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JPMorgan puts $30B toward fixing banking's 'systemic racism'

In this Aug. 16, 2019, file photo, the logo for JPMorgan Chase & Co. appears above a trading post on the floor of the New York Stock Exchange in New York. JPMorgan Chase said Thursday, Oct. 8, 2020, it will extend billions in loans to Black and Latino homebuyers and small business owners in an expanded effort toward fixing what the bank calls “systemic racism” in the country's economic system. APJPMorgan Chase said Thursday it will extend billions in loans to Black and Latino homebuyers and small business owners in an expanded effort toward fixing what the bank calls ``systemic racism'' in the country's economic system.The New York bank said it is committing $30 billion over the next five years toward programs that include earmarking more money for getting Black and Latino families into homeownership and providing additional financing to build affordable rental housing units. ``Systemic racism is a tragic part of America's history,'' said JPMorgan Chase CEO Jamie Dimon in a statement. ``We can do more and do better to break down systems that have propagated racism and

Oct 9, 2020
JPMorgan puts $30B toward fixing banking's 'systemic racism'

Controversy continues over Naver Pay's fee rate

Naver Financial CEO Choi In-hyuk / Courtesy of Naver FinancialBy Kim Bo-eunNaver Financial is facing continued pressure over high fee rates charged to merchants.The financial services arm of the portal giant is under increased scrutiny after the earnings of Naver Pay rose to a historic high in the first half of this year, after years of operating losses. Lawmakers attribute its profits to the hefty fees Naver Pay charges.Naver Pay was launched in 2015 as an easy online payment service. Naver Financial, established last November, has taken Naver's financial services, including Naver Pay, under its wing.Naver Pay, which reported heavy losses up until last year, posted an operating profit of 10 billion won in the first half of this year, after operating losses of 37.7 billion won in 2017, 65.7 billion won in 2018 and 44 billion won in 2019.The higher earnings are attributed mostly to increased online purchases amid social distancing during the COVID-19 pandemic.Payments made via Naver Pay in the first half of the year totaled 11.2 trillion won, compared to 16.18 trillion won in the whol

Oct 8, 2020By Kim Bo-eun
Controversy continues over Naver Pay's fee rate

FSS notifies Shinhan, KB, Daishin Securities chiefs of sanctions

By Kim Bo-eunFinancial Supervisory Service's logo on its building on Yeouido, Seoul / Korea Times fileThe Financial Supervisory Service (FSS) said Wednesday it has notified the CEOs of distributors of Lime Asset Management's investment products of the level of sanctions that will be reviewed for them later this month.The supervisory agency declined to specify the firms, but reports have stated they are Shinhan Investment, KB Securities and Daishin Securities. FSS Governor Yoon Suk-heun said earlier that brokerages would be the first to become subject to sanctions. Financial firms subject to sanctions also include Lime and banks that distributed its products."We have notified the current and former CEOs of three firms of the weighty sanctions, and the sanctions will be reviewed at a committee meeting to be held Oct. 29," an FSS official said.The agency has also notified the firms of institutional sanctions, for malfunctioning internal control systems that led to their distribution of the poorly managed investment products that caused losses for investors.The sanctions for the CEOs hav

Oct 7, 2020By Kim Bo-eun
FSS notifies Shinhan, KB, Daishin Securities chiefs of sanctions

Citibank Korea expected to see its first female CEO soon

Interim CEO Yoo Myung-soon / Courtesy of Citibank Korea By Anna J. ParkYoo Myung-soon, Citibank Korea's interim CEO since September, is expected to lead the global lender's local unit in Korea as the country's first female CEO of a commercial bank from the end of the month.The bank announced Wednesday that it held the second appointment recommendation committee earlier in the day, deciding to recommend Yoo, the bank's Senior Executive Vice President and current interim CEO, as the sole candidate for the post of the next CEO of the bank.Yoo is expected to be officially tapped to lead the U.S.-headquartered bank's Seoul operation on Oct. 27, when the shareholders' meeting and the board of directors are slated to be held. If approved and confirmed as the next CEO at the shareholders' meeting, as well as at the board of directors meeting later this month, Yoo will be the very first female CEO leading a commercial bank in Korea. The first woman to become CEO of a state-ru

Oct 7, 2020By Anna J. Park
Citibank Korea expected to see its first female CEO soon

Oversupply of accountants looms over Big 4

Certified public accountants (CPAs) hold a rally in front of the Government Complex in Seoul to protest the increase in the number of new CPAs, in this January file photo. / YonhapBy Park Jae-hyukA record-high supply of newly certified public accountants (CPAs) this year has become a major headache for the so-called Big Four accounting firms here which need fewer workers due to digitization and the COVID-19 pandemic.Industry insiders said the four firms decided to reduce hiring this year and to delay promotions of some of their employees, as part of efforts to cut payroll costs amid the oversupply.According to industry officials, Tuesday, Samil PwC, Samjong KPMG, EY Hanyoung and Deloitte Anjin will collectively hire around 770 new CPAs this year, far fewer than 1,060 in 2019.This decision was made despite their solid earnings last year and huge salaries given to executives.The four were able to offer jobs to all 1,009 new CPAs last year, when they collectively posted nearly 2 trillion won ($1.7 billion) in sales due to growing demand for external audits and consulting. Their 38 execu

Oct 6, 2020By Park Jae-hyuk
Oversupply of accountants looms over Big 4

Starbucks motivates KB to abandon multi-app strategy

Seen are mobile apps launched by KB Kookmin Bank. / Screen captured from Google PlayBy Park Jae-hyukKB Financial Group Chairman Yoon Jong-kyoo's continuous efforts to emulate Starbucks Coffee have finally led the group's banking unit to start resolving a long-pending problem ― too many mobile banking apps.KB Kookmin Bank said it will carry out an integrated banking project until August next year with the aim of reducing the number of its mobile apps.The bank has launched nearly 20 apps over the past few years, in contrast to its rival Shinhan Bank which came up with the integrated SOL app in 2018 after merging its six mobile banking apps.Woori and Hana banks have also provided their customers with financial services through single apps named Woori WON Banking and Hana 1Q.The reason KB Kookmin has clung to the “multi-app strategy” was to cope with the rapidly changing financial environment and regulations. The bank also took account of the lower speeds of integrated apps.This was a similar strategy adopted by Bank of America which has offered various services including aut

Oct 6, 2020By Park Jae-hyuk
Starbucks motivates KB to abandon multi-app strategy

Is Hyundai Card suppressing union activities?

Hyundai Card headquarters in Seoul / Korea Times fileBy Park Jae-hyukHyundai Card's management has failed to resolve lingering conflicts with its union despite continuous negotiations which began in February when the latter was organized under the auspices of the Korean Finance & Service Workers' Union (KFSU).While the union has alleged the management is attempting to control union activities through stricter company regulations, the firm has denied the claim, saying the rules were not specifically aimed at union members.“All our employees are subject to the regulations,” a Hyundai Card spokesman said.According to the Hyundai Card union, Monday, the internal rules allow the management to punish workers if they hold rallies, give speeches or wear ribbons, armbands or headbands without permission.Those who distribute “rebellious” leaflets can also face punishment. In addition, the company can cite “rebellious thoughts” and “bad conduct” as reasons to refuse to hire a particular jobseeker.If an employee files a civil lawsuit against th

Oct 5, 2020By Park Jae-hyuk
Is Hyundai Card suppressing union activities?

Financial accidents at major banks increase

Woori Bank headquarters located in central Seoul. / Korea Times fileBy Anna J. ParkThe country's leading private lenders are alleged to have applied insufficient measures to prevent the occurrence of financial problems over the last couple of years, according to a claim by an opposition lawmaker, Monday.Documents provided by the Financial Supervisory Service (FSS) to main opposition party lawmaker Rep. Lee Young showed Korea's top banks were found to have detected various financial irregularities. The documents showed Woori Bank had a total of 33 cases of financial irregularities.KB Kookmin Bank and Shinhan Bank tied for second place on the “dishonorable list,” with 27 cases of financial irregularities each during the five years, followed by Hana Bank with 22 cases and NongHyup with 19. Rep. Lee is a member of the National Policy Committee, which is a National Assembly committee overseeing local financial institutions. When asked about receiving the top spot on the disreputable list, an official from Woori Bank said the financial institution went through significant impro

Oct 5, 2020By Anna J. Park
Financial accidents at major banks increase
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