Business - The Korea Times

JB's Cambodian bank subsidiary reports largest earnings

Head office of Phnom Penh Commercial Bank in the capital of Cambodia. Courtesy of JB Financial GroupBy Lee Min-hyungJB Financial Group's banking subsidiary in Cambodia reported the highest net profit in 2019 among Korean banks operating business there, the group said Tuesday.Phnom Penh Commercial Bank posted 20.7 billion won ($17 million) in net profit last year, up 40.5 percent from the previous year. This is the best performance in its history despite stiffening competition, the Seoul-based financial firm said.For the past three years, Cambodia's banking sector has been facing intensifying competition, with 10 more commercial banks starting their business during the period. Among the rivals owned by Korean firms, Phnom Penh Commercial Bank remains the only lender whose annual net profit topped 20 billion won.The bank's total assets also increased by 21.8 percent in 2019 to reach 1.07 trillion won.“It is very inspiring that the bank reported solid earnings last year, even if excessive competition and toughening regulations keep causing slowdown of growth in the retail banking

Feb 18, 2020By Lee Min-hyung

JB's Cambodian bank subsidiary reports largest earnings

Too old to manage?

BNK Financial Group Chairman Kim Ji-wan / Korea Times fileBNK chief in hot seat for serving another term at 73By Park Jae-hyukThe popular saying, “Age is just a number,” has not been true for most financial holding companies here as they have restricted their executives aged over 70 from taking the leadership.BNK Financial Group Chairman Kim Ji-wan has overcome this custom of age limit, since the 73-year-old chief executive was reappointed earlier this month to serve another three-year term.The provincial banking group's executive recommendation committee decided Feb. 6 to put Kim forward as a sole candidate.The recommendation committee said it recognized him for having stabilized the governance structure and improved the performance of the non-banking and non-interest sectors since he took office in September 2017.BNK posted a 562.2 billion won ($477 million) net income in 2019, up 12 percent from a year earlier.The chairman, however, has aroused controversy, because his reappointment followed his previous conduct, regarded as an attempt to prolong his leadership.In Marc

Feb 18, 2020By Park Jae-hyuk

Digital non-life insurance market set to grow

By Kim Bo-eunThe image provided by Hanwha General Insurance's digital non-life insurer Carrot shows a customer checking insurance premium rates on a mobile phone / Courtesy of CarrotThe market for digital non-life insurers is set to grow, as traditional non-life insurers face a saturated market here. Hanwha General Insurance launched Korea's first digital non-life insurer "Carrot" last month, and more players are set to emerge.Unlike banks, which are able to offer the same products for retail customers on digital channels, non-life insurers offer a different type of insurance policies on online channels.Traditional non-life insurance policies are defined by long-term coverage and high costs and tend to be complicated; therefore face-to-face sales are effective. Digital channels offer more simple policies such as travel insurance. Agents do not sell such products as the costs to employ agents exceeds the profits generated from the simple policies.Samsung Fire & Marine Insurance is readying to launch a digital non-life insurer with financial services platform Kakao Pay. The joint v

Feb 17, 2020By Kim Bo-eun

Digital non-life insurance market set to grow

KB Kookmin Card cashes in on Pengsoo fever

KB Kookmin Card's new debit cards designed with Pengsoo / Courtesy of KB Kookmin CardBy Park Jae-hyukKB Kookmin Card came up with a new debit card design featuring Pengsoo, as an apparent attempt to retake its status as the issuer of the most popular debit card, taking advantage of the popularity of the genderless giant penguin character among young Korean adults.According to the card firm, Monday, the new debit card features the character's signature greeting pose, “Peng-ha,” meaning “Pengsoo says, 'hi,'” and emoticons of Pengsoo, often abbreviated to “Peng-moticon.”Customers can choose between “Peng-ha” and the “Peng-moticon” themes for their card.KB Kookmin Card said the debit card is available until Feb. 16 next year.“For young customers to display their personalities, we decided to design our debit card with Pengsoo, which is called the President of salaried workers, because of its unconditional popularity with those in their 20s and 30s,” a KB Kookmin Card official said.“We hope the card becomes the m

Feb 17, 2020By Park Jae-hyuk

KB Kookmin Card cashes in on Pengsoo fever

Hana's banking expands to Hong Kong

Tottenham Hotspur's Son Heung-min is promoting Hana Bank's global banking application “Global 1Q.” The bank said Monday the app will now be available in Hong Kong. The lender started the global smartphone banking service in 2015 and has since offered the service internationally in Canada, China, Indonesia and Vietnam. Courtesy of Hana Bank

Feb 17, 2020By Lee Min-hyung

Supporting single parent families

Citibank Korea CEO Park Jin-hei, center, poses with Seoul YWCA chief Lee Yoo-rim, right, after donating funds raised from a campaign to support single-parent families, at the bank's headquarters in central Seoul, Thursday. The lender plans to hold the campaign every year. / Courtesy of Citibank

Feb 16, 2020By Kim Bo-eun

Woori Bank accelerates expansion in Cambodia

WB Finances' headquarters in Phnom Penh, Cambodia / Courtesy of Woori BankBy Kim Bo-eunWoori Bank said Sunday it integrated two of its subsidiaries in Cambodia, as a means to grow into a leading financial firm in the Southeast Asian country.According to the lender, it received approval from the Cambodian financial authorities to merge Woori Finance Cambodia, a micro finance institution, into WB Finance, Woori's savings bank unit there.The merger made Woori's Cambodian unit the fifth largest among savings banks in the Southeast Asian country in terms of total assets and earnings. Woori plans to turn WB Finance into a commercial bank in the long term."In the mid- to long-term, we plan to make WB Finance a commercial bank offering comprehensive financial services in Cambodia," a Woori Bank official said.Woori said it plans to expand retail sales based on the merger. The bank plans to build partnerships with fintech and platform businesses to offer customers better accessibility to financial services, and set up a credit rating system to offer products through non-face-to-face services.W

Feb 16, 2020By Kim Bo-eun

Woori Bank accelerates expansion in Cambodia

Banks employ AI to forestall mis-selling

gettyimagesbank By Lee Kyung-min Banks are implementing artificial intelligence (AI) to make sure the sellers of highly complicated financial products are fully informed about investment risks, industry officials said Tuesday.Yet concerns remain that more specific measures will be needed given the DLF fiasco laid bare the so-called “digitized” bank work that did little to ensure consumer protection and was used only for efficient and brisk sales of high-yield products. Programs to aid more responsible sales will include handwriting recognition technology and legal compliance reviews, functions that can be more accurately and thoroughly managed by machines than people. The new methods designed to enhance consumer protection are a belated effort to dispel criticism following the DLF fiasco whereby many people, mostly those aged 60 and older, lost their entire investment.DLF is short for derivative-linked funds, intricately structured options-based funds sold by many fi

Feb 16, 2020By Lee Kyung-min

Banks employ AI to forestall mis-selling

Supporting floriculturists

NongHyup Bank CEO Lee Dae-hoon, right, listens to floriculturists at a farm in Gongju, South Chungcheong Province, Thursday. The bank said it bought freesias worth 11 million won ($9,300) to help floriculturists suffering from the spread of 2019-nCoV (COVID-19). / Courtesy of NongHyup Bank

Feb 16, 2020By Park Jae-hyuk

KDB hits jackpot through investment in BTS, 'Parasite'

BTS members participate in a year-end music festival in Seoul on Dec. 25. YonhapBy Lee Min-hyungK-pop boy band BTSBong Joon-hoThe Korea Development Bank (KDB) has hit the jackpot by making successful investments in boy band BTS and Oscar-winning film “Parasite.”The state-run bank has invested in four funds worth a total of 26.9 billion won ($22.74 million) for Big Hit Entertainment, the music label of BTS, since 2011. The funds reaped profits of 213.3 billion won on the global success of the band.“To be specific, KDB realized a return of 75.1 billion won from its direct investment of 12 billion won between 2011 to November 2019,” a bank official said.As the seven-member idol group continues to thrill audiences worldwide, the entertainment firm also enjoyed whopping growth in sales and operating profits. The company is expected to become the nation's largest music label after its planned initial public offering (IPO). It is estimated its market capitalization will reach as high as 2.8 trillion won after the IPO.KDB Capital, the investment affiliate of the state

Feb 14, 2020By Lee Min-hyung

Banking & Finance