Business - The Korea Times

Mirae Asset's IFC purchase plan could fall through

gettyimagesbankMirae Asset explains 75% of capital raised, dispels market doubts By Anna J. ParkAs Mirae Asset Global Investments' plan of raising the necessary capital for the purchase of International Finance Center (IFC) Seoul, it faces unexpected stumbling blocks leading some financial industry watchers to cautiously speak of the possibility that the acquisition could fall through as the investment company still searches for an alternative plan to raise 4.1 trillion won ($3 billion) for the purchase deal, Tuesday.The firm originally planned to raise about half of the money by establishing a REIT, or real estate investment trust. But the option had to be scrapped, as the government put the brakes on REITs. The country's land ministry recently did not give the green light for Mirae Asset's planned REIT, owing to an excessive proportion of debt in the trust's structure. The land minister pointed out the REIT's structural design of raising 2.1 trillion won through debt while assigning the other 2 trillion won through equity investment represents an unbalanced weight of excessive debt

Aug 23, 2022By Anna J. Park

Mirae Asset's IFC purchase plan could fall through

E-grocery giant Kurly gets preliminary nod for public offering

Seen above is Market Kurly's reusable box called “Kurly Purple Box.” Courtesy of KurlyKurly Corp., the operator of South Korean e-grocery platform Market Kurly, received preliminary approval for its push for an initial public offering (IPO) Monday. The approval by the Korea Exchange (KRX) came about five months after Kurly filed for a preliminary review of its IPO plan in late March.Kurly earlier sought to complete its stock listing in the first half, but the review process has been delayed apparently due to worries over its "unstable" ownership structure in which its founder has a small stake, along with continuing losses from its business.Kurly reportedly included in its IPO plan with the KRX the promises from its financial investors to maintain their holdings in the company for a certain period.Launched in December 2014, Kurly has appealed to customers by providing early morning deliveries of fresh foods through its e-grocery platform, Market Kurly. Last year, Kurly posted sales of 1.56 trillion won ($1.16 billion) and an operating loss of 213.9 billion won. But it rep

Aug 22, 2022

E-grocery giant Kurly gets preliminary nod for public offering

SOCAR shares tumble on 1st day of trading amid downbeat market moods

SOCAR vehicles are parked near Seoul Station in Seoul, Aug. 22. YonhapSouth Korea's largest car-sharing platform operator, SOCAR Inc., fell far below its initial public offering (IPO) price on its first day of trading in the face of unfavorable market conditions. SOCAR closed at 26,300 won ($19.56) won on the main bourse, down 6.07 percent from the 28,000 won opening price, which was the same as the IPO price set earlier this month. Its stock price rose to as high as 29,150 won at one point but soon turned south and extended the losses as the market drew to a close. The fall on its first day of trading far underperformed the Korea Composite Stock Price Index's 1.21 percent decline. SOCAR's stock market debut came amid a slew of unfavorable market conditions, including growing borrowing costs and worries over a global economic slowdown.Its management earlier decided to go ahead with the plan to take the company public despite such unfavorable market conditions, voicing confidence it would successfully complete the planned IPO, citing its stellar performance in the car-sharing market i

Aug 22, 2022

SOCAR shares tumble on 1st day of trading amid downbeat market moods

Woori Financial joins international partnership on biodiversity protection

A promotional image for Woori Financial Group joining the Partnership for Biodiversity Accounting Financials (PBAF) / Courtesy of Woori Financial GroupBy Yi Whan-wooWoori Financial Group said Monday it joined the Partnership for Biodiversity Accounting Financials (PBAF), becoming the first Asian company to join the group of more than 20 banks worldwide committed to measuring and reporting the impact of their loans and investments on biodiversity. The banking group expressed hope for participating in developing international standards concerning the assessment of biodiversity-related efforts as well as for raising international awareness toward such efforts. “Damage to the natural ecosystem can deal a blow to financial and business activities and can inflict losses on investors,” Woori Financial Group Chairman and CEO Son Tae-seung said in a press release. “Taking this into account, our company will put the utmost efforts into easing risks concerning the natural ecosystem and help it recover,” he said.Founded in 2019, the PBAF includes ASN Bank, ABN AMRO Bank,

Aug 22, 2022By Yi Whan-woo

Woori Financial joins international partnership on biodiversity protection

RCI Financial Services Korea appoints new CEO

By Yoon Ja-youngRCI Financial Services Korea, a specialized automotive finance affiliate of Renault Group and Renault Korea Motors, announced on Monday that it has appointed Alexander Zhurkin as its new CEO. RCI Financial Services Korea CEO Alexander Zhurkin / Courtesy of RCI Financial Services KoreaRecognized for his achievements as a business development expert and global strategist, Zhurkin has more than 20 years of professional experience in Europe, North America and Russia through Philip Morris Russia and Nissan Finance.After joining Renault-Nissan Alliance in 2007, he worked for Nissan Motor Acceptance Corporation before moving to Renault Group to serve as sales and marketing manager for the United Kingdom. He joined Renault Group Russia as operations director in 2010 and managed the development of markets in Central Asia. In 2014, he moved to the RCI Bank and Services' Headquarters of Renault Group in France, serving as the deputy director of International Projects and Partnership Nissan. Prior to joining the Korea office, he served as the CEO of RCI Bank and Services Ireland.

Aug 22, 2022By Yoon Ja-young

RCI Financial Services Korea appoints new CEO

Unionized financial services workers to strike next month

Unionized members of the Korean Financial Industry Union hold a street rally in Mapo District, Seoul, in 2016. Korea Times fileBy Lee Kyung-min The unionized members of the Korean Financial Industry Union, encompassing state-run and commercial lenders, have decided to go on strike, Sept. 16, according to the union, Sunday. They say the collective action is inevitable unless their demands are met, including: a 6.1-percent salary increase, the reduction of their work hours to 36 hours a week and the scrapping of plans for bank branch closures. The strike will be met by criticism, largely because the demands of white-collar office workers with an annual salary average of 100 million won ($74,850) or over could be seen as “selfish” in the eyes of borrowers with spiking interest rates. Commercial lenders have thrived over the past few years on the back of ultra-low rates for mortgage and unsecured loans brought on by emergency expansionary monetary policies.Financial Supervisory Service data submitted to Rep. Kim Jong-min of the main opposition Democratic Party of Korea, a mem

Aug 22, 2022By Lee Kyung-min

Unionized financial services workers to strike next month

Outlook dim on SOCAR's post-IPO valuation

SOCAR CEO Park Jae-wook speaks during a press conference on its initial public offering in Seoul, Aug. 3. YonhapBy Lee Min-hyungOutlook remains murky over the post-initial public offering (IPO) stock movements of SOCAR, the largest car-sharing app operator in Korea, amid weaker-than-expected demand from investors and uncertain macroeconomic conditions here and abroad, analysts said. The company plans to go public on Monday after fixing its IPO price at 28,000 won ($21) per share early this month. This price was far below earlier expectations of the firm's estimated price range of between 34,000 won and 45,000 won.But the firm's stock price is forecast to be weak even after the listing on the benchmark KOSPI, as few institutional investors have submitted a document in which they commit to not selling SOCAR shares for a certain period of time.About 67 percent of all issued shares will be allocated to institutional investors, and more than 92 percent of them have not reached any agreement on it, which raises concerns that they may engage in a mass selloff of SOCAR shares soon after the

Aug 21, 2022By Lee Min-hyung

Outlook dim on SOCAR's post-IPO valuation

KakaoBank shares plunge on KB block deal

The headquarters of KakaoBank in Pangyo district in Seongnam city, Gyeonggi Province / NewsisBy Anna J. ParkKakaoBank shares nosedived, Friday, with its stock price plummeting 8.17 percent to close at 28,650 won ($21.6). The plunge was mainly attributed to a block deal by KB Kookmin Bank, one of the digital lender's major shareholders. KB Kookmin Bank sold over 14.7 million shares, which is about 38 percent of the bank's entire stake in KakaoBank, for 28,704 won per stock in the block deal during afterhours on Thursday.As a result, KB Kookmin Bank's stake in KakaoBank fell to about 5 percent from the previous 8 percent and it is no longer the third-largest shareholder of the internet-only bank. Previously, KB Kookmin Bank held the third highest stake in KakaoBank, followed by Kakao's 27.2 percent and Korea Investment Value Asset Management's 23.2 percent stake. Now, KB's stake is lower than the National Pension Service's 5.66 percent. KB Kookmin Bank explained that the block deal sale was to improve the efficiency of its capital management, adding that the bank's cooperative relation

Aug 19, 2022By Anna J. Park

KakaoBank shares plunge on KB block deal

Shinhan Financial to support startups to gain foothold in Japan

Shinhan Financial Group Vice President and Chief Data Officer Kim Myung-hee, left, holds a certificate of memorandum of understanding (MOU) with Korea Institute of Startup and Entrepreneurship Development President Kim Yong-moon after signing a MOU jointly to support startups planning to open in Japan at the banking group's headquarters in Seoul, Thursday. Courtesy of Shinhan Financial Group By Yi Whan-wooShinhan Financial Group will support promising startups to set a foothold in Japan as a part of its project to nurture innovative businesses, the company said Friday. It said it signed a memorandum of understanding (MOU) with government-affiliated Korea Institute of Startup & Entrepreneurship Development, Thursday, to provide joint support for startups that plan to open businesses in Japan in the near future.Successful candidates will be selected through the Shinhan Future's Lab project, which has provided 59.5 billion won ($44.8 million) in funding to more than 28

Aug 19, 2022By Yi Whan-woo

Shinhan Financial to support startups to gain foothold in Japan

K bank's IPO up in the air due to valuation discrepancy

The headquarters of K bank in Seoul / Courtesy of K bank By Anna J. Park Despite K bank's strong determination to go public by the end of this year, the digital bank's targeted IPO schedule remains murky due to discrepancies over the lender's corporate valuation seen by the market and the company. K bank has been expecting its corporate value to be estimated at around 8 trillion won ($6 billion). The number came from the internet-only bank's main competitor, KakaoBank, whose market cap stands at around 14 trillion won as of this week. However, the investment banking sector currently views K bank's corporate value at the time of the IPO at around four trillion won at most. Since the gap in the bank's corporate valuation between the two sides is too big, some market watchers forecast that K bank's KOSPI debut within this year could be pushed back to sometime next year. The bank's hopes for the listing could also be discouraged further, considering the weak market sent