Business - The Korea Times

Financing for Vietnamese air carrier

Woori Bank's Ho Chi Minh branch manager Kim Kyu-baek, left, and the bank's head of global investment banking Lee Sang-min, fourth from left, pose with Vietjet CEO Nguyen Thi Phuong Thao, fifth from left, and other guests after the two firms held a ceremony on the lender's financing for the air carrier, at Vietjet's headquarters in Ho Chi Minh City, Nov. 15. The bank provided $140 million in funds for Vietnam's top low-cost carrier, becoming the first local bank to engage in aircraft financing for a private airline company in the Southeast Asian country. / Courtesy of Woori Bank

Nov 19, 2019By Kim Bo-eun

Rewarded for supporting artists

Hyundai Card Vice Chairman Chung Tae-young, center, holds a trophy at a Hyundai Card building in Seoul, Nov. 15. He was selected as one of the winners of the Montblanc de la Culture Arts Patronage Award 2019, because of his efforts to support young artists. From left are Montblanc Korea managing director Eric Eder, Chung and Montblanc Cultural Foundation Chairman Till Fellrath. / Courtesy of Hyundai Card

Nov 19, 2019By Park Jae-hyuk

FSS urged to take lead in accelerating gender equality

gettyimagesbankBy Kim Bo-eunKorea has the lowest percentage of women on boards in the corporate sector according to a recent survey of 50 countries conducted by Credit Suisse.Both the Korean government and private sector feel a profound sense of urgency to improve the situation because employing more talented women is one of the few options to tackle structural challenges, such as the declining workforce. However, any meaningful change seems just a distant hope.The survey shows Korea's percentage of female board members stood at 3.1 percent this year. This compares with the figure of countries at the top of the list such as France with 44.4 percent, Germany with 32.4 percent and the U.K. with 30.3 percent.The statistics are particularly damning in the world of finance. According to a report from the Korea Institute of Finance, among men working in the finance sector, 21.9 percent were in management positions, compared to only 3.3 percent of women.These numbers are disappointing, given that developed economies have begun recognizing the need to promote gender diversity at senior manag

Nov 18, 2019By Kim Bo-eun

FSS urged to take lead in accelerating gender equality

Seminar for future growth

KB Financial Group Chairman Yoon Jong-kyoo, front row sixth from left, poses after holding a seminar with employees at the group's training center in Seoul, Friday. More than 260 staffers from the company participated in the 2019 Communities of Practice Festival, during which they discussed strategies to generate group-wide synergy and seek future growth engines. Courtesy of KB Financial Group

Nov 18, 2019By Lee Min-hyung

Kakao Bank on track, while K bank falters

By Lee Kyung-min Korea's two internet-only banks have shown drastically contrasting earnings results in the third quarter. Kakao Bank continued to enjoy solid earnings, while K bank suffered from ballooning losses due to a lack of capital curbing its lending business. According to data from Financial Supervisory Service (FSS), Kakao Bank reported 15.3 billion won ($13.1 million) in net profit for the first nine months of 2019. The bank swung into the black in the first quarter for the first time recording 6.5 billion won, only 20 months after it was launched.Net profit in the first six months jumped to 9.5 billion won thanks to the second-quarter net profit of 3 billion won. This was further boosted by a third-quarter net profit of 5.7 billion won. In September, Kakao had over 10.69 million customers with a deposit total standing at 19.9 trillion won and lending at 13.6 trillion won.“Kakao Bank plans to raise 50 billion won through rights offering within November, laying the groundwork for it to become a comprehensive financial service provider,” it said. In contrast, K b

Nov 18, 2019By Lee Kyung-min

Kakao Bank on track, while K bank falters

Kookmin Bank chief urged to spur global expansion

KB Kookmin Bank CEO Hur Yin, third from right, takes part in a ribbon-cutting ceremony at the bank's Hanoi branch, Feb. 20. Courtesy of KB Kookmin BankBy Lee Min-hyungKB Kookmin Bank CEO Hur YinKB Kookmin Bank CEO Hur Yin is expected to place a top priority on raising the bank's global profile in Southeast Asia during his second term next year.Kookmin Bank maintained a strong foothold in the local market by posting the largest combined operating profit between January and September.But with the traditional banking industry here reaching saturation, KB and its rivals are turning their eyes to other countries with huge growth potential particularly in the underdeveloped Asian region.He exercised strong leadership during his first term by leading the bank's stable earnings growth over the past two years.But he is expected to shift focus to laying the foundation for future growth in overseas markets during his second term.“Global expansion, mostly in emerging countries in Asia, is standing at the center of the bank's major business next year,” an official from the bank said.

Nov 18, 2019By Lee Min-hyung

Kookmin Bank chief urged to spur global expansion

Visa seeking to take Korean fintech global

Country manager says success depends on partnersBy Kim Bo-eunPatrick Yoon, Visa Korea's Country ManagerFor Visa, a global payment technology company with a B2B business model, partners matter.Assisting partners not only makes sense from a business perspective, but for Patrick Yoon, Visa Korea's country manager, it is also a matter of philosophy."We want card issuing clients, merchants and consumers to thrive in an ecosystem," Yoon said in a recent interview with The Korea Times at Visa's office in central Seoul."When they are successful we are successful. By them growing we can grow together."In Korea, Visa identified a role it could play in supporting fintech startups go global. This is based on the fact that it is a global company operating across 200 different markets.The country head noted the competitiveness of Korean fintech firms, stating, "They are sophisticated. They can compete well.”As part of the Visa Everywhere Initiative, Visa Korea took four out of six finalist teams of a fintech contest in May to Singapore last week. The teams promoted their product pr

Nov 18, 2019By Kim Bo-eun

Visa seeking to take Korean fintech global

Korean lenders shifting toward 'sustainable finance'

gettyimagesbankBy Kim Bo-eunSustainable finance is still considered a new concept here, but financial groups are increasingly aligning themselves with environmental and social causes to keep up with global market standards.In September, three financial groups ― Shinhan, KB and Hana ― signed the "Principles for Responsible Banking" under the United Nations Environment Program Finance Initiative at the U.N. headquarters in New York.The principles are aimed at protecting the environment, reducing negative societal impact and managing risks, as well as seeking shared economic prosperity. This is intended to be done through active engagement with stakeholders, creating a corporate culture supporting such efforts and enhancing transparency.A core part is financing corporate activities that protect the environment, promoting social justice and improving corporate governance, through issuing ESG (environmental, social and governance) bonds.Data shows the issuance of ESG bonds has jumped more than 10-fold over the past three years. As of Sept. 26, ESG bonds amounting to 12 trillion won ($10 b

Nov 17, 2019By Kim Bo-eun

Korean lenders shifting toward 'sustainable finance'

CSR campaign in Cambodia

Shinhan Bank employees pose before a groundbreaking ceremony for a football field in a small town in Cambodia's southwestern province of Takeo, Cambodia, Nov. 11. Shinhan officials engaged in a weeklong overseas volunteer program there from Nov. 10, as part of the company's corporate social responsibility activities. Courtesy of Shinhan Bank

Nov 17, 2019By Lee Min-hyung

Banks protest gov't measures on DLF fiasco

The government is seeking to ban banks from selling high-risk products to consumers. / YonhapBy Kim Bo-eunBanks are protesting the government's latest move to ban them from selling high-risk products in a move to better protect financial customers. For them, the measure will lead to a further fall in profitability amid already tough circumstances due to low interest rates.The Financial Services Commission said Thursday it will ban banks from selling private equity funds and index funds in which the possibility of losing the principal is higher than 20 percent.The measure comes after investors in a financial derivative option tied to yields of German treasury bonds saw nearly 100 percent of their investments wiped out in September. These options are regarded as a type of derivative linked fund (DLF).The products the government is seeking to regulate had a value of 74.4 trillion won as of the end of July. Banks are set to lose several tens of trillions of won in profit such options have generated.This comes at a time banks are seeking ways to produce non-interest income due to the low

Nov 15, 2019By Kim Bo-eun

Banking & Finance