Business - The Korea Times

Hyundai Capital improves quality of in-house training

By Park Jae-hyukHyundai Capital and Hyundai Card said Thursday they have continued to improve the quality of in-house training for company employees.According to Hyundai Motor Group's financial subsidiaries, their “Open Class” lectures held since 2014 have covered diverse topics from the coronavirus to fintech, neural science and social media, inviting poet Ha Sang-wook, psychiatrist Ha Ji-hyeon and wrestler-turned-broadcaster Kim Nam-hoon.The latest lecture was delivered via Zoom by HI Investment & Securities research division head Ko Tae-bong, who is known as one of the leading automotive industry analysts.Hyundai Capital said the employees used a chat window to ask the expert about how the automotive industry is expected to change in the wake of the COVID-19 pandemic and how a finance company wholly owned by an automotive group should cope with the changes.“The best thing about Open Class is that anyone can choose a class they want to attend regardless of their job rank,” an employee of the company's Open Class Talent Management Team said. “We off

Sep 24, 2020By Park Jae-hyuk

Kookmin Bank's mobile phone biz at risk?

KB Financial Group Chairman Yoon Jong-kyoo, third from right, applauds with KB Kookmin Bank CEO Hur Yin, second from left, and other officials at the bank's launch of Liiv M, a budget phone service at the Banyan Tree Club & Spa, Oct. 28, 2019. First from left is LG Uplus CEO Ha Hyun-hwoi and third from left is Financial Services Commission Vice Chairman Sohn Byung-doo. Courtesy of KB Kookmin BankKB's case illustrates possible conflict over new initiativesBy Kim Bo-eunKB Kookmin Bank's new line of business offering mobile phone plans in partnership with telecommunications firm LG Uplus continues to face setbacks due to hardline opposition from the lender's union.Last November, the bank launched its budget phone service Liiv M, which provides users with low-cost phone plans and convenient mobile banking services.Kookmin Bank has sought to break the prejudice against budget phones, which are commonly associated with low-quality services. Based on its partnership with LG Uplus, the lender is offering an unlimited 5G data plan that is significantly cheaper than existing plans offered

Sep 23, 2020By Kim Bo-eun

Kookmin Bank's mobile phone biz at risk?

Nonghyup Bank files for approval of Beijing branch

YonhapMajor South Korean lender Nonghyup Bank has applied for China's approval to open a branch in Beijing as part of its Asian push, industry sources said Tuesday.Nonghyup Bank, which lodged the application with the China Banking and Insurance Regulatory Commission late last month, is expected to receive preliminary approval by February at the latest.It usually takes six months to receive preliminary approval from the Chinese financial authorities to open a branch in the world's second-largest economy.In light of the process for winning final approval, there is a high possibility of Nonghyup Bank opening its first Beijing branch around the end of next year, according to the sources.It would mark Nonghup Bank's first establishment of an overseas business operation after setting up a wholly owned subsidiary in Cambodia in 2018.Among South Korea's five major banks, Nonghyup Bank is the only one that has no business operations in China. In 2013, Nonghyup Bank opened a representative office in Beijing.The latest move is part of Nonghyup Bank's push to expand its presence in Asia. The len

Sep 22, 2020

Nonghyup Bank files for approval of Beijing branch

Partnership with real estate investment platform

A model promotes Hana Bank's partnership with the real estate investment platform operator KASA Korea, in this photo provided Monday. The lender and KASA Korea launched the mobile application KASA, which enables people to invest small amounts in commercial real estate through digital asset-backed securities. / Courtesy of Hana Bank

Sep 21, 2020By Kim Bo-eun

Partnership with real estate investment platform

Korea remains passive in embracing digital currency

By Lee Min-hyungThe so-called “crypto craze” swept through the country a couple of years ago with the majority of people talking about bitcoin. However, the vitality of Korea's cryptocurrency industry is being questioned with a set of regulations that are driving market players into a corner.The government said early on that it would consider legislation to bring cryptocurrencies into the mainstream and review if and how to apply taxation to them. But no such steps have been taken yet.As cryptocurrency trading gathered force, the country was quick to move forward with applying plans requiring real-name accounts and introducing a ban on initial coin offerings (ICOs) back in 2017. But three years later, the country's tax authorities said detailed plans on how to apply taxation or better navigate cryptocurrency markets have not materialized.This is contradictory to steps taken by many developed countries. The Korean government's apparent laziness with respect to providing specific legal foundations for various v

Sep 20, 2020By Lee Min-hyung

Korea remains passive in embracing digital currency

Suhyup Bank feared to face leadership vacuum again

Suhyup Bank CEO Lee Dong-binBy Park Jae-hyukThere are concerns over another possible leadership vacuum at Suhyup Bank after the government and the National Federation of Fisheries Cooperatives (NFFC) expressed conflicting opinions about the appointment of the bank's next leader.The conflict erupted after the CEO recommendation committee started the procedure to find a successor to incumbent CEO Lee Dong-bin, whose term ends Oct. 24.The committee members argued Sept. 7 over a proposed revision in the articles of association to cut the CEO's term from three years to two.While representatives of the Ministry of Economy and Finance and the Financial Services Commission (FSC) opposed the revision, those of the Ministry of Oceans and Fisheries, the NFFC and the incumbent CEO agreed with the revision, passing the proposal by a majority vote.The opponents feared that the next CEO may focus only on short-term achievements and the NFFC may intervene more in the bank's management.After the passage of the proposal, the representative of the finance ministry and the FSC demanded the committee chi

Sep 18, 2020By Park Jae-hyuk

Suhyup Bank feared to face leadership vacuum again

NPS investment managers investigated for smoking pot

The file photo shows a building of the National Pension Service. / Korea Times fileBy Kim Bo-eunThe National Pension Service (NPS) with over 700 trillion won in assets under management, is in the hot seat after it was revealed that four of its investment managers were being investigated by police for allegedly smoking cannabis.The Jeonbuk Provincial Police Agency stated Friday it had booked the four managers to question them over the allegations.It added that it has requested the National Forensic Service to conduct tests on hair samples after a urine analysis came back negative.The managers acknowledged the allegations during questioning.The investigation comes as a shock as the NPS is in charge of managing 752.2 trillion won. It dismissed the managers Sept. 9, after convening a disciplinary committee meeting.This is not the first time NPS employees have engaged in misconduct. NPS employees are banned from receiving money and goods from work-related people, but in October 2018, 114 were found to have been treated to overseas trips by foreign firms investing NPS funds.In February 201

Sep 18, 2020By Kim Bo-eun

NPS investment managers investigated for smoking pot

Who will bid for AXA Korea?

By Kim Bo-eunKorea Times fileAttention is focused on possible participants in preliminary bidding to take over French insurer AXA's Korean unit, which will close today.AXA's headquarters has selected Samjong KPMG as the lead manager for the sale. AXA Korea has focused on direct motor insurance, where insurance policies are sold online. Its loss ratio from car insurance has increased, leading to a net loss of 33.65 billion won last year.Shinhan Financial Group and Kyobo Life Insurance have been named as firms likely to take part in the bid.Shinhan Financial is expected to be willing to acquire AXA because it does not hold a non-life insurer in its portfolio. Given KB Financial Group's latest acquisition of the Prudential Life Insurance Company of Korea, Shinhan has been eyeing opportunities to expand its portfolio, as the top two financial groups engage in fierce competition.Kyobo Life, meanwhile, is seen to be interested in AXA as well. Kyobo Life in 2007 sold shares of its motor insurance unit launched in 2001.The firm, which has an online life insurer affiliate, Kyobo Life Planet,

Sep 18, 2020By Kim Bo-eun

Standard Chartered poorest in protecting borrowers' rights

A placard introducing loan products hangs on an outer wall of a Standard Chartered Bank Korea branch in Seoul in this 2019 photo. / YonhapBy Park Jae-hyukStandard Chartered (SC) Bank Korea was found to have been poorest among the nation's 16 banks in efforts to inform borrowers of their right to demand rate cuts when their credit ratings improve or their assets increase.Data the Financial Supervisory Service (FSS) gave to Rep. Kang Min-kuk of the main opposition People Power Party showed Thursday that the U.K. banking giant's local subsidiary got the lowest rating ― 40.6 points ― from the financial watchdog, which conducted “mystery shopping” at 188 branches of the 16 banks and their call centers between Dec. 30 last year and Feb. 7 this year.The mystery shopping was done after the National Assembly amended the law in December 2018 to better protect the rights of borrowers. Following the enforcement of the law in June last year, domestic banks have had to pay up to 20 million won ($17,000) in fines if they do not inform borrowers when they are entitled to lower interest r

Sep 17, 2020By Park Jae-hyuk

Standard Chartered poorest in protecting borrowers' rights

Will Korea see second female CEO in insurance sector?

By Kim Bo-eunLina Korea COO Cho Jee-eun / Courtesy of Lina KoreaAttention is growing around the possible emergence of the second-ever female CEO in Korea's insurance industry.U.S. insurance group Cigna's local unit Lina Korea's Chief Operating Officer (COO) Cho Jee-eun is expected to succeed current CEO Benjamin Hong.Hong's official term ends at the end of the year, but he will step down in October, with Cho serving as acting CEO beginning next month.The industry view is that it is likely Cho will take the position of CEO.Observers say that Hong is making an early departure to reduce his influence as the long-standing CEO, thus enabling his successor and members of the firm to adjust to the leadership change."The matter will be finalized at a board meeting that is expected to take place in December," a Lina Korea official said.Cho as Lina Korea's COO, was promoted to vice president in December. Lina Korea entered the local market as the first foreign life insurer in 1987. The insurer has seen a stellar performance in past years.It is among the smallest life insurers in total assets,

Sep 17, 2020By Kim Bo-eun

Banking & Finance