Business - The Korea Times

Court rules Samsung Securities must cover half of investors' damages in 2018 dividend error

In this 2018 April file photo, an announcement of apology is posted at a Samsung Securities branch in Seoul. Yonhap A Seoul district court has ruled Samsung Securities must compensate investors for half of their damages incurred due to a 2018 dividend error by an accidental stock issuance, judicial sources said Sunday.The Seoul Central District Court recently ruled partially in favor of three investors who filed damages suits against the brokerage firm for the "fat-finger" error caused by an official at the firm on April 6, 2018.If the ruling is confirmed, Samsung Securities must give between 28 million won ($23,769) and 49 million won to each investor that sued the company. The stock blunder took place when the Samsung Securities official typed in 1,000 shares instead of 1,000 won per share in dividends that were to be paid to employees under a compensation plan. As a result, the company issued 2.8 billion shares that only existed on paper, and some employees who r

Sep 26, 2021

Court rules Samsung Securities must cover half of investors' damages in 2018 dividend error

Tough regulations force banks to go abroad

Concerns remain over reliance on Southeast Asian marketBy Park Jae-hyukKorea's banking groups are expected to further accelerate ongoing efforts to shift their focus overseas from the domestic market, as multiple financial regulations proposed ahead of the presidential election next year are set to deteriorate their earnings here. They are planning to offset worsening profits in Korea by seeking inroads into Southeast Asian countries with higher growth potential. However, concerns still linger about their increasing reliance on such emerging markets.Data compiled by the Financial Supervisory Service (FSS) showed that Korea's commercial banks cut their number of branches here to 3,546 in 2020 from 3,784 a year earlier, 3,834 in 2018 and 3,861 in 2017.The exact number of their outlets outside the country remains unclear, because the FSS statistics do not include their “sub-branches” overseas, while banks count them when collating data on their “global networks.”According to data from KB, Shinhan, Hana and Woori banks, the combined number in their “global n

Sep 26, 2021By Park Jae-hyuk

Tough regulations force banks to go abroad

Eximbank move could pressure KB, IBK to appoint union-backed directors

The Export-Import Bank of Korea headquarters in Seoul / YonhapPrivate sector still facing obstacles to codetermination systemBy Park Jae-hyukAttention has been focused on whether KB Kookmin Bank and the Industrial Bank of Korea (IBK) will follow the example set by the Export-Import Bank of Korea (Eximbank), which became the country's first financial company and state-run institution to give a board seat to an expert recommended by its union. According to the Ministry of Economy and Finance, Deputy Prime Minister and Finance Minister Hong Nam-ki appointed Maritime Finance Institute CEO Lee Jae-min and lawyer Yun Tae-ho of the law firm Bae, Kim & Lee, as Eximbank's new nonexecutive directors last Friday.The person backed by the union is Lee, who previously worked for the state-run bank.After his retirement in 2011, he served as a professor at Korea Maritime & Ocean University. The Eximbank union recommended him for his expertise in maritime financing and reputation for strong communication with employees.After former Hyundai Marine & Fire Insurance auditor Na Meong-heon exi

Sep 23, 2021By Park Jae-hyuk

Eximbank move could pressure KB, IBK to appoint union-backed directors

Kakao Pay confirms IPO has been delayed

An unnamed user scans a QR code to proceed with a mobile payment using the Kakao Pay application. Courtesy of Kakao PayBy Kim Yoo-chulKakao Pay has decided to delay its initial public offering (IPO), an investment banking source said Thursday. The move comes after Kakao and its affiliates lost over $15 billion in market capitalization this month alone as its stock price tanked due to the government's crackdown on the country's top messaging service operator.“Kakao's top management reached a consensus to delay the IPO of Kakao Pay. The reason is simple. The country's anti-trust watchdog will continue scrutinizing Kakao and its affiliates, a negative factor in terms of setting an IPO valuation. Kakao Group needs to address the regulatory risk first before pursuing IPOs for its affiliates,” a source involved with the issue said.Kakao Pay sells a wide range of financial products and also offers customized insurance services via Kakao's messaging platform. If any monetary transactions occur inside Kakao's platform, financial companies pay commissions to the service providers.

Sep 23, 2021By Kim Yoo-chul

Naver, Kakao on verge of suspending more financial services

Citibank Korea helps corporate clients adopt ESG standards

Citibank Korea CEO Yoo Myung-Soon, center, poses with the bank's ESG Council members at the bank's main branch in Seoul in this June file photo. Courtesy of Citibank KoreaBy Park Jae-hyukCitibank Korea is focusing more on providing its corporate clients with diverse services and products satisfying environmental, social and corporate governance (ESG) standards, under its annual strategic goal of becoming the “Best ESG Bank,” the U.S. bank's local subsidiary said Thursday.Since the second half of last year, the bank has welcomed any Korean conglomerate executives in charge of financial affairs to communicate with Citi’s global ESG experts through videoconferencing, giving large domestic companies a chance to study the best ESG practices and cope with the rapidly changing market environment.In February, Citibank signed a memorandum of understanding with the Korea Trade Insurance Corp. to lend domestic companies money that can be used to help them export more materials, components and equipment, and to make inroads into future industries, renewable energy and environme

Sep 23, 2021

Citibank Korea helps corporate clients adopt ESG standards

Banks expand retail, digital ties while cutting costs on conventional operations

Seen above is a convenience store that will be launched under a partnership between CU and Hana Bank. The store will open at the end of September in Seoul. Courtesy of BGF RetailBy Lee Min-hyungKorean banks are seeking fresh revenue sources by partnering with retail and IT firms, as part of their all-out digital transformation strategy.Major lenders here ― such as KB, Shinhan, Hana and Woori ― expect such ties to help them reshape their brand identity as digitally-agile financial firms, thereby attracting more customers in all age groups.For years, banks resorted to their mobile platforms or sales offices when promoting their products or drawing new customers. But the outbreak of the COVID-19 pandemic last year rapidly changed the marketing landscape, with banks endeavoring to create a much younger image through partnerships with other industry players.Hana Bank recently joined hands with BGF Retail, the operator of the CU convenience store chain here, and both sides plan to open a special store in which the bank will establish an automated teller machine that allows customers to han

Sep 17, 2021By Lee Min-hyung

Banks expand retail, digital ties while cutting costs on conventional operations

Eximbank donates meal boxes for vulnerable groups

Officials from a social welfare center in Yeongdeungpo District in Seoul deliver meal boxes to the house of a senior citizen living alone, Wednesday. Courtesy of EximbankBy Lee Min-hyungThe state-run Export-Import Bank of Korea (Eximbank) has delivered meal boxes to socially vulnerable in Seoul to fulfill its corporate social responsibility (CSR) ahead of the Chuseok holiday, the bank said Thursday.The meals were donated to 270 households ― including 170 elderly people living alone ― in Yeongdeungpo District, southwest Seoul.Eximbank teamed up with local welfare centers there for contactless home delivery of the meal boxes, with officials from the centers leaving the deliveries at the front door of recipients' residences amid lingering fears of the ongoing pandemic.The bank also donated fruits and agricultural products for them by partnering with the district-run food market. Vulnerable citizens can visit the market and receive items or food they need for free.“It was tough for us to undertake the voluntary work in person due to the spread of COVID-19, so we carried out our CSR

Sep 16, 2021

Eximbank donates meal boxes for vulnerable groups

Hana donates eco-friendly vehicles under ESG plan

Hana Bank CEO Park Sung-ho, left, poses with CO:ACTUS CEO Song Min-pyo after donating two vehicles for the startup that operates a mobility service, at the former's headquarters in Seoul, Wednesday. Courtesy of Hana BankBy Lee Min-hyungHana Bank donated Wednesday two liquefied petroleum gas (LPG) vehicles to a mobility startup operating a service for deaf taxi drivers to better communicate with customers.This is part of the lender's environmental, social and governance (ESG) corporate responsibility project under which Hana's car financing brand, One the Car, raised funds for the donation. If a customer applies for an auto finance loan through the platform, the lender saves 2,000 won ($1.71) per contract and the money goes towards donating vehicles for socially vulnerable groups.“One the Car has been supported by our customers due to a series of its socially responsible programs,” Hana Bank CEO Park Sung-ho said. “We are going to continue making efforts to help supply eco-friendly vehicles and provide sincere support for society.”The donation is meaningful bec

Sep 15, 2021By Lee Min-hyung

Hana donates eco-friendly vehicles under ESG plan

KDB, Hana team up for innovation

Korea Development Bank CEO Lee Dong-gull, second from right, Hana Financial Group Chairman Kim Jung-tai, second from left, and Hana Bank CEO Park Sung-ho, right, join hands after signing a strategic partnership, Aug. 30. Courtesy of Hana Bank By Lee Kyung-min Hana Bank will increase cooperation with the state-run Korea Development Bank (KDB), in a move to create synergy in advancing financial services in the form of a public-private partnership. The two signed a strategic partnership agreement Aug. 31 to establish a collaboration model between policy and commercial finance for the joint long-term goals of carbon neutrality, improved access to digital services and the growth of innovative firms. The two will share their knowledge, experience and infrastructure. Hana will learn from the state-run lender how to improve financing for corporate customers including tech startups, whereas KDB customers will be able to use over 3,700 ATMs set up at more than 650 of the co

Sep 14, 2021By Lee Kyung-min

Google Pay set to expand presence in Korea

Seen is a screen capture of Google Pay website.By Park Jae-hyukGoogle appears to be trying to let users in Korea pay for public transportation and make payments at bricks-and-mortar stores using the Google Pay mobile payment system, according to industry sources and media reports, Monday.A recent document from the Korea Intellectual Property Rights Information Service (KIPRIS) showed that Google has added several financial services to the “designated services” of Google Pay and GPay trademarks registered here.These financial services include electronic payment via credit and debit cards, and mobile wallets; financial transactions using a mobile device at a point of sale (POS); and credit card and transaction processing terminal services using near field communication (NFC) technology.Google also updated the terms of service for its wholly-owned subsidiary, Google Payment Korea, July 25, by adding introductions to Google Pay. The updated terms of service took effect Aug. 29.According to the terms, Google Pay users can manage their credit and debit cards, and other types of

Sep 13, 2021By Park Jae-hyuk

Banking & Finance