Business - The Korea Times

Credit Suisse, HSBC 'justify' dividend payouts in Korea

By Park Jae-hyukThe Financial Supervisory Service (FSS) is facing tough challenges in terms of better preventing domestic banking groups from paying dividends amid the continued COVID-19 pandemic as global banks are moving forward with their planned shareholder return policies.This trend is providing some fresh impetus to the country's leading financial groups including Shinhan, as it's fair to say these banking groups are being pressured to help each of their share prices rebound in value by paying more dividends ― despite the financial watchdog recommending against this.Specifically, the FSS strongly recommended them to cut the amount of payouts to shareholders in accordance with their global peers' moves to have more internal reserves.“Korean financial companies should monitor the actions of foreign banks, so as to secure enough total loss-absorbing capacity and maintain their ability to finance the real economy without delay,” FSS Governor Yoon Suk-heun said in an executive meeting in April, directly mentioning Citigroup in the United States, HSBC and Standard Charter

Nov 2, 2020By Park Jae-hyuk

Credit Suisse, HSBC 'justify' dividend payouts in Korea

ANNIVERSARY SPECIAL 'Glass wall needs to be smashed, along with ceiling'

Female leaders in corporate sector call for men to share understanding, offer supportBy Kim Bo-eunThe system of gender quotas remains highly contested by men, and some women also contend that it does them no good, as it reinforces the idea that they need affirmative action to advance up the corporate ladder.However, four female leaders in the corporate world say these thoughts are based on a misunderstanding of the system."Female employees tell me that a gender-based quota system is unnecessary, that they will be able to climb up the corporate ladder based on their capabilities," CJ CheilJedang Executive Vice President Min Hee-kyung said in a roundtable discussion with The Korea Times, Oct. 20. "However, structurally, most companies have deprived female employees of gaining the same footing in advancing to top positions.”At CJ CheilJedang, the food and bio arm of CJ Group, women account for 18 percent of executives, which is among the highest ratios at consumer goods companies here. But most of them have spent decades in only marketing or R&D, Min said."There are no general

Nov 1, 2020By Kim Bo-eun

Brokerages fiercely fight back over Lime sanctions

Former Shinhan Investment CEO Kim Byung-chul heads to a sanctions review committee meeting at the Financial Supervisory Service on Yeouido, Seoul, Thursday. / YonhapBy Kim Bo-eunBrokerages that promoted Lime Asset Management's funds are battling to reduce penalties set to be imposed on their former and current chiefs over the mis-selling of the “products.”The Financial Supervisory Service (FSS) held a sanctions review committee meeting Thursday where former and incumbent CEOs of three securities firms ― Shinhan, Daishin and KB ― attended to fight against their notified penalties. But the meeting failed to reach a conclusion and discussions will resume Nov. 5.The authority is known to have determined that the subjects be suspended from their positions and told them this before the meeting.The suspension would bar the former and current CEOs from serving in the financial sector for four years.The FSS believes the sanctions are justified because as chiefs of the securities firms they were responsible for ensuring the company had functioning internal control systems.Based on

Oct 30, 2020By Kim Bo-eun

Brokerages fiercely fight back over Lime sanctions

JB, DGB bounce back with non-interest income

BNK suffers from falling profits, labor disputeBy Park Jae-hyukJB and DGB financial groups showed significant improvements in their third-quarter results thanks to non-interest income from their non-banking subsidiaries, despite the ongoing spread of the coronavirus here.In contrast, market leader BNK Financial Group failed to overcome the impact of the COVID-19 pandemic because operations of its key subsidiary Busan Bank remained sluggish again last quarter.Market analysts expect the three groups will focus more on enhancing their non-banking units until the end of the year considering the groups' banks have performed poorly due to the economic recession and falling interest rates.According to regulatory filings by the three groups, Friday, DGB posted the largest growth in third-quarter earnings.The Daegu-headquartered group's net income was 103.5 billion won ($91 million), up 29 percent from the same period the previous year. Its accumulated net profit during the first three quarters was 276.3 billion won, a 1.5 percent rise.“Despite the COVID-19-led economic recession and de

Oct 30, 2020By Park Jae-hyuk

JB, DGB bounce back with non-interest income

ANNIVERSARY SPECIAL Korea Times celebrates 70th anniversary with much fanfare

Leaders from political, business and diplomatic circles attend The Korea Times' 70th anniversary ceremony at the Lotte Hotel Seoul, Thursday. Korea Times photo by Shim Hyun-chulBy Lee Min-hyungThe Korea Times celebrated its 70th anniversary Thursday, with a group of big names from the political and business sectors speaking highly of the English language newspaper, praising it for its long-standing role as a bridge connecting the world with news about Korea.They praised the Times' decades-long dedication to enhancing national pride since its foundation in 1950, and pledged unwavering support for the newspaper to help improve Korea's global standing.Hundreds of top-ranking officials from all walks of life took part in the anniversary ceremony held at the Lotte Hotel in Seoul.The official event started with a commemorative speech delivered by The Korea Times Chairman Seung Myung-ho, which was followed by a speech from National Assembly Speaker Park Byeong-seug.Officials from the nation's business and finance circles particularly expressed the hope that the Times would play a proactive

Oct 29, 2020By Lee Min-hyung

[ANNIVERSARY SPECIAL] Korea Times celebrates 70th anniversary with much fanfare

KDB's suspicious internal trading over Hanjin Heavy?

Workers of Hanjin Heavy Industries build ships at a shipyard in the nation's southern port city of Busan on Feb. 21, 2019. YonhapBy Lee Min-hyungKorea Development Bank (KDB) Investment's participation in a bid to take over Hanjin Heavy Industries is raising suspicions over the former's possible access to internal information from the KDB, the main creditor of the cash-strapped shipbuilder.Concern have arisen since a consortium led by KDB Investment jumped into the race to take over Hanjin Heavy valued at around 500 billion won ($443.2 million). The state-run lender established KDB Investment in 2019.A total of seven consortiums and companies submitted a letter of intent to acquire the shipbuilder. They include the Korea Real Estate Investment & Trust and private equity firms.But KDB Investment's competitors remain suspicious over whether the bidding process will be carried out fairly amid concerns that the investment arm of the KDB may have already obtained quality information from the creditor and gained an advantageous position even before the bidding competition is in full swi

Oct 29, 2020By Lee Min-hyung

KDB's suspicious internal trading over Hanjin Heavy?

Securities firms seeking penalty reduction for CEOs over Lime fiasco

By Kim Bo-eunThe lobby of the Korea Financial Investment Association's building on Yeouido in Seoul / Korea Times fileBrokerages are seeking to alleviate the penalties that their CEOs are facing over the mis-selling of funds of Lime Asset Management.The Financial Supervisory Service (FSS) earlier this month notified Shinhan Investment, KB Securities and Daishin Securities of sanctions former and current chiefs are facing over the case.The regulator is said to be seeking to impose weighty sanctions that will prevent the former and incumbent CEOs from serving in positions in the financial sector for up to five years.The FSS will convene a sanctions review committee meeting Thursday, where the CEOs will have the opportunity to defend themselves, and a conclusion will be reached on the penalties that will be levied.Once the FSS reaches a decision, the view will be forwarded to the Financial Services Commission for finalization. The Korea Financial Investment Association (KFIA), an interest group representing the interests of local securities firms, is reportedly preparing to submit a pet

Oct 28, 2020By Kim Bo-eun

Securities firms seeking penalty reduction for CEOs over Lime fiasco

ANNIVERSARY SPECIAL 'Tech M&As crucial for KB's digital leap forward'

Han Dong-whan, senior executive vice president and digital head of KB Kookmin Bank, shares the bank's digital strategy at his office on Yeouido in Seoul, Oct. 8. Korea Times photo by Choi Won-sukBy Lee Min-hyungDigital banking platforms will act like a magnet pulling in more and more customers, so developing the platforms with advanced technologies should be a top priority for financial firms' sustainable growth in response to the trend of contactless transactions, according to the digital head at KB Kookmin Bank.Despite Korea's leadership in information and communication technology (ICT), it has been only a few years since local financial conglomerates came to realize the importance of digital banking, due to the conservative nature of the industry and the heavily regulated market environment.But with nationwide social changes brought about in largely by the pandemic, banks are expressing their willingness to continuing fostering a digital mindset in line with the rise of contactless transactions that have become the standard this year.The most-sought-after slogan chanted by leaders

Oct 28, 2020By Lee Min-hyung

[ANNIVERSARY SPECIAL] 'Tech M&As crucial for KB's digital leap forward'

ANNIVERSARY SPECIAL Korean banks set for fiercer rivalry in Southeast Asia

Vietnam, Indonesia mentioned as next year's battlefieldsBy Park Jae-hyukThe COVID-19 pandemic has caused major difficulties to the nation's four largest banking groups' foreign operations because overseas business trips and face-to-face transactions have been restricted throughout this year.But at the same time, they have discovered new opportunities from this ongoing crisis through further expansions in the Southeast Asian market and efforts for digitization.The executives directing Shinhan, KB, Hana and Woori financial groups' global businesses told The Korea Times their companies will continue to focus on Vietnam and Indonesia in 2021, implanting the global trend of contactless transactions there.“We expect non-face-to-face transactions will become popular in the Southeast Asian financial market due to COVID-19,” KB Chief Global Strategy Officer (CGSO) Cho Nam-hoon said. “Because of the deteriorating credibility of China, which is presumed to be the epicenter, the relocation of major production bases to Southeast Asia will likely be accelerated.”From that s

Oct 28, 2020By Park Jae-hyuk

[ANNIVERSARY SPECIAL] Korean banks set for fiercer rivalry in Southeast Asia

Shinhan likely to keep leading group title this year

By Kim Bo-eunShinhan Financial Group appears likely to maintain its lead in earnings among the four major groups this year, after it unveiled 2.95 trillion won in accumulated net profit for the first three quarters of the year, Tuesday.Its earnings for the third quarter alone, 1.14 trillion won, came second to KB Financial Group's 1.17 trillion won.Shinhan and KB have engaged in cutthroat competition for the leading title. Shinhan took the throne as top financial group in the first quarter and first half of 2020 in earnings. KB ranked first in the second quarter.KB and Shinhan both exceeded 1 trillion won in quarterly net profit for the first time, in the third quarter.Shinhan beat KB in accumulated earnings for the first three quarters of the year, with 2.95 trillion in net profit. KB's net profit for the first three quarters of the year came to 2.88 trillion won.Shinhan's net profit for the third quarter saw a 31.1 percent growth from the previous quarter."The group's earnings show Shinhan's sustainable growth trajectory, based on diversified revenue sources, such as overseas busin

Oct 27, 2020By Kim Bo-eun

Banking & Finance