Business - The Korea Times

INTERVIEW Hana to pursue two-track growth strategy

Hana Financial Group Chairman Kim Jung-taiThis is the fourth and last in a series of interviews with chairmen of the nation's top four financial groups ― Shinhan, KB, Woori and Hana ― to mark the beginning of New Year 2020. ― ED.Chairman vows to turn group into data-based digital firmBy Lee Kyung-min Hana Financial Group Chairman Kim Jung-tai has vowed to pursue a two-pronged growth strategy in 2020 by putting equal weight on organic and inorganic growth in a bid to perfect the group's strategy to become a digital, global leader. Kim plans to increase spending on manpower and resources to strengthen IT capabilities, a prerequisite for the group to become a data-based information services firm run by digitally savvy workers.At the same time, Kim said that he will pursue inorganic growth by pushing for aggressive mergers and acquisitions (M&As) of payment service providers, securities firms and insurers.Boosting those non-banking business will help Hana diversify its business portfolio by reducing its reliance on KEB Hana Bank, the group's largest and most lucrative subsidiary. The

Jan 7, 2020By Lee Kyung-min

[INTERVIEW] Hana to pursue two-track growth strategy

Hana's coding education to boost digitization

Standard Chartered Bank Korea to elevate ties with Toss

Standard Chartered Bank Korea CEO Park Jong-bok delivers an opening remark during a New Year's meeting with staff at its headquarters in Seoul, Monday. Courtesy of Standard Chartered Bank KoreaBy Lee Min-hyungStandard Chartered (SC) Bank Korea CEO Park Jong-bok has expressed willingness to expand partnerships with Toss ― a mobile money transfer app operated by Viva Republica ― and other fintech players, as part of its major management strategy in 2020. “We are going to enhance international competitiveness along with fintech companies by enabling them to create more opportunities and innovate the ecosystem,” he told reporters while participating in a New Year's meeting with finance leaders, Jan. 3.Viva Republica, a Seoul-based fintech startup, is set to open an internet-only bank, Toss Bank, in 2021 after receiving a preliminary license to operate the bank in December. SC Bank Korea participates in the Toss Bank consortium for its full-fledged operation.“(In 2020), we will enhance ties with Toss for the joint internet-only bank project,” Park added.Standard Ch

Jan 7, 2020By Lee Min-hyung

Standard Chartered Bank Korea to elevate ties with Toss

Banks face suit over fraudulent Lime funds

Korea Times fileBy Kim Bo-eunMajor banks that were hit by the "DLF fiasco" last year involving the mis-selling of financial derivative options now face the same allegations over the sale of options-based funds of the troubled hedge fund Lime Asset Management.Investors of Lime's troubled funds that are set to cause them losses contend that the banks did not properly notify them of the associated risks. They are preparing for a suit against the banks.The exact amount of losses to be incurred have yet to be confirmed. Financial authorities have been conducting a months-long inspection into Lime.Investors are likely to take action when results of the inspection are unveiled, which is expected to be within this month.Authorities may launch a separate investigation of banks if investors file a complaint, which appears likely.Banks contend that they were only involved in selling the options, and were not aware of irregularities of Lime.Banks sold 34.5 percent or 2 trillion won of Lime's options-based funds amounting to 5.7 trillion won as of July last year. This was when the sale of Lime's

Jan 7, 2020By Kim Bo-eun

Banks face suit over fraudulent Lime funds

Low interest rates, IFRS 17 put insurers up for sale

gettyimagesbankBy Kim Bo-eunLow interest rates and a new set of accounting standards to be introduced has created increasingly tough circumstances for insurers, leading to many small-and medium-sized firms to be put up for sale.The IFRS 17, which will replace the current accounting standards for insurance contracts in 2022, requires insurers to secure a greater amount of capital. This is because liabilities in their insurance contracts will be measured by market value instead of book value. Under the current low interest rate, insurers are seeing profits from investments fall.Premium income is falling, as they have stopped selling savings-type policies. Under the IFRS 17, such policies will be counted as liabilities. The growth rate of premium income fell from 2.2 percent in 2016 to -4.9 percent in 2017 and -2.7 percent last year. This has led to a fall in net profits. Life insurers' net profits in the first half of last year contracted year-on-year. Meanwhile, the amount of insurance proceeds is growing annually.Amid such conditions, three insurers are out in the market for M&As

Jan 7, 2020By Kim Bo-eun

Low interest rates, IFRS 17 put insurers up for sale

Card firms seek survival in 2020 through digitization

Card firm CEOs listen to then Financial Services Commission Chairman Choi Jong-ku during a meeting at the Government Complex Seoul in this April 2019 file photo. / YonhapBy Park Jae-hyukCredit card issuers are accelerating their digital transformation drive this year amid worsening market conditions, falling growth rates and intensifying government regulations, according to the companies, Tuesday.They are expected to emphasize this during a forthcoming meeting with Financial Services Commission Chairman Eun Sung-soo this Thursday.According to Hana Institute of Finance researcher Park Ji-hong, card firms will not be able to avoid declining profitability in the long run, although their efforts to cut costs may improve their profits slightly this year.“They should seek new businesses here by developing innovative financial services,” he said. “Eventually, they need to expand their global presence, escaping the domestic market's boundaries.”Against this backdrop, the CEOs of local card firms have unveiled plans for digitization in their New Year messages.Lim Young

Jan 7, 2020By Park Jae-hyuk

Card firms seek survival in 2020 through digitization

New healthcare service

AIA Korea employees pose at the company's headquarters in central Seoul, Monday to launch new healthcare service, "AIA Vitality Buddy." Under the new service, financial planners will provide discounts for insurance premiums as well as rewards. / Courtesy of AIA Korea

Jan 6, 2020By Kim Bo-eun

Governor welcomes new BOK staff

Bank of Korea Governor Lee Ju-yeol, fourth from right in the front row, poses with new staff at the bank's headquarters in Seoul, Monday. Lee underlined the need for them to set a clear vision for the growth of their career and the central bank. Courtesy of Bank of Korea

Jan 6, 2020By Lee Min-hyung

INTERVIEW Non-banking M&As key agenda for Woori

This is the third in a series of interviews with chairmen of the nation's top four financial groups ― Shinhan, KB, Woori and Hana ― to mark the beginning of New Year 2020. ― ED.Chairman aims to turn Woori into universal banking groupBy Kim Bo-eunScaling up the group by arming itself with non-banking units is a key task for Woori Financial Group Chairman Son Tae-seung this year, following the group's launch as a financial holding company in January 2019. Last year, Woori acquired ABL Global Asset Management, Tongyang Asset Management and Kukje Asset Trust, a real estate management firm.The group is seeking to complete the takeover of Aju Capital this year, as well as buy a brokerage and insurer."Expanding our business portfolio is our top priority. We will continue to monitor the market to find M&A opportunities to complete a portfolio that covers the entire financial industry," Son said in a written interview with The Korea Times."We will seek M&As that require low capital but can maximize synergy with existing units."The group expects its recent acquisitions and additional p

Jan 6, 2020By Kim Bo-eun

[INTERVIEW] Non-banking M&As key agenda for Woori

KB chairman seeks future growth engines at CES

KB Financial Group Chairman Yoon Jong-kyooShinhan, Woori send digital experts to tech fairBy Park Jae-hyukKB Financial Group Chairman Yoon Jong-kyoo became the nation's first financial group CEO to visit the Consumer Electronics Show (CES), according to industry officials, Monday.The banking group said its chairman flew to Las Vegas, Monday, to attend the world's largest electronics fair that will be held from Tuesday to Friday.He is accompanied by 17 employees from KB Kookmin Bank's IT group, KB Kookmin Card, KB Investment and KB Financial Group Research Institute.Yoon, who is highly likely to try to serve another three-year term when his second term ends in November, will be looking for technology to bolster the group's long-term growth engines at CES 2020.KB has already shown keen interest in integration between financial and digital technologies.In 2019, it launched its budget phone service Liiv M, which will provide users with low-cost plans and convenient mobile banking services.“The chairman has been interested in global IT firms and industry trends. He mentioned Google

Jan 6, 2020By Park Jae-hyuk

KB chairman seeks future growth engines at CES

Lime hampers Shinhan's plan for mega IB

The Shinhan Investment headquarters on Yeouido, Seoul / Korea Times fileBy Park Jae-hyukShinhan Investment is facing a major setback in its grand scheme of becoming a “mega investment bank (IB)” as the brokerage house is suspected of being an accomplice to alleged financial fraud involving Lime Asset Management, according to financial authorities, Monday.Lime, the country's largest hedge fund, has come under suspicion that it continued to sell fund options to investors despite allegedly being aware of the fact that the options invested in involved a U.S. hedge fund that engaged in fraud.The Financial Supervisory Service (FSS) suspects that Shinhan Investment sold the fund to investors despite being aware of the fact, because the securities firm was a prime brokerage service provider that extended loans to Lime.Against this backdrop, the financial watchdog decided to refer both Lime and Shinhan Investment to the prosecutors.This seems to be a stumbling block to Shinhan Investment being designated as a mega IB.Shinhan Investment plans to apply for a mega IB license within 2

Jan 6, 2020By Park Jae-hyuk

Banking & Finance

Banking & Finance

INTERVIEW Hana to pursue two-track growth strategy

Standard Chartered Bank Korea to elevate ties with Toss

Banks face suit over fraudulent Lime funds

Low interest rates, IFRS 17 put insurers up for sale

Card firms seek survival in 2020 through digitization

New healthcare service

Governor welcomes new BOK staff

INTERVIEW Non-banking M&As key agenda for Woori

KB chairman seeks future growth engines at CES

Lime hampers Shinhan's plan for mega IB

Most Read in Business