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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.

Robots set to replace bank clerks

gettyimagesbankBy Park Jae-hyukBank clerks are expected to be replaced by robots in the near future, as a growing number of banks here are speeding up efforts to adopt robotics process automation (RPA), according to industry officials.RPA initially referred to software robots performing programmed and repetitive tasks on behalf of people. As their performance has improved, however, they have begun managing credit, conducting foreign exchange and giving advice on investments.NongHyup Bank CEO Lee Dae-hoon, fourth from right (standin), checks on the robotics process automation control room at the bank's headquarters in Seoul, Friday. / Courtesy of NongHyup BankNongHyup Bank is considered the leader in this transition that will change the landscape of the banking industry in the coming years.The bank said Wednesday it has completed installing 120 RPAs doing 39 different tasks, as part of its efforts toward a digital transformation.NongHyup expects this project will reduce its employees annual working hours by 200,000.In addition, the bank is developing another type of RPA that can analy

Dec 11, 2019By Park Jae-hyuk
Robots set to replace bank clerks

Discussing future of banking

Korea Federation of Banks (KFB) Chairman Kim Tae-young, center, and heads of four financial institutions receive questions from reporters during a press conference at the KFB headquarters in Seoul, Wednesday. After apologizing for the derivative-linked fund fiasco, Kim urged the nation's banks to boost digitization and globalization. From left are Korea Center for International Finance President Choi Jae-young, Korea Banking Institute President Moon Jae-woo, Kim, Korea Institute of Finance President Sohn Sang-ho and Korea Credit Information Services President Shin Hyun-joon. / Courtesy of KFB

Dec 11, 2019By Park Jae-hyuk
Discussing future of banking

Supporting startups in Southeast Asia

KB Financial Group chief strategy officer Lee Chang-kwon, fourth from left, and Telkom Group CEO Ririek Adriansyah, eighth from left, give their thumbs up at the Telkom headquarters in Jakarta, Indonesia, Monday (local time). The two companies agreed to launch a joint investment fund called “Centauri” to support innovative startups in Southeast Asia. They seek to raise up to $150 million. / Courtesy of KB Financial Group

Dec 11, 2019By Park Jae-hyuk
Supporting startups in Southeast Asia

Kookmin Bank CEO visiting China, Hong Kong, Cambodia

KB Kookmin Bank CEO Hur YinBy Park Jae-hyukKB Kookmin Bank CEO Hur Yin started visiting the commercial bank's foreign branches, Monday, about a month after being reappointed to serve a second term.According to the bank, Tuesday, he will visit Kookmin Bank's branches in China, Hong Kong and Cambodia until Friday.“The purpose of the CEO's visit is to encourage overseas employees, who have worked hard for our global business throughout this year,” a Kookmin Bank spokesman said.Kookmin Bank has been regarded as a “latecomer” in terms of its global drive.Industry officials say Hur's visit to the foreign branches is to show the bank's efforts to spur its global expansion in 2020, amid declining profitability in the Korean market following the trend toward lower interest rates.The chief executive is also expected to seek opportunities for M&As in Cambodia, which has emerged as one of the most important markets in Southeast Asia.Kookmin Bank's Cambodian subsidiary posted a 2 billion won ($1.6 million) net profit during the first half of 2019, double the net profit

Dec 11, 2019By Park Jae-hyuk
Kookmin Bank CEO visiting China, Hong Kong, Cambodia

BC Card tops in customer satisfaction for 12th straight year

BC Card CEO Lee Mun-hwan, center, poses with employees at Lotte Hotel Seoul, Tuesday, after receiving the certification for the best credit card company in the National Customer Satisfaction Index survey. / Courtesy of BC CardBC Card became the nation's first card firm to take the top spot in the credit card category of the National Customer Satisfaction Index (NCSI) for the 12th straight year, the company said Tuesday.The NCSI, which is based on evaluations by end-users of products and services in Korea, has been announced annually by the Korea Productivity Center to enhance the overall competitiveness of the nation beyond businesses.“Based on our customers' constant trust, we could become the nation's first card firm that has taken the top spot in the NCSI survey for the 12th straight year,” BC Card CEO Lee Mun-hwan said. “With differentiated services and benefits, we will continue to repay our customers.”Since it launched a consumer panel named “BC Navigator” in 2008, the card firm has allowed its customers to participate in designing services a

Dec 10, 2019
BC Card tops in customer satisfaction for 12th straight year

IBK workers protest 'parachute CEO'

By Kim Bo-eunThe Industrial Bank of Korea's (IBK) labor union chief Kim Hyeong-seon stages a protest in front of Cheong Wa Dae against its plan to appoint an external government official as the state-run lender's next chief, Tuesday. / Courtesy of IBK's labor unionIndustrial Bank of Korea (IBK) workers began a protest Monday over a rumor that Cheong Wa Dae is planning to appoint a government official as the state-run lender's next chief. The current CEO Kim Do-jin's term ends Dec. 27. As a state-run lender, IBK's chief is appointed by the President, after recommendations are made by the Financial Services Commission chairman.Members of IBK's union started the protest in front of Cheong Wa Dae, stating the presidential office was going to "parachute an unqualified government official" in as the next CEO.According to the union, Cheong Wa Dae appears to have narrowed down its pool of candidates to two officials ― former presidential secretary for job affairs Ban Jang-sik, and ex-presidential economic affairs secretary Yoon Jong-won.Other candidates that had been discussed included Finan

Dec 10, 2019By Kim Bo-eun
IBK workers protest 'parachute CEO'

Cooperation with Romanian agency

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu, left, poses with Romanian Agency for International Development General Director Catalin Harnagea, after signing an agreement for knowledge sharing on international development cooperation at Eximbank's headquarters on Yeouido in Seoul, Monday. / Courtesy of Eximbank

Dec 10, 2019By Kim Bo-eun
Cooperation with Romanian agency

McKinsey urges Korean banks to enhance profitability

McKinsey & Company partner Kim Su-ho / Korea Times fileBy Park Jae-hyukMcKinsey & Company has displayed a skeptical outlook about the future of the nation's major commercial banks, despite the solid earnings they have enjoyed over the past few years, according to its Korean partner, Monday.Kim Su-ho, a Seoul-based McKinsey partner specializing in the banking industry, told The Korea Times that Korean banks' competitiveness cannot be ensured, if they stick to their current business model.“Korean financial services firms have posted trillions of won in earnings every quarter,” he said. “However, their returns on equity (ROE) have remained at about 8 percent to 9 percent, falling short of the 10 percent ROE that global investors expect.”In the Global Banking Annual Review published in October, the consulting firm said a third of 595 banks worldwide, including those in Korea, will not be able to survive the next downturn unless they revamp their business models.Korea's lucrative top four commercial banks ― Shinhan, KB, KEB Hana and Woori ― have been consid

Dec 9, 2019By Park Jae-hyuk
McKinsey urges Korean banks to enhance profitability

Financial groups seek to scale up portfolios

By Kim Bo-eunMajor financial groups are in a race to scale up their business portfolios to boost non-banking revenue as profit margins in the banking sector have been squeezed amid low interest rates.Three of the four main groups are eyeing insurers, after Shinhan acquired ING Life Insurance Korea in February and re-branded it Orange Life. The acquisition of Orange helped Shinhan solidify its leading position in the financial industry after taking the title from KB in the fourth quarter of 2018. Currently, Shinhan is the largest financial group by both total assets and earnings, followed by KB, Hana and Woori.Hana Financial Group is negotiating with the Korean Teachers Credit Union to acquire The-K Non-Life Insurance owned by the latter. The insurer specializes in auto insurance. Hana does not have a non-life insurance unit.The group declined to comment, but this is seen as a move to strengthen its non-banking affiliates.KEB Hana Bank's net profit accounted for 87.8 percent of the group's earnings in the first three quarters of the year.KB Financial Group, which owns life and non-lif

Dec 6, 2019By Kim Bo-eun
Financial groups seek to scale up portfolios

Are foreign life insurers pulling out of Korea?

Prudential putting Korea life unit up for saleBy Kim Bo-eunPrudential Life Insurance Company of Korea's headquarters in southern Seoul / Korea Times filePrudential Financial's move to sell its life insurance unit here has drawn attention as it may affect other foreign life insurers in Korea which are suffering worsening profitability due to the saturation of the local market. Over the past few years, a number of global players have left Korea ― ING Group sold its life insurance unit in 2013, while Allianz sold its in 2016, followed by PCA Life Insurance being sold in 2018.Although other foreign players here are denying any exit from Korea, market observers speculate that Prudential's move could trigger a foreign exodus, given that the local market will likely stay in the doldrums amid low interest rates.According to industry sources and media reports, Prudential recently selected Goldman Sachs as lead manager for the sale of its Korean unit. The U.S.-based insurance giant established the Korean subsidiary in 1989.Prudential Life Insurance Company of Korea ranked 11th in terms of asse

Dec 5, 2019By Kim Bo-eun
Are foreign life insurers pulling out of Korea?
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