Business - The Korea Times

Toss operator Viva Republica's pre-IPO valuation rises to W20 tril.

Lee Seung-gun, CEO and founder of Viva Republica, speaks during a press conference in March 2019. YonhapBy Anna J. ParkToss operator Viva Republica plans to attract pre-IPO investments early next year and the financial company is expected to see its corporate valuation rise to 20 trillion won ($16.7 billion). Given that the company was valued at an estimated eight trillion won in its previous investment round in June of this year, Viva Republica's financial worth more than doubled in just six months. In June, Viva Republica attracted about 460 billion won in Series G investments from Korea Development Bank (KDB), as well as a few venture capital firms, including Alkeon Capital Management, Altos Ventures and Greyhound Capital. KDB invested about 100 billion won, the largest portion, in the Series G round. It remains to be seen just how much money the financial company will be able to attract in this Series H round or in the de-facto pre-IPO round of investments. But the company aims to spend the raised capital to strengthen its IT infrastructure and recruit new workers.Founded in 2015

Dec 24, 2021By Anna J. Park

Toss operator Viva Republica's pre-IPO valuation rises to W20 tril.

At KT&G, MZ Generation offer management tips to CEO

KT&G CEO Baek Bok-in, second from right, holds a meeting with young employees at its office in Seoul this month. Courtesy of KT&GBy Lee Min-hyungMembers of the MZ Generation have offered suggestions recently to KT&G management, advising the firm's CEO, Baek Bok-in, to put more effort into building a sustainable corporate culture. The meeting between Baek and a group of 10 employees in their 20s and 30s was aimed at sharing ideas on how to ensure its growth in the environmental, social and corporate governance (ESG) area. The MZ Generation is a Korean term that includes both Millennials (those born 1981-1995) and Generation Z (those born 1996-2005). Back in May, KT&G launched what it calls the Sangsang Junior Board, a consultative body for the younger generations. Those selected as members of the board have engaged in a diverse range of activities with the focus on enhancing the firm's organizational culture and finding its next growth areas for the firm's global expansion.The younger employees exchanged their ideas with Baek during the recent face-to-face meeting. The

Dec 24, 2021By Lee Min-hyung

At KT&G, MZ Generation offer management tips to CEO

Mirae Asset Securities emerges as top IPO underwriter this year

gettyimagesbankBy Anna J. ParkNewly listed companies raised record-high amounts of capital this year in their initial public offerings (IPO) on both the benchmark KOSPI and tech-heavy KOSDAQ marketsy, and the country's top five securities firms have been busy participating as underwriters. Mirae Asset Securities in particular emerged this year as a powerhouse of the IPO underwriting market, defeating traditional IPO powerhouses like NH Investment and Korea Investment. According to the Korea Exchange (KRX), the top five brokerage firms ― Mirae Asset, NH Investment, Korea Investment, Samsung Securities and KB Securities ― managed 24.7 trillion won ($20.7 billion) worth of stock public offerings this year, which is some 70 percent of the entire 37.3 trillion won ($31.2 billion) raised by 115 companies' IPO procedures this year. The five securities firms served as underwriters for 73 newly listed companies going public this year, an increase of more than 73 percent from 42 last year. The total amount of capital raised through the IPOs ― 24.7 trillion won ― has increased nearly five times

Dec 22, 2021By Anna J. Park

Mirae Asset Securities emerges as top IPO underwriter this year

Banks find new biz opportunity on big tech home turf

Shinhan Bank is the latest major lender to set foot in the delivery app business. Korea Times fileBy Yi Whan-wooCommercial banks are capitalizing on mobile apps to advance into the on-demand delivery service business, the home turf of local big-tech companies that have been using their digital prowess as platform operators to muscle into a wide range of industries.The measure taken by the banks, according to industry sources, is noteworthy, as it hints that the brick-and-mortar lenders may not be leaders in digital technology, but can still become influential platform operators through accumulated expertise in their respective fields.Shinhan Bank will be the latest to join the campaign, with its domestically developed food delivery app starting a trial run, Wednesday. Some other banks, such as Woori, KB Kookmin and Nonghyup, have already been operating apps in the fields of courier services and flower deliveries, among others.The app-based food delivery market is scaled at 12 trillion won ($10 billion), but consumer demand still outstrips supply. Shinhan spent more than 10 billi

Dec 22, 2021By Yi Whan-woo

Banks find new biz opportunity on big tech home turf

Kyobo regaining momentum for IPO next year

Kyobo Life Insurance's headquarters in Seoul / Courtesy of Kyobo Life InsuranceBy Lee Min-hyungKyobo Life Insurance has reiterated its strong determination to complete its planned initial public offering (IPO) by the first half of 2022 after applying for a preliminary screening.The move shows the life insurer's intent to clear away ongoing management risks stemming from a legal dispute with a consortium of investors led by Affinity Equity Partners. Kyobo and the Hong Kong-based private equity firm are engaged in a lawsuit over their different valuations of the Korean insurer's pre-IPO stock price.Earlier, Affinity argued that it could withdraw its invested capital in the insurer unless Kyobo went public by the end of 2015. But with Kyobo delaying the timeline, both sides started escalating a dispute over their put option agreement, under which they failed to reach a consensus for the proper pre-IPO stock valuation of Kyobo.But with the prosecution recently having sought prison sentences of a year and a half for five figures from Affinity ― including one from Deloitte Anjin ― who have

Dec 22, 2021By Lee Min-hyung

Kyobo regaining momentum for IPO next year

Shinhan's CES debut highlights blurring of boundaries between banking and IT

Shinhan Bank's AI Concierge machine / Courtesy of Shinhan BankBy Lee Min-hyungShinhan Bank will showcase its artificial intelligence (AI)-powered banking machine in Las Vegas early next year, becoming the first Korean commercial bank to showcase its IT hardware at the world's largest electronics fair.The lender plans to promote its AI Concierge device, which was co-developed with MINDs Lab, a Korean company specializing in artificial intelligence. Shinhan hopes to showcase its state-of-the-art financial technology amid the rise of digital banking here and abroad.Shinhan is on track to introduce AI software into its services to enable customers to carry out multiple tasks previously done by human beings, such as issuing bank certificates, when visiting the lender's digital desks. The lender also plans to increase the number of what it calls “AI bank clerks” down the road. A total of 200 AI bank clerks will work at its digital desks nationwide by the end of January of next year. The AI bank clerk is equipped with voice and image recognition technologies, according to the le

Dec 21, 2021By Lee Min-hyung

Shinhan's CES debut highlights blurring of boundaries between banking and IT

Eximbank bolsters cooperation with Uzbekistan

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu, left, shakes hand with Uzbekiztan Deputy Prime Minister and Minister of Investments and Foreign Trade Sardor Umurzakov after signing a memorandum of understanding at Lotte Hotel in Seoul, Dec. 15. Courtesy of EximbankBy Lee Kyung-min The Export-Import Bank of Korea (Eximbank) said that it has agreed to strengthen bilateral economic cooperation via the Economic Development Promotion Facility (EDPF) with Uzbekistan, Korea's key regional partner country. The EDPF is a funding program developed by the state lender, characterized by combining of aid and commercial financing needed to overcome the limitations of current aid programs in promoting large projects.The bank CEO Bang Moon-kyu signed a memorandum of understanding (MOU) with Uzbekistan Deputy Prime Minister and Minister of Investments and Foreign Trade Sardor Umurzakov, at Cheong Wa Dae, Dec. 17. The signing was observed by President Moon Jae-in and Uzbekistan President Shavkat Mirziyoyev who visited Korea a day earlier. The two agreed to strengthen cooperation in building

Dec 21, 2021

Eximbank bolsters cooperation with Uzbekistan

Securities firms reduce local branches

gettyimagesbankBy Anna J. ParkAs more retail investors head for online platforms to trade stocks and financial products, major securities firms continue to reduce the number of their physical branches. The latest tendency is to integrate a few local branches into a larger regional branch, saving brokerage firms on rent payments by closing branches and providing more comprehensive services for customers at the larger branch offices.Samsung Securities has decided to discontinue six wealth management branches, while incorporating them into a nearby larger branch next month. Specifically, the Gangdong branch will be consolidated into the Jamsil location, and the Gwanak branch will be incorporated into the Yeouido branch. Four other branches will also be absorbed into a larger branch nearby. The brokerage arm of Samsung Group conducted a similar reduction of offices in early 2021, discontinuing 10 local branches. Korea Investment & Securities is also streamlining its office operations, planning to close five local branches in Seoul and Gyeonggi Province at the start of next year. The

Dec 20, 2021By Anna J. Park

Conglomerates nurture growth engines at fastest pace in decade: FKI survey

The signboard of the Federation of Korean Industries (FKI) is seen at the main entrance of its headquarters in Seoul. Korea Times fileBy Yi Whan-wooKorea's major conglomerates nurtured future growth engines at the fastest pace in a decade between 2020 and 2021, amid the COVID-19 pandemic, which has prompted greater reliance on digital technology.According to a survey recently released by the Federation of Korean Industries (FKI), 70 ― or 23.6 percent ― of the 297 affiliates set up by the large business groups from May 2020 to April of this year were related to renewables, virtual and augmented realities, next-generation networks, big data and other future industries.All surveyed companies had assets valued at 5 trillion won ($4.21 billion) or more.The 2020-21 rate was higher than those in each of the preceding nine years, including 13.7 percent during the April 2011-March 2012 period, 9.8 percent during the April 2014-March 15 period and 23 percent during the May 2017-April 2018 period.The increase in the number of the aforementioned affiliates was especially distinctive before and a

Dec 20, 2021By Yi Whan-woo

Conglomerates nurture growth engines at fastest pace in decade: FKI survey

Banking group rush to join digital insurance sector

gettyimagesbankBy Anna J. ParkAiming to attract the country's younger generations, major financial groups are dashing to set up digital insurance units under their umbrellas. As adults aged under 40 are more familiar with digital-based platforms than the traditional face-to-face sales strategies of ordinary insurance companies, the insurance sector is bracing for heightened competition in the digital market. According to data compiled by Korea Insurance Research Institute, those in their 20s and 30s show a much lower percentage of holding life insurance policies than their elders. They also showed the highest rate of buying insurance online through digital platforms. In order to welcome them as new customers, Shinhan Financial Group acquired BNP Paribas Cardif General Insurance in late October, with plans to transform it into a digital insurance company providing innovative insurance policies and services. Hana Financial Group aims to build a digital-based platform out of its insurance subsidiary Hana Insurance, formerly The-K Non-Life Insurance, which the group acquired early last y