Business - The Korea Times

Citibank Korea union to flood Citigroup CEO with protest emails

Unionized workers at Citibank Korea rally in front of the bank's main branch in Seoul, Tuesday, to protest Citigroup's decision to shut down consumer banking operations here. Courtesy of Citibank Korea unionUnionized workers secure legal right to go on strikeBy Park Jae-hyukUnionized workers at Citibank Korea plan to inundate top executives at Citigroup's New York headquarters, including CEO Jane Fraser, with email messages to protest the financial giant's decision to halt consumer banking operations here and in 12 other markets, the union said Friday.Citigroup CEO Jane Fraser“At first, we will send a warning letter to CEO Jane Fraser at the New York headquarters,” the union said in a statement. “After editing videos about our Tuesday rally and other protests so that English speakers understand them, we will let the world know our situation by uploading them on YouTube and Instagram as a series titled, 'Divorce War with Citi.' And to top executives in New York, including CEO Jane Fraser, we will send large volumes of emails.”The union also said that 99.14 perc

Jun 11, 2021By Park Jae-hyuk

Citibank Korea union to flood Citigroup CEO with protest emails

ABL Life Insurance lowers barriers for cancer coverage

ABL Life Insurance newly launched an insurance plan for more people to receive benefits when diagnosed with cancer. Courtesy of ABL Life InsuranceBy Yi Whan-wooABL Life Insurance is promoting a new health insurance plan that has lowered barriers for senior citizens and people with chronic illnesses in receiving benefits when diagnosed with cancer.The insurance especially covers costs for targeted molecular therapy, an advanced but expensive medical treatment. The therapy kills cancer cells while leaving normal cells totally unaffected, with little chance of side effects after the treatment.Those aged between 30 and 80 can subscribe to the plan and can be covered until they are 100 years old. The maximum coverage amount is 30 million won ($26,900).“We came up with this up-to-date insurance to cope with the aging society and help a wider range of people receive cancer coverage,” said Jason Eun, who is in charge of ABL Life's product development and marketing.He expressed hopes it will help people to prepare  effectively for the possible risks of cancer.The insurance is

Jun 11, 2021By Yi Whan-woo

ABL Life Insurance lowers barriers for cancer coverage

KB pledges to become carbon-free financial group

KB Financial Group Chairman Yoon Jong-kyoo speaks during a panel discussion of the 2021 Korea Times Global ESG Forum at the KCCI building in Seoul, Thursday. Korea Times photo by Shim Hyun-chulBy Lee Min-hyungKB Financial Group Chairman Yoon Jong-kyoo reaffirmed Thursday its grand vision of becoming a carbon-free financial holding firm across the group's whole supply chain.The message is part of the group's unwavering determination to fulfill environmental, social and corporate governance (ESG) criteria. KB was Korea's first financial holding firm to announce last year its group-wide plan to achieve “anti-coal finance,” in a preemptive move to fight against global climate change.Yoon called for “more prompt and proactive action” against greenhouse gas emissions throughout the entire value chain of financial firms.According to the Greenhouse Gas Protocol, emissions are divided into three categories: Scope 1, 2 and 3. Yoon highlighted KB's efforts specifically to cut Scope 3 emissions. Scope 3 emissions are considered indirect emissions occurring in a firm's sup

Jun 10, 2021By Lee Min-hyung

KB pledges to become carbon-free financial group

Toss Bank to start vying with KakaoBank, K bank from September

Toss Bank CEO Hong Min-taek speaks during an online press conference at the Korea Federation of Banks headquarters in Seoul, Wednesday. Courtesy of Toss BankThird internet-only bank vows to embrace foreign customersBy Park Jae-hyukToss Bank got the final approval for its banking license from the Financial Services Commission (FSC), Wednesday, with a plan to start operations in late September, at the earliest. A subsidiary of Viva Republica, the operator of the Toss mobile money transfer app has now been allowed to become the nation's third internet-only bank, following K bank, which acquired its banking license in December 2016, and KakaoBank, which won its license in April 2017.“We will become known as the customer-oriented bank, so that we are the first to come to the minds of customers when they think about a bank,” Toss Bank CEO Hong Min-taek said during a press conference following the approval.He vowed to do his best to enable more loans to be extended to the 13 million consumers who have been marginalized by other banks, such as: those with lower credit scores, tho

Jun 9, 2021By Park Jae-hyuk

Toss Bank to start vying with KakaoBank, K bank from September

Four financial groups submit plans to acquire Citi's retail banking unit: sources

Employees are seen inside the headquarters of Citibank Korea in Seoul in this photo taken on April 19. Korea Times fileBy Kim Yoo-chulAt least four local financial groups submitted their proposals to acquire Citibank Korea's consumer banking unit, sources familiar with the issue said, Tuesday.As part of a group-wide business realignment plan, Citibank Korea is on the move to sell off its retail banking business in Korea. Out of the “four viable candidates,” some are interested in acquiring Citibank Korea's entire retail banking operation, while others are reportedly interested in acquiring portions of the business, they added.Citibank Korea plans to decide on the fate of its retail banking business ― either selling it in its entirety or in pieces or to close it down ― by the end of next month, they added.“Citibank still prefers to exit its retail banking business quite quickly. Therefore, they are hoping local banks will acquire it,” one local banking industry source said, adding it's unlikely that the bank will discuss the sale plan with non-banking entities

Jun 8, 2021By Kim Yoo-chul

Four financial groups submit plans to acquire Citi's retail banking unit: sources

Financial firms cry foul over chairperson term limit regulation

Rep. Park Yong-jin from the liberal ruling Democratic Party of Korea, center, poses with members of the nation's financial union in front of the National Assembly in Seoul, June 1. YonhapBy Lee Min-hyungFinancial firms here are crying foul over what they call “excessive regulations” against their top management, after a liberal ruling party lawmaker pushed for legislative reforms introducing term limits for banking group chairpersons.Under the planned revision to the act on financial firms' governance structures, leaders of financial holding firms here will be able to extend their terms only once, and they will only be able to stay in office for up to six years, according to lawmaker Rep. Park Yong-jin of the Democratic Party of Korea.But officials from the nation's major financial firms argue that such a move leaves much to be desired and goes against basic market logic.“It is unfair for legal authorities to intervene in the governance structure of financial firms, as most of them are privatized and operated by investors' capital, not with financial support from th

Jun 7, 2021By Lee Min-hyung

Financial firms cry foul over chairperson term limit regulation

Founding member of sovereign wealth fund joins startup

Kasa Korea Chief Operating Officer Park Sang-il / Courtesy of Kasa KoreaBy Park Jae-hyukKasa Korea, a real estate investment platform operator that runs the country's only digital asset-backed securities exchange, recently appointed as chief operating officer (COO), Park Sang-il, who had worked previously for the corporate strategy group of the Korea Investment Corp. (KIC).Born in 1965, the new COO graduated from Yonsei University and the Maxwell School of Citizenship and Public Affairs, the graduate school for public administration and international relations of Syracuse University in New York. He is known to be an expert on financial investment policies with experience in both the private and public sectors, because of his career built at a lawmaker's office, Hyundai Capital, Hyundai Card, Q Capital Partners and the KIC.In particular, he was one of the founding members of the KIC, in charge of work related to the sovereign wealth fund's governance structure, business planning and institutional relations.Kasa Korea plans to enhance its competitiveness in systematic and professional

Jun 7, 2021By Park Jae-hyuk

Founding member of sovereign wealth fund joins startup

Shinhan Bank launches new project to accelerate digitization

Shinhan Bank CEO Jin Ok-dong / Korea Times fileBy Anna J. ParkShinhan Bank has launched a new project that it calls “O2O” ― meaning on-and-offline ― to accelerate digitization and go beyond the realm of traditional finance.Under the project, Shinhan aims to bolster its mobile application to function as a platform service provider, which facilitates not only financial transactions, but also the operation of innovative, data-based businesses.“The O2O project was launched according to the leadership of Shinhan Bank CEO Jin Ok-dong, who plans to build an innovative business linking online and offline realms, as well as the traditional banking and non-financial business,” an official from Shinhan Bank said.“In a way, the project is like a start-up within a bank, and will be a differentiated digital platform from other banks,” the official added. He referred to this set-up as a “Company in a Bank.”The project will have its own staff, budget and infrastructure that are completely different from the traditional Shinhan Bank system, to bring out

Jun 7, 2021By Anna J. Park

Shinhan Bank launches new project to accelerate digitization

Financial groups expected to pay out half-year dividends

Hana Financial Group is the only financial institution in Korea that continues to offer half-year dividends. Korea Times fileBy Anna J. ParkA recommendation made by the financial regulators here capping the dividend payout ratio of local financial groups to a maximum 20 percent is expected to be rescinded by the end of the month, leading the market to focus on whether the groups will offer half-yearly dividends after the second quarter.The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) said in January that financial holding firms should limit their payout ratios to a maximum 20 percent, citing the need to maintain fiscal soundness amid the continuing shock and financial uncertainties caused by the COVID-19 pandemic. The ratios are calculated by dividing the paid dividend total by net income.However, the temporary cap is expected to be lifted, as the FSS recently asked local companies, including the five major financial groups ― KB, Shinhan, Hana, Woori and NH Nonghyup ― to submit various documents required for a so-called “stress test” to eval

Jun 6, 2021By Anna J. Park

Financial groups expected to pay out half-year dividends

BC Card decides to sell entire stake in MasterCard

A man points to the sky in front of BC Card headquarters in Seocho District, southern Seoul, in this file photo. YonhapBy Kim Yoo-chulBC Card has decided to sell its entire stake in MasterCard in what is believed to be a move to participate in a capital increase by K bank. Currently, the card firm is the largest shareholder of the internet-only bank with a 34 percent stake.On Friday, BC Card said its board had approved a plan to sell its entire holdings in MasterCard Incorporated (MasterCard) within this year. BC Card holds 504,000 ordinary shares in MasterCard. The estimated amount of cash it could earn from the sale would be about 210 billion won, or some $188 million, based on the U.S. firm's May 21 closing price.When questioned about the primary reason for unloading the shares, BC Card said the decision was aimed at profit taking. But local banking industry officials said the card issuer's decision was intended to allow it to participate in a rights offering being pursued by K bank, a local internet-only bank affiliated with KT.“On the same day that BC Card's board met, it

Jun 4, 2021By Kim Yoo-chul

Banking & Finance