Business - The Korea Times

NongHyup Bank names new CEO

By Kim Yoo-chulNongHyup Bank CEO-nominee Kwon Jun-hakKwon Jun-hak, chief of NongHyup's management division, was named as the chief executive of NongHyup Bank, NongHyup Financial Group said, Thursday.“NH Financial Group named Kwon as the new NongHyup Bank CEO after holding a CEO recommendation committee meeting. The CEO nominee has rich experience in field management and shows excellent communication skills with the employees he's been working with,” according to the group.After shareholders' approval, Kwon will start his two-year term Jan. 1. Born in 1963, Kwon joined the financial group in 1989 and handled the bank's pension management and customer relations management divisions.“The CEO recommendation committee gave extra credit to Kwon for his proven leadership in various areas and we hope he will lead the way for NongHyup Bank's digital transformation,” it added.

Dec 31, 2020By Kim Yoo-chul

Korean financial firms seek 'digital revenues' in 2021

From left are KB Financial Group Chairman Yoon Jong-kyoo, Shinhan Financial Group Chairman Cho Yong-byoung, Hana Financial Group Chairman Kim Jung-tai and Woori Financial Group Chairman Son Tae-seung. Courtesy of each firmBy Lee Min-hyungThe nation's major financial holding firms are looking to boost their digital revenue as part of a key management goal for 2021 amid the rapid rise of online banking and contactless consumption here and abroad.For the major lenders, 2020 has been a year of building the foundations for their digital business. With uncertainties surrounding the COVID-19 pandemic remaining, they will keep enhancing their digital platforms next year, but a new focus will be on generating tangible outcomes from their digital vision.Leaders of the top  financial firms here ― KB, Shinhan, Hana and Woori ― have repeated a common pledge for digital transformation throughout 2020. With the beginning of the new year, they are likely to place more emphasis on how to reap the benefits from their digital platforms.The top four have finished their year-end reshuffles with a fo

Dec 31, 2020By Lee Min-hyung

Korean financial firms seek 'digital revenues' in 2021

Industrial Bank of Korea's widening loss abroad raises concern

Industrial Bank of Korea CEO Yoon Jong-won takes part in a regular meeting of the Korea Federation of Banks in Seoul, on Oct. 26. YonhapBy Lee Min-hyungThe Industrial Bank of Korea (IBK) is urged to reform its overseas businesses by taking preemptive measures to get its snowballing debt under control amid the unexpected COVID-19 outbreak.According to data from the Financial Supervisory Service (FSC), the state-run lender's Indonesian branch reported a net loss of 22.4 billion won ($20.5 million) for the first three quarters combined in 2020, widening a losing streak since it tapped into the territory in September last year.This is in contrast to earnings growth from Indonesian branches of Korea's major commercial banks. Hana Bank reaped a net profit of 41.2 billion won in the Southeast Asian market during the same period, topping the list of earnings among Seoul-based lenders operating businesses there. Shinhan and Woori banks also posted billions of won in net profits during the same period.The IBK attributed the widening loss to the pandemic shock.“It has been only about a ye

Dec 30, 2020By Lee Min-hyung

Industrial Bank of Korea's widening loss abroad raises concern

Loan regulations feared to create balloon effect

An office worker walks past the building of a savings bank in Seoul in this Nov. 20 file photo. YonhapBy Lee Min-hyungHouseholds are feared to fall victim to regulators' ever-toughening lending restrictions amid concerns that those with low credit will be pushed to borrow money from “organizations” imposing higher interest rates.Banks will drastically restrict households' credit lines in compliance with new financial regulations. The Financial Supervisory Service (FSS) is reiterating its strong determination that the lending restrictions will remain in place for the time being, as household debt continues to snowball to a worrying level.This, however, drives people in the low-income bracket into a corner, as they are no longer able to get loans from traditional lenders to meet the rapid rise in their living costs and housing prices.Banks have no choice but to abide by the FSS' call, and have already put a temporary halt on their loan business targeting households. The authority said the decision was inevitable at a time when household debt is growing rapidly amid the nati

Dec 29, 2020By Lee Min-hyung

Loan regulations feared to create balloon effect

KB considered most stable financial firm despite dividend uncertainty

KB Financial Group Chairman Yoon Jong-kyoo speaks during a shareholders' meeting at its headquarters on Yeouido in Seoul on Nov. 20. YonhapBy Lee Min-hyungWith financial authorities pressing banks to reduce this year's dividends, local financial stocks have failed to make any astonishing year-end rebounds even the day before the dividends date scheduled on Tuesday.In Korea, banks' share prices have been stuck in a box pattern for the past decade.Even if the benchmark KOSPI is setting a new record high amid its unceasing rally after the pandemic-induced crash in March, major bank shares have remained in the doldrums. Typically, their price surges around December amid investors' hopes for relatively high dividends from bank shares.But with regulators repeating their demand on banks to reduce the year-end dividends, investors are paying less attention to bank stocks.Market analysts, however, said this was widely predicted, and their dismal stock performance indicates the market woes over the dividend issue have already been reflected. They said attention should be directed to how banks

Dec 28, 2020By Lee Min-hyung

KB considered most stable financial firm despite dividend uncertainty

Woori gearing up for aggressive M&As

Woori Financial Group headquarters in Seoul / YonhapBy Lee Min-hyungWoori Financial Group Chairman Son Tae-seungWoori Financial Group will be able to push for aggressive M&As in 2021, after Chairman Son Tae-seung was cleared of allegations that he received a bribe in the case of the mis-selling of funds by Lime Asset Management.Last week, the prosecution concluded that Lime Asset Management attempted to lobby Woori's top-ranking officials and resume sales of the problematic hedge funds last year, but Woori declined to accept.With Son being cleared from the controversy, he will likely speed up the group's expansion into untapped territories particularly non-banking sectors.Almost all financial holding firms here are going all-out to find their next cash cow by reducing their heavy reliance on revenue from interest rates in their loan business.With the global economy showing no clear signs of bouncing back amid prolonged low interest rates and low growth, the Woori chief has in recent years underlined the importance of expansion into non-banking areas ― such as securities and insur

Dec 28, 2020By Lee Min-hyung

Will Kakao Bank CEO Yun see new term?

Kakao Bank CEO Yun Ho-young / Courtesy of Kakao BankBy Anna J. ParkWith Kakao Bank CEO Yun Ho-young facing the end of his term early next month, media attention is on whether he will have another term at the internet-only mobile-based lender.Yun was first appointed to helm the bank in 2017 as a co-CEO with Lee Yong-woo, a strategic investment expert. Utilizing the co-CEO's strengths ― Yun's expertise in the financial IT sector and Lee's strength in capital market investment ― Kakao Bank logged exponential growth in just a few years since its opening. The bank reached its break-even point after just two years, with more than 20 trillion won ($18 billion) in deposits by over 10 million users.Based on synergy created by their successful leadership, the co-CEOs were jointly reappointed for another two years early last year. But Lee decided to leave his post in January this year to enter politics. With Lee leaving the bank, Yun has been leading it as the sole CEO since then.While Yun is evaluated among market insiders to have shown a stable leadership despite the vacancy created by his co

Dec 27, 2020By Anna J. Park

Reporter's Notebook NongHyup's obedience to China raises eyebrows

gettyimagesbank By Park Jae-hyukIt seems quite certain that making official negative comments about China has been considered taboo by many of those in the financial industry in Korea. NongHyup (NH) Bank CEO Son Byung-hwan, who was nominated this week as the new chairman of the bank's holding company, appears to be one of those, given he avoided mentioning China in his recent column published in a local newspaper to emphasize the importance of sustainable growth and the environmental, social and corporate governance (ESG) principles.When citing People's Republic of China founder Mao Zedong's “Eliminate Sparrows Campaign” that caused the ballooning locust populations as an example of a short-sighted approach to avoid, Son just wrote this campaign took place in “a certain country in the past.”Considering NH Bank applied for a preliminary approval for its Beijing branch in August ― its first branch in the country ― he might have faced difficulties in directly mentionin

Dec 26, 2020By Park Jae-hyuk

[Reporter's Notebook] NongHyup's obedience to China raises eyebrows

Korea Eximbank donates 350 million won to foster social enterprises, help the vulnerable.

Eximbank CEO Bang Moon-kyu, right, poses for a photo after donating 350 million won at the bank's headquarters on Yeouido in Seoul, Wednesday. Courtesy of Korea EximbankBy Lee Kyung-minThe Export-Import Bank of Korea (Korea Eximbank) said Thursday that it has donated 350 million won ($317,000) to Band Foundation, to foster “social enterprises” that prioritize creating jobs for low-income earners and strengthening social services. Korea Eximbank CEO Bang Moon-kyu delivered the funds to the foundation, Wednesday. Of the donations, 200 million won will be used to finance 12 social enterprises that hire women who are marriage migrants. The funds will be given to firms that help advance fair trade.The remaining 150 million won will be used to pay and train 20 “new” members of society, including marriage migrant women and North Korean defectors.“I understand that social enterprises and the socially vulnerable are undergoing great difficulties due to the COVID-19 pandemic,” Bang said. “We as a state policy lender will continue to pay attention and e

Dec 24, 2020By Lee Kyung-min

Korea Eximbank donates 350 million won to foster social enterprises, help the vulnerable.

Kakao affiliates' domineering over securities firms for lucrative IPOs?

The main page of Kakao Bank's mobile app is seen on a cellphone screen. / YonhapKakao criticized for arbitrary use of power in its affiliates' IPO deals By Anna J. ParkWhile Kakao's key affiliates ― Kakao Bank, Kakao Pay and Kakao Page ― all plan to go public sometime in the upcoming year, the mobile IT giant is accused of wielding power over local securities firms that have been hoping to ink IPO deals to serve as underwriters.Earlier this month, Kakao Bank selected KB Securities and Credit Suisse as their main underwriters for the IPO, following November's bidding competitions among about eight major brokerage houses including NH Investment & Securities, Mirae Asset Daewoo, Morgan Stanley and UBS.Once Kakao Bank tapped KB Securities and Credit Suisse as its main underwriters for its IPO, then Kakao Pay, the mobile-based payment settlement arm of Kakao, suddenly changed its main underwriter firm, canceling its previous contract with KB Securities. Back in September, Kakao Pay chose KB Securities as its IPO management company along with Goldman Sachs, Samsung Securities and JPMor

Dec 22, 2020By Anna J. Park

Banking & Finance