Business - The Korea Times

Major financial groups to commit $350 bil. to Lee's productive finance drive

Korea’s five major financial groups — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — plan to inject a combined 508 trillion won ($350 billion) by 2030 to expand productive and inclusive finance, industry officials said Monday. The move aligns with President Lee Jae Myung’s pledge to launch a major financial transformation, aimed at channeling market capital into more productive sectors. Lee has called on financial companies to redirect funds previously tied to real estate or reliant on interest income toward small and medium-sized enterprises (SMEs) and investments in high-tech industries to revitalize the economy. Woori Financial Group was the first to announce an 80 trillion won investment plan in September, followed by Hana Financial Group with 100 trillion won, NH NongHyup Financial Group with 108 trillion won and both KB and Shinhan Financial Groups with 110 trillion won each. Part of these commitments will go toward the government’s 150 trillion won National Growth Fund, aimed at fostering key strategic industries such as artificial intelligence, semiconductors, biot

Nov 10, 2025By Jun Ji-hye

Major financial groups to commit $350 bil. to Lee's productive finance drive

Shinhan Bank issues convertible bonds for 1st time in Japan

Shinhan Bank, a major Korean commercial bank, said Monday it has issued 40 billion Japanese yen ($259.9 million) worth of yen-denominated convertible bonds in the Japanese bond market. It marked the bank's first issuance of convertible bonds, and they fall under the environmental, social and governance (ESG) category, as the funds are intended to support companies working to reduce carbon emissions. The issue size was increased by 10 billion yen from the initial plan due to strong investor demand, according to the bank. The bonds were issued with maturities and coupon rates of 1.322 percent for 2 years, 1.556 percent for 3.25 years and 1.732 percent for 5 years, it added.

Nov 10, 2025By Yonhap

Shinhan Bank issues convertible bonds for 1st time in Japan

Hana Financial Group promotes sense of community, volunteering at ESG event

Hana Financial Group began this year's flagship environmental, social and governance (ESG) festival, “2025 All One Day,” reaffirming its commitment to inclusive finance and community engagement, the group said Monday. The annual two-month event launched in 2011 on the occasion of the 20th anniversary of the group’s establishment and the 10th anniversary of Hana Bank’s integration into the group. The ESG event, which runs from Monday through Jan. 11, 2026, mobilizes all employees across the group to participate in diverse volunteer programs, strengthening the group’s social responsibility in compassion- and inclusion-based volunteer activities. This year’s event highlights Hana’s sustained leadership in promoting social value through long-term, community-centered engagement. It featured a performance by a classical music group composed of musicians with developmental disabilities under the theme of “inclusion and sincerity,” emphasizing solidarity, empathy and genuine connection with vulnerable communities. “We will deliver warmth to our neighbors in need. Hana will con

Nov 10, 2025By Lee Kyung-min

Hana Financial Group promotes sense of community, volunteering at ESG event

Mirae Asset faces high-profile lawsuit from ex-Kakao executive

Mirae Asset Securities faces a high-profile lawsuit from a former Kakao executive seeking compensation for assets linked to a 2023 cybersecurity incident, which he claims are now valued at 11 billion won ($7.56 million), according to company and legal sources, Monday. The cyberattack, which occurred between October and November 2023, allegedly siphoned a total of 7.66 billion won — 3.73 billion won in cash and 3.93 billion won in stocks — from a Mirae Asset Securities account belonging to Bae Jae-hyun, former chief investment officer at Kakao. The incident took place while Bae was detained in connection with the SM Entertainment stock manipulation case. Other high-profile figures, including BTS member Jungkook and EcoPro Chairman Lee Dong-chae, were reportedly targeted, but their accounts were protected by the brokerage’s monitoring system. Bae has recovered 6.08 billion won of the stolen assets, leaving 1.58 billion won still unrecovered. He is demanding full compensation for this remaining amount, particularly noting that if he had kept the forcibly sold stocks, their current mar

Nov 10, 2025By Yi Whan-woo

Hana Bank fined $12.3 mil. for mis-selling private funds

Hana Bank, a major commercial bank in Korea, has been fined nearly 18 billion won ($12.3 million) for selling private funds to investors without properly explaining the associated risks, industry sources said Monday. The Financial Supervisory Service (FSS) imposed a fine of 17.94 billion won on the bank for mis-selling nine types of private funds that invested in overseas loan bonds and similar assets, including those in Italy and Britain, to a total of 963 investors between 2017 and 2019. While selling the products, which had a combined sales volume of 377.9 billion won, the bank had allegedly distorted or omitted key information, violating its duty to explain investment risks, according to the sources. Hana Bank had allegedly concealed the risk of investment losses and misrepresented the product structure, leading investors to believe they could safely recover both principal and interest, as if the products were guaranteed. In addition to the corporate fine, the FSS also imposed disciplinary actions, including reprimands and pay cuts, against about 10 bank officials, the sources added.

Nov 10, 2025By Yonhap

Hana Bank fined $12.3 mil. for mis-selling private funds

Financial groups race to partner with big tech for stablecoin edge

Major holding companies in Korea are racing to form partnerships with large tech firms, notably Naver, Kakao, and Samsung Electronics, to gain an edge in the fast-emerging stablecoin market, according to industry officials, Sunday. The move, undertaken by KB, Shinhan, Hana and Woori, comes as domestic stablecoin transaction volumes have already exceeded 60 trillion won ($41.15 billion), despite the market not yet being fully legalized. In response, financial regulators are preparing to submit a bill regulating stablecoins to the National Assembly by the end of 2025. Although discussions are ongoing, banks — the flagship business units of the holding groups — are viewed as viable options to serve as primary issuers of stablecoins pegged to the Korean won, either individually or through a joint consortium with related institutions. “Under these circumstances, alliances with big tech firms are considered essential, since it would take banks considerable time to develop the necessary technology on their own,” an industry official said. “Tech giants, on the other hand, already have

Nov 10, 2025By Yi Whan-woo

Financial groups race to partner with big tech for stablecoin edge

Hana Financial, KakaoBank obtain highest MSCI ESG rating

Korea’s two leading financial institutions — Hana Financial Group and KakaoBank — have earned the highest AAA rating in the latest environmental, social and governance (ESG) assessment by global index provider Morgan Stanley Capital International (MSCI), the two said Sunday. The recognition highlights the growing global competitiveness of the Korean financial sector’s sustainable ESG management, strengthening foreign investor confidence in the country. The MSCI evaluates 8,500 listed companies annually for performance in corporate governance, data protection, consumer rights and climate-risk management. The rating is closely followed by institutional investors worldwide and often influences foreign investment decisions and index inclusion in ESG-focused funds. KakaoBank secured its first-ever AAA rating, a notable climb from its initial BB rating in 2021 and a further upgrade from AA in February this year. The Kakao subsidiary is the sole internet-only bank to have secured the top rating. MSCI cited Kakao Bank’s strong performance in data privacy and cybersecurity, consumer pro

Nov 9, 2025By Lee Kyung-min

Hana Financial, KakaoBank obtain highest MSCI ESG rating

Card firms on edge as young consumers shift to cardless payments

Kim, a 20-something office worker at a telecommunications company in Seoul, recently began using a payment service powered by facial recognition technology. She said that although the registration process was a bit lengthy, once completed, it was very convenient since she could make payments simply by showing her face, without needing a wallet or smartphone. “I was surprised by how fast it was. It was so quick that I even doubted whether the payment had actually gone through,” she said. The trend of making payments without physical cards is rapidly gaining momentum as younger consumers like Kim increasingly move away from traditional card payments, driven by the growing adoption of facial recognition systems such as Toss Face Pay and simple payment services like Kakao Pay. This shift has raised concerns within the credit card industry about losing younger customers, who are viewed as key drivers of future consumption. Data from the Financial Supervisory Service shows that the total card spending by eight major issuers — Shinhan, Samsung, Hyundai, KB Kookmin, Lotte, Hana, Woori and B

Nov 8, 2025By Jun Ji-hye

Card firms on edge as young consumers shift to cardless payments

Interview‘Korea is our top overweight market': J.P. Morgan strategist

Korea has been and will continue to be the top overweight market in Asia, underpinned by a substantial removal of governance-related discount, enhanced corporate restructuring and financial strengthening within Korean companies, according to an Asia equity strategist at J.P. Morgan. The country’s benchmark KOSPI index could reach 6,000 points in a bull market scenario over the next 12 months, a rosier revision from the previous scenario in October when its bull scenario had it at 5,000 points, J.P. Morgan Asia Equity Strategist Mixo Das said in an interview with The Korea Times on Wednesday. Korea’s two world-class semiconductor manufacturers SK hynix and Samsung Electronics are still among the firm's top picks. The SK affiliate’s overvaluation concerns have been largely dispelled, since it is still very cheap on a price to earnings basis, underpinned further by robust demands for inference artificial intelligence (AI). “Korea is our top overweight market in the region and has been since we upgraded it in June. This continues to be the case,” Das said. “We noted that heading

Nov 7, 2025By Lee Kyung-min

‘Korea is our top overweight market': J.P. Morgan strategist

Hana Financial sets up digital asset task force to strengthen AI leadership

Hana Financial Group has launched a digital asset task force and pledged to accelerate artificial intelligence (AI) innovation, as part of its broader strategy to lead Korea’s digital finance transformation, the group said Thursday. The move solidifies the group’s plan to make digital assets and AI the two core growth drivers, amid rapid global technological developments and a challenging global economic condition. Hana said the new task force, established under the holding company, will coordinate efforts across affiliates, including bank, card and securities units, to strengthen the group’s response to the growing digital asset market and related regulatory developments. The task force will focus on building products, services and infrastructure in line with ongoing legislative developments concerning digital assets, while also exploring new opportunities in stablecoins, other virtual assets and tokenized securities. In particular, Hana plans to leverage technological expertise to create a safe and reliable digital finance ecosystem. The group aims to establish a comprehensive sta

Nov 6, 2025By Lee Kyung-min

Banking & Finance