and risk management at a time when uncertainties grow in the finance industry,” the group said in a press release. “Such uncertainties add to the escalating possibility of a crisis and the nominees are

Dec 14, 2022By Yi Whan-woo

Hana Financial Group nominates new bank chief

KCGI tapped as preferred bidder to acquire Meritz Asset Management

Kang Sung-boo, CEO of KCGI, speaks during a press conference held at GLAD Hotel on Yeouido, Seoul, Feb. 20, 2020. Newsis By Anna J. Park Korea Corporate Governance Improvement Fund (KCGI) plans to acquire Meritz Asset Management, as it was selected recently as a preferred bidder by Meritz Financial Group and NH Investment & Securities, the manager for the sale. The KCGI, an independent private equity firm based in Korea, is currently conducting due diligence prior to signing an official stock purchase agreement (SPA) with Meritz Financial Group, according to the investment banking sector this week. Since the rumor first emerged in November that Meritz Asset would be put on the M&A market, the KCGI had been considered a potential buyer, as it has actively voiced its willingness to acquire the asset manager. Considering Meritz Asset's net asset value is estimated at around 32 billion won ($24.7 million), it is expected to sell for around 50 billion won. Traditionally,

Dec 14, 2022By Anna J. Park

KCGI tapped as preferred bidder to acquire Meritz Asset Management

Banks anticipated to shift away from interest-oriented profit strategy next year

ATMs of local banks are lined up in a row in Seoul in this file photo. Korea Times fileBy Yi Whan-wooThe series of steep rate hikes throughout 2022 have been causing people to take out fewer loans, prompting commercial banks to search for alternative ways to make profits in 2023 after relying heavily on net interest incomes. The total amount of household debt, which stems mainly from housing loans, dropped to 1,058.8 trillion won ($776 billion) as of October from 1,060.7 trillion won in December 2021, according to the Bank of Korea (BOK). This decline in the total amount of household debt comes as the benchmark interest rate was hiked six times in a row this year through November. The base rate stands at an over 10-year high of 3.25 percent, and accordingly, the housing loan rate stands at approximately 7 percent annually.Moreover, the BOK is anticipated to hike the policy rate to up to 3.5 percent in 2023.Customers are in particular refraining from buying homes with bank loans as housing prices are plummeting and their decline is likely to continue through next year.Under the circum

Dec 13, 2022By Yi Whan-woo

Banks anticipated to shift away from interest-oriented profit strategy next year

Eximbank signs MOU with POSCO International for supply chain stabilization

Export-Import Bank of Korea (Eximbank) Chairman and President Yoon Hee-sung, center, poses with POSCO International CEO Joo Si-bo, left, and Yang Joon-ho, an executive of S&S INC, after signing an MOU at the bank headquarters in Yeouido, Seoul, Tuesday. Courtesy of EximbankBy Yoon Ja-youngThe Export-Import Bank of Korea (Eximbank) signed an MOU with POSCO International and S&S INC for the stabilization of supply chains and the growth of small companies.The?trading affiliate of steel giant POSCO has been purchasing car components from small and medium-sized enterprises (SMEs) and mid-tier manufacturers in Korea for export to global car giants such as FCA and GM. S&S INC is one of those local SMEs manufacturing car components that have been exported via POSCO International.Following the MOU, Eximbank will provide 500 billion won in financing by 2025 so as to strengthen the value chains of local businesses in the global supply chain, help balance growth between conglomerates and SMEs and promote exports through its online supply chain factoring program. Specifically, it plan

Dec 13, 2022

Eximbank signs MOU with POSCO International for supply chain stabilization

Hana Securities signs MOU to promote voluntary carbon market

Hana Securities CEO Lee Eun-hyung, right, poses with CIX CEO Mikkel Larsen after signing an MOU at CIX's headquarters in Singapore, Dec. 9. Courtesy of Hana SecuritiesBy Yoon Ja-youngHana Securities signed an MOU with Climate Impact X (CIX), a Singapore-based carbon credits exchange, to promote the voluntary carbon market.Following the MOU on Dec. 9, which was signed by Hana Securities CEO Lee Eun-hyung and CIX CEO Mikkel Larsen at CIX's headquarters in Singapore, the Korean brokerage and CIX agreed to make joint efforts for the successful and stable operation of the voluntary carbon market, including the promotion of an over-the-counter market and auction system.In the voluntary carbon market, businesses or other entities that are not bound by obligations to cut carbon emissions voluntarily trade carbon credits to protect the environment or to strengthen of environmental, social and corporate governance (ESG) management efforts. Hana Securities has been making a preemptive move in this sector to strengthen its foothold, leading efforts to combine this market with finance.“Envi

Dec 13, 2022

Hana Securities signs MOU to promote voluntary carbon market

Yoon's ex-campaign chair appointed to lead NongHyup Financial

By Yi Whan-wooLee Suk-joon, President Yoon Suk-yeol's former campaign chair for the 2022 presidential election, has been appointed to lead NongHyup Financial Group, the company announced on Monday. The company said that Lee's appointment was confirmed by the shareholders and board of directors, Monday, after he was the only candidate to be recommended for the position by its executive candidate recommendation committee earlier the same day.Lee Suk-joon, incoming chairman of NongHyup Financial GroupLee's two-year term will begin on Jan. 1, and he will replace Chairman and CEO Son Byung-hwan, whose term will end a day before.“The members of the nomination committee unanimously endorsed Lee as the candidate after narrowing down the list of potential candidates and conducting multiple stages of interviews with him in a thorough manner,” the banking group said.“Against all the uncertainties faced by the finance industry, the committee considers Lee the right man to guide NongHyup Financial Group in a new direction and map out a new plan for the next 10 years,” it a

Dec 12, 2022By Yi Whan-woo

Yoon's ex-campaign chair appointed to lead NongHyup Financial

Shinhan may undergo generational shift under incoming chairman

Jin Ok-dong, Shinhan Bank CEO and chairman candidate for Shinhan Financial Group / Courtesy of Shinhan BankBy Anna J. ParkAs incumbent Shinhan Bank CEO Jin Ok-dong was tapped early this month to take office as its next chairman in March, markets are focusing now on what changes he will bring to the group's management strategies. If Jin, who is currently the only nominee for the position, is officially approved as the next chairman at the group's shareholders meeting slated for March, he will begin his three-year chairmanship term.Considering that he could be re-elected for consecutive terms following the completion of his first term in March 2026, Jin's chairmanship could be a watershed for Shinhan Financial Group's long-term future growth, leaving huge repercussions for the next decade. Jin's management decisions will immediately impact the group at the end of this year, as a total of 10 heads of Shinhan's diverse subsidiaries, including brokerage, card, capital, venture investment and asset management units, are set to see their terms end this month. Ostensibly, incumbent Chairman

Dec 12, 2022By Anna J. Park

Shinhan may undergo generational shift under incoming chairman

Korea's top 3 banking groups included in Dow Jones Sustainability Indices

From left are the headquarters of KB, Shinhan and Hana Financial Group in Seoul. YonhapBy Lee Min-hyungKorea's three major financial holding firms ― KB, Shinhan and Hana financial groups ― have been included in the Dow Jones Sustainability Indices (DJSI) for their concerted efforts to fulfill environmental, social and corporate governance (ESG) principles, they said, Monday.The three banking groups were recognized for their diverse achievements in ESG management. KB Financial Group was included on the DJSI's World Index for seven consecutive years since 2016, the lender said. Other overseas financial firms that were included in the same category are France's BNP Paribas and Banco Bilbao Vizcaya Argentaria of Spain.“KB was rated highly in various areas ― such as taxation strategy, anti-money laundering, human rights and social contribution ― this year,” a spokesman from the financial company said.KB also said the accomplishment was driven by its group-wide efforts to fulfill ESG management principles.“For the environment, we have set up a specific corporate vision fo

Dec 12, 2022By Lee Min-hyung

Banking & Finance