Business - The Korea Times

Citibank Korea set to pay huge compensation for retirees

Citibank Korea headquarters in central Seoul. YonhapBy Anna J. ParkAs Citibank Korea is planning to implement a voluntary retirement program, with employees applying for the program being eligible to receive huge compensation, market watchers are paying close attention to whether the bank's selloff plan for its retail division could make any noticeable progress.According to the banking industry, Citibank Korea shared the specifics of its forthcoming voluntary retirement plan recently with the bank's union members, as well as the financial authorities. The program will be initialized as early as this month.Employees with more than 15 years of work experience at the retail division as well as other divisions are eligible to apply for the plan. It is said to have suggested 65 months of salary as compensation for voluntary retirement, which exceeded the previous voluntary retirement offer in 2014 that compensated up to 60 months of salary. It was the union's position that the voluntary retirement program should offer better conditions this time. Considering local major banks usually offe

Sep 2, 2021By Anna J. Park

Citibank Korea set to pay huge compensation for retirees

Hanwha Life's new organizational structure to bolster future growth

Hanwha Life Insurance CEO Yeo Seung-joo / Korea Times fileBy Lee Kyung-minHanwha Life Insurance reorganized its corporate structure, Wednesday, in a bid to identify a future growth engine anchored and strengthened by its existing insurance business models. The move seeks to outline a new strategy for financing and incorporation of non-insurance businesses, a mid- to long-term approach to generate profit despite the full saturation of the local insurance market. Expansion into new territories will be spearheaded by firm CEO Yeo Seung-joo, head of a committee set up for future management goals. Among the top areas of expansion are more detailed and specified coverage for cancer patients. The survival of the country's third-largest life insurer will be threatened, unless it finds a new source of growth. This is why the firm is striving to look beyond strategies introduced and adopted by its market peers. Hanwha has restructured the organization whereby employees will be granted maximum autonomy, a key factor the firm views will create a virtuous cycle of creativity and cooperation, lead

Sep 1, 2021By Lee Kyung-min

Hanwha Life's new organizational structure to bolster future growth

Shinhan Financial to prioritize convenience, innovation, ESG values

Shinhan Financial Group Chairman Cho Yong-byoung speaks at the online ceremony for the group's 20th anniversary. Courtesy of Shinhan Financial GroupBy Lee Kyung-min Shinhan Financial Group pledged that it will place greater emphasis on convenience, innovation and safety to enhance customer satisfaction ― a new set of goals outlined on its 20th anniversary, which fell on Wednesday. The group's asset total stands at 626 trillion won ($540 billion) as of June, over a 10-fold increase from the 56 trillion won total assets it had at its launch in September 2001. The group's net profit in the first six months of this year was over 2.49 trillion won, up from 221 billion won 20 years ago. Shinhan Bank Vietnam, the group's most lucrative banking subsidiary set up in the Southeast Asian country, ranked first among foreign banks there for the widest network and best financial performance. Its 41 branches reported a combined 58.4 billion won in net profit in the January-June period, up from 57.7 billion won, year-on-year. The figure for the first half accounts for 48 percent of the 120.6 billion

Sep 1, 2021By Lee Kyung-min

Shinhan Financial to prioritize convenience, innovation, ESG values

Banks step up wealth management services for elderly

gettyimagesbankBy Yi Whan-wooCommercial banks are capitalizing on a sharp rise in the elderly population, which is increasing demand for services related to safe transfer of wealth to designated beneficiaries.Four major private lenders ― KB Kookmin, Shinhan, Hana and Woori ― have been rushing to take the initiative in trust asset management services exclusively for wealthy and elderly clients during their lifetime and posthumously.Under the services, a bank takes care of a client's assets as a trustee. When the client dies, the bank will serve as trustor on their behalf and make sure their wealth will be passed down to beneficiaries according to a will.The services have emerged as Korea is expected to become a so-called “super aging society” by 2025, a term referring to a society with more than 20 percent of its population aged 65 or older.The pace of aging here is faster than other countries, considering Korea became an “aging society” in 2017. This term refers to a society with more than 14 percent of its population aged 65 or older.The aging population is a

Sep 1, 2021By Yi Whan-woo

Banks step up wealth management services for elderly

Standard Chartered, Linklogis to launch joint venture

The headquarters of Standard Chartered Bank Korea / Courtesy of Standard Chartered Bank KoreaBy Anna J. ParkStandard Chartered, a leading international banking group, and Linklogis, a leading supply chain finance technology solution provider in China, announced a joint venture to establish Olea on Monday. Olea is a blockchain-enabled digital trade finance platform, aiming to bring together institutional investors seeking opportunities in an alternative asset class with businesses requiring supply chain financing.Headquartered in Singapore, Olea will be headed by Amelia Ng as CEO. Ng is also a current managing director at SC Ventures, the venture unit of the Standard Chartered group. Olea's risk analytics and secure platform offer investors access to investment options for returns that align with their risk profiles. “By marrying Standard Chartered's international trade and risk management expertise and unparalleled knowledge of Asia, Africa and the Middle East, with Linklogis' innovations in supply chain technology, Olea is uniquely positioned to reinvent trade finance and be a

Aug 30, 2021

Standard Chartered, Linklogis to launch joint venture

BTS's message displayed on Kyobo Life building

People pose for a selfie in front of Kyobo Life Insurance's headquarters building in Seoul, which is decorated with a large banner featuring part of the lyrics of BTS's hit song, “Permission to Dance.” The insurer said Monday that the boy band designed the 100th edition of the company's iconic signboard, hanging on its building near Gwanghwamun Square, to offer hope to people suffering due to the COVID-19 pandemic. Courtesy of Kyobo Life Insurance

Aug 30, 2021By Park Jae-hyuk

BTS's message displayed on Kyobo Life building

Woori Financial chairman wins lawsuit against watchdog

Woori Financial Group Chairman Son Tae-seung / YonhapBy Lee Min-hyungWoori Financial Group Chairman Son Tae-seung has won an administrative lawsuit against the Financial Supervisory Services (FSS) over the latter's decision to slap a reprimand warning on the Woori chief by holding him responsible for its involvement in the misselling of risky derivative-linked funds (DLF).The Seoul Administrative Court ruled Friday to revoke the reprimand warning that the FSS had slapped on Son. The reprimand is classified as a heavy sanction, and any financial leaders who receive such a sanction are not allowed to extend their terms, nor can they work at other financial institutions for three years.The latest ruling may clear away Woori's leadership risks, to some extent, and will affect similar sanctions that the FSS slapped on leaders of other financial firms. Hana Financial Group Vice Chairman Ham Young-joo has also filed a lawsuit against the watchdog after receiving a reprimand for the DLF scandal.“We humbly accept the judgment from the court and the latest ruling,” a spokesman of W

Aug 27, 2021By Lee Min-hyung

Woori Financial chairman wins lawsuit against watchdog

For convenience of foreign customers

A Woori Bank model promotes the bank's new service that enables foreigners to send up to $50,000 a year to other countries by using the Woori WON Banking app without visiting offline branches. Woori Bank said Thursday it will continue to provide services that satisfy the demand of foreign customers for contactless financial transactions. Courtesy of Woori Bank

Aug 26, 2021By Park Jae-hyuk

Shinhan expanding financial support for EV industry

Shinhan Bank Vice President Jeong Ji-ho, right, poses with International Electric Vehicle Expo Chairman Kim Dae-hwan after signing a partnership on co-fostering the nation's electric vehicle (EV) industry. Under the partnership, Shinhan Bank will provide a package of financial support for expanding the nation's EV infrastructure. Courtesy of Shinhan Bank

Aug 25, 2021By Lee Min-hyung

Shinhan expanding financial support for EV industry

Toss Bank questioned over profitable growth

Promotional image of Toss / Courtesy of TossBy Anna J. ParkWill Toss Bank, the country's third internet-only bank, achieve a huge success just like its older competitors KakaoBank and K bank? While Toss Bank is widely anticipated to find its own niche market, including credit loans, some still raise concerns over its profitability.Toss Bank is currently operating a pilot service for its own 160 staff members before the bank's official September launch. Company officials said the pilot program is aimed at checking the stability of banking services before their official release.The internet-only bank's easy-access interface features are receiving some positive feedback. It also offers credit loan products with the lowest interest rates among major banks, reaching as low as 2.5 percent a year, with a maximum loan amount of 270 million won ($231,000). Toss Bank logoSome view that such low interest rates might give Toss Bank difficulty securing stable profits. The online bank will take longer to reach its break-even point in annual profits, they said. Given that there are already two othe

Aug 25, 2021By Anna J. Park

Banking & Finance