Business - The Korea Times

One-off allowances cost Shinhan

Seen above is Shinhan Financial Group's headquarters in Seoul. Korea Times photo by Hong In-kiBy Lee Min-hyungShinhan Bank reported a steep earnings decline for the third quarter in its major overseas markets ― such as China and Vietnam ― as a result of allocating higher allowances for potential bad debts amid the unceasing economic uncertainty surrounding the COVID-19 pandemic, the lender said Tuesday.According to data from the Financial Supervisory Service (FSS), Shinhan Bank China reported a net profit of 11.5 billion won ($10.35 million) during the July-September period, down by 56.9 percent from a year ago.Aside from the virus factor, the lender also decided to accumulate more allowances for bad debts, as the average credit ratings of the Chinese subsidiary's major corporate clients there declined this year, according to the lender.“Our profit in China reported a decline in the third quarter from the previous year, as part of our preemptive step to increase the volume for the bad debt reserve due to the virus-induced uncertainty and local clients' falling credit ratings,&r

Nov 24, 2020By Lee Min-hyung

Korean banks downsizing workforce

Job seekers sit for online interviews with major banks' recruiting officials during a financial job expo in Seoul on Aug. 26. YonhapBy Lee Min-hyungKorean banks are downsizing their workforces and reducing the number of new job openings, as the rapid rise of digital banking has cut lenders' demand for staff that carry out conventional banking-related tasks, according to data and industry officials.Data released by the Financial Supervisory Service (FSS) showed Monday that the nation's four major banks' total number of employees declined by more than 700, or 1.3 percent, as of the end of the third quarter, compared to the end of 2019.This was mainly due to the job market paradigm shift brought about by the rise of online banking. Starting this year, the trend has gained more steam, as the outbreak of the coronavirus sparked a nationwide boom in contactless transactions.With banks placing more emphasis on improving their online platforms, demand for traditional bank clerks has sharply declined among major lenders. They have instead focused on hiring more digital experts in the area of

Nov 23, 2020By Lee Min-hyung

Yoon Jong-kyoo tightening leadership of KB

KB Financial Group Chairman Yoon Jong-kyooBy Kim Bo-eunYoon Jong-kyoo is solidifying leadership of KB Financial Group, after shareholders approved him to continue the current job for a third term. Yoon became the financial group's chairman in November 2014 and served two terms, the second of which ends today. His third term will run through November 2023. An extension for KB Kookmin Bank CEO Hur Yin's term was also approved at the meeting. Hur took his position in November 2017. His first term lasted two years followed by another one-year term that ends today. His next term will last for a year, running through 2021.Two candidates for outside director positions forwarded by KB employees, however, did not get the votes they needed to take the positions.Yoon is seen to have secured a third term based on the achievements the group has made under his leadership.KB has taken digital innovation initiatives and is expanding its non-banking sector to reduce reliance on the group's flagship bank.This year, KB acquired Prudential Life Insurance Company of Korea, strengthening its life insuranc

Nov 20, 2020By Kim Bo-eun

Yoon Jong-kyoo tightening leadership of KB

Citibank Korea leads efforts to respond to climate change

Citibank Korea CEO Yoo Myung-Soon, left, with World Wide Fund for Nature (WWF) Korea director Hong Yoon-hee, at Citibank's headquarters in Seoul, Monday. Courtesy of Citibank KoreaCitibank Korea signed a sponsorship agreement with World Wide Fund for Nature (WWF) Korea for “Change Now for Tomorrow” ― a climate-action partnership ― while the Citi Foundation donated $250,000 (280 million won), the bank said Wednesday.Change Now for Tomorrow, launched in 2018, responds to climate change by raising public awareness of the issue and urging companies to change their ways, according to Citibank.Citibank Korea and WWF Korea will continue contributing to achieving the 1.5 degree Celsius Paris Agreement goal by strengthening climate action in Korean society.The Paris Agreement's aim is to strengthen the global response to the threat of climate change by keeping the global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius, according to the United Nations F

Nov 18, 2020

Citibank Korea leads efforts to respond to climate change

Shinhan declares 'zero carbon' drive

Shinhan Financial Group Chairman Cho Yong-byoung. Korea Times fileBy Lee Kyung-min Shinhan Financial Group has declared its vision to go carbon-neutral by 2050, the first such move by a financial services firm in Southeast Asia, according to the group, Sunday.Chairman Cho Yong-byoung presided over a meeting of a group subcommittee under the board to declare a “zero-carbon drive,” as part of a distinctive move to lead the discussion on the impending crisis of climate change and join the global wave of eco-friendly initiatives.The group will reorient investment and lending rules from carbon-heavy firms and industries to ones whose business models are environmentally conscious and therefore sustainable.Firms with green growth business models will be granted greater opportunities for larger loans, among other eased financing rules to be updated to foster the future-oriented firms.The group aims to reduce carbon emissions by 46 percent by 2030, and increase the target level to 88 percent by 2040.Its asset portfolio will be restructured to have its investments reduce carbon emi

Nov 15, 2020By Lee Kyung-min

Korea's money supply grows at fast clip in September

This file photo shows a Hana Bank official in Seoul inspecting U.S. banknotes before their release into the local financial market, Nov. 4. YonhapKorea's money supply continued to grow quickly in September as firms rushed to secure funds amid the coronavirus pandemic, central bank data showed Friday.The country's M2 stood at 3,115.8 trillion won ($2.8 trillion) as of end-September, up 0.5 percent from August, according to preliminary data by the Bank of Korea (BOK).From a year earlier, M2 surged 9.2 percent, the BOK said.A key economic indicator closely monitored by authorities, M2 is a measure of the money supply that counts cash, demand deposits and other near money that is easily convertible to cash.The BOK said M2 kept rising at a fast pace in September as companies took out large bank loans amid the prolonged economic impact from the COVID-19 outbreak and low interest rates.Funds held by households and nonprofit organizations fell by 3.5 trillion won in September from the previous month, with those held by businesses rising by 8.7 trillion won.Korea's corporate earnings and hous

Nov 13, 2020

Korea's money supply grows at fast clip in September

What will Toss' brokerage look like?

By Kim Bo-eunAs Toss' brokerage unit nears its launch, attention is growing over its business model and the services the brokerage will offer.The Financial Services Commission recently approved Toss Securities' launch and the firm is planning to begin operations this month. This will be the first local securities firm to be set up here in 12 years.Toss, Korea's first fintech unicorn, is a mobile platform offering more than 40 financial services.A securities firm is the latest addition to its line of affiliates. Toss has an insurance sales unit and an affiliate that processes payments, and is also preparing to launch a digital bank next year.Toss is expected to launch its brokerage business as soon as possible, given the surge in individuals who joined the local stock market as investors this year, amid low interest rates and high liquidity following an expansionary monetary policy.According to Toss, the securities firm will focus on offering brokerage services in trading stocks for retail investors. The brokerage has been referred to by industry sources as resembling the mobile app-b

Nov 13, 2020By Kim Bo-eun

KB Kookmin Bank CEO Hur to serve third consecutive term

KB Kookmin Bank CEO Hur YinBy Kim Jae-heunKB Kookmin Bank's incumbent CEO Hur Yin has been re-elected to serve a third consecutive term as CEO until the end of next year, becoming the first to do so at the bank. KB Financial Group said its candidate committee put Hur's name on the final list for approval last month and it was accepted during a shareholders' meeting Wednesday. The committee said Hur has been leading the bank stably for the past three years and despite the world economic slump caused by COVID-19, he has managed to avoid serious damage and kept the group running a profit. “Hur also communicated actively to bring stability to the group while leading the firm to develop sustainably over the long term and is the right person to share and spread the corporate value and vision of KB,” the committee said. Hur was appointed CEO, Nov. 20, 2017, and re-elected last year to serve a second term. He was born in Jinju, South Gyeongsang Province, and graduated from Daegu High School.Hur earned his bachelor's and master's degrees in law from Seoul National University. He s

Nov 12, 2020By Kim Jae-heun

KB Kookmin Bank CEO Hur to serve third consecutive term

NongHyup Financial speeds up global expansion

NongHyup Financial Group Chairman Kim Gwang-soo / YonhapBy Kim Bo-eunNongHyup Financial Group is accelerating a drive to expand its global presence amid tough business conditions here.The group's bank unit filed for regulatory approval to switch its office in Beijing into a bank branch, signaling the start of it doing business there. NongHyup Bank is also preparing to set up branches in Hong Kong and in India, as well as Myanmar and Australia.According to the bank, it is in the process of receiving regulatory approval from the authorities in Hong Kong and Ho Chi Minh City ― it is also getting ready to apply for approval for the branch in Sydney, Australia.NongHyup has a subsidiary in Myanmar, the microfinance institution NongHyup Finance Myanmar, but is preparing to launch a bank branch there as well. It has opened an office in Yangon with plans to switch this to a bank branch. NongHyup, as an agricultural bank that has a focus on providing financing for farmers, is seeking to provide similar services there as Myanmar is an agriculture-based economy.The bank has an office in New Delh

Nov 12, 2020By Kim Bo-eun

NongHyup Financial speeds up global expansion

Shinhan facing calls to replace Korean-Japanese directors

By Kim Bo-eunShinhan Financial Group and Shinhan Bank's headquarters in central Seoul. / Korea Times fileShinhan Financial Group is facing repeated calls to improve the diversity and expertise of its outside directors, of which ethnic Koreans with Japanese nationality comprise 36 percent.Based on a comprehensive inspection of the financial group last year, the Financial Supervisory Service (FSS) directed Shinhan last month to make the changes based on corporate governance regulations.The regulations state that financial firms' outside directors, based on expertise and diversity, should be able to keep the company's management in check. More detailed regulations state that board members should not share a certain common background or represent the interests of certain occupations.Currently, four of Shinhan's 10 outside directors are Korean-Japanese. They are CYS CEO Choi Kyong-rok, Fedora CEO Jin Hyun-duk, Taisei Group Chairman Park An-soon and Primer Korea CEO Yuki Hirakawa. The regulator said the outside directors' expertise was focused on certain sectors such as entertainment that

Nov 11, 2020By Kim Bo-eun

Banking & Finance