Business - The Korea Times

Banking groups keen to take lead in metaverse over big tech firms

ATMs belonging to major banks are lined up in this photo taken in Seoul, Feb. 6. Korea Times file By Yi Whan-wooMajor banking groups are scrambling to get a foothold in the “metaverse,” a fully realized virtual world that combines 3D graphics, high-speed internet and other digital technologies, in what is seen as a bid to take the initiative away from big tech firms in digital banking services.The banking groups are seen as being agile in their metaverse strategies, considering that the concept remains in its nascent stage while being expected to become a focus of new business.Market observers attribute this agility to a lesson learned from the competition in mobile banking. The five leading financial services companies ― KB, Shinhan, Hana, Woori and NH NongHyup ― were slow and fell behind the big tech firms, which capitalized on their digital prowess as platform operators, managing to muscle into the digital banking industry.Jung Yoo-shin, the dean of Sogang Univer

Feb 14, 2022By Yi Whan-woo

Banking groups keen to take lead in metaverse over big tech firms

Fates of SillaJen, Osstem Implant to be determined this week

Shareholders of SillaJen hold a protest in front of the Korea Exchange (KRX) building located on Yeouido, Seoul, on Feb. 8. NewsisBy Anna J. ParkThe fates of two scandal-ridden companies are to be decided this week, as the Korea Exchange (KRX) is set to make its decisions on their listing status on Thursday and Friday, respectively.First to face the KRX's judgment will be Osstem Implant, which was suspended from stock trading at the start of the year due to an employee having embezzled over 221 billion won ($184 million). On that day, the bourse operator will decide whether to forward the case to its corporate evaluation committee for an additional, more thorough assessment of the dental implant materials company's listing. The decision was scheduled to be completed by the end of last month, but it was delayed to this week due to the need for a cautious approach. If the KRX decides on Thursday that Osstem Implant doesn't need further assessment by the corporate evaluation committee, the trading suspension will be lifted on the company's stocks and trading will resume on Friday. If th

Feb 14, 2022By Anna J. Park

Fates of SillaJen, Osstem Implant to be determined this week

Kyobo faces bumpy road to IPO due to protracted legal dispute

Headquarters of Kyobo Life Insurance in central Seoul / Korea Times file By Yi Whan-wooKyobo Life Insurance faces a bumpy road on its plan to go public during the first half of 2022, due to a protracted litigation between its chairman and the firm's second-largest shareholder Affinity Equity Partners over a dispute concerning the private equity fund exercising a put option. Shin Chang-jae, chairman and largest shareholder of Kyobo Life Insurance / Korea Times file Chairman Shin Chang-jae is also the insurer's largest shareholder and according to the Korea Exchange (KRX), the country's sole bourse operator, there should be no legal battle or other conflicts that can “seriously affect” the management of a company for it to make a debut on the stock market.The KRX cited the unsettled row between Shin and Affinity Equity Partners and delayed its decision

Feb 14, 2022By Yi Whan-woo

Kyobo faces bumpy road to IPO due to protracted legal dispute

Hana aims to raise dividend payout ratio to 30% amid record profits

Analysts expect banking group to achieve W4 tril. in net profit under new leadershipBy Yi Whan-wooHana Financial Group is seeking to raise its target dividend payout ratio to 30 percent, up from the current 26 percent, on the back of a record net profit of 3.53 trillion won ($2.94 billion) in 2021, the group said Sunday. The group's plan is also based on optimism that it will achieve a net profit of over 4 trillion won this year under new leadership of Ham Young-joo, who was nominated as the group's new chairman on Feb. 8. The 30-percent dividend target is above the market standard, which has been hovering at around 23 to 24 percent since 2015, except for the pandemic-stricken year of 2020, when it dropped to an all-time low of 21 percent.Against this backdrop, the banking group appears to be confident about reaching the goal. In a regulatory filing, Friday, its top finance officer said that it finds it “regretful not being able to pay higher dividends to its shareholders due to the ongoing pandemic,” after it made an announcement that it would pay dividends of 3,100 won

Feb 13, 2022By Yi Whan-woo

Hana aims to raise dividend payout ratio to 30% amid record profits

Hanwha Solutions shares plunge on plant explosion

Officials from the National Forensic Service inspect the scene of an explosion at a Yeochun NCC plant in the nation's southernmost city of Yeosu, Friday. Yonhap By Lee Min-hyungShares of Hanwha Solutions dropped sharply Friday after an explosion at a plant run by Yeochun NCC, a joint venture established by the Hanwha affiliate and DL Chemical. The accident left four workers dead and another four injured.Hanwha Solutions stock price closed at 32,800 won per share, down 6.82 percent from the previous session as foreign and institutional investors went on a selling spree following the explosion.The accident has put a damper on the recovery momentum of Hanwha Solutions' shares.After hitting a three-month low of around 31,500 won in early February, the shares were on track for a rebound. But the deadly accident is widely expected to keep putting downward pressure on its corporate value.The explosion took place at around 9:26 a.m. in the nation's southernmost city of Yeos

Feb 11, 2022By Lee Min-hyung

Hanwha Solutions shares plunge on plant explosion

K bank speeds up IPO timeline

K bank headquarters in central Seoul / Courtesy of K bankBy Anna J. Park K bank, the country's first internet-only bank, has accelerated the timeline for its IPO, as it completed selecting its underwriters earlier this month.According to the investment banking industry, K bank selected NH Investment & Securities, Citigroup Global Markets and JPMorgan as lead underwriters, while tapping Samsung Securities as well for a co-underwriter, following their presentations during the competition bid. NH Securities and Samsung Securities earned their positions for the IPO in competition with Mirae Asset Securities and Shinhan Financial Investment.Having selected the underwriters, the bank is expected to speed up its public offering schedule by the end of this year. Previously, it planned to go public sometime around 2023, after reaching the break-even point and logging an annual profit. Yet this schedule has been accelerated after the internet-only bank turned profitable earlier than expected, recording an annual net profit of 22.4 billion won ($18.7 million) last year. It is an impressive

Feb 10, 2022By Anna J. Park

KB maintains leading bank status, Shinhan joins '4 trillion won club'

By Lee Min-hyungKB Financial Group has once again maintained its leading bank status in terms of 2021 earnings, with other financial firms chalking up record net profits amid expanded interest margins driven by the Bank of Korea's (BOK) rate hikes.The four major financial holding firms ― KB, Shinhan, Hana and Woori ― said their combined net profit set a new high of more than 14 trillion won last year. They took advantage of the rise in their net interest margin (NIM), a key barometer indicating banks' profitability, after the BOK started increasing the key rate in August.With banks generating better-than-expected loan-deposit margins throughout 2021, the so-called big four financial firms here have been able to extend their winning streaks. People pass by automated teller machines of the major financial holdings firms in Seoul in this file photo. YonhapKB Financial Group reported 4.41 trillion won in net profit last year, up 27.6 percent from the previous year. Of particular note was the expansion of its non-banking profit during the same period. According to the company, net profits

Feb 10, 2022By Lee Min-hyung

KB maintains leading bank status, Shinhan joins '4 trillion won club'

Banks face growing public criticism, possible curbs over high interest margins

Banks face growing public criticism, possible curbs over high interest margins

The individual loans department at Hana Bank's headquarters in Seoul. YonhapBy Lee Min-hyungThe political circle is stepping up its criticism of financial firms, calling the interest margins of banks' loan-to-deposit ratios an “undue profit.” This criticism comes at a time when Korea's major financial holding firms have generated record earnings last year based on expanded interest margins, after the Bank of Korea pushed for preemptive rate hikes.With the ever-growing burden on households with the steep incline of lending rates, politicians are moving to intervene in the market by possibly revising the relevant laws.Last month, Rep. Song Eon-seog of the main opposition People Power Party proposed a revision to an existing bank law, so that financial firms are forced to provide specific and transparent datasets to customers over their interest margins between loans and deposits.The move is a direct result of the steep increase of lending rates here. According to data from the nation's top five banks, their average interest margin from their loan-to-deposit ratios reached 2

Feb 10, 2022By Lee Min-hyung

Banks face growing public criticism, possible curbs over high interest margins

KB maintains leading bank status, Shinhan joins '4 trillion won club'

Shinhan Financial reports record high 2021 earnings on higher interest income, strong non-banking biz

The headquarters of Shinhan Financial Group / Courtesy of Shinhan Financial Group Shinhan Financial Group reported record high annual earnings for 2021, Wednesday, on increased interest income and strong performances of its non-banking businesses.Net income came to 4.02 trillion won ($3.4 billion), up 17.7 percent from a previous record high annual net profit of 3.41 trillion won tallied in 2020, according to data provided by the company.The strong earnings results are attributed to increased interest income and robust performances in the non-banking sector, including card and securities areas.The company earned 9.05 trillion won in net interest income last year, up 11 percent from a year earlier.The increased interest-linked earnings came as the Bank of Korea raised its key policy rate twice last year, which led to a rise in lending rates of local banks and an increase in their profitability.Shinhan Bank and Shinhan Card, its major affiliates, also saw their 2021 e

Feb 9, 2022

Shinhan Financial reports record high 2021 earnings on higher interest income, strong non-banking biz

Hana set to make leap forward under leadership of new chairman

Hana Financial Group's chairman nominee Ham Young-joo / Courtesy of Hana Financial GroupBy Lee Min-hyungHana Financial Group is highly expected to make a leap forward under the leadership of its new chairman, Ham Young-joo, who was nominated for the position Tuesday evening. Renowned as a self-made man, Ham will officially take the helm of the group for a three-year term upon confirmation by shareholders and board of directors in their respective meetings next month. He will replace Kim Jung-tae whose decade-long term as chairman will end on March 25. Ham has previously taken on key positions in the group and its banking arm. He led Hana Bank for four years from 2015 to 2019, during which he proved his management skills. The lender set a record with its 2 trillion won net profit under Ham's stable and solid management.The 66-year-old chairman nominee was considered the strongest candidate for the position even before the company's announcement on Tuesday. While leading Hana Bank, Ham has also carried out dual roles as the group's vice chairman since 2016. He is currently mapping out

Feb 9, 2022By Lee Min-hyung

Banking & Finance