Business - The Korea Times

Moody's questions KDB's 'double post' strategy in Hong Kong

Korea Development Bank headquarters in Seoul / Courtesy of Korea Development Bank By Lee Min-hyungMoody's Investors Service questioned the Korea Development Bank's (KDB) “double-post” strategy in Hong Kong, downgrading KDB Asia's ratings outlook to “negative.”Early this year, the state-run bank specified its plan to finish establishing one more branch office there by the end of 2021. The lender is currently operating KDB Asia, its head office there in charge of managing its overall regional operations in Asia outside Korea.But the ratings agency remained skeptical over whether KDB Asia would be able to maintain its reputation as the lender's regional control tower, after the establishment of another branch office.“Moody's has changed the outlook on KDB Asia's ratings to negative from stable, reflecting possible changes to KDB Asia's strategic importance to KDB's business in Asia, after the establishment of KDB's branch in Hong Kong,” the agency said Tuesday in a rep

Oct 5, 2021By Lee Min-hyung

Moody's questions KDB's 'double post' strategy in Hong Kong

KIC chief holds online meeting with Macron to fight climate change

Korea Investment Corp. (KIC) CEO Jin Seung-ho, right, listens from his office in Seoul to French President Emmanuel Macron, Monday, during the One Planet Sovereign Wealth Funds' (OPSWF) annual summit held online. The participants discussed investment methods for achieving the goals of the Paris Agreement on climate change. Courtesy of KIC

Oct 5, 2021By Park Jae-hyuk

KIC chief holds online meeting with Macron to fight climate change

Toss Bank to benefit from tight lending rules

Toss Bank CEO Hong Min-taek / YonhapCapital expansion crucial task for sustainable growthBy Lee Min-hyungFears of tighter lending rules will set Toss Bank off to a solid start after the internet-only lender makes its much-awaited debut on Tuesday, market insiders said.Many critics claimed that the launch of the nation's third mobile banking service comes at an opportune time. Financial authorities recently forced commercial banks to curtail their loans due to concerns over snowballing household debt.Toss Bank, however, is relatively free from the regulatory pressure at least in the early stage of its business, as its rivals ― such as KakaoBank ― are on track to discontinue part of their loan services. Commercial banks also have no choice but to follow suit amid concerns that they may fall victim to possible sanctions by financial watchdogs unless they abide by the regulatory guideline.The Financial Services Commission (FSC) urges banks to keep the annual growth rate of their total household loans to five to six percent. Korean households and young customers in their 20s and 30s have

Oct 4, 2021By Lee Min-hyung

Toss Bank to benefit from tight lending rules

NongHyup's donation campaign on Jeju Island

NongHyup Financial Group Chairman Son Byung-hwan, second from left, poses after holding a corporate social responsibility program for welfare centers on Jeju Island, Friday. Under the program, NongHyup delivered 1,500 packages of agricultural products for islanders in need. Courtesy of NongHyup Financial Group

Oct 4, 2021By Kim Yoo-chul

NongHyup's donation campaign on Jeju Island

Korea Federation of Community Credit Cooperatives earns reputation for lucrative investment

A signboard of the Korean Federation of Community Credit Cooperatives (KFCC) / YonhapBy Anna J. ParkThe Korea Federation of Community Credit Cooperatives (KFCC), also known as MG Community Credit Cooperatives, has been building up a reputation in the local market in recent years as an aggressive investor capable of achieving high returns in alternative investments.Over the past five years, the institutional investor has participated in various project funds as an anchor investor, injecting the largest amount of money into several investments. Many of its investments are now paying off, as the KFCC has been seeing an impressive rate of returns this year from its previous investments.Earlier this year, Kamur Private Equity successfully sold an 88.8 percent stake in JamesTech ― Korea's leading thermistor sensor development company ― to a U.K.-based asset manager for around 100 billion won ($84 million). Given that the local private equity firm purchased the thermistor company in partnership with the KFCC for 40 billion won four years ago, the profits from the deal were more than double

Oct 1, 2021By Anna J. Park

Korea Federation of Community Credit Cooperatives earns reputation for lucrative investment

Korean banks shift hiring to digital specialists

gettyimagesbank By Anna J. ParkWhile Korea's state-led financial institutions are currently implementing a series of large-scale recruitment drives to hire new full-time employees, major local commercial banks do not appear to be joining the trend due to decreased demand. Only openings for digital specialists are expected to be available at the banks later this year.According to the financial industry, many state-led institutions, such as the Financial Supervisory Service, Bank of Korea and the Korea Deposit Insurance Corporation, have begun recruitment drives for new employees, with a plan to complete hiring by the end of the year or early next year. They are expected to hire 700 new employees. However, no local banks, with the exception of Shinhan, have announced new recruitment drives, although Shinhan does plan to introduce “digital literacy” as one of its new criteria for hiring. Given that the banks used to begin “annual recruitment drives” in September, it is

Oct 1, 2021By Anna J. Park

Korean banks shift hiring to digital specialists

Thailand, Indonesia viewed as next destinations for KakaoBank

KakaoBank CEO Yoon Ho-young speaks during a press conference held on July 20 at Conrad Seoul on Yeouido, Seoul. YonhapBy Anna J. ParkKakaoBank is taking gradual steps to diversify its revenue channels by focusing on overseas markets, especially in Southeast Asia.According to a recent report published by S&P Global Market Intelligence, the internet-only bank could be able to tap into millions of international users of Kakao's widely used mobile messaging app beyond its home market. The report particularly mentioned Thailand and Indonesia as potentially viable markets. “KakaoBank could target Thailand and Indonesia in its international plans, as these fast-growing economies are already the largest overseas markets for Kakao Corp.'s instant messaging platform, KakaoTalk,” the S&P report stated. “Southeast Asia could be an appealing destination for KakaoBank, given the growth prospects of the region.”Based on the bank's IPO back in August ― through which the firm raised $2.2 billion ― KakaoBank is known to have ample cash resources available to fine-tune i

Sep 30, 2021By Anna J. Park

Thailand, Indonesia viewed as next destinations for KakaoBank

Promoting Paralympics

Hana Financial Group Vice Chairman Ham Young-joo, third from right, raises his fist with participants of the 2020 Tokyo Paralympics at the group's headquarters in Seoul, Wednesday. Courtesy of Hana Financial Group

Sep 30, 2021By Lee Kyung-min

Hyundai Capital offers online financial services for Genesis customers worldwide

The Genesis GV80 sport utility vehicle / Courtesy of Hyundai CapitalBy Park Jae-hyukHyundai Capital, the automotive financing arm of Hyundai Motor Group, said Wednesday that it has started offering online financial services from last month for customers in the U.K. seeking purchase the Genesis G80 sedan and GV80 sport utility vehicle (SUV).Genesis buyers can also: apply online for test drives, select models, choose options, apply for financing, sign contracts and request vehicle delivery.“The launch of Genesis in the U.K. allows Hyundai Capital U.K. (HCUK) to enter a new market segment and attract a new customer base,” HCUK Managing Director Ian Whittaker said. “We have taken all the knowledge and investment from the last nine years and tailored our products and services to support Genesis and their customer offering as they enter the premium sector.”Hyundai Capital Bank Europe, Hyundai Capital's German entity, is also offering a wide range of financial products through Genesis Finance.Hyundai Capital Services launched Genesis Finance in 2015 and renamed it &l

Sep 29, 2021

Hyundai Capital offers online financial services for Genesis customers worldwide

Mirae Asset antitrust probe sends island development in limbo

A rendering of Yeosu Gyeongdo Maritime Tourism Complex / Korea Times fileBy Park Jae-hyukMirae Asset Financial Group is considering scrapping a 1.5 trillion won ($1.27 billion) project to build a maritime tourism complex on Gyeongdo, an island in Yeousu, South Jeolla Province, apparently to protest the Fair Trade Commission's (FTC) recent investigation into the company.According to industry sources, Sunday, Mirae Asset founder Park Hyeon-joo ordered his executives at a recent meeting to reexamine the plan to construct luxury hotels, condominiums, a golf course, shopping mall, waterpark, cable car and marina on the southern island.The order was made a few days after it was revealed that the antitrust watchdog is probing the financial company over allegations of illegally funding the resort construction project.The FTC is looking into Mirae Asset Consulting's subsidiary, YK Development (YKD), to find out whether it illegally borrowed money from Mirae Asset Securities and Mirae Asset Life Insurance by establishing a special purpose entity named GRD. The Financial Investment Services and

Sep 27, 2021By Park Jae-hyuk

Banking & Finance