Business - The Korea Times

K bank's capital boost plan back in limbo

Internet bank regulation revisions may be passed after April electionsBy Kim Bo-eunThe future of K bank is up in the air as its plan to boost its capital base came to a deadlock again, with the National Assembly Thursday failing to pass revisions to regulations on internet-only banks.The revisions eliminate requisites for entities seeking to become majority shareholders of internet banks to be clear of violations of the fair trade act. This would allow the telecommunications giant KT to become K bank's majority shareholder by injecting fresh capital into the lender. Last year, they requested financial authorities to review KT's eligibility as the bank's majority shareholder, but this was put on hold because KT was being investigated on allegations of collusion with other telecommunications firms in a circuit line business project.The revisions to the regulations had been passed at the Assembly's Legislation and Judiciary Committee Wednesday, but failed to pass the plenary session the following day.This extends difficult circumstances for K bank, which has suspended extension of new l

Mar 6, 2020By Kim Bo-eun

K bank's capital boost plan back in limbo

Woori chief set for lawsuit as FSC finalizes sanctions

Woori Financial Group Chairman Son Tae-seungBy Park Jae-hyukWoori Financial Group Chairman Son Tae-seung will file administrative litigation against the Financial Supervisory Service (FSS) to prevent its punitive measures against him for the so-called “DLF fiasco” taking effect, the banking group said Wednesday.At a general meeting Wednesday, the Financial Services Commission (FSC) finalized sanctions against Woori and Hana banks over their failure to prevent major investor losses caused by the mis-selling of high-risk derivative-linked funds (DLFs).The FSC fined Woori 19.7 billion won ($16 million) and Hana 16.7 billion won, as well as banning them from selling private equity fund options for the next six months.The regulator also said the Financial Supervisory Service (FSS) will notify the bank executives of the sanctions imposed on them, which restrict them from working at financial companies.The punishments of the bank executives, which were finalized after approval by FSS Governor Yoon Suk-heun, Feb. 3, will take effect as soon as the executives receive notification.

Mar 4, 2020By Park Jae-hyuk

Woori chief set for lawsuit as FSC finalizes sanctions

NH's new leader reshuffles management

By Kim Bo-eunLee Dae-hoonThe leaders of NongHyup Financial Group's affiliates are set to be replaced, after a reshuffle by the National Agricultural Cooperation Federation's (NACF) new chief.On Jan. 31, Lee Sung-hee was elected new chairman of the NACF, which holds 100 percent of the shares of NongHyup Financial Group. The financial group is the only one of its kind in Korea to be wholly owned by another entity. NongHyup Bank's former CEO Lee Dae-hoon voluntarily offered to resign Tuesday. He had been the first head of the lender to begin a third term at the bank, as previous CEOs of NongHyup Financial Group's affiliates served a maximum of two terms. Lee started his third term two months ago. A NongHyup Bank official said the reshuffle was a “personal decision by Lee,” but acknowledged that the decision took place under the NACF's leadership change.The group held a committee meeting Wednesday to discuss the agenda for selecting Lee's successor. “The process takes about 40 days,” the official said.NongHyup Life Insurance CEO Hong Jae-eun and NongHyup Property

Mar 4, 2020By Kim Bo-eun

Shinhan stocks caught in tailspin amid scandal

By Kim Bo-eunShinhan Financial Group solidified its leading status in 2019 by reaping the largest net profit for the second consecutive year, but it is losing luster in the stock market with its share price plunging amid a series of scandals involving improper investments.The share prices of all four major financial groups ― Shinhan, KB, Hana and Woori ― have continued to decline, with their market capitalization shrinking by 12 trillion won in the first two months of this year.Among them Shinhan has seen the largest fall, with the group's stock hitting rock bottom Tuesday at a closing price of 32,050 won the lowest in a decade. This compares with 55,500 won at its highest point in August 2017.KB's market capitalization at 16.4 trillion won exceeded that of Shinhan at 16.16 trillion won, Feb. 27.Analysts said despite the groups posting record earnings last year, they were affected by the low interest rate, and the ongoing COVID-19 crisis. They also attributed Shinhan's fall to a scandal involving Lime Asset Management.The share prices of the four groups fell by an average 17 percent

Mar 4, 2020By Kim Bo-eun

Foreign banks start helping virus-hit Korea

Citibank Korea CEO Park Jin-hei, left, and Standard Chartered Bank Korea CEO Park Jong-bok / Korea Times fileBy Park Jae-hyukCitibank Korea and Standard Chartered (SC) Bank Korea announced various measures to help the underprivileged and small- and medium-sized enterprises (SMEs) here in the midst of the corona virus spread, following criticism over their apparent indifference towards the country in crisis.In contrast with Korean banks that implemented immediate financial support for coronavirus-hit businesses, the overseas-headquartered banks have been criticized for their delayed response.Given that Citibank and SC Bank respectively earned 295.6 billion won ($248 million) and 254.5 billion won net incomes here during the first three quarters of 2019, the two have faced mounting criticism for what many say is a failure to "give back."Against this backdrop, Citibank Korea announced Monday it will extend loans to virus-hit SMEs at lower interest rates to assist them in this time of financial uncertainty. The U.S.-headquartered bank's local subsidiary also donated face masks and hand s

Mar 3, 2020By Park Jae-hyuk

Foreign banks start helping virus-hit Korea

Fundraising campaign to overcome crisis

Shinhan Financial Group Chairman Cho Yong-byoung, second from left, speaks to Shinhan Financial Group Hope Foundation's board members at the group headquarters in Seoul, Tuesday. They agreed to conduct a “Hope Together” fundraising campaign until June with the goal of donating 5 billion won ($4.2 million) to the self-employed, medical staff and the underprivileged facing difficulties from the coronavirus outbreak. / Courtesy of Shinhan Financial Group

Mar 3, 2020By Park Jae-hyuk

Contactless payments thrive as virus spreads

gettyimagesbank By Park Jae-hyukThe spread of COVID-19 has prompted Korean consumers to minimize human contact when paying for purchases, as it is known that the virus can be transferred from contaminated items as well as spreading from person to person.While the Bank of Korea has kept its incoming bills in vaults for the past two weeks to prevent further possible spread of the virus, various data is also indicating that more people are going “contactless” when paying for things to reduce their contact with others.Analysts expect mobile payments and payment gateway service providers to benefit from this trend.According to Lotte Members, the volume of payments made via the company's L.pay mobile payment app rose 11.5 percent in February month-on-month, while the number of payments made at brick-and-mortar stores dropped 28.6 percent during the same period.The company attributed this to more consumers using barcode and soundwave-based mobile payments to avoid contact

Mar 3, 2020By Park Jae-hyuk

Contactless payments thrive as virus spreads

Pledge of financial support

Financial Services Commission (FSC) Chairman Eun Sung-soo, third from left, speaks to the nation's five-largest banking group heads at the Korea Federation of Banks headquarters in Seoul, Monday, to call for financial support for small- and medium-sized enterprises facing difficulties from the coronavirus outbreak. Clockwise from left are KB Financial Group Chairman Yoon Jong-kyoo, Hana Financial Group Chairman Kim Jung-tai, Eun, NongHyup Financial Group Chairman Kim Gwang-soo, Woori Financial Group Chairman Son Tae-seung, Shinhan Financial Group Chairman Cho Yong-byoung and FSC Secretary-General Kim Tae-hyun. / Courtesy of FSC

Mar 2, 2020By Park Jae-hyuk

Eximbank fights against virus

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu, fourth from left, talks with branch managers about measures to support small- and medium-sized enterprises that have been impacted by COVID-19 in Daegu and North Gyeongsang Province, during a video conference at the bank's Suwon branch in Gyeonggi Province, Friday. They held the meeting at the Suwon branch as the Yeouido head office in Seoul was closed after an employee tested positive for the coronavirus. The disinfected head office will reopen Monday as the employee tested negative during second and third screenings. / Courtesy of Eximbank

Mar 1, 2020By Park Jae-hyuk

Eximbank closed on COVID-19

An entrance of the Export-Import Bank of Korea (Eximbank) head office on Yeouido, Seoul, is closed, Friday. The office was shut down after an employee was confirmed to be infected with COVID-19. More than 800 employees were told by the company to work from home, with the office expected to be opened again next week. Yonhap

Feb 28, 2020By Nam Hyun-woo

Banking & Finance

Banking & Finance

K bank's capital boost plan back in limbo

Woori chief set for lawsuit as FSC finalizes sanctions

NH's new leader reshuffles management

Shinhan stocks caught in tailspin amid scandal

Foreign banks start helping virus-hit Korea

Fundraising campaign to overcome crisis

Contactless payments thrive as virus spreads

Pledge of financial support

Eximbank fights against virus

Eximbank closed on COVID-19

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