Business - The Korea Times

INTERVIEW 'Gov't needs to allow various forms of co-insurance'

Korea Insurance Research Institute (KIRI) President Ahn Chul-kyung / Courtesy of KIRIKIRI chief warns of dominance of financial platform playersBy Kim Bo-eunLife insurance companies are moving quickly to transfer risks to reinsurers after the government allowed the operations of the co-insurance business a few months back.Co-insurance was introduced to alleviate problems at local life insurers, many of which hold long-term contracts guaranteeing high, fixed rate returns. In a low interest rate world they now face reverse margins and the upcoming implementation of International Financial Reporting Standards (IFRS) 17 imposes an additional strain because they need to expand their capital base to meet these new financial health standards.Korea Insurance Research Institute (KIRI) President Ahn Chul-kyung welcomes the introduction of the co-insurance system."Formerly, the only option insurers had in managing their capital was to increase the amount of capital they hold, but the system of co-insurance has enabled them to manage their insurance liabilities which is the root cause of the pro

Aug 19, 2020By Kim Bo-eun

[INTERVIEW] 'Gov't needs to allow various forms of co-insurance'

What's behind the KB Securities-NCSOFT partnership?

By Kim Bo-eunKB Financial Group Chairman Yoon Jong-kyooThe unusual partnering of KB Securities and video game developer NCSOFT is drawing attention over how the two entities teamed up and how they will collaborate. Both companies said they are currently discussing how they will work together, but said they were not yet at a stage to provide details."NCSOFT is known to have advanced artificial intelligence (AI) technology, and I believe this served as the basis of the partnership," a KB Financial official said.It is the first time for a gaming company to enter the financial services sector.The two companies may set up a joint entity offering AI-powered investment recommendation services similar to the one Shinhan Financial Group established.Shinhan AI, launched last year, recommends investment products and portfolio composition to investors, based on personal information such as financial situation, investment goals and preferred risk level. IBM took part in the development of Shinhan NEO, an AI-based platform for investment advisory services. Shinhan partnered with the Canada-based g

Aug 19, 2020By Kim Bo-eun

What's behind the KB Securities-NCSOFT partnership?

Credit Unions support flood-damaged households

National Credit Union Federation of Korea (NACUFOK) Chairman Kim Yoon-sik, front, participates in volunteer relief work to help restore rural households damaged by heavy rains, along with 250 employees of the federation, in Geumsan County, South Chungcheong Province, Friday. The chairman said the federation plans to provide a set of measures to support affected households through credit unions nationwide. / Courtesy of NACUFOK

Aug 18, 2020By Anna J. Park

Credit Unions support flood-damaged households

Samsung Life's unloading of Samsung Elec. stocks to boost investors

Samsung Life headquarters in southern Seoul / Courtesy of Samsung LifeBy Anna J. ParkSince ruling party lawmakers proposed revisions to the current Insurance Business Act in mid-June, Samsung Life's stock price increased by 39.5 percent from the closing price of 46,800 won ($39.4) on June 18 to last Friday's closing price of 65,300 won. The insurance stock then fell by 9.49 percent to 59,100 won on Tuesday's trading session. These volatile stock fluctuations show investors' expectation and confusion regarding the insurer's future since new financial regulation proposals were recently made by lawmakers.Park Yong-jin and Lee Yong-woo, both lawmakers of the ruling Democratic Party of Korea (DPK), suggested the proposals aimed at shifting insurers' asset assessment standards from current book value to market value, which is more in line with the International Financial Reporting Standards (IFRS) 17 coming into force in Korea in 2023. Only two insurers ― Samsung Life and Samsung Fire & Marine Insurance ― will be impacted in their asset management from the bills' passage. Both insurers

Aug 18, 2020By Anna J. Park

Samsung Life's unloading of Samsung Elec. stocks to boost investors

Kakao Bank collaborates with E-mart

Models promote Kakao Bank's new installment savings account at E-mart's Seongsu branch in Seoul, Tuesday. The internet-only bank said it launched the product in collaboration with the discount chain to allow installment savings account holders to enjoy various benefits when they shop at E-mart stores. / Courtesy of E-mart

Aug 18, 2020By Park Jae-hyuk

Payment service emerges as new income source for carmakers

A pop-up message about the in-car payment service is seen on a screen inside the Genesis GV80 SUV in this file photo. / Courtesy of Hyundai Motor GroupBy Park Jae-hyukFinancial firms and carmakers here and overseas have begun paying more attention to connected car commerce that enables drivers to make payments using their vehicles, amid the growing popularity of drive-through and contactless payment services following the COVID-19 outbreak, industry officials said Tuesday.Earlier this month, Hyundai Motor Group hired former Visa Vice President of Connected Commerce Olabisi Boyle, who was responsible for expanding in-car payment technology. At Hyundai Motor America, she will be in charge of the company's mobility strategies, including IT businesses, connected car technology and future innovations.The automotive group's latest decision was made in line with its efforts to promote connected car commerce.After introducing “G-Carpay” to the GV80 it launched earlier this year, the group has introduced the same services for the Hyundai Avante, Santa Fe, Palisade and the Kia Sore

Aug 18, 2020By Park Jae-hyuk

Payment service emerges as new income source for carmakers

Promoting housing subscription savings accounts

A model promotes NongHyup Bank's housing subscription savings accounts, through which customers can apply for both state-subsidized and private apartments after making deposits for a given period. The bank said it will provide giveaways to customers taking part in events running through next month, as a means to attract young customers in their 20s and 30s. / Courtesy of NongHyup Bank

Aug 17, 2020By Kim Bo-eun

Promoting housing subscription savings accounts

Will KB group's Yoon Jong-kyoo serve third term?

By Kim Bo-eunKB Financial Group Chairman Yoon Jong-kyooAttention is growing as KB Financial Group Chairman Yoon Jong-kyoo has been forwarded as one of the candidates for the group's next chief. Views are widespread that Yoon will likely secure another term, based on his performance.The financial group's committee on recommending candidates for the chairman position will narrow down the pool of candidates to four by Aug. 28. The final candidate will be forwarded at a shareholders' meeting on Sept. 25. Yoon became KB Financial Group's chairman in November 2014, and is serving his second term, which will come to an end on Nov. 20.Among his recent achievements is the takeover of Prudential Life Insurance Company of Korea, strengthening its life insurance unit.The chairman has also led KB's overseas expansion in recent years. KB had lagged significantly behind other financial groups in the scale of its overseas business.Under Yoon, KB set up a new overseas business division to oversee each affiliate's overseas operations and enhance cooperation among affiliates in foreign markets. KB Kook

Aug 17, 2020By Kim Bo-eun

Will KB group's Yoon Jong-kyoo serve third term?

Senior workers flex muscles against KB, Citibank

Financial workers union members in their 50s raise their fists during a launch ceremony for the new union at the National Assembly in Seoul, Aug. 4. / Courtesy of the unionBy Park Jae-hyukKB Kookmin Bank and Citibank Korea are facing lawsuits from dozens of employees in their 50s, who are urging the banks to end their “peak wage system” and compensate them for lost earnings after their salaries were reduced when the system was introduced, industry officials said Monday.The legal action follows the ongoing lawsuits filed by older workers at two state-run banks ― the Korea Development Bank (KDB) and the Industrial Bank of Korea (IBK).The Korea Exchange (KRX), Seoul Guarantee Insurance (SGI), the Korea Credit Guarantee Fund (KODIT) and the Korea Technology Finance Corporation (KOTEC) are expected to face similar litigation from workers in their 50s within the year.Industry officials said other public and private financial firm workers are considering similar action.Given that the Supreme Court ruled in favor of a state-run company worker in December last year, ordering the c

Aug 17, 2020By Park Jae-hyuk

Senior workers flex muscles against KB, Citibank

Toss, Kakao Bank come under first FSS inspection

Toss' headquarters in southern Seoul / Korea Times fileBy Kim Bo-eunFinancial authorities are conducting their first inspection of Korea's leading fintech firms which are experiencing rapid growth. The audits will likely focus on internal control systems and risk management capabilities.According to the Financial Supervisory Service (FSS), the authority is launching its first inspection of the financial services platform Toss this week. The FSS is set to inspect the internet-only Kakao Bank in the fourth quarter of this year.The supervisory agency will look into Toss' security and financial conditions and check for any violations of the law governing e-transactions.Toss, established in 2015, started off offering mobile money transfer services. It has now grown into a platform offering 40 types of services. Using the platform, users can make payments, sign up for credit cards and insurance policies and make investments. Toss has 17 million users.Toss recorded its first surplus in the second quarter of this year, posting an operating profit of 1.7 billion won. This is the supervisory a

Aug 17, 2020By Kim Bo-eun

Banking & Finance

Banking & Finance

INTERVIEW 'Gov't needs to allow various forms of co-insurance'

What's behind the KB Securities-NCSOFT partnership?

Credit Unions support flood-damaged households

Samsung Life's unloading of Samsung Elec. stocks to boost investors

Kakao Bank collaborates with E-mart

Payment service emerges as new income source for carmakers

Promoting housing subscription savings accounts

Will KB group's Yoon Jong-kyoo serve third term?

Senior workers flex muscles against KB, Citibank

Toss, Kakao Bank come under first FSS inspection

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