Business - The Korea Times

NH-Amundi main beneficiary of Moon administration

NongHyup (NH) Financial Group Chairman Kim Gwang-soo subscribes to NH-Amundi Asset Management's Green Korea Fund at NongHyup Bank's main branch in Seoul, Tuesday. / Courtesy of NH Financial GroupPro-government moves attributed to NH Financial chairmanBy Park Jae-hyukNH-Amundi Asset Management has become a rising star under the Moon Jae-in administration for its preemptive efforts to keep pace with major government policies.The asset management company, jointly established by NongHyup (NH) Financial Group and the French asset management firm Amundi, created an equity fund called the Green Korea Fund earlier this month, in line with the administration's Green New Deal initiative.The fund mainly invests in industries with higher sustainable growth rates, such as fuel-cell, electric vehicle, healthcare, 5G network and wind-power generation.“Based on NH-Amundi's excellent research and management capabilities proven with the Victorious Korea Fund, I hope this fund leads to investments in the Korean New Deal,” NH Financial Chairman Kim Gwang-soo said after he subscribed this wee

Sep 9, 2020By Park Jae-hyuk

NH-Amundi main beneficiary of Moon administration

Banks' household loans increase by record amount in August

Apartment complexes in Seoul / YonhapSouth Korean banks' household loans increased by the largest amount on record in August amid rising home prices and a rally in the stock market, central bank data showed Wednesday.Outstanding bank loans to local households came to 948.2 trillion won (US$796.9 billion) as of end-August, up 11.7 trillion won from the previous month, according to the data from the Bank of Korea (BOK).It marked the largest monthly gain since 2004 when the BOK began compiling related data. In July, such lending grew by 7.6 trillion won.Home-backed loans grew 6.1 trillion won in August, accelerating from a 4 trillion-won gain the previous month as loan demand for buying and renting homes increased, the data showed."Since June, housing transactions in the greater Seoul area have increased, raising loan demand with a time lag," a BOK official said.Non-mortgage loans gained 5.7 trillion won last month, larger than a 3.7 trillion-won increase in July and marking the largest monthly gain on record.Unsecured loans accounted for the bulk of banks' non-mortgage lending. The BOK

Sep 9, 2020

Banks' household loans increase by record amount in August

Credit Suisse expands stellar presence in M&A advisory market

Credit Suisse headquarters in Switzerland / Courtesy of Credit SuisseBy Anna J. ParkDespite deteriorating market conditions due to COVID-19, the Korean unit of Credit Suisse is continuing its legacy of leading the local M&A advisory market this year, involving major buyout deals such as Doosan Group and the restructuring deal of Korean Air.The Switzerland-based financial firm topped the corporate M&A advisory market last year with its management of over 10.6 trillion won ($8.9 billion) worth of buyout deals, including a merger of SK Broadband and T-broad, MBK Partners' Lotte Card acquisition and SKC's acquisition of KCFT. The global investment bank's noticeable achievements in the advisory market also include its involvement in the finalizing of Korean Air's share purchase agreement (SPA) with local private equity firm Hahn & Company in selling the flag carrier's in-flight meal services. Given that the deal was signed in just three months' time despite the initial differences of the two sides, Credit Suisse's meticulous handling of the advisory work received positive feed

Sep 8, 2020By Anna J. Park

Credit Suisse expands stellar presence in M&A advisory market

Sale of gov't shares in Woori on track

By Kim Bo-eunWoori Financial Group's headquarters in central Seoul / Courtesy of Woori Financial GroupFinancial authorities are preparing to sell off Woori Financial Holdings' shares owned by the government this year and are carefully monitoring market circumstances.The Financial Services Commission (FSC) said earlier it would push for the sale of the state-run Korea Deposit Insurance Corp. (KDIC)'s 17.25 percent stake in Woori over the next three years.The authorities said they could not proceed with the plan in the first half of the year due to the spread of COVID-19. Woori's share price plummeted in mid-March amid the coronavirus-triggered stock market plunge.Woori's stock price rose above 10,000 won briefly in June. That raised expectations authorities would speed up efforts to sell the shares while prices were up. However, the price fell in following weeks and now hovers around 8,500 won per ordinary share on the KOSPI. The authorities plan to move forward with the plan."We will proceed with plans if market circumstances become favorable," an official with the FSC-affiliated Pub

Sep 8, 2020By Kim Bo-eun

IBK chief in hot seat over 'unimpressive' results

Industrial Bank of Korea CEO Yoon Jong-won speaks to reporters in Seoul on Jan. 16, after failing to enter the head office of the state-run lender amid fierce protest from its union. YonhapBy Lee Min-hyungIndustrial Bank of Korea (IBK) CEO Yoon Jong-won is in the hot seat over his alleged failure to exercise strong leadership in the eight months following his controversial appointment.Yoon took office as the head of the lender in January this year, amid internal opposition, as the IBK union argued the former Cheong Wa Dae economic chief was parachuted into the top post for “political reasons.”Regarding the opposition, Yoon pledged to dispel such concerns by producing tangible management outcomes.However, under Yoon's leadership, the lender has been mired in a set of controversies and failed to impress investors. As of the end of June, the possibility of potential bankruptcies among its customers reached 3.68 percent due to the massive loans it has provided to small business owners in efforts to help them counter the economic fallout of the pandemic.The figure was twice as

Sep 7, 2020By Lee Min-hyung

IBK chief in hot seat over 'unimpressive' results

Korean Japanese shareholders losing control over Shinhan

Shinhan Financial Group Chairman Cho Yong-byoung, left, and the late Shinhan Bank Honorary Chairman Lee Hee-gun / Korea Times fileBy Park Jae-hyukShinhan Financial Group's recent decision to attract investment from two Hong Kong-based private equity firms (PEFs) will weaken the influence of ethnic Koreans living in Japan over the banking group, according to analysts, Monday.They said the possibly reduced influence of the Korean Japanese will help Shinhan improve independence in its governance and prevent the financial authorities from interfering in its management.The financial holding company's board of directors last week approved a plan to issue new shares worth 1.15 trillion won ($966 million) to Affinity Equity Partners and Baring Private Equity Asia.After the announcement, several local brokerages lowered their target prices for Shinhan shares claiming the purpose of the company's decision was uncertain, as it had only cited possible cooperation with the foreign PEFs in global capital markets.Kiwoom Securities analyst Seo Young-soo, however, regarded the recent capital increase

Sep 7, 2020By Park Jae-hyuk

Korean Japanese shareholders losing control over Shinhan

Standard Chartered Bank's global CEO Bill Winters stays in Korea for month

Standard Chartered Bank's Chief Executive Bill Winters / Courtesy of Standard Chartered Bank KoreaBy Anna J. ParkLondon-headquartered Standard Chartered Bank's Chief Executive Bill Winters is currently spending a month in Korea, aiming to observe the country's digital fintech environment and talk with key local market players.According to Standard Chartered Bank Korea, the Korean unit of the global bank group, Winters arrived here Aug. 30 and plans to stay until the end of September, focusing on inspecting the country's business environment as well as its digital infrastructure capability. During the stay, Winters will continue his usual role as the global head of the banking group online, while following the government's quarantine-related guidelines. “CEO Winters has long been repeatedly stressing the importance of the Korean market, and he has also hoped to closely watch the country's superior system in containing the global pandemic,” said CEO Park Jong-bok, the three-term CEO of Standard Chartered Bank Korea.“I hope that this visit could provide CEO Winters the

Sep 4, 2020By Anna J. Park

Standard Chartered Bank's global CEO Bill Winters stays in Korea for month

Shinhan attracts W1.15 trillion from Affinity, Baring

Shinhan Financial Group's headquarters in Seoul. / Korea Times fileBy Park Jae-hyukShinhan Financial Group Chairman Cho Yong-byoung's close relationship with the heads of global private equity firms (PEFs) has helped his company attract another large investment from Hong Kong-based buyout firms.The Korean financial holding company said Friday its board of directors approved the company's plan to issue new shares worth 1.15 trillion won ($966 million) to Affinity Equity Partners and Baring Private Equity Asia.“Through the latest capital increase, we will be able to preemptively cope with uncertainties caused by the COVID-19 pandemic and seek various opportunities at the time of the economic recovery,” a Shinhan official said.“Using our increased capital, we will improve our profitability and come up with measures to increase our shareholder value. We will also communicate with the market regarding our plans on capital management.”According to sources familiar with the issue, a meeting between Cho and Affinity Chairman Park Young-taeg was behind the recent deal.

Sep 4, 2020By Park Jae-hyuk

Shinhan attracts W1.15 trillion from Affinity, Baring

SC Bank's Park to serve three terms

By Kim Bo-eunStandard Chartered Bank CEO Park Jong-bokStandard Chartered (SC) Bank Korea CEO Park Jong-bok is in the spotlight after securing a third term as the lender's chief. SC Bank said Park was reappointed after shareholders and board meetings ThursdayPark's third term will begin Jan. 8 next year. SC Bank said the board made the appointment five months in advance to remove uncertainties and achieve organizational stability.Park began his first term Jan. 8, 2015. Born in 1955, Park earned a bachelor's degree in economics from Kyung Hee University. He joined Korea First Bank, later acquired by SC Bank, in 1979. The British banking group took over the local bank in 2005. Park has extensive experience in sales, as he worked at local branches for 20 years. He headed the sales division and the retail banking division before being appointed to double as SC Financial Group chairman and SC Bank CEO in January 2015.He was reappointed as the lender's chief in January 2018.Park has been acknowledged for his leadership skills and ability to communicate with employees. He took bold measures

Sep 4, 2020By Kim Bo-eun

Macquarie Korea braces for tussles with authorities

Macquarie Korea Infrastructure Fund supervisory director Kim Dae-kiBy Park Jae-hyukMacquarie Korea Infrastructure Fund (MKIF), which has been mired in multiple lawsuits with the central and local governments here, has appointed a former government official as its new supervisory director in an apparent attempt to brace for possible disputes with the authorities in the future.Given that the fund management company specializing in investments in social overhead capital needs to continue to work with the authorities, it appears to have reinforced the lineup of its board of directors to avoid earnings declines caused by legal battles.According to the prospectus of MKIF, Friday, former Hanwha Life Insurance adviser Kim Dae-ki joined the firm in late July as a new supervisory director.Kim, who became a civil servant in 1978, has worked for both progressive and conservative administrations.He served as Statistics Korea commissioner and chief presidential secretary for policy during the Lee Myung-bak administration, while working as presidential secretary for economic affairs during the Roh