Business - The Korea Times

Banks seeking to minimize fallout from Lime, DLF

By Kim Bo-eunThe launch of a "bad bank" that will take over the troubled Lime Asset Management's funds will likely be delayed, as the financial firms tasked with setting it up have yet to reach an agreement over which entity will become the largest shareholder. A bad bank is a corporate structure set up to buy poorly performing assets from another financial institution.The 20 financial firms that sold Lime's funds have been tasked with the launch of the bad bank. Financial Supervisory Service Governor Yoon Suk-heun stated the entity would be established this month, but the financial firms have yet to reach a decision over which will be the largest shareholder.The principle is that the company that sold the largest amount of Lime's funds becomes the largest shareholder of the bad bank. As an individual financial firm, Woori Bank sold the largest amount at 357.7 billion won, but as a financial group Shinhan's amount becomes the largest because both its brokerage unit and bank each sold 324.8 billion won and 276.9 billion won.The entities appear to be trying to avoid becoming the larges

May 25, 2020By Kim Bo-eun

Banks seeking to minimize fallout from Lime, DLF

Hyundai Card offers personalized spending insights

By Kim Bo-eunThe screen capture shows Hyundai Card's analysis of a customer's spending habits. This is a new artificial intelligence-based digital service offering personalized spending insights. / Courtesy of Hyundai CardHyundai Card said Monday it is offering personalized spending insights, based on the newest feature added to Hyundai Card's smartphone app."Hyundai Card Spending Care by Personetics" is an artificial intelligence (AI)-based digital service jointly developed with Israeli fintech company Personetics.The service not only offers personalized spending insights, but goes a step further to provide shopping advice and recommendations, the card firm said."With various external data sources and the ability to analyze, we pushed ahead to gain a competitive edge in the market by offering a next-level personal finance management service that provides customers with more practical and helpful insights, highlighting Hyundai Card's winning points," said David Deok-hwan Kim, the head of card business at Hyundai Card.The service is able to send around 80 different types of messages r

May 25, 2020By Kim Bo-eun

Hyundai Card offers personalized spending insights

Lenders deterred from preparing for worst-case scenario

Financial Services Commission (FSC) Chairman Eun Sung-soo, right, urges bank CEOs to offer financial support to small business owners during a meeting at the Korea Federation of Banks headquarters in Seoul in this March 20 file photo. / Courtesy of FSCGov't urges banks not to increase loan loss reservesBy Park Jae-hyukDomestic banks have been unable to brace for the negative impact of the COVID-19 pandemic, due to the government virtually barring them from increasing their reserves in anticipation for loan losses.While banks in the United States and Europe have begun putting aside massive amounts of money to brace for the scenario, Korean lenders have not been able to do the same as they have been forced to lend more money to virus-hit businesses and extend the due dates for their loan payments.Analysts have warned Korean banks of credit risks in upcoming quarters if they continue to keep pace with the government's massive liquidity supply.According to regulatory filings by Shinhan, KB, Hana and Woori financial groups, Thursday, their combined allowances for bad debts rose 9.5 percen

May 25, 2020By Park Jae-hyuk

Lenders deterred from preparing for worst-case scenario

Brokerages' overseas earnings hit by COVID-19

By Kim Bo-eunKorea's major securities firms saw earnings from overseas subsidiaries switch to a deficit in the first quarter of this year amid global market volatilities triggered by COVID-19. Korea Investment & Securities saw its overseas income plunge to a net loss of 55.64 billion won, from a net profit of 34.71 billion won a year earlier.The brokerage's Hong Kong subsidiary, in particular, saw the largest drop in earnings, posting a net loss of 17.67 billion won, a deterioration from the previous year's 13.41 billion won net loss. "Companies having portfolios with greater weightings on stocks suffered larger losses as major stock markets took a dive in March, due to the COVID-19 pandemic," a Korea Investment official said.NH Investment & Securities also saw overseas subsidiaries post a net loss of 8.04 billion won in the first quarter, down from 12.42 billion won in the same period last year.NH's subsidiary in Hong Kong posted a net loss of 3.8 billion won, compared to a net profit of 26.68 billion in the first quarter of 2019.“Subsidiaries that mostly handle broker

May 25, 2020By Kim Bo-eun

Brokerages' overseas earnings hit by COVID-19

5 candidates vying to lead KICPA

From left are Samil PwC CEO Kim Young-sik, Deloitte Anjin Vice Chairman Chung Min-keun, Rep. Chae Yi-bai of the minor opposition Party for People's Livelihoods, Shinhan Accounting Corporation managing partner Choi Jong-man and Chung-Ang University professor Hwang In-tae. / Yonhap By Park Jae-hyukA record five candidates began a fierce competition to become the president of the Korean Institute of Certified Public Accounts (KICPA).According to the lobby group for accounting and tax experts, Sunday, they are Samil PwC CEO Kim Young-sik, Deloitte Anjin Vice Chairman Chung Min-keun, Rep. Chae Yi-bai of the minor opposition Party for People's Livelihoods, Shinhan Accounting Corporation managing partner Choi Jong-man and Chung-Ang University professor Hwang In-tae.The election is slated for June 17.During the KICPA's previous elections, there were only two or three candidates.As candidates coming from large accounting firms have generally won the elections amid low voter

May 25, 2020By Park Jae-hyuk

SC offers benefits for new customers

A model holds up a signboard promoting Standard Chartered Bank Korea's latest event providing gift certificates for new customers. / Courtesy of SC Bank KoreaCustomers opening an account with Standard Chartered (SC) Bank Korea carrying an annual interest rate of 0.6 percent will be provided up to 2 million won in gift certificates when they keep the stated amount of funds in the account. Customers signing up for the account before May 29 and keeping an average of 50 million won in the account over the next three months will be able to receive a Shinsegae gift certificate worth 50,000 won. The value of the provided gift certificate will be proportional to the amount of money in the account. If a customer keeps an average of 100 million won in the account the bank will provide the customer with a gift certificate worth 100,000 won. If the customer keeps an average of 1 billion won in the account, the bank will provide a gift certificate worth 1 million won.If customers keep the stated amounts in their accounts for six months they will be provided a second gift certificate worth the sam

May 24, 2020By Kim Bo-eun

INTERVIEW Hyundai Capital sees epic growth overseas

Paul Skiadas, head of the global business division of Hyundai Capital, speaks at his office in Seoul in this file photo. / Courtesy of Hyundai CapitalAuto financer supports pandemic-hit customers, dealersBy Park Jae-hyukThe year 2019 was definitely meaningful for the global business of Hyundai Capital which operates in the United States, Canada, Brazil, Germany, the United Kingdom, Russia, India, China, Australia and Singapore.The auto financer first expanded overseas in 1989 with Hyundai Auto Finance in the U.S., which later became Hyundai Capital America (HCA). Last year marked the 30th anniversary of its overseas business and its combined financial assets from operations outside of Korea for the year surpassed 50 trillion won ($40 billion), nearly double the size of its domestic assets.Such outstanding growth could be achieved through the company's differentiated strategies, according to Paul Skiadas, who is in charge of directing the global businesses of Hyundai Motor Group's financial services arms ― Hyundai Capital and Hyundai Card.He told The Korea Times in a recent email inte

May 21, 2020By Park Jae-hyuk

[INTERVIEW] Hyundai Capital sees epic growth overseas

Supporting venture startups

NongHyup Bank CEO Son Byung-hwan, front row fifth from left, poses with CEOs of startup companies at NH Digital Innovation Campus, located in Seocho-gu in southern Seoul, Wednesday. The bank offers diverse benefits for the selected firms, including working space and management consulting. / Courtesy of NongHyup Bank

May 21, 2020By Anna J. Park

Eximbank issues 'Kangaroo bonds' worth Aus$700 mil. in Australia

Headquarters of the Export-Import Bank of Korea in Seoul. YonhapBy Lee Min-hyungThe Export-Import Bank of Korea (Eximbank) has issued “kangaroo bonds” worth 700 million Australian dollars (566 billion won) to diversify its financing channels abroad, the state-run lender said Thursday.Eximbank said it is the first Asian financial organization to issue the bonds since the global economy was hit hard by the coronavirus pandemic.The lender has closely monitored the Australian market to expand its foothold overseas and decided recently to issue the bonds amid rising investor confidence there.Eximbank has issued Kangaroo bonds worth 4.8 billion Australian dollars since it started doing so in 2012, the largest amount among Asian organizations issuing the bonds.“We will do our utmost to expand our financing channels by continuously tapping into niche markets,” a spokesman for the lender said.“Eximbank reaffirmed that its bonds were trustworthy enough to win overseas investors' confidence as a safe asset despite the virus-induced uncertainty in the global financi

May 21, 2020By Lee Min-hyung

Eximbank issues 'Kangaroo bonds' worth Aus$700 mil. in Australia

Shinhan launches mobile banking app in India

An employee of Shinhan Bank's Indian branch poses with a signboard promoting Shinhan's launch of its mobile banking application in India. Courtesy of Shinhan BankBy Kim Bo-eunShinhan Bank said Thursday it has launched its mobile banking application Shinhan SOL in India.The lender said with the launch of the app, it has become the first Korean bank in India to launch an inter-bank electronic funds transfer system, replacing existing security cards used in remittance services.Shinhan said the app can be used to pay utility fees as well as mobile phone and internet bills."We will do our best to offer the best financial services to customers based on the launch of Shinhan SOL India, amid the growing preference for contactless transactions following the COVID-19 situation," an official of Shinhan's Indian branch said in a statement.The bank said it is readying to launch a mobile-based real name verification system in line with the Indian government's plan to utilize bio-data. The lender said it plans to incorporate this to offer new services and attract more customers. Shinhan has six bra

May 21, 2020By Kim Bo-eun

Banking & Finance

Banking & Finance

Banks seeking to minimize fallout from Lime, DLF

Hyundai Card offers personalized spending insights

Lenders deterred from preparing for worst-case scenario

Brokerages' overseas earnings hit by COVID-19

5 candidates vying to lead KICPA

SC offers benefits for new customers

INTERVIEW Hyundai Capital sees epic growth overseas

Supporting venture startups

Eximbank issues 'Kangaroo bonds' worth Aus$700 mil. in Australia

Shinhan launches mobile banking app in India

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