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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

Property or family? Life, non-life insurers clash over pets

A model promotes Samsung Fire & Marine Insurance's pet insurance in this file photo. / Courtesy of Samsung Fire & Marine InsuranceBy Park Jae-hyukNon-life insurance companies have expressed concern about the envisioned revision of the Insurance Business Act, as pet insurance may be categorized as “the third insurance” that guarantees compensation for losses from illness, injuries and nursing of “people.”The attempt has aroused controversy over the classification of pets which are more often referred to as “companion animals” here.Non-life insurers have claimed the revised bill goes against the nation's current legal system which regards animals as “property.”Rep. Kim Byung-wook of the ruling Democratic Party, however, said he proposed the bill to ensure rights of pets that have already been regarded as family members in some Korean households.“Although companion animals have already been recognized as family members ― not just pets ― and concerns have grown over animal rights, the nation's laws and systems have yet to be p

Jan 30, 2020By Park Jae-hyuk
Property or family? Life, non-life insurers clash over pets

Hana Financial's plan to acquire insurer hits snag

Hana Financial Group's building in central Seoul / Courtesy of Hana Financial GroupBy Kim Bo-eunHana Financial Group's plan to acquire The-K Non-Life Insurance is likely to slow down due to differences over what is seen as a possible restructuring of the insurer.The insurer's labor union held a press conference, Tuesday, claiming Hana plans to lay off hundreds of call center employees and replace them with an outsourced service. The union said a clause that states management and labor reach a consensus before related decisions are made was deleted from a proposed agreement.“Hana Financial removed the clause from our initial proposition," said an official from The Korean Teachers' Credit Union (KTCU). The KTCU owns the insurer."We will have to have further discussions with Hana on the matter," he said.The issue concerning restructuring appears to be the only issue in the process of the takeover. The two sides have agreed on the acquisition price.Hana's board last week approved the group's acquisition of 70 percent of the non-life insurer's shares. Hana is known to have proposed

Jan 29, 2020By Kim Bo-eun
Hana Financial's plan to acquire insurer hits snag

Foreign banks benefit from DLF, Lime catastrophe

By Kim Bo-eunMost major Korean banks have become mired in a series of investment scandals involving the sale of high-risk, high-return products that have caused major losses for investors. This has led to many people seeking more reliable institutions to manage their assets. Foreign banks here, which are free from involvement in the DLF and Lime cases, have benefited from the situation.A growing number of individual investors, particularly the wealthy, have pulled their money out of local banks, and moved to foreign banks that they believe will manage their assets in a safer and more systematic manner.Woori and KEB Hana Bank currently face sanctions for having mis-sold derivative-linked funds (DLFs) last year that led to large scale losses for investors. They also face allegations of failing to notify investors of the risks of investing in funds managed by Lime Asset Management for which redemptions have been halted. Shinhan faces the same allegation as the two banks in mis-selling investment options managed by Lime. The fiasco over DLF options began in the latter half of last year,

Jan 29, 2020By Kim Bo-eun
Foreign banks benefit from DLF, Lime catastrophe

IBK chief vows innovation, change

Industrial Bank of Korea (IBK) CEO Yoon Jong-won speaks during his inaugural ceremony at IBK headquarters in Seoul, Wednesday. / YonhapBy Park Jae-hyukIndustrial Bank of Korea (IBK) CEO Yoon Jong-won finally attended his inaugural ceremony Wednesday, 27 days after he was appointed to lead the state-run lender.The new chief executive said he will organize a taskforce for “innovative financing” as part of efforts to improve his company's competitiveness.“As Bill Gates said, banking is necessary, but banks are not. Banks that refuse to change themselves will disappear,” Yoon said, promising to speed up his company's decision-making process and improve its flexibility.The CEO also emphasized “ethical management,” saying: “Even if a company is the world's best, customers will turn away from it if it violates the law or conducts unethical behavior.”He mentioned credibility, ability, people and systems as necessities to achieve these goals.Yoon also said IBK should accept experts from outside the company.During the ceremony, IBK union leader K

Jan 29, 2020By Park Jae-hyuk
IBK chief vows innovation, change

Lime fiasco feared to spill over into more funds

Brokerages on Yeouido, Seoul / gettyimagesbankFSS to look into AlpenRoute's suspension of fund redemptionBy Kim Bo-eunThere are growing concerns over a possible fund run after AlpenRoute Asset Management, a mid-sized hedge fund manager here, suspended payments on some of its funds following a series of redemption requests from securities companies. AlpenRoute said Tuesday that it will freeze 110 billion won in assets, halting fund withdrawals for investors in a move to forestall a possible liquidity risk. It is the second fund management firm here to suspend the redemption of funds following Lime Asset ManagementOnce brokerages seek to retrieve more funds under the same contracts, it is probable that many investors will rush to withdraw their money, which could stoke fears of a fund run.According to sources and media reports, Korea Investment & Securities last week requested AlpenRoute pay back 26 billion won provided under a total return swap (TRS) contract. This is an agreement on exchanging the return of reference assets. Hedge funds use TRS contracts to obtain leverage on ref

Jan 29, 2020By Kim Bo-eun
Lime fiasco feared to spill over into more funds

For sustainable growth

Executives and employees of MetLife Korea's affiliated agency MetLife Financial Services take part in the agency's sales strategy meeting at the Inter-Burgo Exco Hotel in Daegu in this Jan. 9 photo provided Tuesday by the insurer. MetLife Financial Services said that it will double its number of agents to 1,000 by the end of the year, to boost its market dominance as part of its plan for sustainable growth. / Courtesy of MetLife Korea

Jan 28, 2020By Kim Bo-eun
For sustainable growth

New IBK chief Yoon finally allowed to attend office

Industrial Bank of Korea CEO Yoon Jong-won listens to a remark from Financial Services Commission Chairman Eun Sung-soo while participating in a forum in Seoul on Jan. 22. YonhapBy Lee Min-hyungIndustrial Bank of Korea (IBK) CEO Yoon Jong-won will be able to work from his office Wednesday for the first time in 27 days amid a fierce union protest. Yoon was named the new chief of the state-run bank earlier this month. But the union members blocked him from entering the IBK headquarters in Seoul, denouncing him as a “parachuted bureaucrat” without any practical experience in the banking industry.The union, however, has agreed to stop the protest, ruling Democratic Party of Korea floor leader Lee In-young said Monday.“On Monday, both sides came to terms with each other and came to an agreement,” Lee said. “I express regret on behalf of the ruling party that the IBK management has failed to extend sufficient communication and reach consensus over labor system improvement.”IBK will have an inauguration ceremony for Yoon today.

Jan 28, 2020By Lee Min-hyung
New IBK chief Yoon finally allowed to attend office

Toss lags behind Kakao in securities business

KakaoPay CEO Ryu Yong-joon, top left, and Viva Republica CEO Lee Seung-gun / Courtesy of each companyStock trading to be available on KakaoTalkBy Park Jae-hyukViva Republica, the operator of the Toss mobile money transfer app, has fallen behind Kakao in the race to start a securities business as KakaoPay is about to get approval from the financial regulator for its takeover of Baro Investment & Securities, according to analysts, Tuesday.The Securities and Futures Commission (SFC) under the Financial Services Commission (FSC) concluded in its meeting Wednesday that Kakao's mobile payment unit is eligible to acquire the medium-sized brokerage house.The FSC is highly likely to give KakaoPay the green light in a forthcoming meeting, Feb. 5.KakaoPay signed an agreement with Baro in October 2018 to acquire a 60 percent stake in the brokerage firm for 40 billion won ($33 million).At the time, the mobile payment firm said it will allow its users to trade and invest in stocks, funds and real estate using the KakaoTalk mobile messenger app.It submitted its application to the FSC for approv

Jan 28, 2020By Park Jae-hyuk
Toss lags behind Kakao in securities business

KB workers dispatched to KakaoBank refuse to return

A passer-by walks past KakaoBank's headquarters in Seongnam, Gyeonggi Province, in this 2017 file photo. / YonhapWoori employees leave underperforming K bankBy Park Jae-hyukAll 15 KB Financial Group employees sent to KakaoBank four years ago have refused to return to their previous workplace despite attractive incentives from their previous employer, according to industry officials, Tuesday.In April 2016, KB sent 11 employees from KB Kookmin Bank, two from KB Kookmin Card and two from KB Data Systems to the new KakaoBank.The financial group, which is the holding firm of KakaoBank's third-largest shareholder, KB Kookmin Bank, sent the workers to help the new digital bank begin operations successfully.The 15 were then assured of a return to their original positions.According to industry officials, KB, the nation's second-largest financial group by assets and profit, also offered them a 10 percent wage increase, promotion and deployment to their preferred branch.But KakaoBank said the employees decided to stay at their current workplace.Their decision is attributed to the internet-only

Jan 28, 2020By Park Jae-hyuk
KB workers dispatched to KakaoBank refuse to return

Woori chief's task on Lunar New Year

Woori Financial Group Chairman Son Tae-seung responds to a customer call at an office in Seoul, Saturday. He worked for one day as a call center counselor, celebrating the Lunar New Year here. Courtesy of Woori Bank

Jan 27, 2020By Lee Min-hyung
Woori chief's task on Lunar New Year
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