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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.

Bank stocks to extend losing streak in 2020

Victims from some banks' mis-selling of derivative-linked fund (DLF) options hold a protest, urging financial regulators to remove leaders of Woori Bank and KEB Hana Bank from their posts, in front of the headquarters of the Financial Supervisory Service on Yeouido in Seoul, on Jan. 16. YonhapBy Lee Min-hyungMajor bank stocks here are unlikely to bounce back in 2020, as unfavorable regulatory policies will continue holding back their interest income growth, according to experts, Monday. Revenue from loan interest has been a major cash cow for most banks here, but the government is planning to introduce more regulations to prevent investors in particular from getting additional mortgagesAnalysts say there is little potential for a rebound at a time when it remains tough for banks to find new revenue sources in the non-interest sector. What is worse is that they continue to be involved in sales fiascos that produce scandals. This has damped investors' appetite for leading financial firms here, such as Shinhan, Hana and Woori.“Bank stocks are in a slump amid predictions that their

Jan 27, 2020By Lee Min-hyung
Bank stocks to extend losing streak in 2020

Security guards flexing muscles against banks

gettyimagesbankBy Park Jae-hyukSubcontracted security guards at commercial banks have begun to organize a union under the umbrella of the militant Korean Confederation of Trade Unions (KCTU) to urge banks to guarantee their rights, according to industry officials, Thursday.Considering subcontracted employees in other industries are taking advantage of the Moon Jae-in administration's labor-friendly policies in winning regular positions, it is expected bank security workers will further pressure their prime contractors to hire them directly.If so, lenders will suffer another unfavorable factor, in addition to a worsening business environment and intensifying conflict with the Korean Financial Industry Union under the Federation of Korean Trade Unions.According to the left-wing Justice Party, Bank Security Solidarity (BSS) demanded the Ministry of Employment and Labor supervise banks to check whether they have assigned their security guards tasks irrelevant to their own duties or not.The BSS, which was formed in 2017 by subcontracted security guards at commercial banks, has claimed tha

Jan 26, 2020By Park Jae-hyuk
Security guards flexing muscles against banks

Will Woori team up with PEF for Prudential takeover?

By Kim Bo-eunWoori Financial Group's building in central Seoul / Korea Times fileAttention is growing over whether Woori Financial Group will join hands with a private equity firm (PEF) in the bid to take over Prudential Life Insurance Company of Korea.Woori did not take part in the preliminary bid that closed last week ― KB Financial Group and three PEFs, MBK Partners, Hahn & Company and IMM Private Equity submitted letters of intent.But there is speculation that Woori may team up with one of them for the main bid, considering this was the case when it acquired Lotte Card in a consortium with MBK Partners last October.Woori has stated that M&As for non-banking units will be the main focus of the group this year, and Chairman Son Tae-seung told reporters earlier this month the group is interested in acquiring Prudential.According to sources and media reports, officials of Woori and IMM recently met to discuss the issue. IMM declined to comment.A Woori official acknowledged that Woori has not ruled out its participation in the bid."Participants in the bid will be unveiled when

Jan 23, 2020By Kim Bo-eun
Will Woori team up with PEF for Prudential takeover?

Former AIG Korea chief appointed as AP CEO

By Kim Bo-eunSteven BarnettU.S. insurance giant American International Group (AIG) appointed former AIG Korea head Steven Barnett as Asia-Pacific CEO Thursday.Barnett, who has been with AIG for nearly 30 years, has held a series of leadership roles in Asia. He served as CEO of AIG Korea from 2011 to 2018."We are pleased to welcome Steven back to the Asia-Pacific as CEO," said Lex Baugh, acting chief executive for international general insurance."Steven's track record and deep understanding of this dynamic region ideally qualify him for this role as we enhance the value we deliver to our customers across the Asia-Pacific and continue to position AIG as an industry leader."Barnett, as Asia-Pacific CEO, will be based in Singapore. Before his appointment to the position, he served as AIG CEO in the Middle East and Africa regions from 2018.In the Asia-Pacific region, Barnett also served as AIG CEO in Thailand from 2003 to 2011.

Jan 23, 2020By Kim Bo-eun
Former AIG Korea chief appointed as AP CEO

Supporting vocational schools

Citibank Korea CEO Park Jin-hei, left, poses with JA Korea CEO Oh Jong-nam at the commercial bank's main branch in Seoul, Wednesday, after donating 350 billion won ($300,000) to the nonprofit organization. They agreed to use the money to help vocational school students find jobs. / Courtesy of Citibank Korea

Jan 23, 2020By Park Jae-hyuk
Supporting vocational schools

Shinhan DS CEO to direct group's digitization

Shinhan DS CEO Sunny YiBy Park Jae-hyukShinhan DS is set to become the control tower for Shinhan Financial Group's entire digital strategies, after the head of the group's IT service unit was nominated as the group's new chief digital officer (CDO), according to industry officials, Monday.Sunny Yi, who was recommended as Shinhan DS CEO in the group's recent reshuffle of top executives, is expected to concurrently hold the position of group CDO.The position has been held by the group's chief strategy officer so far.Shinhan said a decision will be made at a forthcoming board meeting in February.“Chairman Cho Yong-byoung ordered Shinhan DS to devise digital strategies for the entire group and develop a better digital platform,” a Shinhan Financial Group spokesman said. “The chairman therefore sent specialists, such as Sunny Yi and Cho Young-suh, to Shinhan DS.”Yi, who managed Accion as the consulting firm's founder before joining Shinhan in January 2019, served as the regional head of Bain & Company and AT Kearney. Cho, a former finance ministry official, wor

Jan 23, 2020By Park Jae-hyuk
Shinhan DS CEO to direct group's digitization

For a warmer Seollal

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu, right, hands out food with bank employees at a volunteer service center nearby Seoul Station, Tuesday. The state-run lender's chief and employees volunteered at the facility on the occasion of the Lunar New Year (Seollal) holiday that begins Friday. / Courtesy of Eximbank

Jan 22, 2020By Kim Bo-eun
For a warmer Seollal

Shinhan cleared of leadership vacuum risk

Shinhan Financial Group Chairman Cho Yong-byoung answers questions from reporters at the Seoul Eastern District Court, Wednesday, after being sentenced to a half year in prison suspended for two years for his alleged cronyism. / YonhapBy Park Jae-hyukShinhan Financial Group has been able to avoid facing a leadership vacuum as the court handed down a suspended jail term to Chairman Cho Yong-byoung, Wednesday, following proven allegations of cronyism.Having been cleared of management risk and uncertainties about its governance structure, the banking group is expected to speed up efforts to expand its presence in the financial markets here and overseas.The Seoul Eastern District Court sentenced Cho to six months in prison suspended for two years.He was indicted without detention in October 2018 on charges of manipulating the scores of 101 applicants to ensure the hiring of those with ties to influential politicians, the children of executives and more male workers, when he was serving as the Shinhan Bank CEO between 2015 and 2016.In December 2019, the prosecutors sought a three year pri

Jan 22, 2020By Park Jae-hyuk
Shinhan cleared of leadership vacuum risk

NongHyup group's bank reliance poses challenge

NongHyup Financial Group Chairman Kim Gwang-soo / Korea Times fileBy Kim Bo-eunNongHyup Financial Group's rapid growth driven by its flagship NongHyup Bank has emerged as a double-edged sword as its weak non-banking affiliates are posing a challenge for the group's growth amid a toughening environment for banks.NongHyup Bank's earnings accounted for 85.5 percent of the group's total for the third quarter of last year. This compares with Shinhan and KB's ratio, which stood at 66 percent and 68.5 percent, respectively in the same period.NongHyup's bank and brokerage units' earnings grew, but the rest of the group's affiliates showed a poor performance in the same period. NH Capital's net profit stood at 41.6 billion won, a 3 percent fall year-on-year. NongHyup Life Insurance's net profit came in at 24.7 billion won, a 7.8 percent fall year-on-year.The group's reliance on its bank unit makes it vulnerable to unfavorable circumstances for banks amid low interest rates.Amid such circumstances, major local banking groups are gearing up to strengthen their non-banking affiliates to make the

Jan 22, 2020By Kim Bo-eun
NongHyup group's bank reliance poses challenge

Hana to take over The-K Non-Life Insurance

Hana Financial Group's building in central Seoul / Courtesy of Hana Financial GroupFinancial group takes first step to expand non-banking businessBy Kim Bo-eunHana Financial Group has taken the first steps in expanding its non-banking affiliates by taking over The-K Non-Life Insurance as a battle heats up among major groups to scale up their portfolios.Hana's board approved the group's acquisition of 70 percent of the non-life insurer' shares. This is its first acquisition since taking over the Korea Exchange Bank in 2012 and its first in the non-banking sector.The group is in the process of negotiating the deal with the insurer owned by the Korean Teachers' Credit Union.Hana's move to acquire the insurer is part of the group's drive to boost earnings coming from its non-banking units.Hana has stated plans to bring up earnings from non-banking affiliates to 30 percent by 2050.The group has a bank, brokerage, card firm, life insurer and savings bank in its portfolio but does not have a non-life insurer.The-K Non-Life Insurance is a small firm specializing in auto insurance.“We w

Jan 21, 2020By Kim Bo-eun
Hana to take over The-K Non-Life Insurance
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