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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

LG Chem, POSCO, Kakao face mounting criticism amid stock fall

Regulator plans to step up monitoring on firms' split-off practicesBy Lee Min-hyungRetail investors are crying foul over Korean conglomerates' practice of carving out their key businesses, as this has ended up with a steep stock fall with regards to the mother firms.Most recently, LG Chem and POSCO have drawn criticism from small investors amid the woe. LG Chem shares are particularly on the decline ahead of the split-off from the battery business.The stock price of LG Chem reached its peak at around 1 million won ($838) per share in January 2021, but its value dropped to as low as 611,000 won in December, as LG Chem's plan to split off its promising battery business comes closer. The battery maker LG Energy Solution is scheduled to go public on Jan. 27.According to data from the Korea Exchange, the country's bourse operator, LG Chem was the most shorted stock last week on the main bourse. As short-selling is a trading strategy betting on a possible stock fall at some point in the near future, it reflects investors' expectations that LG Chem shares will continue losing ground ahead o

Jan 17, 2022By Lee Min-hyung
LG Chem, POSCO, Kakao face mounting criticism amid stock fall

LG Energy Solution's IPO eating up stock market liquidity like 'black hole'

LG Energy Solution's headquarters located on Yeouido / Courtesy of LG Energy SolutionBy Anna J. ParkAhead of LG Energy Solution's massive IPO slated later this month, the huge size of the global battery manufacturer is drawing towards it liquidity from around the local stock market, as institutional investors are readjusting their investment portfolios to include the soon-to-be listed company.While the battery company is set to receive retail investors' subscriptions for the IPO for two days this Tuesday and Wednesday, the firm's institutional investor subscriptions have resulted in an all-time record high ― the competition rate of 2,023:1 ― in the history of KOSPI-listed companies, with orders standing at a whopping 15.2 quadrillion won ($12 trillion) worth of stocks. Although the firm's market cap size based on the subscription price is around 70 trillion won, its market cap is expected to reach some 100 trillion won, given the success of the IPO subscription rate. The company is also expected to be included in various major global indices, such as the FTSE, MSCI and KOSPI 200, whi

Jan 16, 2022By Anna J. Park
LG Energy Solution's IPO eating up stock market liquidity like 'black hole'

Shinhan urges employees to display 'self-leadership' amid uncertainty

Shinhan Financial Group Chairman Cho Yong-byoung speaks during an online workshop held through its metaverse platform, Thursday. Courtesy of Shinhan Financial GroupBy Lee Min-hyungShinhan Financial Group Chairman Cho Yong-byoung has urged his staff to possess a strong sense of “self-leadership,” as part of a key strategy to tackle widening financial uncertainties and toughening industry rivalry.“The most important thing to overcome a period of uncertainty is to have self-leadership driven by employees' creativity and proactivity,” Cho told his employees during an online workshop held in a metaverse platform, Thursday.Cho and Shinhan's executives and employees exchanged their strategies on how to ensure sustainable growth, and the leader reiterated the importance of proactivity and creativity in bracing for the current uncertain business environment.“All Shinhan employees should move forward with a shared vision of becoming the top financial holding firm,” he said.The Korean financial market will remain volatile throughout 2022 amid lingering fears

Jan 14, 2022By Lee Min-hyung
Shinhan urges employees to display 'self-leadership' amid uncertainty

Citibank Korea to stop sale of consumer banking services in February

Citibank Korea's headquarters in Seoul / YonhapBy Lee Min-hyungCitibank Korea will stop the sale of all consumer banking services and products as of Feb. 15, as part of its decision to shut down its retail banking business in phases here.Those who already signed up for the lender's loan products can extend their maturity dates until the end of 2026. After that, they must pay back the principal and interest every month for a maximum of seven years, according to the lender.After Citibank Korea reported the plan to the Financial Supervisory Service (FSS), the watchdog also submitted the consumer protection measure of the lender to the Financial Services Commission (FSC). The authority said it will continue reviewing the decision by Citibank and ask the lender to keep revising it, so as to minimize possible damage to customers.The latest decision from the Korean subsidiary of the U.S. banking group did not draw any criticism from the market, as few of Citi's existing consumers are expected to fall victim to it. When they pay back their loans by receiving loans from other lenders, Citiban

Jan 13, 2022By Lee Min-hyung
Citibank Korea to stop sale of consumer banking services in February

Banks criticized for paying hefty bonuses

Seen above are the headquarters buildings of Korea's four major commercial banks: KB Kookmin, Shinhan, Hana and Woori. Photos courtesy of each firmBy Park Jae-hyukDomestic commercial banks are facing criticism for their recent decisions to pay record amounts of bonuses to their employees, because their earnings last year were made mainly from interest on loans to households and self-employed people suffering difficulties amid the COVID-19 pandemic.Earlier this month, Woori Bank's workers and management agreed to an increase in the size of the performance-based bonus from 130 percent of each employee's monthly base salary to 200 percent ― the maximum amount of performance-based bonus allowed by the bank's internal rules. Under the pretext of boosting worker morale, the bank's management decided to pay an additional bonus equivalent to each employee's monthly base salary and another 1 million won ($841) to each of them. Workers and management of other major commercial banks signed similar agreements.The size of KB Kookmin Bank's performance-based bonus was fixed at 300 percent of each

Jan 13, 2022By Park Jae-hyuk
Banks criticized for paying hefty bonuses

Hyundai Card CEO questions 'buy now, pay later' commission rates

Hyundai Card Vice Chairman and CEO Chung Tae-young / Courtesy of Hyundai Card By Park Jae-hyukHyundai Card Vice Chairman and CEO Chung Tae-young pointed out the excessively high commissions that merchants pay big tech firms for their provision of “buy now, pay later” (BNPL) services.BNPL refers to a short-term financing plan that allows consumers to make purchases and pay for them at a future date ― often interest-free ― regardless of their credit score.In Korea, Coupang has allowed its users to make deferred payments of up to 500,000 won ($420) a month, while Naver Financial has provided its users with a similar service for them to make deferred payments of up to 300,000 won a month.Starting this year at the earliest, Kakao Pay and Viva Republica, which operates the Toss mobile money transfer app, will also offer BNPL services that have been widely viewed as “innovative.”Chung, however, said Tuesday that the payment option is nothing new.“BNPL is the simplest and ea

Jan 12, 2022By Park Jae-hyuk
Hyundai Card CEO questions 'buy now, pay later' commission rates

Hana committee begins process to appoint next chairman

From left are Hana Financial Group Co-Vice Chairmen Ham Young-joo and Ji Sung-kyoo and Hana Bank CEO Park Sung-ho. Courtesy of Hana Financial GroupBy Lee Min-hyungHana Financial Group's chairman recommendation committee went into operation Wednesday to replace outgoing Chairman Kim Jung-tai, with three candidates vying for the next leadership of the nation's third-largest financial holding firm. Hana's board of directors plans to confirm the shortlist for the group's next chairman by the end of January. The new leader will start their term in March when Kim's tenure ends.The industry expects the group's two vice chairmen ― Ham Young-joo and Ji Sung-kyoo ― and Hana Bank CEO Park Sung-ho to compete for the position.Ham is considered the strongest candidate, given his presence as the group's de facto deputy leader after having been promoted to the vice chairman post back in 2016. He also served as the chief of Hana Bank and is now mapping out the group's environmental, social and corporate governance (ESG) strategies.Ham is also the longest-serving vice chairman among the candidates and

Jan 12, 2022By Lee Min-hyung
Hana committee begins process to appoint next chairman

Kyobo's in-house venture launched

Kyobo Life Insurance CEO Pyun Jung-beom, fifth from right, standing, poses with the firm's in-house venture team members at an office in Seoul, Wednesday. Courtesy of Kyobo Life Insurance

Jan 12, 2022By Lee Min-hyung
Kyobo's in-house venture launched

Woori Financial benefiting from K bank's accelerated IPO plans

From left are Woori Financial Group Chairman Son Tae-seung and K bank CEO Suh Ho-sung. YonhapBy Lee Min-hyungShares of Woori Financial Group gained momentum for a strong rally after K bank shared its plans to move up the timeline of its initial public offering (IPO). Woori Bank is the second-largest shareholder of the internet-only lender.Woori Financial Group extended a winning streak Tuesday after finishing with a gain of 6.49 percent on the previous trading day.This situation came shortly after K bank delivered a request for proposals on its planned listing to a group of major securities firms here. Under the drive, the lender is set to go public as early as the end of 2022, advancing the timeline by one year.K bank decided to do so, because the company is widely expected to achieve a major turnaround in 2021 after having reported an accumulated net profit of 8.4 billion won during the first three quarters combined last year.Woori Bank holds a 12.68-percent stake in K bank. The mobile bank succeeded in expanding its user base and achieving outstanding earnings growth throughout 20

Jan 11, 2022By Lee Min-hyung
Woori Financial benefiting from K bank's accelerated IPO plans

NPS faces backlash over 'wielding shareholder rights' in possible legal action

The entrance to a National Pension Service branch office in southern Seoul / Korea Times fileBy Yi Whan-wooThe National Pension Service (NPS) faces backlash from businesses here over its plan to file a suit against companies in which it holds a considerable stake, if they are found to be negligent resulting in shareholders' losses.The plan was initiated in late 2021 by the Ministry of Health and Welfare, which oversees the NPS, in a bid to prevent illicit business activities by having the NPS exercise its shareholder rights.The NPS said no companies are on its target list and no details concerning the plan have been specified. But in a joint statement announced by the seven business lobby groups, the involved companies argue it may even target legitimate business activities.The seven are the Korea Enterprises Federation (KEF), the Korea Listed Companies Association, the Korea Chamber of Commerce and Industry, the Korea International Trade Association, the Federation of the Middle Market Enterprise of Korea, the Korea Federation of SMEs (KBIZ) and the KOSDAQ Listed Companies Associati

Jan 11, 2022By Yi Whan-woo
NPS faces backlash over 'wielding shareholder rights' in possible legal action
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