Business - The Korea Times

New bills for Seollal

A woman shows a stack of new 10,000 won bills to hand out during the upcoming Seollal holiday, at the Bank of Korea's branch in Gwangju, Tuesday. It is a custom for adults to give out money to children at family gatherings during the traditional Lunar New Year holiday. / Yonhap

Jan 21, 2020By Kim Bo-eun

Ex-Samsung Life execs seize control of group's financial arms

From left are Samsung Life Insurance CEO Jeon Young-muk, Samsung Card CEO Kim Dae-hwan and Samsung Asset Management CEO Shim Jong-geuk. / Courtesy of each companyBy Park Jae-hyukFormer and incumbent Samsung Life Insurance employees in their 50s will lead the nation's largest conglomerate's financial units, according to each affiliate, Tuesday.The latest reshuffle is considered to indicate the group's efforts to seek better profits through a generational shift amid a worsening business environment for the financial market.Samsung Life nominated Samsung Asset Management CEO Jeon Young-muk, 56, for its new chief.Hyun Sung-chul, 60, who has led Samsung Life since 2018, stepped down.Jeon has served as the Samsung Asset Management CEO since 2018, after working at Samsung Securities from 2015 to 2018 and previously at Samsung Life from 1986 to 2015.The new chief executive is tasked with boosting profits at the nation's leading life insurer which posted 976.8 billion won ($837 million) in net income for the first three quarter of 2019, down 43.4 percent from 1.7 trillion won a year earlier.S

Jan 21, 2020By Park Jae-hyuk

Ex-Samsung Life execs seize control of group's financial arms

Eximbank to expand financing for overseas infrastructure projects

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu speaks during a New Year's press conference held at the Korea Federation of Banks in central Seoul, Monday. / Courtesy of EximbankBy Kim Bo-eunExport-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu said Monday the state-run lender will allocate 12 trillion won ($10 billion) for overseas infrastructure projects this year.This is an increase of 41 percent from the 8.5 trillion won allocated last year."This year we will focus on supporting high value investment and development projects for Korean companies," Bang said in a New Year's press conference held at the Korea Federation of Banks in central Seoul."We will find projects that local firms can take part in, centering on new development projects such as smart cities and airports," he said.Bang said the bank will focus on large scale projects in countries in the ASEAN region as well as in North Asia, according to the government's New Northern Policy.Eximbank will finance projects in 10 countries this year, including Indonesia, Vietnam, India, Russia, Uzbekistan and Myanmar.The

Jan 20, 2020By Kim Bo-eun

Eximbank to expand financing for overseas infrastructure projects

Starbucks unnerving Korean banks

A Starbucks logo is seen in this file photo. From top left are Hana Financial Group Chairman Kim Jung-tai, KB Financial Group Chairman Yoon Jong-kyoo, KB Kookmin Bank CEO Hur Yin and NongHyup Financial Group Chairman Kim Gwang-soo. / Korea Times fileBy Park Jae-hyukA growing number of Korean banking groups are showing alarm at Starbucks, describing the U.S. coffeehouse chain as a potential rival that could threaten their survival in the financial market within a few years, industry officials said Monday.The banking groups fear that Starbucks may stir up the conventional financial market based on the significant amount of cash customers load onto its prepaid gift cards ― cards that have yet to be subject to financial regulations.According to the Wall Street Journal, the coffee shop chain's U.S. headquarters had $1.2 billion that customers had loaded onto Starbucks gift cards and the mobile app as of the first quarter of 2016 ― surpassing the amount of cash that major American provincial banks had in their deposits.The amount of cash its Korean unit holds is confidential, but it is est

Jan 20, 2020By Park Jae-hyuk

For overseas investment

Officials from NongHyup Financial Group and Paris-based Amundi Asset Management shake hands during this year's first steering committee meeting at the group's headquarters in Seoul, Jan. 15. At the meeting, they agreed to cooperate to strengthen NH-Amundi Asset Management's overseas investment. Amundi is NH-Amundi's second largest shareholder. Courtesy of NongHyup Financial Group

Jan 20, 2020By Kim Jae-kyoung

January critical month for banking group chiefs

From left, Shinhan Financial Group Chairman Cho Yong-byoung, Hana Financial Group Vice Chairman Ham Young-joo, Woori Financial Group Chairman Son Tae-seung and Industrial Bank of Korea CEO Yoon Jong-won / Korea Times fileBy Kim Bo-eunThe month of January has put major banking groups on alert, as it may determine sanctions imposed on their chiefs that may affect their terms.Shinhan Financial Group Chairman Cho Yong-byoung faces a lower court ruling Jan. 22, over charges relating to hiring irregularities.He is suspected to have intervened in the process of recruiting new employees and manipulated scores to get the children of the bank's executives hired when he was CEO of Shinhan Bank. The prosecution earlier sought a three-year prison term and 5 million won fine for Cho.The chiefs of Woori and Hana financial groups face sanctions for their responsibility in the "DLF fiasco" in which banks mis-sold financial derivative options known as derivative-linked funds that caused major losses for investors last year.Hana Financial Group Vice Chairman Ham Young-joo and Woori Financial Group Chai

Jan 19, 2020By Kim Bo-eun

January critical month for banking group chiefs

Awarding outstanding employees

Shinhan Card CEO Lim Young-jin, center, poses with top prize recipients at an event awarding achievements of 2019, held at the AW Convention Center in central Seoul, Friday. Employees of the card firm's Gwangju branch won the top award. / Courtesy of Shinhan Card

Jan 19, 2020By Kim Bo-eun

Financial groups on alert over NPS' rising clout

By Kim Bo-eunFinancial groups have become increasingly cautious over legal risks associated with shareholders, as the National Pension Service (NPS), which serves as the groups' largest shareholder, has pledged to take more aggressive action against damage to corporate value.The NPS' management committee stated on Dec. 27 it would play a greater shareholder role, going as far as calling for board members' dismissal when the companies it invests in are suspected of engaging in practices that harm the company's value. A set of guidelines on shareholder activism were approved.It said shareholders can require companies to take action based on lower court rulings regarding alleged irregularities, and not the top court's ruling, as trials damage the company's reputation in the same way.As of December, the NPS was the largest shareholder of 19 listed firms. The NPS is the largest shareholder of five financial groups. The NPS has been increasing its shares of financial groups due to their high-dividend policy.The NPS is the largest shareholder of Shinhan, Hana and KB financial groups, owning

Jan 17, 2020By Kim Bo-eun

Financial groups on alert over NPS' rising clout

Opening library at Vietnamese school

A team of volunteers from Prudential Life Insurance Company of Korea pose after taking part in the creation of a library at a middle school in Trung Chai, Vietnam, Wednesday. Prudential said 26 financial consultants and 112 family members of customers have been dispatched to developing countries for volunteer activities over the past nine years. / Courtesy of Prudential Life Insurance Company of Korea

Jan 16, 2020By Kim Bo-eun

Apple's arrogance angers Korean card issuers

Apple Pay's user interface / Captured from Apple's official websiteApple Pay unlikely to be available in Korea again this yearBy Park Jae-hyukApple's high-handed attitude toward Korean credit card issuers has been leading to a reduced likelihood of Apple Pay's launch here, as card firms have declined to accept the U.S. tech giant's unreasonable demands, industry sources said Wednesday.According to the sources, some domestic card firms recently stopped negotiating with Apple for the launch of the U.S. firm's mobile payment and digital wallet service.The card issuers have tried to bring Apple Pay to Korea since its launch in 2015.Some of them recently visited Japan to study the usage of the mobile payment service there.They regarded Apple Pay as their new income source for this year, hoping it would allow them to overcome the industry downturn.However, they failed to reach an agreement with Apple because the tech firm wanted them to pay transaction fees and install payment terminals for Apple Pay.Apple receives 0.15 percent commission on every Apple Pay transaction in the United States

Jan 16, 2020By Park Jae-hyuk

Banking & Finance