Business - The Korea Times

Kiwoom Securities appoints new CEO

Kiwoom Securities CEO Hwang Hyun-soon / Courtesy of Kiwoom SecuritiesBy Anna J. ParkKiwoom Securities officially appointed its new CEO, Hwang Hyun-soon, who will start in the new position from next month. Hwang has been serving as the firm's vice president for the past six years, since he was appointed to the position in December 2015. The new CEO will lead a strategic revamp of the company, focusing more on expanding businesses in the investment banking sector to diversify the firm's profit structure. So far, Kiwoom Securities has reaped the most profit from retail investors' brokerage commissions, as Kiwoom accounts for over 30 percent of retail investors' brokerage trading. With more retail investors coming into the local stock market since 2020, due to the soaring housing prices and low interest rates, Kiwoom's presence has also increased, raking in the second highest operational profit among local brokerages in 2020. However, this momentum could lose steam, if retail investors continue to turn inactive in the local stock market, as they've been doing during the second half of th

Dec 30, 2021By Anna J. Park

KB, Morgan Stanley viewed as top beneficiaries from LGES IPO

KB Securities headquarters in Seoul, left, and the logo of Morgan Stanley / Courtesy of each companyBy Anna J. ParkAs the local capital market is getting hyped up surrounding LG Energy Solution's impending initial public offering (IPO) ― which will be the country's all-time biggest IPO in terms of a company's initial market value ― now the attention is focused on which brokerage house will reap the most profit from handling the mega IPO, worth 70 trillion won ($59 billion).As the LG Group battery affiliate was hoping to raise 12 trillion won through the scheduled IPO, local securities firms and global investment banks have been drooling over the prospects of taking the position of lead manager for the company's IPO, because of its accompanying massive underwriting fee. Early this year, KB Securities and Morgan Stanley were jointly tapped to lead the process as co-lead underwriters, to the dismay of other major securities firms, including traditional IPO powerhouses NH Investment and Korea Investment, which couldn't find a spot for themselves in the IPO. On top of the two co-lead unde

Dec 29, 2021By Anna J. Park

KB, Morgan Stanley viewed as top beneficiaries from LGES IPO

Kyobo's IPO picks up steam as court rejects Affinity's request

Kyobo Life Chairman Shin Chang-jae / Korea Times fileBy Anna J. ParkKyobo Life will speed up its planned initial public offering (IPO), after a local court dismissed an injunction suit filed by Hong Kong-based private equity firm Affinity earlier this week.Affinity filed the injunction suit at the Seoul Northern District Court in early October, demanding Kyobo Life carry out its obligation to repurchase the company stakes that Affinity planned to sell through exercising its put option, as stipulated in their investment contracts signed in 2012. However the Seoul court dismissed Affinity's request, giving Kyobo Life the green light to proceed with its IPO plan within the first half of next year. “With the win in the injunction suit, Kyobo Life's IPO is expected to gain further momentum,” a Kyobo Life official said.The roots of the years-long legal battle between Kyobo Life and Affinity go back to 2012, when a consortium of financial investors led by Affinity Equity Partners purchased 24 percent of Kyobo Life's shares with the condition of a put option. The financial invest

Dec 28, 2021By Anna J. Park

Kyobo's IPO picks up steam as court rejects Affinity's request

SK ecoplant to hand out stock grants to all employees

SK ecoplant CEO Park Kyoung-il speaks during a shareholders' meeting earlier this month in Seoul. Courtesy of SK ecoplant By Anna J. ParkSK ecoplant plans to distribute stock grants to all of its employees in order to bolster company morale prior to its IPO scheduled in 2023. The construction and waste-management company recently said it plans hand out 376,940 common shares to its 4,559 employees. The company also intends to award around 300 million won worth of its stocks to the firm's CEO Park Kyoung-il, who took the leading position in October this year.The firm had previously sold some of its own shares to the company's employee stockholders' association, but this is the first time it will distribute its stocks for free. Compared to stock options, which accords employees the right to purchase company shares at a given price within a specific timeframe, stock grants are a stronger motivational tool, as they are given free to employees.“The company plans to raise

Dec 28, 2021By Anna J. Park

SK ecoplant to hand out stock grants to all employees

Despite dividends, bank stocks drop on weakening investment sentiment

A dealer at Hana Bank works at its head office in Seoul. Behind him is an electronic signboard indicating a loss for the benchmark KOSPI on Monday morning. YonhapBy Lee Min-hyungBank stocks turned in lackluster performances, Monday, a day before the 2021 dividend date of record, as investors remained skeptical of financial stocks seeing an additional rally with the impending introduction of tight regulations next year.When the year-end dividend season approaches, bank shares typically achieve stable rebound, as shares of KB, Shinhan, Hana and Woori ― four of the nation's largest financial holding firms ― are classified as guaranteeing high dividend offerings.But this is not the case this year, with most of them failing to extend any outstanding bullish runs. KB Financial Group shares fell by 1.22 percent, closing at 56,700 won per share on Monday. Shinhan Financial Group's share price also finished without gains at 37,900 won, according to data from the Korea Exchange.KB and Shinhan achieved major earnings growth throughout the year on expanded interest margins. The outlook for finan

Dec 27, 2021By Lee Min-hyung

Despite dividends, bank stocks drop on weakening investment sentiment

Woori Bank playing 'chicken game' with interest rates

From left are Woori Bank CEO Kwon Kwang-seok, KakaoBank CEO Yun Ho-young and Toss Bank CEO Hong Min-taek. YonhapBy Lee Min-hyungWoori Bank's plan to cut interest rates on its loan products may create a domino effect across the banking industry next year, as other lenders are expected to follow suit to retain customers amid soaring demand for household loans.With the arrival of the New Year, commercial banks can resume marketing loan products to households after they failed to do so due to the so-called “6 percent lending quota rule.” The newly introduced regulation blocked banks from increasing their annual quotas on household lending by more than 6 percent in 2021 from the previous year.But as the quota will be reset at the start of 2022, banks are rushing to grab the attention of customers by promoting their plans to resume lending.Woori Bank was the first to do so, with the lender scheduled to increase its prime rate by a maximum 0.6 percentage points on its major non-collateralized and mortgage loan products starting on Jan. 3. Those who take advantage of the benefit

Dec 27, 2021By Lee Min-hyung

Woori Bank playing 'chicken game' with interest rates

KCC pursues change by acquiring wallpaper maker

From left are KCC Chairman Chung Mong-jin and KCC Glass Chairman Chung Mong-ik. Courtesy of each firmBy Lee Min-hyungKCC is seeking to change its management structure by acquiring Shinhan Wallcoverings, Korea's third-largest wallpaper manufacturer.According to the local investment banking industry, the chemical and building materials maker was chosen recently as the preferred bidder to take over the Seoul-based wallpaper producer. The value of the deal is known to be worth 150 billion won.The focus is on whether the KCC-led consortium ― led by KCC Glass ― will be able to finish its governance structure reshuffle after the deal.Industry officials say KCC's takeover of Shinhan Wallcoverings is aimed at revving up the stock value of the glass-producing affiliate.KCC Chairman Chung Mong-jin and KCC Glass Chairman Chung Mong-ik are expected to swap shares shortly after finalizing the acquisition of the wallpaper manufacturer. This will enable them to bolster their management control of the companies.Under the scenario, both sides can benefit from the exchange of stocks. Chung Mong-ik is t

Dec 26, 2021By Lee Min-hyung

KCC pursues change by acquiring wallpaper maker

Green library

Shinhan Card Brand Strategy Division head Lee Byung-ho, right, and Songpa District Office chief Park Sung-soo hold a sign celebrating the opening of a library in Seoul containing furniture made of recycled materials, Dec. 24. Courtesy of Shinhan Card

Dec 26, 2021By Lee Kyung-min

Glass ceiling cracks in financial sector

Shinhan DS CEO nominee Cho Kyoung-sun, left, and Shinhan Financial Group Chief Digital Officer nominee Kim Myoung-hee / Courtesy of Shinhan Financial GroupShinhan hires female expert as chief digital officerBy Park Jae-hyukMore financial institutions have given key positions to women in their recent year-end executive reshuffles, indicating their intention to brace for global investors emphasizing gender equality, as well as the forthcoming regulation starting next year that will mandate gender balance on boards.Shinhan Financial Group said Friday that former National Information Resources Service President Kim Myoung-hee, who had also worked for IBM Korea for 23 years, was hired as the group's new chief digital officer (CDO).According to the group, Kim introduced artificial intelligence, big data and cloud computing technologies to the state-run institution, in order to enhance its operational efficiency and services.“Strengthening our group's digital matrix and implementing prompt and consistent digital strategies with Kim, we will come up with easier, more convenient and new

Dec 24, 2021By Park Jae-hyuk

Glass ceiling cracks in financial sector

Kyobo Life fined for letting subsidiaries use trademark for free

Kyobo Life Insurance headquarters in Gwanghwamun, Seoul. Korea Times fileSouth Korea's financial watchdog has ordered Kyobo Life Insurance to pay a fine of 350 million won ($295,000) for letting its subsidiaries use its brand for free, the company said Friday. The Financial Supervisory Service (FSS) also issued warnings to five officials, including a retired employee of the insurer, in connection with the matter, according to the company.Kyobo Life Insurance, No. 3 life insurer in South Korea, was accused of providing undue support to the subsidiaries by letting them use the Kyobo brand without paying fees from 2016 to 2019. The unpaid fees are estimated to be billions of won."We decided to accept the decision and will receive fees for the use starting from this year," a company official told Yonhap News Agency.Kyobo Life Insurance holds the trademark rights to its brand and had been advised to receive fees for the use of the rights by other subsidiaries, given its economic value. (Yonhap)

Dec 24, 2021

Banking & Finance