my timesThe Korea Times
Business

Banking & Finance

Korea Times
About Us
Introduction
History
Contact Us
Products & Services
Subscribe
E-paper
RSS Service
Content Sales
Site Map
Policy
Code of Ethics
Ombudsman
Privacy Policy
Youth Protection Policy
Terms of Service
Copyright Policy
Family Site
Hankookilbo
Dongwha Group
FacebookXYoutubeInstagram
CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

Toss, Hana Bank tasked to explore new revenue streams

Toss Bank CEO Hong Min-taek, left, and Hana Bank CEO Park Sung-ho / YonhapToss' executives assigned to differentiate business modelsBy Lee Min-hyungToss Bank, whose debut as an internet-only bank here appears to be on hold, is being urged to find new sources of money to stay afloat by teaming up with one of its largest investors ― Hana Bank.The mobile banking subsidiary of the fintech firm will begin operations in September as the nation's third internet-only lender after receiving the green light from the financial authorities.The finance industry is keeping an eye on the steady growth of Viva Republica, Toss's parent company, the pre-initial public offering (IPO) market valuation of which is estimated at 8 trillion won ($7.07 billion).Toss is viewed as the most successful fintech startup after expanding its business area in only a few years after starting with mobile financial services. In March, the company launched brokerage subsidiary, Toss Securities, and plans to turn Toss Bank into another major cash-cow subsidiary by possibly listing the company in the next few years, just l

Jul 6, 2021By Lee Min-hyung
Toss, Hana Bank tasked to explore new revenue streams

ANALYSIS Banks to give out higher shareholder dividends

Financial authorities loosening control over banks' dividend policiesBy Anna J. ParkAfter the U.S. Fed signaled it would loosen its control over banks' dividend payouts if they pass “stress tests,” gauging how they will fare in worst case scenarios, five out of six major U.S. institutions are set to pay an additional $2 billion in the next quarter, along with a sizable buyback of their own shares later on in the year to return more money to investors.The U.S. lenders plan to distribute dividends about 40 percent higher than previous levels.Specifically, Morgan Stanley and Wells Fargo plan to double their quarterly dividends. Morgan Stanley said it will give out 70 cents per share, while buying back up to $12 billion of its shares next year. Wells Fargo also plans to double its dividends from 10 cents to 20 cents, while repurchasing some $18 billion worth of its shares from the third quarter.JPMorgan is set to raise its dividend from 90 cents to $1, while buying back around $30 billion of its shares; while Bank of America is raising its dividend from 18 cents to 21 cents;

Jul 3, 2021By Anna J. Park
[ANALYSIS] Banks to give out higher shareholder dividends

Banks benefiting from absence of watchdog chief

Former Financial Supervisory Service Governor Yoon Suk-heun delivers a retirement speech at the agency's headquarters in Seoul, May 7. YonhapBy Lee Min-hyungKorea's banks and financial firms are benefiting from a longer-than-expected leadership vacuum at the Financial Supervisory Service (FSS), as a series of sanction-related risks on them have been put on hold.The position has remained vacant for two months, after former FSS Governor Yoon Suk-heun ended his three-year term in early May. The absence of the hawkish former leader, in itself, came as a boon for banks at a time when they are still grappling with the aftermath of their involvement in a nationwide fund misselling scandal.The FSS planned to hold a sanctions committee by the end of June to discuss the level of punishment on Hana Bank for its misselling of risky funds of Lime Asset Management. But the plan has been delayed to July. Chances are it can be postponed further amid the prolonged leadership vacuum.“The FSS will continue to face a tough time in making swift decisions on key agendas without a leader, and the sta

Jul 2, 2021By Lee Min-hyung
Banks benefiting from absence of watchdog chief

No Korean banks want to take over Citi's Southeast Asian retail banking

Citigroup's logo is displayed at the headquarters of Citibank Korea in Seoul in this file photo taken on April 27. Yonhap By Lee Min-hyungNone of the nation's major commercial banks have expressed an intention to take over Citibank's Southeast Asian consumer banking business, as they did not feel any “immediate need” to do so at a time when most Korean lenders are focusing more on enhancing their own brand value, officials from the banking industry said Friday.Last month, Citigroup apparently contacted a group of Korean banks operating in Southeast Asia asking if they would consider taking over Citibank's consumer banking operations in Indonesia, Vietnam, Thailand and the Philippines.Citi asked potential investors to submit letters of intent by the end of June to buy the regional retail banking business. But Korea's four major banking groups ― KB, Shinhan, Hana and Woori ― did not submit an LOI by the deadline.“Citigroup wants to sign a deal to sell the regional bus

Jul 2, 2021By Lee Min-hyung
No Korean banks want to take over Citi's Southeast Asian retail banking

JB Financial Group declares ESG mission statement

JB Financial Group Chairman Kim Ki-hong, fourth from left, poses for a photo with JB Financial's ESG Committee Chairman Yoo Kwan-woo, fifth from left, and other company members during the firm's ESG mission declaration ceremony held at the group's Yeouido building in Seoul, Wednesday. Courtesy of JB Financial GroupBy Anna J. ParkJB Financial Group released a “mission statement” Wednesday pledging its commitment to environmental, social and corporate governance goals as part of the group's mid- to long-term strategic vision.Chairman Kim Ki-hong, group ESG Committee Chairman Yoo Kwan-woo and other key company officials gathered at the firm's Yeouido building to announce the group's ESG goals.The group pledged various commitments, including eliminating climate change risks, achieving carbon neutrality, and ensuring ethical management and respect for human rights while advancing shareholders' values and rights.“JB Financial Group plans to commit to ESG-led management activities, while closely communicating with clients, company members, shareholders and regional communi

Jul 1, 2021By Anna J. Park
JB Financial Group declares ESG mission statement

LG Chem issues $1 billion green bonds

The company logo of LG Group is seen at its headquarters on Yeouido in Seoul, in this undated photo. Korea Times fileBy Yi Whan-wooLG Chem announced Tuesday that it has issued green bonds worth $1 billion to finance its batteries, plastic recycling, solar energy and eco-friendly materials businesses worldwide.Green bonds refer to debt securities specifically earmarked to raise money for climate and environmental projects, which have to meet certain requirements to be issued.The LG Group affiliate said it has been actively linking finance with environmental projects, noting it became the world's first chemical manufacturer to issue green bonds in 2019 by selling $1.56 billion worth.In February, it floated 800 billion won ($707 million) worth of environment, social and corporate governance (ESG) bonds, which was the largest amount of its kind to be issued by any Korean enterprise.ESG has emerged as a key business principle for Korean manufacturing and financial firms in their drive to accelerate sustainable growth and joint prosperity with society.In May, the company unveiled a plan to

Jun 29, 2021By Yi Whan-woo
LG Chem issues $1 billion green bonds

Digitization forces Korean banks to shut down branches

Conventional bank clerks to be transferred to digital divisionsBy Lee Min-hyungKorean banks are buckling down for digitization by accelerating their closure of branches nationwide. The move is also aimed at cutting fixed costs to free up money to invest in burgeoning digital businesses. Industry sources say the shuttering of branch offices will increase in the coming years, as the pandemic-induced growth of online transactions results in a digital paradigm shift in the banking sectorThe nation's four major commercial lenders ― KB, Shinhan, Hana and Woori ― plan to close 159 branches this year alone. The plan has already been confirmed, and chances are they will increase the number if profitability worsens at other “offline” branches in the latter half of the year.KB Kookmin Bank tops the list as it plans to close 50 branches by the end of the year, followed by Shinhan Bank with 46, and Hana Bank and Woori Bank that are also set to shutter outlets by 28 and 35, respectively.Industry sources say banks have no choice in order to increase profitability and focus more on expan

Jun 29, 2021By Lee Min-hyung
Digitization forces Korean banks to shut down branches

Mirae Asset, Shinhan clash over alternatives to Apple Pay

A customer makes payment using Mirae Asset Pay. Courtesy of Mirae Asset SecuritiesBy Park Jae-hyukMirae Asset Securities' plan to launch its own mobile payment service for iPhone users in July appears to be causing discomfort to Shinhan Card, which has already offered its own alternative to Apple Pay, the U.S. tech giant's digital wallet service that has been unavailable here.Among the nation's eight credit card issuers, Shinhan was the only company that did not participate in beta tests of Mirae Asset Pay in November last year and June this year.Although Mirae Asset said it is trying to make all companies' credit cards useable on its mobile payment system, Shinhan said it currently has no plan to participate in the securities firm's new service.“We will make a decision, after watching the use of Mirae Asset Pay for a while,” a Shinhan Card spokesman said.Mirae Asset is seeking to start offering its mobile payment service officially from next month, after going through a review of the new business by the financial authorities.Its payment service is based on the near-field

Jun 29, 2021By Park Jae-hyuk
Mirae Asset, Shinhan clash over alternatives to Apple Pay

Financial groups jump on metaverse bandwagon as new business strategy

GettyimagesbankBy Yi Whan-wooFinancial groups are capitalizing on “metaverse” ― a virtual environment where users interact through digital avatars ― to host meetings, promote products and expand digital marketing services.But this new management strategy is costly and does not guarantee profits in the short term. It, however, is critical to woo millennials and Generation Z, who as the next major banking customers, are very interested in virtual technology, augmented reality and other cyber technologies, according to industry sources, Monday.DGB Financial Group held executive meetings twice on Zepeto, an avatar app backed by the country's internet behemoth Naver with more than 2 million subscribers.Hosted by DGB Financial Group Chairman and CEO Kim Tae-oh, the participants, including CEOs of group affiliates, donned 3D animated avatars to make an appearance in the metaverse.“This was quite a scene, considering many participants were from the older generation who consider avatars as mere toys, not business tools for communication,” a source said.A DGB official a

Jun 28, 2021By Yi Whan-woo
Financial groups jump on metaverse bandwagon as new business strategy

Young employees at Bank of Korea dissatisfied over hierarchical, inflexible office culture

Bank of Korea headquarters in Seoul / Yonhap By Lee Min-hyungYoung employees at the Bank of Korea (BOK) are more dissatisfied than in the past over the organization's strict, authoritarian and bureaucratic office culture, as well as its poor company welfare benefits system.Back in the 1990s and early 2000s, the central bank was considered a top-notch workplace that only hired a select few young people who studied economics at the nation's leading universities.In the past, BOK employees enjoyed lifetime job security, just as in other state-run organizations. They were also proud to be perceived as elite economists at the nation's central monetary authority.But a growing number of young economists at the BOK appear to be losing their pride in their jobs, due to a sense of disillusionment concerning their salaries, benefits and overall company culture.“Job security is no longer regarded as a privilege among the younger generation, unless they have the potential for sel

Jun 28, 2021By Lee Min-hyung
Young employees at Bank of Korea dissatisfied over hierarchical, inflexible office culture
previous page
335336337338339
next page

Most Read in Business