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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.

Citi's retail unit less attractive than securities firms to BNK, JB, DGB

From left are BNK Financial Group Chairman Kim Ji-wan, JB Financial Group Chairman Kim Ki-hong and DGB Financial Group Chairman Kim Tae-oh. Korea Times filesBy Park Jae-hyukBNK, JB and DGB financial groups have said they will reduce their reliance on the banking sector and focus more on the securities business to boost their profits, raising concerns that Citigroup may face difficulties in finding a buyer for its retail banking operations here. The U.S. financial giant announced earlier this month that it would halt consumer banking services in Korea and 12 other markets. Despite their denials, the provincial banking groups were considered as strong candidates to acquire Citibank Korea's retail operations to expand their presence in the Seoul metropolitan area.DGB had been mentioned as the strongest candidate, because it has only one banking franchise, Daegu Bank. In contrast, JB owns Jeonbuk and Kwangju banks, while BNK owns Busan and Kyongnam banks.However, they reaffirmed their lack of interest in Citibank's domestic operations, declaring their interest in the brokerage business i

Apr 30, 2021By Park Jae-hyuk
Citi's retail unit less attractive than securities firms to BNK, JB, DGB

MBK Partners considering joining K bank's fund raising campaign

K bank CEO Suh Ho-sung, left, and MBK Partners' co-founder and partner Kim Byung-juBy Anna J. ParkK bank, the country's first internet-only bank launched back in 2016, is currently proceeding with a new round of capital increase to raise 600 billion won ($542 million), and private equity firm (PEF) MBK Partners is reviewing the possibility of joining the deal.According to industry sources Thursday, Asia-focused PEF MBK Partners is in the process of reviewing K bank's valuation and conducting an inspection to decide whether to join the capital increase. If the PEF decides to invest in the deal, MBK Partners is expected to put up around 200 billion won, a third of the total 600 billion won that K bank aims to generate through the current round of fund raising. As BC Card, a major shareholder of K bank, is expected to pay 200 billion won, a financial investor (FI) other than MBK Partners could join the capital increase deal.MBK Partners told The Korea Times that it cannot provide any official confirmation or comment on the matter, but analysts expect it will take more time for the deal

Apr 29, 2021By Anna J. Park
MBK Partners considering joining K bank's fund raising campaign

Kyobo Life seeks expansion in cultural industry

Kyobo Life Insurance Chairman Shin Chang-jae speaks during the Vision2025 proclamation ceremony at the company's headquarters in Seoul, Wednesday. Courtesy of Kyobo Life InsuranceBy Park Jae-hyukKyobo Life Insurance, which has been engaged in the life insurance business over the past 60 years, held the Vision2025 proclamation ceremony at its Seoul headquarters, Wednesday, to declare it would become a leading company in both the cultural and financial industries by 2025 to pursue innovation in customer value. “Digitization has brought disruptive innovation to the entire industry, not just to the insurance and financial sectors,” Kyobo Life Chairman Shin Chang-jae said at the event. “As big tech firms have accelerated entry into the financial industry, customers have raised expectations, boundaries among industries have blurred and new business models have emerged.”The chairman emphasized new strategies are needed for survival and growth in this completely changed world, proclaiming that the Vision2025 means becoming a leading company in cultural and financial i

Apr 29, 2021By Park Jae-hyuk
Kyobo Life seeks expansion in cultural industry

JB Financial Group achieves record-high Q1 net profit

JB Financial Group's building located in Yeouido, Seoul / Courtesy of JB Financial GroupBy Anna J. ParkJB Financial Group saw its first-quarter net profit surge 37.1 percent year-on-year to 132.3 billion won ($119 million). It was the highest-ever net profit achieved by the financial group in the first three months of any year.Compared to the previous three months, first-quarter net profit was up 89.4 percent.Return on equity (ROE), the financial performance measure that represents profitability, stood at 14 percent, while the group's return on assets (ROA) stood at 1.03 percent, both of which are considered high for a financial institution.“The group's asset portfolios improved focus on profitability, while external market conditions and interest rates have been favorable,” Kim Ki-hong, CEO and chairman of JB Financial Group, said during a conference call.“The group achieved record-high Q1 results as both costs and profits improved.”Earnings from interest rose 10.1 percent during the first quarter, compared to the same period last year. JB Financial's net int

Apr 28, 2021By Anna J. Park
JB Financial Group achieves record-high Q1 net profit

Market cap of Kakao's fintech subsidiaries set to surpass conventional banks

The logos of Kakao Bank and KakaoPay / Courtesy of each firmBy Lee Min-hyungTwo financial subsidiaries of Kakao, the nation's dominant mobile platform operator, are set to surpass the largest financial holding company here, in terms of their combined market capitalization, after going public this year.As of now, KB Financial Group maintains the leading position in the local financial market, with a market capitalization of 22.87 trillion won ($20.56 billion).Kakao Bank and KakaoPay, however, are expected to raise as high as over 30 trillion won after their planned initial public offering (IPO), based on the rapid growth of the mobile-driven financial market in Korea.The outlook for their post-IPO growth remains promising enough to pose a threat to other major banking groups here, such as Shinhan, Hana and Woori. As of the end of March, Kakao Bank, the nation's leading internet-only bank, attracted a monthly active user (MAU) base of 13.3 million.On the side of retail banking, Kakao Bank gains a competitive edge against conventional banks with its simple and convenient banking platfor

Apr 28, 2021By Lee Min-hyung
Market cap of Kakao's fintech subsidiaries set to surpass conventional banks

Korean banks in quandary over crypto partnerships

gettyimagesbankBy Lee Min-hyungCommercial banks here are in a quandary over whether to renew or sign partnerships with cryptocurrency exchanges in the face of ever-toughening pressure from financial regulators. For now, three Korean banks ― Shinhan, NongHyup and K bank ― issue real-name accounts for digital currency exchanges they have partnered with. But they also have to renew these partnerships before September in line with the introduction of the Special Financial Information Act. The act gives banks more autonomy in picking and choosing their exchange partners once the latter registers for business licenses with the Financial Services Commission (FSC).But with regulators issuing warnings about the speculative nature of cryptocurrency transactions, the banking industry has found itself in a dilemma with regard to their position on digital assets.Officials from the industry are reserved about enhancing their investments into the burgeoning cryptocurrency market.“Many developed countries, such as the United States, are identifying the digital currency industry as one of the n

Apr 27, 2021By Lee Min-hyung
Korean banks in quandary over crypto partnerships

Securities firms rush to acquire savings banks

SK Securities headquarters in Seoul / Courtesy of SK SecuritiesBy Anna J. ParkA growing number of medium-sized securities firms in Korea have been acquiring savings banks lately to stabilize and diversify their profits.SK Securities acquired a 93.57 percent stake in MS Savings Bank recently for roughly 39 billion won ($35 million). The brokerage announced its intention last Thursday to buy 4.3 million shares of the savings bank for cash. The money spent on the acquisition accounts for 6.72 percent of the brokerage firm's own capital. SK Securities said in the announcement that it “hopes to increase profits by expanding its business into the savings bank industry.” MS Savings Bank, headquartered in Daegu, achieved an annual net profit of 560 million won last year.KTB Investment & Securities also announced earlier this month that it decided to acquire a 30 percent stake in Eugene SB Holdings, becoming the largest shareholder. Eugene SB Holdings holds a 100 percent stake in Eugene Savings Bank, a major bank in the industry that achieved a net profit of 51.9 billion won l

Apr 27, 2021By Anna J. Park
Securities firms rush to acquire savings banks

Citibank Korea's board starts talks on exit plan

Seen is Citibank Korea's main branch in Seoul, April 19. YonhapUnion asks financial regulators to disallow bank's divestitureBy Park Jae-hyukCitibank Korea held its first board meeting Tuesday after its U.S. headquarters clarified its intention to exit from consumer banking operations here and in 12 other markets.Led by CEO Yoo Myung-soon, the six board members, including Citigroup Asia Pacific Regional Franchise Controller Vishal Khandelwal, discussed online the specifics of the bank's withdrawal from retail banking here.Citibank Korea appears to have more time to finalize the specifics of its exit plan, given that its U.S. headquarters has yet to mention any details about its planned divestments.“The board of directors meeting extensively discussed the options of a sale of the entire consumer banking business, a sale of part of the business, and a wind down, regarding the pursuit of an exit. Specific dates and details, however, have not yet been decided on,” a Citibank Korea spokesman said. “Citibank Korea will put forth all efforts to try to carefully find the be

Apr 27, 2021By Park Jae-hyuk
Citibank Korea's board starts talks on exit plan

Woori Financial Group to apply ESG principles at all subsidiaries

The headquarters of Woori Financial Group in central Seoul / Korea Times fileBy Anna J. ParkWoori Financial Group, one of the four largest lenders in Korea, is set to apply environmental, social and governance (ESG) management principles to all of its subsidiaries and services. The three broad categories represent sustainable and socially responsible investing.The financial giant announced Sunday that the decision was made at a meeting last Friday by its ESG management committee, which is composed of the lender's executive directors.“The significance of the decision lies in the fact that Woori Financial Group can now systemically and effectively manage our own set of ESG finance criteria, which have combined and sorted out the financial sector's ESG policies, which previously had been scattered,” Son Tae-seung, Chairman of Woori Financial Group, said. “The group will continue to lead efforts to create social values through consistent and exemplary ESG management,” the chairman added. Woori Financial Group's ESG management criteria start off with a clear defini

Apr 25, 2021By Anna J. Park
Woori Financial Group to apply ESG principles at all subsidiaries

Banks seek to pay interim dividends following earnings surprise

Seen above are headquarters of Korea's four major financial holding firms including KB, Shinhan, Hana and Woori. Courtesy of each firmBy Park Jae-hyukThe nation's four major financial holding companies expressed their intentions last week to pay interim dividends to shareholders this year following better-than-expected quarterly earnings. The move is widely viewed as an effort to win back investors who were disappointed by the relatively low dividend payments in 2020. Domestic financial firms were forced by regulators last year to cut their dividends ratio to below 20 percent to bolster their financial soundness amid the COVID-19 pandemicHana Financial Group, the country's only banking group that has paid interim dividends every year, officially said it will also pay one this year. “We will continue to carry out shareholder return policies through interim dividends,” Chief Financial Officer (CFO) Lee Hoo-seung said in a conference call Friday.The financial group saw its first-quarter net profit surge 27 percent from 2020 to 834.4 billion won ($748 million), much larger th

Apr 25, 2021By Park Jae-hyuk
Banks seek to pay interim dividends following earnings surprise
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