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Reporter's Notebook Can English names break hierarchy in Shinhan?

Shinhan Financial Group headquarters in Seoul / Korea Times photo by Hong In-ki By Park Jae-hyukShinhan Financial Group's two subsidiaries have recently joined the trend of using English names at the office, as part of efforts to break their hierarchical structures and allow their employees a sense of freedom to become more creative.According to Shinhan Life Insurance, Monday, employees of its customer strategy group, which was newly established to prepare for the insurer's integration with Orange Life Insurance next year, began to address each other by English names for horizontal communication.Shinhan DS, the group's IT subsidiary led by former Bain & Company consultant Sunny Yi, also decided in May to use English nicknames at the office for horizontal corporate culture.The nation's leading financial group is seemingly trying to be as innovative as fintech firms, such as KakaoBank, whose employees have already addressed CEO Yun Ho-young as “Daniel,” since its launc

Jul 7, 2020By Park Jae-hyuk
[Reporter's Notebook] Can English names break hierarchy in Shinhan?

JC Partners poised to threaten Korean Re with KDB Life

KDB Life Insurance headquarters in Seoul / Korea Times fileBy Park Jae-hyukJC Partners has drawn keen attention from market observers here, who are wondering whether transforming KDB Life Insurance into a reinsurer could affect the Korea Reinsurance Company's (Korean Re) dominant market share.The private equity firm (PEF) led by Orix Private Equity's former Korean office head Lee Jong-chul was selected as the preferred bidder for the KDB Life takeover, Tuesday.It has been expected that the PEF would enter into a competition with Korean Re, taking advantage of the financial regulator's recent deregulatory measures on the domestic reinsurance industry.According to industry sources, JC Partners has sought to change KDB Life into a reinsurance firm after closing the acquisition deal estimated at around 550 billion won ($458 million).Woori Bank said it made a 100 billion won investment in a PEF that JC Partners manages for the KDB Life takeover, because the bank expects a rise in KDB Life's valuation, following the life insurer's transition into a reinsurance company.JC Partners' strategy

Jul 5, 2020By Park Jae-hyuk
JC Partners poised to threaten Korean Re with KDB Life

Hong Kong capital exodus forces Korean banks to initiate 'Plan B'

A protester is detained by police during a rally against the national security law in Hong Kong, Wednesday. EPA-YonhapHong Kong unrest to have limited impact on Korean stock marketBy Lee Min-hyungKorea's commercial and state-run lenders are keeping a close eye on a possible mass capital outflow from Hong Kong, as political and trade disputes between the United States and China appear to be worsening.With China's top legislature imposing a national security law on Hong Kong, tensions between the world's top two economies are showing signs of developing into a full-blown financial war. The law took effect Wednesday.Korean banks operating in Hong Kong are expressing concerns over the conflict.However, they said they have no choice but to maintain a “wait and see” mode for now, as it is hard to predict how the ongoing situations will deepen down the road. They also said all available options are under review for a worst-case scenario. “Our view is that Hong Kong's financial status in Asia will not change in the short term, but disputes are expected to weaken the city-st

Jul 2, 2020By Lee Min-hyung
Hong Kong capital exodus forces Korean banks to initiate 'Plan B'

Eximbank finances COVID-19 programs in Ethiopia

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu, right, holds up a contract with Ethiopian Ambassador to Korea Shiferaw Shigute after signing a deal to use the Economic Development Cooperation Fund (EDCF) to provide financial assistance to the African country to deal with COVID-19 at the state-run bank's headquarters on Yeouido, Seoul, Tuesday. / Courtesy of EximbankThe Export-Import Bank of Korea (Eximbank) said Thursday it is providing $70 million through the Economic Development Cooperation Fund (EDCF) to Ethiopia for COVID-19-related programs.The government set up the EDCF in 1987 to provide economic assistance to developing countries. Eximbank is in charge of managing the fund, which is used to provide long-term loans with low interest rates, to contribute to developing countries' industries and economic stability. The assistance is also a means to increase economic exchanges with foreign countries.Eximbank said $30 million will be used for a program to supply medical equipment and the other $40 million for other government programs to deal with COVID-19.Eximbank CEO Ba

Jul 2, 2020
Eximbank finances COVID-19 programs in Ethiopia

Woori, Hana hit for lax management of overseas offices

Lenders urged to seek quality over quantityBy Lee Min-hyungWoori Bank CEO Kwon Kwang-seokWoori Bank and Hana Bank are urged to tighten management of their overseas branches, as they received multiple sanctions over lax control on financial information particularly in Southeast Asia.According to data from the Financial Supervisory Service (FSS), the two lenders were given five sanctions each in 2019, from their overseas branches in countries such as the Philippines, Indonesia and China. Shinhan Bank and KB Kookmin Bank, other top-tier banks here, did not face any overseas sanctions during the same period.This raised concerns that some banks have fallen short of maintaining tight control of their overseas business while pushing for aggressive global expansion to find new revenue sources. From a longer-term perspective, lenders' brand reputation may be harmed if they continue to face sanctions and make what appear to be minor mistakes.Korean banks are going all-out to expand into overseas territories amid saturation in the local market and weak growth in the banking industry largely due

Jul 1, 2020By Lee Min-hyung
Woori, Hana hit for lax management of overseas offices

KakaoPay Securities seeks to capture young investors

KakaoPay Securities CEO Kim Dae-hong speaks during a press conference held at Glad Hotel on Yeouido, Seoul, Wednesday. / Courtesy of KakaoPay SecuritiesBy Kim Bo-eunKakaoPay Securities CEO Kim Dae-hong announced on Wednesday the company's decision to launch new bond funds and pledged to continue offering “innovative products” in its retail business.The securities firm is creating a unique position in the market for brokerage services in an attempt to secure young customers in their 20s and 30s, by offering convenient tech-based services and lowering entry barriers for making investments.From that standpoint, Kim stressed the firm was aiming to become a serious platform-based securities operator based on what he called a “TechFin” model, a term used to describe a tech company delivering financial products.“That's because our services are based on the KakaoTalk application. We can add more fun factors to the platform and such strengths will help potential investors pay more attention to investment,” he told reporters during a press conference. It was

Jul 1, 2020By Kim Bo-eun
KakaoPay Securities seeks to capture young investors

Global PEFs strengthening ties with Korean banks

KB Financial Group Chairman Yoon Jong-kyoo, left, and Carlyle Asia Partners advisory team managing director John Kim / Korea Times fileCarlyle, KB partnership follows after KKR, Shinhan tiesBy Park Jae-hyukWorld-class private equity firms (PEFs) have begun forming stronger partnerships with banking groups here, showing an optimistic outlook for the domestic financial market's growth potential and stability, according to industry officials, Tuesday.On June 18, the Carlyle Group announced it signed a memorandum of understanding (MOU) with KB Financial Group for a strategic alliance.Through this alliance, they will draw on the respective strengths of their domestic and global networks to collaborate on new investment opportunities both in Korea and overseas.While KB will work with Carlyle on the structuring and financing of the PEF's investments in Korea, Carlyle will use its Carlyle Asia Partners V buyout fund to invest 240 billion won ($200 million) in an exchangeable bond utilizing KB's treasury shares.Among the 240 billion won it received from Carlyle, KB is expected to pay 210 bill

Jun 30, 2020By Park Jae-hyuk
Global PEFs strengthening ties with Korean banks
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