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Banks set to readjust ratings on Osstem Implant over embezzlement case

Osstem Implant headquarters in Seoul / YonhapBy Lee Min-hyungKorean banks are considering downgrading the credit rating of Osstem Implant after the dental implant manufacturer was mired in an embezzlement scandal.Even if the lenders that offered loans to Osstem do not have any immediate plans to retrieve their capital from the company, there stands a possibility for them to do so if the firm's rating drops.Stock trading of the Kosdaq-listed company has been suspended since Monday after an employee surnamed Lee allegedly embezzled 188 billion won ($157 million) of corporate funds through multiple accounts.According to data from the Financial Supervisory Service (FSS), Korean commercial and state-run lenders provided loans worth 300 billion won to Osstem as of the end of September. Woori Bank offered the highest amount of loans worth 107.3 billion won, and Korea Development Bank (KDB) came in second with 80.4 billion won. Osstem also received loans worth 25 billion won from the Export-Import Bank of Korea. Osstem paid back half of the borrowed money to Woori as of the end of 2021.The b

Jan 5, 2022By Lee Min-hyung
Banks set to readjust ratings on Osstem Implant over embezzlement case

Shinhan follows trend of hiring Citibank Korea private bankers

The headquarters of Shinhan Financial Investment on Yeouido / Courtesy of Shinhan Financial InvestmentBy Anna J. ParkAs Shinhan Financial Investment is newly opening two branches in the Cheongdam and Gwanghwamun areas, the brokerage firm said that it has scouted altogether 30 private bankers from Citibank Korea following the latter's confirmed phased shutdown of its retail banking business.The two centers are each located in the hearts of the Gangbuk and Gangnam districts. Many of the scouted former Cibitbank private bankers are highly experienced in the industry, including Yeom Jeong-ju, the former head of Citibank Korea's Cheongdam branch, the largest wealth management (WM) center of the bank. Yeom will now lead Shinhan's Cheongdam branch. Shinhan Financial Investment also scouted former Citibank's asset portfolio experts, who will provide in-depth services in terms of analyzing financial markets and model portfolios to clients. The move is similar to Woori Bank's recent deployment of a number of former Citibank employees at its newest WM center located in the Gangnam area.As Citib

Jan 5, 2022By Anna J. Park
Shinhan follows trend of hiring Citibank Korea private bankers

Citibank Korea chief vows efforts to protect customers from retail business closure

Citibank's logo is seen at a local bank branch in this file photo / Korea Times fileThe head of Citibank Korea, the Korean unit of U.S. banking giant Citigroup, on Tuesday vowed to do everything she could to protect customers from the planned closure of its retail services in South Korea.In October, Citigroup said that it would discontinue its retail banking services "in phases" here in line with its global business reorganization efforts. The announcement has spawned concerns over the possibility of service disruptions for customers."As we wind down the consumer banking business, we should respect all related laws and procedures, and most of all, place the top priority on customer values to take the consumer protection measures without setbacks," Yoo Myung-soon, CEO of Citibank Korea, said in her New Year greetings to employees. "We should continue our efforts to prevent customer complaints and do the best we can to safeguard consumers' rights and interests by promptly dealing with the complaints," she added. Citibank Korea has said it will work hard to minimize inconvenience for cu

Jan 4, 2022
Citibank Korea chief vows efforts to protect customers from retail business closure

Mirae Asset Securities chief named 'Person of 2021'

Mirae Asset Securities Chairman Choi Hyun-man / Courtesy of Mirae Asset SecuritiesBy Lee Min-hyungMirae Asset Securities Chairman Choi Hyun-man has been selected as the person of the Korean capital market in 2021, the Korea Exchange said.Choi was awarded for his contributions in helping develop Korea's capital market. Mirae Asset Securities played an influential role in the local initial public offering (IPO) market throughout 2021, when the company served as underwriter in the listing of a total of 21 firms including gaming giant Krafton.“He contributed a lot to expanding the investor base in the Korean capital market as a leader of the nation's largest IPO underwriter,” a spokesman at the Korea Exchange said.The exchange picked Choi as the winner of the award after receiving votes from affiliated organizations, journalists and staff of the exchange operator.“Choi is expected to play a bigger part in the capital market down the road after having been promoted to the firm's chairman in December 2021,” the official said.Mirae Asset Securities is Korea's top bro

Jan 4, 2022By Lee Min-hyung
Mirae Asset Securities chief named 'Person of 2021'

National Pension Service lags behind private financial firms in net-zero efforts

Environmental activists hold a rally in front of the National Pension Service headquarters in Jeonju, North Jeolla Province, to urge the state pension fund to stop its coal-related investments in this April 2021 file photo. YonhapBy Park Jae-hyukThe National Pension Service (NPS) and state-run financial institutions were found to have remained passive about efforts to prevent climate change throughout last year, compared to private-sector financial companies, according to a domestic nonprofit organization's study released Tuesday.Solutions for Our Climate's (SFOC) analysis of the 100 largest financial institutions in Korea found that none of the nation's 14 public financial firms promised to achieve net-zero emissions in their asset portfolios by 2050, nor devised any specific plans for reducing carbon emissions.“The NPS managing over 900 trillion won ($750 billion) has a significant impact on the global financial market, but it only declared its coal exit in May 2021, without establishing any specific plans,” SFOC researcher Han Soo-youn said. “Considering the over

Jan 4, 2022By Park Jae-hyuk
National Pension Service lags behind private financial firms in net-zero efforts

Woori, SC, KB vying to hire Citibank Korea's private bankers

Woori Bank CEO Kwon Kwang-seok, front row center, poses at the bank's Two Chairs Exclusive (TCE) Signature Center in Seoul, Monday, along with former Citibank Korea employees, who will work at the center and the bank's main branch. Courtesy of Woori BankBy Park Jae-hyukDomestic and foreign commercial banks are engaged in a fierce competition to hire Citibank Korea's private bankers, with the aim of attracting their affluent clients who have been looking for new banks with which to entrust their assets, since Citigroup decided last year to end its consumer banking operation in Korea.Woori Bank said Monday it hired 22 Citibank Korea retirees, deploying 13 of them to its Two Chairs Exclusive (TCE) Signature Center, which specializes in managing the assets of super-rich customers living in the country's wealthiest district of Gangnam.The private bankers, who had worked together at Citibank Korea's Banpo wealth management center, will continue to manage the assets of their clients at their new workplace, enabling Woori to enjoy the inflow of hundreds of billions of won in capital, accordi

Jan 4, 2022By Park Jae-hyuk
Woori, SC, KB vying to hire Citibank Korea's private bankers

Securities firms to focus on IB as key business of 2022

gettyimagesbankBy Anna J. ParkMajor securities firms plan to strengthen their investment banking (IB) departments, as they view it as a key driving force for growth in the year 2022. Despite dwindling brokerage commissions during the second half of last year, as daily stock trading transactional amounts among retail investors dropped during the period, the companies successfully managed to guard their earnings with increased returns from IB businesses. However, the fall of brokerage commission profit among securities firms is expected to continue this year, with an estimated decrease of around 15 percent. In addition, the firms face a looming tapering season in major countries later this year, as well as heated competition among companies in the local market in the area of online-only trading platforms. Against this backdrop, a recent media survey also showed that over 80 percent of CEOs at major local securities firms selected IB as a key growth contributor for this year. Implementing such visions held by CEOs, major securities firms put their utmost strategic emphasis on developing

Jan 2, 2022By Anna J. Park
Securities firms to focus on IB as key business of 2022

Unions to exercise stronger influence over banks in 2022

The Federation of Korean Trade Unions (FKTU) holds a rally in front of the National Assembly in Seoul in this Dec. 14 file photo. Courtesy of FKTUPresidential candidates support labor-friendly policies to attract votersBy Park Jae-hyukThe possibility of private financial firms having union-backed directors has become greater, since the conservative main opposition People Power Party (PPP) agreed to the idea of giving board seats in public institutions to labor representatives, in an apparent attempt to win the hearts of working-class voters in the presidential election in March.During Friday's meeting of the National Assembly's Strategy & Finance Committee, PPP lawmakers decided to support the revision of the Act on the Management of Public Institutions, which was proposed by the ruling Democratic Party of Korea (DPK) to enable workers at public institutions to exercise their rights to speak to boards of directors.According to the standing committee, the revision will be passed this month.The main opposition party changed its stance after its presidential candidate, Yoon Suk-yeol

Jan 2, 2022By Park Jae-hyuk
Unions to exercise stronger influence over banks in 2022

SoCar recruits ex-Hana chairman to enhance corporate compliance

A promotional image of SoCar / Screen capture from SoCar's websiteBy Lee Min-hyungSoCar, a Seoul-based car-sharing service operator, has scouted Kim Seung-yoo, former chairman of Hana Financial Group, as a non-executive director and a member of its audit committee.The move is seen as part of the firm's strategy to enhance its corporate compliance ahead of its planned initial public offering (IPO) as early as the first half of 2022.As Kim has decades of experience in the financial industry, SoCar wants him to take up an advisory role regarding key issues and specifically on how to ensure transparent management and tighten the internal governance system before going public. Kim is one of three new members of SoCar's audit committee along with Central CEO Kang Sang-woo and SG Private Equity CEO Lim Hyeon-seong. Early this month, SoCar completed a procedure to convert all of its convertible preferred stocks (CPs) and convertible bonds (CB) into common stocks. The issuance of CBs, a move aimed at attracting investment worth tens of billions of won, was its response after Tada, a van-haili

Dec 31, 2021By Lee Min-hyung
SoCar recruits ex-Hana chairman to enhance corporate compliance
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