Business - The Korea Times

ESG drive in full swing among private equity firms

gettyimagesbank MBK Partners, Hahn & Company well prepared for strengthened ESG criteria By Anna J. ParkAs environmental, social and corporate governance (ESG) has been a key concept in the global business world in recent years, private equity investment is also placing more emphasis on these transformational elements.This year is particularly expected to witness such heightened significance in the local private equity sector, as the country's major limited partners ― institutional investors who arrange and invest the capital for funds ― such as the National Pension Service (NPS) and Korea Development Bank (KDB) begin to evaluate ESG considerations as key requirements when selecting their general partners ― those responsible for making investment decisions.KDB, for instance, plans to start giving extra points this year to the ESG efforts of private equity firms (PEFs), when selecting general partners for their policy-oriented funds. It also conducted assessments la

Feb 18, 2022By Anna J. Park

ESG drive in full swing among private equity firms

Banking group CEOs capitalize on record earnings to resume global marketing campaigns

U.S. investment bank Morgan Stanley, pictured in this 2008 file photo, invited CEOs of Korea's four major banking groups to an investor relations meeting last week. Korea Times file By Yi Whan-wooThe chiefs of the country's four largest banking groups are capitalizing on record earnings to resume global marketing campaigns, which were mostly suspended after the start of the pandemic in 2020, aiming at highlighting how lucrative their businesses are.In their latest move, they have been participating in investor relations meetings hosted separately by U.S. investment banking companies Morgan Stanley and J.P. Morgan since last week.According to the financial groups, Friday, the closed-door meetings have been held online, with the CEOs of the three financial groups ― Yoon Jong-gyu of KB, Cho Yong-byoung of Shinhan and Son Tae-seung of Woori ― participating. Hana's Chief Financial Officer (CFO) Lee Hoo-seung represented the company on behalf of its outgoing Chairman and

Feb 18, 2022By Yi Whan-woo

Banking group CEOs capitalize on record earnings to resume global marketing campaigns

Nascent insurance units behind banking groups' record profits

Employees of KB Financial Group, the country's largest financial services provider, return from break in front its headquarters on Yeouido, Seoul, in this photo taken in 2018. Korea Times file By Yi Whan-wooMajor banking groups have been seeing record profits thanks to the contributions from their new insurance affiliates. The profitability of the insurers is accordingly prompting Woori Financial Group, the country's only financial services company without any insurance business units, to go on the lookout for insurance firms to acquire after it completed its full privatization successfully last year.KB Financial Group, the largest of the big 4 financial services providers including Shinhan and Hana, saw its net income surpass the symbolic 4 trillion won ($3.34 billion) for the first time last year. The record earnings included the 336 billion won net profit posted by Prudential Life Insurance Company of Korea, which KB Financial Group acquired in September 2020. Co

Feb 18, 2022By Yi Whan-woo

Nascent insurance units behind banking groups' record profits

Osstem Implant case forwarded to KRX's corporate evaluation committee

Osstem Implant headquarters in western Seoul / YonhapBy Anna J. ParkThe stock trading suspension on Osstem Implant will not be lifted for the time being, as the country's bourse operator Korea Exchange (KRX) opted to send the case for further deliberation to decide whether the company should be delisted from the Kosdaq market.Osstem Implant CEO Um Tae-kwan / Courtesy of Osstem ImplantTrading stocks of the country's top dental implant materials manufacturer has been suspended since Jan. 3, as the company disclosed that an employee had embezzled some 221 billion won ($184 million) of company money. Since the suspension, the KRX has been looking into the case to determine whether it should be sent to the bourse operator's corporate evaluation committee for further deliberation regarding the matter of delisting. “Within the next 20 days from the notice date of the decision, the KRX's corporate evaluation committee will make a decision on whether the company should be delisted or instead given a grace period to improve its status,” the KRX's official statement on the matter sa

Feb 17, 2022By Anna J. Park

Osstem Implant case forwarded to KRX's corporate evaluation committee

Gopax partners with Jeonbuk Bank

Gopax CEO Lee Jun-haeng / Courtesy of Streami (Gopax) By Anna J. Park Cryptocurrency exchange Gopax has taken a meaningful step by becoming one of the major coin exchanges in the country, successfully partnering with Jeonbuk Bank for the verification of its account holders' real names.The financial authorities required local cryptocurrency exchanges last year to partner up with commercial banks to verify the real identities of account holders, in a move to regulate the country's cryptocurrency market in a more transparent manner. Gopax is one of the country's early major coin exchanges, established by its CEO Lee Jun-haeng in 2016, even earlier than the country's current largest cryptocurrency exchange Upbit opened in 2017. Despite its early start, the coin exchange struggled to find a commercial banking partner. It had negotiated with various banks including Jeonbuk Bank last autumn to meet a deadline set by the financial authorities, but failed to secure a partner

Feb 17, 2022By Anna J. Park

SC Bank Korea inks sustainable financing deals with POSCO Chemical, L&F

The logo of Standard Chartered (SC) Bank Korea is seen on its branch office in Seoul in this undated photo. Korea Times fileBy Yi Whan-wooStandard Chartered (SC) Bank Korea said Thursday it signed trade receivables discounting (TRD) deals with POSCO Chemical and L&F, as part its efforts to support their green campaigns. TRD is a mechanism for boosting sustainability in trade finance, in which a seller or a supplier provides its products to a buyer and assigns the accounts receivables to a bank. In return, the bank makes payments to the seller in advance and receives payments from the buyer at a later date.It generally takes months for a seller to receive payment after supplying goods. But TRD can shorten the payment period, enabling the seller to receive payments early and increase sales efficiency. The mechanism is in line with the global bandwagon for environmental, social and corporate governance (ESG) management. POSCO Chemical and L&F are both suppliers of electric battery (EV) materials, with the former being the secondary battery materials arm of steel giant POSCO and

Feb 17, 2022By Yi Whan-woo

SC Bank Korea inks sustainable financing deals with POSCO Chemical, L&F

Mobile lenders tap into business loans market

A receptionist is seen working at the entrance of Toss Bank, one of the country's three mobile-only lenders, at its headquarters in southern Seoul, in this photo taken in October 2021. Toss Bank was the first among three online lenders to introduce business loan services, Feb. 14. Korea Times fileBy Yi Whan-wooMobile-only banks, which have mostly relied on credit loans, are advancing to the market for business loans in an effort to diversify revenue streams. The efforts come as the government commits to curbing the snowballing household debt with toughened loan regulations.Toss Bank was the first among the three online lenders, including KakaoBank and K Bank, to launch loan services, Feb. 14, for business owners with a floating interest rate in the low- to mid-3 percent range.In announcement on Feb. 15, KakaoBank said it will introduce the so-called small office/home office loans (SOHO) in the second half of the year. The SOHO, according to the banking arm of tech giant Kakao, is aimed at supporting cash-strapped small business owners, including those working from home or renting a s

Feb 17, 2022By Yi Whan-woo

Mobile lenders tap into business loans market

Hana breaks ground for new headquarters in Incheon

Hana Financial Group Chairman Kim Jung-tai, center, and officials from the company and Cheongna International City, hold shovels in a groundbreaking ceremony of Hana's new headquarters in Cheongna, Incheon, Tuesday. Courtesy of Hana Financial Group.By Lee Min-hyungHana Financial Group held Tuesday a groundbreaking ceremony for its new headquarters in Cheongna International City in Incheon, with a view to bringing the group's digital infrastructure into the new office space.Hana is set to complete construction of the new group headquarters by February 2025. Officials from six major affiliates of the financial firm will move into the office after its completion. They include Hana Bank, Hana Financial Investment, Hana Card and Hana Insurance, according to the financial holding firm.The move is part of Hana's group-wide vision of strengthening its digital capabilities amid the rise of digital banking. The nation's third-largest financial holding firm by market capitalization hopes to become a customer-oriented and data-powered financial service provider, upgrading its decades-long image

Feb 16, 2022By Lee Min-hyung

Hana breaks ground for new headquarters in Incheon

KakaoBank strengthens platform business as core growth strategy

KakaoBank CEO Yun Ho-young speaks during an online press conference on Tuesday. Courtesy of KakaoBankBy Anna J. ParkKakaoBank, the country's number one mobile-based bank, has declared its growth strategy for 2022 will focus on strengthening its platform business which continues to serve as its core growth driver.During an online press conference on Tuesday, CEO Yun Ho-young stressed the bank's platform business will continue to be at the center of its growth.“KakaoBank's monthly active users (MAU) have reached 15.3 million people, which is the 14th highest figure among all mobile applications in the country. This huge growth in MAU has been a solid foundation for the bank's platform business and further growth based on that foundation will continue in 2022, serving as the core axis,” CEO Yun said during the press conference. The CEO boasted that the number of the bank's customers stands at some 18 million users, an increase of over 2.6 million people last year alone. In particular, people in their 50s or higher have joined up, accounting for about 40 percent of the bank's

Feb 15, 2022By Anna J. Park

KakaoBank strengthens platform business as core growth strategy

Securities firms strengthen returns to shareholders

gettyimagesbankBy Anna J. ParkAmid bearish stock market conditions and decreased average daily transactions in local stock trading, local securities firms have come up with various measures to strengthen returns to their stock shareholders. While average daily stock trading transactional amounts stood at 20.7 trillion won ($17.2 billion) last month ― the lowest level since May 2020 ― securities firms are able to pursue proactive shareholder return policies as the local brokerage sector raked in record-high operating profits last year. Mirae Asset Securities announced its three-year plan of shareholder return policies late last month. The securities firms plans to purchase 10 million of its own shares, which are estimated to be worth over 83 billion won, while retiring 20 million of the firm's shares worth over 174 billion won during the next three years. The securities firm also decided to pay out dividends of 300 won per share. The firm aims to maintain over 30 percent of annual net profits to be spent on increasing returns to shareholders.Kiwoom Securities also decided late last mo