Business - The Korea Times

Renaming of KEB Hana Bank

Hana Bank CEO Ji Sung-kyoo, third from left, poses with bank employees at the lender's headquarters in central Seoul, Monday, to celebrate the change of its corporate name from KEB Hana Bank to Hana Bank. The bank used KEB Hana for about four years after taking over Korea Exchange Bank (KEB) and merging it with Hana Bank in 2015. Courtesy of Hana Bank

Feb 3, 2020By Lee Min-hyung

IBK, KDB feared to offer board seats to union

Industrial Bank of Korea (IBK) CEO Yoon Jong-won, front row center, poses with the IBK union leaders, after his inaugural ceremony at the state-run bank's headquarters in Seoul, Jan. 29. / YonhapState-run banks advised to be cautious about co-determination systemBy Park Jae-hyukCritics are expressing growing concerns as State-run banks have expressed a willingness to adopt a “co-determination system,” where employees or their representatives are allotted seats on the board of directors.Implementation of such a system is one of the pledges President Moon made during his election campaign, but it has never been carried out in the nation's financial industry.On Jan. 27, the Industrial Bank of Korea (IBK), however, agreed with its labor union that it will push ahead with the shared governance structure.The agreement was a prerequisite for the inauguration of newly appointed CEO Yoon Jong-won, who was blocked from entering the IBK's Seoul headquarters for 27 days following his appointment.Although none of four non-executive directors at the state-run lender will face the end o

Feb 3, 2020By Park Jae-hyuk

IBK, KDB feared to offer board seats to union

Reporter's notebook Will FSS chief's reform drive succeed?

By Kim Bo-eunFinancial Supervisory Service Governor Yoon Suk-heun / Korea Times fileThere was widespread tension among financial firms after Financial Supervisory Service Governor Yoon Suk-heun took his position in May 2018 and began spearheading moves to boost consumer protection.In his first year, Yoon took drastic measures such as initiating an inspection of banks' sales of currency-linked financial derivative options that last took place more than a decade ago. He also revived a comprehensive audit of financial firms.Yet the FSS essentially failed as a supervisory authority of financial firms in that it was unable to prevent the fiasco involving banks' mis-selling of derivative options that caused major losses for investors last year.Two banks were found to have engaged in mis-selling high-risk options referred to as derivative-linked funds (DLFs) to elderly customers including a 79-year-old dementia patient who had trouble hearing and no experience in investing.The banks came under severe criticism, but it was the FSS that was responsible for ensuring that the firms had function

Feb 3, 2020By Kim Bo-eun

[Reporter's notebook] Will FSS chief's reform drive succeed?

Woori chairman pressured to step down

Woori Financial Group Chairman Son Tae-seung / Korea Times fileBy Kim Bo-eunWoori Financial Group head Son Tae-seung is being pressured to step down after the Financial Supervisory Service (FSS) sanctioned him for Woori Bank's involvement in the “DLF fiasco.”The FSS stated last week that it would impose sanctions on Son that would bar him from serving in the finance sector for three years.This would mean he would be unable to serve a second term as the group's chairman, which was a given as Son was the sole candidate for the position. A general shareholders' meeting in March had been set up to approve Son serving a second term.The FSS sanctions have yet to be signed off on by the agency's governor Yoon Suk-heun, but he is expected to uphold them as he has implied that the chiefs of financial firms need to be held accountable for the DLF scandal. This involved the mis-selling of high-risk investment options ― derivative-linked funds (DLFs) ― that caused major losses for investors.In December, Yoon said sanctions needed to “send the right signal to the market” b

Feb 2, 2020By Kim Bo-eun

Hana's move to erase KEB hits snag

The KEB Hana Bank headquarters in Seoul / YonhapBy Park Jae-hyukKEB Hana Bank is facing a severe backlash from its labor union for its recent decision to remove “KEB” from its brand name, according to industry officials, Sunday.The unionists allege this is in violation of the agreement signed with the former Korea Exchange Bank union in 2015, when the two banks merged.The management said the brand name “Hana Bank” will be used starting Monday.The banking unit of Hana Financial Group cited possible confusion with KB Kookmin Bank as a reason for the decision.“Because of the 'KEB' in our brand name, most of our customers have been aware of our merger with the Korea Exchange Bank, but we took the difficulty with pronouncing KEB and possible confusion with another bank using English initials into account,” the bank said.The labor union, however, is protesting the decision.“The name, KEB Hana Bank, is intended to respect the Korea Exchange Bank's brand equity,” the union said. “The unilateral decision without agreement is a violation of

Feb 2, 2020By Park Jae-hyuk

Korean banks unprepared for New Northern Policy

Lenders wary of political risks in Russia, China, Central AsiaBy Park Jae-hyukImmediately after the New Year began, the Moon Jae-in administration declared it would speed up efforts for its New Northern Policy in 2020, as Chinese President Xi Jinping and Russian President Vladimir Putin are supposed to visit Korea during the first half of the year.Nevertheless, the nation's four largest financial groups ― Shinhan, KB, Woori and Hana ― remained cautious about their expansion in the area embracing Russia, Northeast China and Central Asia, according to a recent survey by The Korea Times.Their attitude is in stark contrast to their supports for the New Southern Policy which was the key agenda last year in line with the Korea-ASEAN Commemorative Summit that took place in Busan.Throughout 2019, they expanded rapidly in Vietnam, Indonesia, Cambodia and Myanmar to seek new income sources in the fast-growing markets.The government hopes the country's private enterprises will support the New Northern Policy as they have done the New Southern Policy.President Moon Jae-in said in his New Year ad

Feb 1, 2020By Park Jae-hyuk

Korean banks unprepared for New Northern Policy

Woori's reshuffle plan hit by leadership crisis

By Lee Min-hyungWoori Financial Group Chairman Son Tae-seung.Woori Financial Group has delayed appointing the next leader of its banking unit in the face of a leadership crisis surrounding incumbent chief Son Tae-seung, the group's CEO recommendation committee said Friday.The decision came a day after the Financial Supervisory Service (FSS) slapped Son with a reprimand and a warning, holding him responsible for the bank's recent involvement in the mis-selling of financial derivative options and derivative linked funds (DLFs).With Son's fate up in the air, the group said it would reschedule a decision on the appointment, but did not offer any timeline.“The committee decided to reopen discussions on the appointment to reflect the recent change (from the FSS decision),” a committee official said.The group did not share any other details. The company is expected to hold further talks on filling the vacancy Son might leave.The group was supposed to announce the final candidate for the Woori Bank chief, Jan. 29, but the committee's hours-long discussion failed to generate an ou

Jan 31, 2020By Lee Min-hyung

Woori's reshuffle plan hit by leadership crisis

FSS slaps heavy sanctions for Woori, Hana chiefs

By Kim Bo-eunThe Financial Supervisory Service's headquarters on Yeouido, Seoul / Korea Times fileThe Financial Supervisory Service (FSS) said Thursday it has imposed heavy sanctions for the heads of Woori and Hana banks involved in the “DLF fiasco” which will prevent them from keeping their positions. The FSS sanctions review committee contended the bank chiefs were responsible because they failed to set up proper internal control systems. The two banks engaged in mis-selling of high-risk investment options referred to as derivative-linked funds (DLFs) which caused major losses for investors last year.The sanctions have yet to be finalized by the Financial Services Commission (FSC). If it approves of the sanction, Woori Bank CEO Son Tae-seung and Hana Financial Group Vice Chairman Ham Young-joo, who was the former CEO of KEB Hana Bank, may be barred from serving additional terms as well as banned from serving other positions in the finance sector for three to five years.Son was approved by Woori Financial's committee last month to lead the group for another term. This wa

Jan 30, 2020By Kim Bo-eun

FSS slaps heavy sanctions for Woori, Hana chiefs

CEO taking selfie with new employee

NongHyup Bank CEO Lee Dae-hoon takes a selfie with a new employee of the bank, after giving a lecture to 189 newly-hired staff at its education center located in Cheongju, Wednesday. During the lecture, the CEO emphasized the importance of understanding NongHyup's brand value and the digital era, as well as having a clear vision and specific plans. Courtesy of NongHyup Bank

Jan 30, 2020By Anna J. Park

Honest taxpayer

KEB Hana Bank Ho Chi Minh City branch's deputy manager Park Woo-young, left, receives an award from Ho Chi Minh City People's Committee Vice Chairman Tran Vinh Tuyen at the committee's head office, Jan. 20. The bank said Thursday it was awarded for its honest payment of taxes in the Vietnamese city. / Courtesy of KEB Hana Bank

Jan 30, 2020By Park Jae-hyuk

Banking & Finance