Business - The Korea Times

Will Lee save K bank?

By Kim Bo-eunK bank CEO Lee Mun-hwanEyes are on K bank CEO Lee Mun-hwan as the internet lender swiftly seeks to normalize operations after bolstering its capital base.K bank said Tuesday it had received 400 billion won in payments for purchases of its shares, bringing its total capital to 900 billion won.The lender said its shareholders share the vision of K bank's business. It pledged to offer innovative mobile-based services and enhance synergy with shareholders. Following the purchases, the top three shareholders of the bank are BC Card with 34 percent, followed by Woori Bank with 26.2 percent and NH Investment & Securities with 10 percent.Lee is seen to have persuaded the shareholders, who had earlier raised doubts about K bank's business and potential.Now the CEO will likely focus on normalizing loan operations and on achieving a surplus. The lender resumed offering loans last month, after loans were suspended for over a year since April 2019, due to a shortage of capital.K bank is preparing to offer differentiated services, one of which is an apartment mortgage, application

Jul 30, 2020By Kim Bo-eun

Non-banking earnings determine financial groups' ranking

KB Financial Group Chairman Yoon Jong-kyoo addresses a meeting in this photo provided by the group. KB took over the leading group title in the second quarter, backed by earnings from its brokerage and card affiliates. / Courtesy of KB Financial GroupBy Kim Bo-eunAmid banks' poor net profits in the second quarter of the year as they set aside greater loan loss reserves due to the COVID-19 pandemic, non-banking units' earnings determined financial groups' rankings for the quarter, according to their recent filings. KB's reclaiming of the No. 1 financial group position is attributed to solid income from its brokerage and card units.KB Securities' earnings increased to 150.2 billion won in the second quarter from the previous quarter, backed by commission income from increased stock trading and its investment banking businesses. KB Kookmin Card's net profit amounted to 81.7 billion won, based on growth of commission income from increased card expenditures.“Financial groups have been centered on their bank units and it has been a mid-to long-term plan for groups to strengthen their

Jul 29, 2020By Kim Bo-eun

Non-banking earnings determine financial groups' ranking

Donation for homes

Citibank Korea CEO Park Jin-hei, right, poses with Habitat for Humanity Korea Chairman Yoon Hyung-joo, after donating 100 million won to the organization, at a construction site in Cheonan, South Chungcheong Province, Wednesday. Citibank Korea's executives and employees took part in the organization's volunteering program the same day. / Courtesy of Citibank

Jul 29, 2020By Kim Bo-eun

Securities firms post robust profits in Q2 from stock market rebound

Local brokerage houses post earnings surprises, despite occurrences of mis-selling fraudulent financial productsBy Anna J. ParkLocal brokerage houses posted earnings surprises for the second quarter, as stock trading volumes surged among retail investors during the market rebound period.Among the firms that have announced their Q2 results so far, NH Investment & Securities logged the highest operating profit of 296.3 billion won ($247 million), which is a whopping 94 percent year-on-year increase. What is interesting is that its quarterly revenue of 1.97 trillion won during the period saw a year-on-year decrease of 46.5 percent, yet its profits skyrocketed.The firm's net profit stood at 230.5 billion won ― far higher than analysts' previous market consensus of about 181.5 billion won. In terms of net profit, the brokerage house garnered a 114.3 percent increase from the same quarter last year, and a 641.6 percent jump from the previous quarter. “NH Investment's Q2 net profit is an earnings surprise, exceeding the firm's estimates and a market consensus by 78.5 percent and 4

Jul 28, 2020By Anna J. Park

Securities firms post robust profits in Q2 from stock market rebound

'Stay Strong'

Korea Investment & Securities Vice President Yoo Sang-ho, center, holds a “Stay Strong” poster as the brokerage house joins the campaign in Seoul, Tuesday. “Stay Strong” is a social media campaign supporting the global fight against COVID-19. / Courtesy of Korea Investment & Securities

Jul 28, 2020By Anna J. Park

AIA Korea sees influx of figures from headquarters

AIA Korea CEO Peter Chung, center, poses with CMO Harshal Shah, right, and chief technology digital officer Kim Young-seok. / Courtesy of AIA KoreaBy Kim Bo-eunThe latest appointments to key positions at AIA Korea shows an influx of figures from AIA Group, as the Pan-Asian insurance firm seeks to strengthen its digital capabilities.AIA Korea said Monday that former director of group partnerships Harshal Shah has been appointed as the local unit's CMO. The appointment came alongside EY partner Kim Young-seok's appointment to the chief technology digital officer (CTDO) position.This comes after AIA Korea CEO Peter Chung was tapped for the position in December. Chung also came from AIA Group ― he served as the group's director of regional business development prior to taking the CEO position.Chung's predecessor Cha Tae-jin and other executives that served with Cha were appointed locally, from outside AIA Group. "Before Cha, we had figures from the group serving in positions here, but this was unseen for some time," an AIA official said. "The latest appointments are seen to have been mad

Jul 28, 2020By Kim Bo-eun

AIA Korea sees influx of figures from headquarters

Korean banks losing clout abroad amid pandemic

Lenders asked to focus on digitalization to brace for 'new normal'By Anna J. ParkWith the world economy facing a time of extended uncertainty from the COVID-19 pandemic as well as zero-range interest rates around the world, Korean banks are struggling to strengthen their competitiveness and improve profitability. Of course, this is not easy, considering the banks' lowered net interest margins and a slowdown in lending among other factors. And the numbers show that local banks are not faring particularly well, compared to their global competitors.According to the Banker's annual list of “Top 1,000 World Banks” announced earlier this month, most of Korea's major banks saw their rankings drop slightly from the previous year. In terms of the size of Tier 1 Capital ― the core capital a bank holds ― KB Financial Group was ranked 61st, the highest among the Korean banks on the list, yet falling two places from 2019. Shinhan Financial Group took 65th place, also two places lower, while the Korea Development Bank (KDB) was 67th, down three places from last year. Hana Financial Gro

Jul 27, 2020By Anna J. Park

Korean banks losing clout abroad amid pandemic

COVID-19 liquidity flowing into savings accounts

An official from Hana Bank holds U.S. dollars at its headquarters in Seoul, May 6. YonhapBy Lee Min-hyungThe government's plan to reinvigorate the virus-hit economy by expanding liquidity is bringing about an unintended consequence, as people here turned out to have increased their savings in banks in the first half of this year when the virus panic reached its peak, data showed Monday.This goes against what the Bank of Korea (BOK) and financial authorities expected when they came up with a series of large-scale stimulus packages amid fears of longer-term economic downturn in line with the COVID-19 pandemic.The central bank and the government placed a top priority in supplying massive liquidity to the market with the theoretical belief that it would help the sagging economy bounce back.But data released by the central bank recent showed otherwise. As of the end of June, the amount of local banks' savings reached 1,858 trillion won, up by 108.7 trillion won, compared to the end of 2019, according to the BOK. This is the fastest-ever half-yearly rise, it noted. On a monthly basis, the

Jul 27, 2020By Lee Min-hyung

COVID-19 liquidity flowing into savings accounts

Card firms uneasy about big tech credit biz

By Kim Bo-eunThe Credit Finance Association Chairman Kim Joo-hyun speaks during a seminar held July 8, where he urged card firms to innovate their businesses. / Courtesy of the Credit Finance AssociationCard firms are experiencing an increasing sense of uneasiness, as Big Tech firms, such as Naver and Kakao, advance into their business territory.The government on Sunday stated tech companies and fintech startups will be able to enter into the credit business. This is part of a set of new initiatives taken by the government to promote innovation in the financial services sector.The Financial Services Commission (FSC) said it aims for relevant revisions to be made to existing regulations to enable new services to be offered next year at the earliest.Tech firms such as Naver offer easy payment services, through which users can make payments by charging money to their accounts or using credit cards.Under the model the government has approved, users of Naver Pay will not only be able to make payments using cash stored in their accounts, but be able to make up to 300,000 won in additional

Jul 27, 2020By Kim Bo-eun

Card firms uneasy about big tech credit biz

Is foreign insurer exodus accelerating?

By Kim Bo-eunLina Korea's office in central Seoul / Captured from Lina Korea websiteTalk in the investment banking sector about Lina Korea's sale is leading to speculation that an exodus of foreign insurers will accelerate in the latter half of the year.A report by the Korea Economic Daily, Thursday, stated the U.S. insurance group Cigna, which owns Lina Korea, is in the process of selecting a lead manager for the sale of its Korean unit.Lina Korea, which entered the local market in 1987, has had a stellar performance. Lina ranks 21 out of 24 life insurers here in terms of total assets, but is third in terms of net profit, which stood at 350 billion won last year.Regarding the report, a Lina Korea official stated Friday "The (U.S.) group could have plans but we do not know of them." The plan for the sale appears likely against the backdrop of the U.S. financial group Prudential's sale of its life insurance unit in Korea to KB Financial Group in April. The purchase price was 2.3 trillion won, which was higher than that Prudential had expected.Prudential ranked 11th in terms of total a