Business - The Korea Times

Macquarie faces backlash over gas supplier takeover

Activists from nine civic groups in Gwangju hold a press conference in front of the Gwangju City Hall, June 2, to protest Macquarie's acquisition of Haeyang Energy. Courtesy of civic groupsCivic groups to hold rally at asset manager's Seoul office next weekBy Park Jae-hyukMacquarie is facing difficulties in resolving a conflict with civic groups in Gwangju over its recent takeover of Haeyang Energy, the southwestern metropolitan city's exclusive gas supplier, from Glenwood Private Equity.Local activists have warned the Australian asset management firm about more aggressive protests, although Macquarie Korea Asset Management CEO Seo Bum-sik promised his company would pursue co-prosperity with Haeyang Energy's customers, employees and regional communities.Nine groups in the region, including the Korean Confederation of Trade Unions (KCTU), the Citizens' Coalition for Economic Justice and the Justice Party, said they will hold a rally next Tuesday in front of Macquarie's Seoul office.They will also push ahead with meetings with Macquarie officials and lawmakers of a standing committee o

Jun 28, 2021By Park Jae-hyuk

Macquarie faces backlash over gas supplier takeover

K bank to grant stock option for every employee

K bank logoBy Anna J. ParkK bank is aiming to grant a stock option to every employee of the company, an unprecedented move among local banks in Korea. According to the banking industry, the stock option will be made available early next month. The bank has been reviewing whether to a grant stock option to every member of the company, beyond just the executive level, in an effort to retain loyal, quality employees, and it seems the bank has decided to go for it. Earlier in April, K bank issued a stock option to the bank's CEO Suh Ho-sung to bring out the maximum corporate value increase under his management. “The bank has been outwardly vocal about its stock option issuance plans for quite a long time. However, it is still not yet decided, as such decisions should be confirmed at a shareholders meeting,” a K bank official told The Korea Times.Although the plan as not yet been decided until being voted at the shareholders' meeting, it is said that every employee who has worked for more than two years at the bank is eligible for a stock option. A total of 850,000 shares will

Jun 25, 2021By Anna J. Park

K bank to grant stock option for every employee

Korea lifts bank dividend cap

Seen above are headquarters of Korea's four major financial holding firms: KB, Shinhan, Hana and Woori. Courtesy of each firm KB, Shinhan, Hana, Woori, NH set to pay interim dividendsBy Park Jae-hyukDomestic banks and financial holding companies will be allowed to pay unlimited interim dividends starting next month, after the Financial Services Commission (FSC) announced Thursday it was lifting its 20 percent dividend cap that it “advised” them to follow throughout the first half of the year.“We suggested that banks and their holding companies take into account the fact that uncertainties about the COVID-19 pandemic have yet to be resolved completely, although they are allowed to make autonomous decisions on their dividend payouts,” the FSC said in a statement. “They were advised to consider setting their dividend payout ratios at pre-pandemic levels.”However, it clarified that it will not impose any penalties on those that do not follow the advice.In January, the f

Jun 25, 2021By Park Jae-hyuk

Is Kakao Pay revving up to launch online insurer?

Kakao Pay logoKakao Pay seems to be streamlining business structure to focus on launching Kakao InsuranceBy Anna J. ParkAfter the Financial Services Commission (FSC) granted preliminary approval for Kakao Pay's digital insurance business earlier this month, noting that the company met all the necessary requirements to operate the business here, market watchers are closely monitoring the company's moves to get Kakao Insurance, its online non-life insurance affiliate, off the ground.According to industry sources, Kakao Pay recently met with other major insurers here to discuss the possible sale of KP Insurance Service, one of its insurance subsidiaries, in order to streamline its business structure prior to the official launch of Kakao Insurance, possibly later this year. Kakao Pay acquired KP Insurance Service in July 2017. KP Insurance Service was Korea's first “insurtech” firm that introduced the use of technological innovations designed to maximize savings and efficiency compared to the prevalent insurance industry model. It also brought in crowd-sourcing by allowing cu

Jun 24, 2021By Anna J. Park

Is Kakao Pay revving up to launch online insurer?

KDB joins hands with AEGIS Enterprise

Korea Development Bank (KDB) Vice Chairman Kim Bok-kyu, left, poses for a photo with AEGIS Enterprise CEO Choi Byung-in, after signing a partnership deal at KDB headquarters, Monday. Through the partnership, the state-run bank aims to strengthen capabilities in digital services through close cooperation with AEGIS Enterprise, a data-based digital solutions provider for managing apartments and other buildings. The two companies also agreed to jointly develop innovative financial products and marketing initiatives. Courtesy of KDB

Jun 22, 2021By Anna J. Park

KB Kookmin in dilemma over KakaoBank's exponential growth

KakaoBank / Courtesy of KakaoBankSuccessful equity investment, yet dilemma lies in KakaoBank's rapid growth By Anna J. ParkAs KakaoBank's scheduled initial public offering (IPO) gets closer, KB is expected to garner more than 1 trillion won ($882.71 million) in profits from its early investment into the internet-only bank.KakaoBank passed a preliminary review by the Korea Exchange (KRX) for the IPO, the listing of Kakao's mobile banking affiliate on the benchmark KOSPI is slated for July or August. The bank's private shares are traded at around 95,000 won each, making the firm's market cap on the over-the-counter market stand at nearly 39 trillion won. KB made an early investment, acquiring a significant portion of KakaoBank ― even some of its employees were dispatched to the mobile bank to help it take firm root in the banking industry.Now KB is KakaoBank's third-largest shareholder with 9.35 percent, following only Kakao, which holds 31.78 percent, and Korea Investment Value Asset Management at 27.1 percent. Even if KakaoBank's current market cap of 38 trillion won on the OTC marke

Jun 22, 2021By Anna J. Park

KB Kookmin in dilemma over KakaoBank's exponential growth

KB Kookmin Card partners Legoland Korea Resort

KB Kookmin Card CEO Lee Dong-cheol, right, and Legoland Korea Resort General Manager Kim Young-pil pose at the credit card issuer's headquarters in Seoul, Monday, after signing an agreement on an exclusive partnership for marketing. Courtesy of KB Kookmin Card

Jun 21, 2021By Park Jae-hyuk

KB Kookmin Card partners Legoland Korea Resort

'Vaccine insurances' capitalize on public anxiety over COVID-19

gettyimagesbankBy Anna J. ParkAs major local insurers are set to launch “COVID-19 vaccine insurance” products at the end of the month or early July, concern is rising that they are more interested in capitalizing on public anxiety about the vaccines, rather than serving their customers' interests.According to the industry, various local insurers ― including DB, KB, Hyundai Marine & Fire and Kyobo Lifeplanet ― plan to launch vaccine insurance, which is aimed at customers seeking coverage in the event of side-effects from vaccination. However, industry watchers warned customers to pay extra attention to specific details of the so-called “vaccine insurance.” Contrary to public expectation, what these policies insure customers against is limited to anaphylaxis ― a severe allergic reaction. Other side-effects, no matter how serious they might be, are not covered by the policies. “Most of these vaccine insurance policies only cover customers for anaphylaxis, out of many other possible side-effects from the vaccines out there,” a market insider noted,

Jun 20, 2021By Anna J. Park

'Vaccine insurances' capitalize on public anxiety over COVID-19

Hana opens 2nd VIP club

Hana Bank President Park Sung-ho, center, poses for a cake-cutting ceremony with other dignitaries during the opening of Club1, a private members club exclusively open to wealthy customers, in Hannam-dong, Seoul, June 18. The club is the second of its kind following the one in Samseong-dong, southern Seoul that opened in August 2017. Both are run by Hana Financial Group, the parent company of the bank. Courtesy of Hana Bank

Jun 20, 2021By Yi Whan-woo

Macquarie stigmatized again as greedy landlord

Majang Premium Service Area in Icheon, Gyeonggi Province / Courtesy of Daebo DistributionRent conflict causes closure of Korea's largest expressway rest areaBy Park Jae-hyukMacquarie has become embroiled in another controversy here lately, after the tenant of Korea's largest expressway rest area owned by the Australian asset management company cited excessive rents as the main reason for its unilateral decision to close the facility.According to the Ministry of Land, Infrastructure and Transport, Sunday, restaurants, convenience stores and restrooms in Majang Premium Service Area in Icheon, Gyeonggi Province, have been unavailable since June 14.The facility's tenant, Daebo Distribution, argued that the high rent made it impossible for the company to continue its operation.“Due to the excessively high fixed rent that surpassed 50 percent of our sales, we have had to endure 12.1 billion won ($10 million) in losses over the past three years and 10 months,” the tenant wrote on a banner that was put up at the rest area.After taking over the facility's owner Hiplex for 60 billi

Jun 20, 2021By Park Jae-hyuk

Banking & Finance