Business - The Korea Times

Digital insurers face worsening profitability

gettyimagesbankBy Anna J. Park Digital insurance providers appear to be logging worsened financial performances this year, due to fiercer competition as well as their focus on less profitable short-term insurance policies.According to data by the Financial Supervisory Service (FSS), Carrot General Insurance, the country's first digital insurance company launched in 2019, logged a net loss of 14.6 billion won ($11.2 million) in the first quarter of this year, a deteriorating year-on-year performance. The company posted a net loss of 12.4 billion won during the first quarter of last year, and an annual net loss of 65 billion won last year. Hana Insurance, another digital insurance provider launched in 2020, also logged a quarterly net loss of 5.4 billion won in the first quarter, resulting in a deficit ― down significantly from the first quarter of last year's net profit of 1.6 billion won. Kyobo Lifeplanet Life Insurance, a digital life insurer, also saw an increased quarterly loss of 4.5 billion won in the first quarter of this year, from a 4.3 billion won loss posted during the same

Jul 5, 2022By Anna J. Park

Digital insurers face worsening profitability

Banks favor 'MZ generation' celebrities for marketing in digital era

By Yi Whan-wooBanks are hiring celebrities in their 20s or 30s as advertising models, to better appeal to the so-called “MZ generation,” a Korean term referring to millennials and Generation Z. The strategy is believed to be aimed at refreshing banks' brand images amid the rapid transition to digital banking which is preferred by the young generations.A promotional image for Hana Bank's MyData service starring actress Kim Yoo-jung / Courtesy of Hana BankThe banking industry in the past was more open to hiring celebrities across age groups, such as late TV show host Song Hae who starred in Industrial Bank of Korea (IBK) ads before he passed away last month at age 95.On Monday, Hana Bank announced that 22-year-old actress Kim Yoo-jung will be its new featured model, in addition to top Premier League player Son Heung-min who has appeared in the bank's marketing content since May 2018. Son turns 30 this week. “We decided to work with Kim because her lively and friendly image matches with the corporate values that we aspire to,” Hana Bank said in a press release.In

Jul 4, 2022By Yi Whan-woo

Banks favor 'MZ generation' celebrities for marketing in digital era

Vietnam emerges as strategic overseas partner for IBK, Hana

Industrial Bank of Korea (IBK) CEO Yoon Jong-won, sixth from right, poses with State Bank of Vietnam Deputy Governor Doan Thai Son, fifth from right, at the latter's office in Hanoi, June 27. Courtesy of IBKBy Lee Min-hyungThe Industrial Bank of Korea (IBK) and Hana Bank are moving to expand their footing in Vietnam due to the huge growth potential of the country's retail banking industry. Korea's major commercial lenders ― such as Shinhan Bank and Woori Bank ― are already operating subsidiaries in Vietnam and generating stable revenues there. According to data from the Financial Supervisory Service, Shinhan reaped an operating income of 441.1 billion won in its Vietnamese subsidiary last year, up 3.8 billion won from the previous year, despite the global pandemic shock. Woori chalked up an operating income of 97.2 billion won in 2021, up 26 percent from the previous year.Hana and IBK operate some sales offices there, but both of them have yet to receive a license to establish a Vietnamese subsidiary.Reflecting on the rapid growth of the country's financial market, IBK CEO Yoon Jong-

Jul 4, 2022By Lee Min-hyung

Vietnam emerges as strategic overseas partner for IBK, Hana

KB Financial chairman hosts meeting to chart path for 2nd half

KB Financial Group Chairman and CEO Yoon Jong-kyoo speaks during the banking group's strategic meeting for the second half at Grand Walkerhill Seoul hotel in Seoul, Friday. Courtesy of KB Financial GroupBy Yi Whan-wooKB Financial Group Chairman and CEO Yoon Jong-kyoo hosted a strategic meeting to discuss the policy and management direction of the country's largest banking group for the second half, the company announced on Sunday.It said the meeting at Grand Walkerhill Seoul hotel in Seoul, Friday, was attended by all 270 executives of the company, focusing on how to enhance unity and change as it tries to cope with the rapidly-changing banking environment, which now has a greater reliance on digital technology, brought on by the pandemic era.Being the first in-person meeting among all KB executives since the outbreak of the COVID-19 pandemic, it also discussed business challenges posed by soaring inflation and stagnant growth.The company accordingly laid out specific goals for the second half. They are, enhancing its unique, competitive characteristics compared to rivals, expanding

Jul 3, 2022By Yi Whan-woo

KB Financial chairman hosts meeting to chart path for 2nd half

Institutional investors dump Samsung shares amid macroeconomic uncertainty

A Samsung flag flutters in breeze in front of the firm's office building in Seoul. YonhapBy Lee Min-hyungInstitutional investors are engaging in a selling spree of Samsung Electronics shares on protracted fears of an economic recession here and abroad. Samsung shares hit a 22-month low of 55,900 won ($43.13) at one time on Friday. The Samsung fall also dragged down the KOSPI. The main bourse narrowly defended the 2,300-point mark, closing at 2,305.42, down 1.17 percent or 27.22 points. Samsung shares finished at 56,200 won, down 1.4 percent from a day earlier.Market analysts attributed the worsening sentiment to falling DRAM prices and reduced demand for IT devices sparked by multiple overseas risk factors, such as the global economic slowdown and the lockdowns in China's commercial hub of Shanghai.“Shipments of IT devices and smartphones suffered a big slump during the second quarter due to deteriorating global demand caused by the economic slowdown and the aftermath of the lockdowns in China,” Hi Investment & Securities analyst Song Myung-sup said. “If the loc

Jul 2, 2022By Lee Min-hyung

Institutional investors dump Samsung shares amid macroeconomic uncertainty

Shinhan intensifies rivalry with Kakao in digital insurance

Corporate logos of Shinhan Financial Group and Kakao Pay. Courtesy of each firmBy Lee Min-hyungCompetition is intensifying between Shinhan Financial Group and Kakao in the nascent digital insurance market amid sluggish growth in the conventional insurance market.The financial holding firm launched its 16th subsidiary ― Shinhan EZ General Insurance ― on Friday. The company was formerly known as BNP Paribas Cardif General Insurance. Shinhan acquired the firm last November, and has since made drastic changes to its business strategy before the new affiliate debuted here. The new non-life insurance arm of Shinhan is widely expected to compete fiercely with Kakao Pay's digital insurance subsidiary, Kakao Pay Insurance, which will start its business sometime in the third quarter of this year.Both companies are set to focus on selling non-life insurance products online. The new Shinhan affiliate started sales of its first product, which repays subscribers' remaining car loans in case of death or due to suffering from stress disorders after a car accident.Shinhan EZ General Insurance plans t

Jul 1, 2022By Lee Min-hyung

Shinhan intensifies rivalry with Kakao in digital insurance

IBK CEO seeks to help small Korean firms expand in Vietnam

Yoon Jong-won, CEO of Industrial Bank of Korea (IBK), sixth from right, and key officials of the Vietnamese central bank pose for a photo, June 27 (local time). Courtesy of IBKBy Lee Kyung-min Industrial Bank of Korea (IBK) CEO Yoon Jong-won met officials of key state-run and private financial firms of Vietnam to bolster cooperation for greater financing and business expansion opportunities for small Korean ventures and startups, the state-run lender said Friday. During a five-day business trip to the Southeast Asian country, Yoon discussed mid-term financial cooperation projects led jointly by Korean firms and Vietnamese state-run agencies, mostly on ways to establish an ecosystem for small businesses to outline stable profit models. Among the top financial and economic policy officials he met was Deputy Governor of the State Bank of Vietnam (SBV) Doan Thai Son. The IBK plans to open a few more branches in Vietnam, in addition to ones in Hanoi and Ho Chi Minh. New ones will open in industrial complexes and major commercial districts to better accommodate the financing needs of both

Jul 1, 2022By Lee Kyung-min

IBK CEO seeks to help small Korean firms expand in Vietnam

How will Korea-Lone Star dispute end?

The floor where U.S private equity firm Lone Star had its offices is shown in the lobby of the former Star Tower building in southern Seoul in this file photo. Korea Times fileGov't could end up needing to pay $4.67 billion in compensationBy Yi Whan-wooA multi-billion-dollar suit filed by U.S. private equity firm Lone Star against the Korean government is drawing to an end, drumming up interest over how it will turn out after a 10-year legal battle. For the Korean government, losing the suit could mean having to pay $4.67 billion to Lone Star in compensation as the American company has demanded.Lone Star has claimed it reaped less profit than expected in its sale of Korea Exchange Bank (KEB) to Hana Bank in January 2012 due to a delayed approval by the Korean government. The American investor accordingly filed the lawsuit in November 2012.The compensation amount could end up being even higher due to interest accumulated over 10 years.Additionally, the Korean defendant may be asked to bear part of the litigation expenses incurred by Lone Star if it loses the case.“The cost of th

Jun 30, 2022By Yi Whan-woo

Shinhan chief cleared of corruption charges

Shinhan Financial Group Chairman Cho Yong-byoung / Courtesy of Shinhan Financial GroupCho expected to engage in aggressive set of management activitiesBy Lee Min-hyungShinhan Financial Group Chairman Cho Yong-byoung has overcome a major legal hurdle and has extended his term at Shinhan, as the Supreme Court acquitted him on corruption charges in relation to the lender's employee hiring practices. The court issued the ruling on Thursday, thereby clearing the way for the Shinhan chief to serve for a third term.Cho and six other human resources employees at Shinhan Bank were charged with allegedly unfairly influencing the lender's recruitment process in 2018. The prosecution accused them of recruiting the sons and daughters of government officials and lawmakers in a corrupt manner in 2015 and 2016 when Cho was leader of the lender. He has since appealed to a Seoul court to prove his innocence.“The Shinhan chief is widely expected to serve another term with no difficulties after overcoming the legal obstacles,” a financial industry source said. Following the court's decision,

Jun 30, 2022By Lee Min-hyung

Shinhan chief cleared of corruption charges

Lotte Card joins UN Global Compact

Lotte Card CEO Cho Jwa-jin, left, holds a joining certificate issued by U.N. Global Compact at Lotte Card headquarters in central Seoul, Wednesday. Courtesy of Lotte CardBy Anna J. Park Lotte Card has joined the United Nations Global Compact (UNGC) in an effort to strengthen its environmental, social and corporate governance (ESG)-based management activities. According to the firm, Thursday, the card company joined the U.N.-backed voluntary governance framework, which is based on CEO commitments to implement universal sustainability principles and take steps to support U.N. goals.Founded in 2000, the governance framework promotes corporate social responsibility in the areas of human rights, labor, the environment and anti-corruption. Currently, 16,169 companies from 161 countries are participating in the initiative. Participating companies are obliged to submit annual progress reports about their sustainable management efforts.Now Lotte Card has become the country's second credit card company to join the UNGC, following BC Card. BC Card joined as the country's first card firm to part

Jun 30, 2022By Anna J. Park

Banking & Finance