Business - The Korea Times

'Family Month' event by NongHyup Bank

Actor Jung Hae-in promotes a special event offered by NongHyup Bank in commemoration of May the month of the family in Korea. The bank said Sunday it would offer mobile gift certificates and red ginseng gift sets to 550 customers who join the promotion. NongHyup Bank users can apply for the event by sending a remittance of over 10,000 won ($8.17) with the message “thank you” to others via the lender’s mobile app. Courtesy of NongHyup Bank

May 3, 2020By Lee Min-hyung

Korea braces for 'green swan'

The cover image of “The green swan: Central banking and financial stability in the age of climate change” that the Bank of International Settlements (BIS) published in January. / Courtesy of BIS Financial sector takes measures against climate-related risksBy Park Jae-hyukThe nation's financial authorities and companies have begun to make a series of efforts to fight climate change amid growing concerns in the international community over a potential threat from a “green swan.”Inspired by the concept of the “black swan,” which Lebanese-American scholar Nassim Nicholas Taleb developed in 2007 to refer to an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences, the “green swan” has been used widely since the Bank of International Settlements (BIS) mentioned the concept in its report published in January.According to the international financial institution, a “green swan” event is a climate-related systemati

May 3, 2020By Park Jae-hyuk

KakaoPay makes 'quiet' expansion in Japan

An entrance to a department store in Fukuoka, Japan, where KakaoPay is available. / YonhapBy Park Jae-hyukKakaoPay has expanded in Japan without an intensive marketing campaign amid the ongoing anti-Japan sentiment in Korea and travel restrictions between the two countries over the COVID-19 pandemic, according to the company, Friday.The mobile payment service unit of Kakao said its users have been able to complete payments using QR codes provided by PayPay merchants anywhere in Japan since Wednesday.When KakaoPay trialed a cross-border service at several stores in Fukuoka last July, the Korean firm joined with Alibaba Group's Alipay, which had 300,000 merchants in Japan as of March last year.After PayPay ― a joint venture of SoftBank and Yahoo Japan ― affiliated with the Chinese mobile payment service provider, KakaoPay has been available at PayPay merchants.PayPay, launched in October 2018, has 25 million users and 2 million affiliated merchants.KakaoPay, however, did not issue a press release for its recent expansion of services to cover the whole of Japan. It also did not issue a

May 1, 2020By Park Jae-hyuk

KakaoPay makes 'quiet' expansion in Japan

Securities firms suffer major setback in Q1 earnings

By Anna J. Park Major securities firms in Korea have recorded a significant drop in first-quarter profit due to the negative effects of COVID-19. According to their earnings reports published earlier in the week, four brokerage houses affiliated with Korea's four major financial groups ― Hana, Shinhan, NH and KB ― saw their combined net profit for the first three months of this year fall by more than 70 percent. Combined profit for the first quarter was 110.9 billion won ($90.9 million), a 71.7 percent drop on the same period last year. On a quarter-on-quarter basis, the figure decreased 56 percent. KB Securities logged a net loss of 14.7 billion won in the first quarter, down 130 percent from a year ago, the first red figure since the fourth quarter of 2018. The loss was mainly due to its equity-linked securities (ELS) risk-hedging efforts and total return swap (TRS) deals related to Lime Asset Management scandals. NH Investment & Securities' net profit declined 81.2 percent. Although the firm had a 42.3 percent increase in brokerage income and an 11.8 percent increase in its in

May 1, 2020By Anna J. Park

Securities firms suffer major setback in Q1 earnings

Insurers, oriental medicine in conflict

Association of Korean Medicine Vice Chairman Lee Jin-ho speaks during a press conference at GLAD Yeouido in Seoul, Wednesday. He refuted the insurance companies' claim that expenses for traditional medical services have caused rising loss ratios for car accident insurance. YonhapBy Park Jae-hyukNon-life insurance companies have come into conflict again with traditional Korean medicine practitioners, since the Korea Insurance Development Institute (KIDI) mentioned expenses for traditional medical services as the main reason for the rising loss ratios of car accident insurance.In its report published Monday, the institute said loss ratios for car insurance in 2019 rose 5.5 percentage points from a year earlier, due to increasing expenses for traditional medical services and repair costs.Loss ratio refers to the ratio of losses ― paid insurance claims and adjustment expenses ― to premiums earned.“Despite the partial increase of insurance premiums in the first half of last year, losses from personal damages rose 15.7 percent in 2019 from a year earlier,” KIDI's automobile ins

May 1, 2020By Park Jae-hyuk

Volunteer farming

NongHyup Bank CEO Son Byung-hwan, left, works with his employees at a farm in Jincheon, North Chungcheong Province, Thursday, as part of the bank's regular volunteer activities to help farmers. / Courtesy of NongHyup Bank

May 1, 2020By Kim Bo-eun

Will easing of overseas investment limit save insurers?

gettyimagesbankBy Kim Bo-eunThe life insurance industry has welcomed the passage of revisions to regulations that raise the ceiling for overseas investment, but it is yet to be seen how much this will benefit firms that face increasingly tough circumstances.The previous regulations stated that insurers could invest up to 30 percent of their assets under management overseas. With revisions passed Wednesday, the cap has been raised to 50 percent. Included are foreign currencies, foreign currency securities and foreign currency derivatives.Insurers had been calling for the rules to be eased as they face falling profits amid the prolonged low-interest-rate environment here. In the finance sector, only insurers face a limit on overseas investment. Japan scrapped the cap in 2012, as low interest rates persisted.Major life insurers had already seen their percentage of overseas investment reach the 30 percent limit, with Hanwha investing 28.9 percent abroad and Kyobo 23.6 percent."Based on local life insurers' long contract durations, there is a need for long-term investment but they did not

May 1, 2020By Kim Bo-eun

Will easing of overseas investment limit save insurers?

INTERVIEW Shinhan to adopt Equator Principles in H2

Shinhan Financial Group Chief Sustainability Officer Park Sung-hyun Chief sustainability officer vows efforts for 'climate finance'By Park Jae-hyukShinhan Bank aims to become the nation's first commercial bank to join the Equator Principles Association within the second half of this year, as part of efforts to fight climate change, according the chief sustainability officer of Shinhan Financial Group.Park Sung-hyun, who also serves as the group's chief strategy officer, told The Korea Times that the banking unit will reduce its investment in the coal industry and adopt the risk management framework of other financial institutions for determining, assessing and managing environmental risks in project finance.Shinhan Bank announced in May 2019 it kicked off procedures for the voluntary guidelines to fulfill the social responsibility of financial institutions.Park confirmed the bank has continued its efforts, despite difficulties from the COVID-19 pandemic.“We will enha

May 1, 2020By Park Jae-hyuk

[INTERVIEW] Shinhan to adopt Equator Principles in H2

BC Card to be K bank's majority shareholder despite bill passage

By Kim Bo-eunBC Card will seek to become K bank's majority shareholder, despite the passage of a bill that has allowed telecommunications giant KT to become the largest shareholder of the internet lender.The National Assembly passed a bill Wednesday containing revisions to regulations on internet banks, which eases the requirements for a company seeking to become the majority shareholder of an internet bank.KT, which set up K bank, had sought last year to increase its stake in the lender to 34 percent from 10 percent, as a means to help the internet lender boost its capital base. K bank has virtually suspended operations since April 2019 due to a lack of capital.However, it had been barred by previous regulations that stated it should not have a record of violating rules on fair trade. KT was under investigation last year for suspected collusion with other telecommunications firms in a circuit line business project.KT is now able to become K bank's majority shareholder, but its affiliate BC Card is set to take this position.This was a plan KT devised to save K bank after revisions to

Apr 30, 2020By Kim Bo-eun

BC Card to be K bank's majority shareholder despite bill passage

Yoon to lead Samil PwC

Samil PwC CEO Yoon Hoon-sooBy Park Jae-hyukSamil PwC appointed its assurance leader Yoon Hoon-soo as its new CEO, the nation's leading accounting firm said Wednesday. He will serve a three-year term starting July 1.“I will establish a horizontal organizational culture that respects collective intelligence and diversity,” Yoon said after being appointed CEO on Tuesday. “Based on this, I will work hard for our company to improve its quality of service and become a trustworthy accounting firm.”Yoon earned a bachelor's degree in business administration and a master's degree in finance from Seoul National University.After joining Samil in 1987, he served as the leader of the U.S. IPO team and the leader of the global assurance group offering services for global clients and cross border transactions.He also spent over five years at PwC U.S. offices in San Jose and New Jersey.Since July 2017, he has served as the assurance leader in charge of handling important issues, such as the revised Act on External Audit of Stock Companies and the 52-hour workweek. He has been

Apr 29, 2020By Park Jae-hyuk

Banking & Finance

Banking & Finance

'Family Month' event by NongHyup Bank

Korea braces for 'green swan'

KakaoPay makes 'quiet' expansion in Japan

Securities firms suffer major setback in Q1 earnings

Insurers, oriental medicine in conflict

Volunteer farming

Will easing of overseas investment limit save insurers?

INTERVIEW Shinhan to adopt Equator Principles in H2

BC Card to be K bank's majority shareholder despite bill passage

Yoon to lead Samil PwC

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