Business - The Korea Times

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

KDB hits jackpot through investment in BTS, 'Parasite'

Blood donation campaign

Korea Investment & Securities CEO Jung Il-mun, left, donates blood alongside the company's union head Park Jong-bae in a Korea Red Cross blood donation bus located in front of the brokerage's headquarters on Yeouido, Thursday. The company's two-day blood donation campaign aims to help hospitals that have a shortage due to the coronavirus outbreak. / Courtesy of Korea Investment & Securities

Feb 13, 2020By Anna J. Park

Provincial banking group's hierarchy shifts

JB Financial defeats DGB in 2019 earningsBy Park Jae-hyukJB Financial Group became the nation's second-largest provincial banking group in net profit, overtaking its competitor DGB Financial Group in earnings last year, their regulatory filings showed Thursday.In 2019, JB posted a 341 billion won ($288 million) net income, up 41.6 percent from a year earlier.This was the largest amount the financial group has ever logged since it launched its holding company structure in 2013.The banking group based in North and South Jeolla Provinces attributed the handsome profit to its expansion in foreign markets.Phnom Penh Commercial Bank, its Cambodian subsidiary, posted 20.7 billion won in net profit last year, up 40.5 percent from a year earlier.JB also acquired Hanoi-based Morgan Stanley Gateway Securities in December 2019 to strengthen its foothold in the Southeast Asian market.In contrast, DGB posted a 327 billion won net profit last year, down 14.6 percent from a year earlier.The slump followed recessions in the auto parts and material industries in Daegu and North Gyeongsang Province, wh

Feb 13, 2020By Park Jae-hyuk

Provincial banking group's hierarchy shifts

Woori, IBK to benefit from success of Oscar winner 'Parasite'

Parasite director Bong Joon-ho holds up one of the four Oscars his film won at the Academy Awards in Los Angeles, Feb. 9 / AFP-YonhapBy Kim Bo-eunTwo Korean banks are set to enjoy sizeable gains from their investments in local film "Parasite," which picked up four Oscars earlier this week.Parasite made history by winning four trophies at this year's Academy Awards, including the highly-coveted best picture award, the first non-English language film to do so in the Oscars' 92-year history.Woori Bank made an indirect investment of 300 million won ($254,000) in Parasite through a fund investing in Korean films.Woori created the fund with investment firm Company K Partners in March 2017, investing 3 billion won. It has invested in other local box office hits, including Extreme Job, Money and Exit."We created the fund for the development of the Korean film industry, and we have seen box office hits from investments made so far,” a Woori Bank official said."We expect about a 100 percent rate of return (from investments in Parasite)." Industrial Bank of Korea (IBK) also took part in i

Feb 13, 2020By Kim Bo-eun

Woori, IBK to benefit from success of Oscar winner 'Parasite'

Is Korea overreacting to 'Parasite' success?

Millennials behind Queen's successful Seoul concert

Hyundai Card's millennial employees pose at the company's in-house hackathon in this October 2019 file photo. / Courtesy of Hyundai CardYoung workers play key roles at Hyundai CardBy Park Jae-hyukLegendary British rock band Queen's two concerts that took place in Seoul, Jan. 18 and 19, collectively attracted 46,000 fans, most of whom were part of the “millennial generation” born between 1980 and 2000. Behind the huge success were also the millennial employees of Hyundai Card, the event's sponsor.During the credit card issuer's in-house hackathon held in October last year, the young employees suggested a collaboration with the nation's largest e-book platform provider Millie's Library to make an audio guidebook telling the story behind Queen.Hyundai Card accepted the idea and renowned music critic Bae Soon-tak participated in the project as a “docent.”The company said the idea from millennials was a big help to its project team in charge of planning the concert, because the team was looking for various ways to promote the event.Hyundai Card associate Choi Seok-

Feb 13, 2020By Park Jae-hyuk

Millennials behind Queen's successful Seoul concert

Korea Investment retains top spot in brokerages' earnings

Shinhan suffers 12% decrease in net profitsBy Anna J. ParkKorea Investment & Securities maintained its top position in 2019 brokerages' earnings results for the fourth consecutive year, while Shinhan Investment suffered a major setback with a drop in net profits. According to the Financial Supervisory Service, Korea Investment posted a record high net profit of 709.9 billion won ($598 million) in 2019, up more than 42 percent from the previous year.An official from Korea Investment attributed the record-high number to a diversified revenue structure and synergy among business divisions. “In particular, earnings from investment banking and wealth management have led the growth in performance. Return on equity (ROE) ― the standard index for measuring profitability ― was 14.3 percent, one of the highest in the industry,” the official said.The remarkable performance was not only confined to the industry's frontrunner. Despite last year's KOSPI slump, eight major securities firms here saw their combined net profits increase by around 33 percent in 2019 compared to the prev

Feb 12, 2020By Anna J. Park

Korea Investment retains top spot in brokerages' earnings

NH Financial aims to increase overseas assets to 6 trillion won by 2025

NongHyup Financial Group Chairman and CEO Kim Gwang-soo speaks during a 2020 global strategy meeting held at the headquarters in central Seoul, Tuesday. / Courtesy of NongHyup Financial GroupBy Anna J. ParkNH NongHyup Financial Group aims to increase its overseas assets to 6 trillion won ($5.08 billion) by 2025 in a bid to become a leading financial player in Asia, the group said Wednesday.It also set a goal of raising net profits to 160 billion won by expanding its overseas foothold, particularly in Asia.Under the new plan, the group plans to expand the number of foreign branches to 28 in 13 countries, up from the current 16 branches it manages in 9 countries. Currently, the group's total overseas assets stand at 1.35 trillion won while annual net profits total 28.9 billion won.The five-year plans were announced during the NongHyup Financial Group's 2020 global strategy meeting held at its headquarters in Seoul, Tuesday. CEOs and key executive directors of the group's subsidiary institutions, including NongHyup Bank, NH Investment & Securities and NH-Amundi Asset Management, wer

Feb 12, 2020By Anna J. Park

NH Financial aims to increase overseas assets to 6 trillion won by 2025

Barings Korea appoints Park as co-chief

By Kim Bo-eunJohn ParkBarings Asset Management Korea said Wednesday it has appointed Chief Investment Officer (CIO) John Park as co-chief of the global asset manager's office here.Ike Bae will keep his position as Barings Korea's chief, as the office has decided to adopt a "multiple representative directors system."Bae will continue to lead overall corporate management including sales, client relationships and non-investment functions. Park will lead investment management and play a supporting role in managing client relationships. "A change to a multiple representative directors system will create more efficiencies in management," Barings' Head of Asia-Pacific Duncan Robertson said.Park joined Barings Korea as head of investment strategy in 2004. Since July 2008, he has served as CIO.Before joining Barings, Park built his career at Deutsche Asset Management Korea and SEI Investment in the U.S.Previously, he worked as a research manager of international business at the Korea Investment Trust.

Feb 12, 2020By Kim Bo-eun

Woori Financial selects Kwon as new bank chief

By Kim Bo-eunKwon Kwang-seokWoori Financial Group's executive recommendation committee has backed Kwon Kwang-seok, MG Korean Federation of Community Credit Cooperatives CEO, as Woori Bank's next CEO.Currently, group chairman Son Tae-seung doubles as the bank's chief. The group has decided to separate the positions.Kwon will be appointed as the bank's CEO at the general shareholder meeting next month.He joined Woori Bank in 1988 and oversaw the lender's investment banking division as well as external affairs. "The committee has recognized that Kwon is the best candidate in pushing forward with the bank's global strategies, based on his experience in strategy and human resources at Woori Financial's holding company and his experience in investment banking and managing overseas investor relations," the bank said Tuesday.Overseas business is a key area of focus for Woori, as it seeks to boost its presence abroad amid tough domestic market conditions.Kwon will be tasked with restoring customer trust after Woori Bank suffered damage over its mis-selling of investment options referred to as

Feb 11, 2020By Kim Bo-eun

Woori Financial selects Kwon as new bank chief

Lime case set to lead to suits involving sellers, investors

By Kim Bo-eunInvestors and sellers of investment options managed by Lime Asset Management are gearing up to take legal action as Lime unveiled estimates of investment losses according to an inspection completed earlier this month.Lime said Monday it estimates losses from its two major funds amounting to over 1 trillion won to reach up to 50 percent, according to accounting firm Samil PricewaterhouseCoopers. Financial authorities will unveil the results of the inspection, Friday.While figures of the inspection are estimates, investors may lose the entirety of their investments due to total return swap (TRS) contracts that were made between Lime and brokerages.TRS contracts are an agreement on exchanging the return on reference assets. Hedge funds use TRS contracts to obtain leverage on reference assets.Under the TRS contract, brokerages are prioritized over investors for retrieving their money.Lime has proposed consultations between brokerages and entities that sold its investments options, to figure out how much individual investors will be able to retrieve.But it remains unclear whe