Business - The Korea Times

Hana, Woori to invest W10 tril. each for Korean New Deal

Financial Services Commission (FSC) Chairman Eun Sung-soo, center in the right, attends a breakfast meeting with five leaders of major financial holding firms here in Seoul, Thursday. YonhapBy Lee Min-hyungHana Financial Group and Woori Financial Group will invest 10 trillion won ($8.3 billion), respectively, in the Korean New Deal initiative in response to a top regulator's call for them to join the national development strategy. The two financial holding firms shared their vision Sunday on supporting the drive by injecting capital into the new policy's two pillars ― the Green New Deal and the Digital New Deal. The Korean New Deal initiative is a top economic vision recently introduced by President Moon Jae-in and his administration to create more jobs and reinvigorate the COVID-19 hit economyThe injected capital will be used to help establish smart industrial clusters across the nation and develop local parts and equipment industries, according to Hana. It also said it would expand support on building equipment and facilities for the fifth-generation (5G) network and data centers.F

Jul 26, 2020By Lee Min-hyung

Hana, Woori to invest W10 tril. each for Korean New Deal

KB retakes leading bank title from Shinhan in Q2

By Park Jae-hyukShinhan Financial Group has lost its status as the most profitable bank ― on a quarterly basis ― here to its rival KB Financial Group, posting an 873.1 billion won ($726 million) net profit in the second quarter, down 12.3 percent from a year earlier, its regulatory filing showed Friday.In contrast, KB showed an earnings surprise of 981.8 billion won net income with only a 0.9 percent year-on-year drop, despite several difficulties caused by the COVID-19 pandemic.As for the accumulated earnings for the first half, however, Shinhan which earned 1.8 trillion won defeated KB which posted a 1.71 trillion won net profit.“Despite the tough business environment due to the economic slowdown and falling interest rates, we reconfirmed our ability to make stable profits thanks to the solid growth in our loan business and non-banking sector,” a KB official said.Shinhan attributed its earnings decline to its increased provisions for loan losses and impairments, so as to preemptively brace for the negative i

Jul 26, 2020By Park Jae-hyuk

KB retakes leading bank title from Shinhan in Q2

Financial firms set to expand non-banking profits amid low growth, virus shock

Leaders of the nation's major financial holding firms take part in a fintech forum in Seoul on May 23, 2019. They include Hana Financial Group Chairman Kim Jung-tae, third from left, KB Financial Group Chairman Yoon Jong-kyoo, fourth from left, Shinhan Financial Group Chairman Cho Yong-byoung, four from right and Woori Financial Group Chairman Son Tae-seung, third from right. YonhapBy Lee Min-hyungFinancial companies are set to expand their non-banking revenue resources, in a preemptive move to offset weakening profits in the traditional banking business amid the aftermath of the nationwide COVID-19 pandemic shock and prolonged economic slowdown hereStarting this year, leaders of the nation's top financial holding firms have expressed their willingness to reduce their reliance on the conventional banking sector, and establish more stable and diverse revenue streams amid the bleak outlook for an economic reboundThe drive is expected to pick up more steam in the latter half of 2020, as their earnings in the second quarter will likely have suffered from a coronavirus shock.According to

Jul 24, 2020By Lee Min-hyung

Financial firms set to expand non-banking profits amid low growth, virus shock

Pursuing well-being

Employees of AIA Korea pose with healthy snacks and beverages at the company's headquarters in Seoul, Monday. Under the banner of “Well-being@AIA,” the life insurance company aims to enhance employees' health and mental well-being amid COVID-19 through various programs. / Courtesy of AIA Korea

Jul 24, 2020By Anna J. Park

Reporter's Notebook Is Naver Financial abusing power of No. 1 portal?

Naver COO and Naver Financial CEO Choi In-hyuk / Courtesy of NaverBy Kim Bo-eunNaver's entry into the financial services sector has had financial firms on their toes, due to the immense influence it wields as Korea's top portal. Naver lacks expertise in finance, but can partner with companies in the sector and bring massive amounts of traffic to its platform.Naver Financial, Naver's subsidiary established last November, serves as a financial services platform. Customers will likely be able to sign up for various financial services Naver offers in partnership with companies including securities firms and insurers. While Naver's platform is set to help firms with their sales in general, it will serve as a lifeboat for financial firms that lack brand value.The use of Naver's traffic drawing platform, however, comes at a cost. According to industry sources, Naver recently called for non-life insurers to pay a hefty fee to present their products on its platform.Under this model, Naver Financial serves as a platform offering comparisons of car insurance policies of various insurers. The in

Jul 24, 2020By Kim Bo-eun

[Reporter's Notebook] Is Naver Financial abusing power of No. 1 portal?

'Optimus CEO invested in stocks using embezzled money'

Optimus Asset Management's office in southern Seoul / Korea Times fileBy Kim Bo-eunThe Financial Supervisory Service (FSS) said Thursday that the CEO of Optimus Asset Management had embezzled money from managed funds to invest in stocks. The finding came after the regulator's in-depth audit of the investment firm that has suspended fund redemptions, and whose investors face tremendous losses.The FSS also said it confirmed from its inspection ― conducted with the prosecution ― allegations that Optimus invested in assets that differed from stated investment proposals. The regulator added that Optimus had tried to obstruct its investigation.“Optimus' CEO invested in stocks and derivative products with money taken from the managed funds,” an FSS official said in a briefing held at the regulator's headquarters on Yeouido, Seoul.The money, presumed to amount to several tens of billions of won, was transferred to CEO Kim Jae-hyun's stock account through multiple channels, according to the financial regulator. Kim has been detained for questioning.Optimus was found to have attrac

Jul 23, 2020By Kim Bo-eun

'Optimus CEO invested in stocks using embezzled money'

Korea Investment faces credit rating downgrade

By Kim Bo-eunKorea Investment & Securities' headquarters on Yeouido, Seoul / Korea Times fileKorea Investment & Securities is facing a possible credit ratings downgrade over risk management capabilities.Moody's Investors Service said Tuesday it changed its outlook for the securities firm to negative from ratings under review. Korea Investment's rating was confirmed at Baa2."The negative outlook on Korea Investment & Securities reflects uncertainties around the sustainability and effectiveness of de-risking measures taken by the firm," the Moody's report said. "Although multiple regulations are currently in discussion, there are multiple risk areas without announced regulatory risk controls to curb risky exposure growth.”Moody's stated the risk areas included internally hedged equity-linked securities-related exposures, alternative investment acquisition and sales and stable foreign currency funding.Korea Investment & Securities posted a net loss of 133.9 billion won in the first quarter, a 161.2 percent fall from year-on-year. This was the brokerage's first quar

Jul 22, 2020By Kim Bo-eun

Korea Investment faces credit rating downgrade

New daycare center for children

Hana Financial Group Vice Chairman Ham Young-joo, third from left, Jungnang-gu Office head Ryu Gyeong-gi, fourth from left, and other participants cut the ribbon during the opening ceremony of a daycare center in eastern Seoul, Tuesday. Hana said Wednesday it made a donation for the opening of the center. / Courtesy of Hana Financial Group

Jul 22, 2020By Park Jae-hyuk

All eyes on Samsung Card's exit from Renault Samsung

Samsung Card CEO Kim Dae-hwan, left, and Renault Samsung Motors CEO Dominique Signora / Korea Times fileBy Park Jae-hyukSamsung Card is drawing keen attention from market observers here who are wondering when the card issuer will unload its 19.9 percent stake in Renault Samsung Motors.The trademark contract between the Korean conglomerate and the French automotive company will end Aug. 4. If they disagree with its renewal, Renault Samsung will need to remove “Samsung” from its company name after a two-year grace period. Samsung Card will also have no reason to hold its stake in the carmaker.Given that their partnership has hardly benefited Samsung these days, most industry officials accept their breakup as inevitable, although both of them have emphasized nothing has been decided yet regarding this issue.Renault Samsung's dividends paid to Samsung Card during the first quarter dropped 9.7 billion won ($8 million) from 21.2 billion won a year earlier, causing the card firm's first-quarter net profit to fall 6.8 percent to 112.2 billion won. It was the only company that suf

Jul 21, 2020By Park Jae-hyuk

All eyes on Samsung Card's exit from Renault Samsung

Financial leaders, top regulator to discuss banks' financial soundness

Financial Services Commission Chairman Eun Sung-soo, second from left, speaks during a meeting with government officials in Seoul, on July 16. YonhapBy Lee Min-hyungLeaders of the nation's top five financial holding firms plan to discuss whether they should extend due dates on loans provided to virus-hit companies here, during a planned meeting with a top regulator. According to the local banking industry, Tuesday, the heads of KB, Shinhan, Woori, Hana and NH NongHyup will hold a breakfast meeting with Financial Services Commission Chairman Eun Sung-soo on Friday.The top financiers are known to hold a closed-door meeting once each quarter to discuss pending issues on the industry. But this time, Eun will also take part in the meeting and hear complaints from the financial industry due to the recent market confusion induced by the spread of the coronavirus.Eun is expected to urge the top management of the banking industry to extend loan maturity and interest payments. Earlier, the financial industry joined hands with the financial authorities who called to offer special benefits for c

Jul 21, 2020By Lee Min-hyung

Banking & Finance