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Competition intensifies between Kakao, Toss in attracting talent

Lee Seung-gun, CEO of Toss' operator Viva Republica, speaks at a press conference at the company's headquarters in southern Seoul, March 28, 2019. / YonhapBy Kim Bo-eunCompetition is intensifying between Korea's top fintech firms to attract talented personnel, as they expand their businesses.Kakao Bank, established in July 2017, has been solidifying its position as its profit grows. The internet bank posted 45.3 billion won in net profit in the first half of the year, a 372 percent surge from earnings from the same period of 2019.Toss, which started as a mobile money transfer app in 2015, has also shown remarkable growth.Toss is now a financial services platform offering more than 40 services. It is also in the process of setting up multiple affiliates in online payment, insurance sales, brokerage and online banking services.Toss recorded its first surplus in the second quarter of this year, posting an operating profit of 1.7 billion won. Yet, despite Toss' growth, there is still a sizeable gap with Kakao Bank.Kakao Bank CEO Yun Ho-young speaks as the former head of the task-for

Sep 3, 2020By Kim Bo-eun
Competition intensifies between Kakao, Toss in attracting talent

'Unlicensed' Naver becomes threat to brokerages

Information about foreign stocks are seen on Naver's mobile app. / Courtesy of NaverBy Park Jae-hyukNaver is apparently frightening small- and medium-sized securities firms here with its continuous attempts to strengthen its investment related services, according to industry officials, Wednesday.While the local brokerages fear they could become subordinate to the IT giant, the tech firm has avoided strict financial regulations as it does not have a brokerage license, using its platform and data to attract retail investors here.Starting Aug. 11, Naver's mobile app has offered business information on Apple, Tesla and 22,000 other stocks listed on the U.S. Chinese, Japanese, Hong Kong and Vietnamese stock markets. It plans to offer information on European stock markets in the near future.In collaboration with global research firm Morningstar, Naver will also offer forecasts for about 150 major stocks on U.S. markets.It has continued to provide retail investors with various services, including message boards for shareholders of listed Korean firms. However, analyses of foreign stocks for

Sep 3, 2020By Park Jae-hyuk
'Unlicensed' Naver becomes threat to brokerages

KB, Shinhan in doldrums despite foreigners' buying spree

By Lee Min-hyungShares of KB and Shinhan financial groups remain in the doldrums despite foreign investor's recent binge buying, as the outlook for a near-term earnings rebound from the COVID-19 shock is getting dimmer.Starting from August, foreigners went on a mass buying spree of the nation's major financial stocks worth over 200 billion won ($168.7 million). But the rosy upward momentum of the benchmark KOSPI was insufficient for the stocks to bounce back. For 18 trading days from Aug. 3, foreign investors' combined net buying of Korean financial stocks reached 203.7 billion won. KB topped the list, with foreigners buying 149.86 billion won of its shares during the same period. Shinhan came in second with 15.67 billion won. Net foreign purchases of Woori Financial Group also reached 2.76 billion won.Despite foreigners' buying momentum, most of the financial stocks failed to extend the rally in August. The stock price of KB was traded at around over 36,000 won early this month. But this has not improved much over the past month despite the main bourse being on a stable up

Sep 1, 2020By Lee Min-hyung
KB, Shinhan in doldrums despite foreigners' buying spree

IBK employee fired for illegally using loans to himself for real estate speculation

By Anna J. ParkIndustrial Bank of Korea CEO Yoon Jong-won / Korea Times fileAn employee from state-run Industrial Bank of Korea (IBK) illicitly secured 7.6 billion won ($6.4 million) in loans for himself through family members to purchase 29 properties ― 18 condominiums, nine studio apartments and two other properties ― over the past several years. The IBK said the malfeasance was uncovered during an internal inspection earlier this year, and the employee was officially dismissed Sept. 1 after a month-long investigation. The employee gave loans of 7.3 billion won to five corporate bodies operated by direct family members, including his wife and mother, and an additional 240 million won in personal loans, when he worked at a local bank branch in Gyeonggi Province. It is estimated that he made 5 billion won to 6 billion won from the loans due to the difference in the buying and selling prices of the properties. “Once the bank spotted there was a problem with the loans, the employee was immediately removed from his position. He was officially dismissed following a decision by our

Sep 1, 2020By Anna J. Park
IBK employee fired for illegally using loans to himself for real estate speculation

Local banks embrace blockchain technology

GettyimagesbankBy Anna J. ParkIt's fair to say the retail banking sector, at least, is already in a “red ocean” because it's been losing trust with its customers rapidly. Amid an era of convergence, as barriers are blurring between technology and traditional banking systems, Korea's leading banks are on track to possibly disrupt their conventional way of functioning thanks to the emergence of blockchain technology. The technology promises much for the retail, corporate and banking sectors. But it has to satisfy several outstanding conditions before becoming a core mainstream technology in banking. A key point is that with the finance sector digitization accelerated with the pandemic-led social distancing measures, local Korean banks are seeking to use blockchain technology more both in retail and corporate banking. Based on the blockchain's decentralized ledger technology, banks aim to apply the technology in various ways, such as increasing the safety level of their banking apps and streamlining complicated processes for identification certification. Criti

Aug 31, 2020By Anna J. Park
Local banks embrace blockchain technology

COVID-19 risk management to determine fate of bank CEOs

From left: Suhyup Bank CEO Lee Dong-bin, KB Kookmin Bank CEO Hur Yin and Shinhan Bank CEO Jin Ok-dong / Courtesy of each bankBy Anna J. ParkMany CEOs of major banks are nearing the end of their terms, drawing attention on who will keep their positions amid turbulent market conditions from COVID-19.Suhyup Bank CEO Lee Dong-Bin's three-year term will expire on Oct. 24, and the bank is now preparing to form a CEO recommendation committee. Four votes out of five committee members are necessary for a candidate to be appointed as the bank's leader. As incumbent CEO Lee has received positive reviews from market insiders for his successful leadership of the bank's asset diversification, digitization drives and overseas expansion, he is a strong candidate to be reinstated for one more term at the bank. During his term, Lee has strengthened retail business, as the bank adjusted its portfolio towards a more balanced ratio of 45 percent household loans and about 55 percent corporate loans. The bank also opened its first branch in Myanmar, advancing into the Southeast Asian market. A decreased ne

Aug 31, 2020By Anna J. Park
COVID-19 risk management to determine fate of bank CEOs

Will KakaoPay consider AXA acquisition?

KakaoPay CEO Ryu Young-joon / Courtesy of KakaoPayBy Kim Bo-eunThe delay in KakaoPay getting approval to launch a non-life insurance unit is raising questions over whether the fintech platform will consider acquisition of AXA Korea, which is being put up for sale, as its “Plan B.”KakaoPay stated it would establish a digital insurance unit as it broadens its line of businesses. The financial services platform acquired an insurtech firm and has been selling products of other insurers but is now seeking to develop policies of its own by setting up an insurance unit. KakaoPay had planned to apply for a license from financial authorities by July.However, the fintech firm has yet to submit required documents to the Financial Services Commission (FSC), according to KakaoPay, Monday.KakaoPay did not provide details on what was causing the delay. "KakaoPay is in talks with financial authorities," an official said. "Approval to establish the unit is being delayed, but we plan on launching the entity as soon as possible."Reports have attributed the lack of progress to KakaoPay strug

Aug 31, 2020By Kim Bo-eun
Will KakaoPay consider AXA acquisition?

Pop-up bank branches the way to go?

BNK Kyongnam Bank operates a pop-up branch in this file photo. / Korea Times fileBy Kim Bo-eunThe Financial Supervisory Service (FSS) proposed Sunday that banks come up with alternatives such as pop-up bank branches in the event they close down branches in rural areas which makes access to financial services difficult, particularly for the elderly.The plan comes as the authority and lenders have been in conflict over shutting down branches in recent years.Lenders have been reducing branches to cut costs in the digital era as many services that formerly required visiting a branch are now accessible online. The FSS has warned banks against excessive downsizing of branches, citing this would affect senior citizens in rural areas for whom accessing bricks-and-mortar branches will become increasingly difficult.The authority said lenders should consider setting up infrastructure that would be able to provide financial services for senior citizens in the event of a branch closing in a certain area.The FSS proposed the lenders could operate the pop-up branches in the form of buses that

Aug 30, 2020By Kim Bo-eun
Pop-up bank branches the way to go?
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