Business - The Korea Times

Foreign banks' net profits double in Q3

By Kim Bo-eunForeign banks saw a surge in earnings in the third quarter of the year, despite tough circumstances due to low interest rates. Citibank and Standard Chartered (SC) Bank saw their net profits for the third quarter double from the same period last year. The growth rate far outperforms that of major local banks, which ranges from -31.7 percent to 2 percent. Citibank recorded 90 billion won in net profit, up 119 percent from the same period in 2018. Its accumulated net profit for the first three quarters of the year comes to 295.6 billion won, growth of 64.2 percent year-on-year.Citi said non-interest income drove its growth in profit. Interest income decreased by 1.9 percent.Citibank Korea CEO Park Jin-hei to 241.2 billion won due to a fall in its net interest margin. Non-interest income grew 20.8 percent to 69.8 billion won based on a growth in sales commissions coming from selling investment options and insurance products, among others.This compares with the situation of major local banks, which all saw their non-interest income fall in the same period, due to shrunken in

Nov 15, 2019By Kim Bo-eun

Tongyang, Mirae Asset Life shine amid downturn

By Lee Kyung-min Most life insurance companies operating here have suffered earnings shocks due to falling interest rates amid economic downturn ― but a few players have weathered difficulties on the back of their diversified business portfolios and windfall gains from the sales of its assets.Tongyang Life and Mirae Asset Life have managed to report a rise in net profits in the July-September period. Tongyang posted a net income of 68.1 billion won, up 449 percent from 12.5 billion won the year before thanks to its strategy to increase the portion of its protection-type insurance business. The proceeds from the sales of its subsidiary Tongyang Asset Management to Woori Financial Group, estimated at around 80 billion won, also helped improve its balance sheet.The third-quarter figure has brought the net profit for the first nine months of the year to 143.4 billion won, up 110.7 percent from a year earlier. HI Investment & Securities chief researcher Kang Seung-gun said Tongyang's investment return is recovering

Nov 14, 2019By Lee Kyung-min

Tongyang, Mirae Asset Life shine amid downturn

KB, Shinhan foster fintech startups

KB Financial Group Chairman Yoon Jong-kyoo, left, Saeed Amidi PNP CEO, right, and heads of fintech startups pose for a photo at 2019 HUB Day on Yeouido in Seoul, Nov. 13. Courtesy of KB Financial GroupBy Lee Kyung-min Korea's two leading financial groups are making hefty investments in budding fintechs to help them become unicorns ― privately held startup companies valued at over $1 billion (1.17 trillion won).KB Financial Group held 2019 HUB Day where it announced it has invested 26.6 billion won in 23 startups as of October. The recipients were among 39 shortlisted firms that have a combined 108 ongoing joint business projects with the group. Over 200 people from startups, investment consultancies and KB Financial Group gathered to share the fintechs' business models and further plans at the event held Nov. 13 on Yeouido in Seoul. The event was jointly organized by Plug and Play Tech Center (PNP), an early-stage investor, accelerator and corporate innovation platform with global headquarters in Silicon Valley. Those selected will be able to team up with global firms to go abroad an

Nov 14, 2019By Lee Kyung-min

Calling for deregulation

Credit Finance Association of Korea (CREFIA) Chairman Kim Joo-hyun, front row fourth from left, poses with the association's members during the Credit Finance Association Forum at the Korea Federation of Banks headquarters building in Seoul, Thursday. The association called for the government to ease regulations, citing worsening profitability of credit card firms. / Courtesy of CREFIA

Nov 14, 2019By Park Jae-hyuk

Kyobo gets best rating among insurers from Fitch, Moody's

By Kim Bo-eunKyobo Life Insurance's headquarters in central Seoul / Courtesy of Kyobo Life InsuraceKyobo Life Insurance said Thursday it had received the best rating in the local insurance industry from global rating agencies Fitch Ratings and Moody's.The country's third-largest life insurer got an A1 rating from Moody's and an A+ rating from Fitch, earning recognition for its financial health and risk management capabilities.Kyobo received the A1 rating from Moody's for the first time in 2015, and has maintained the same rating for five years since.A1 is the fifth highest out of a total of 21 ratings.Moody's said the rating reflects Kyobo's "good business profile, strengthened capitalization and low financial leverage."Fitch rated Kyobo at A+, which is its highest rating in the industry. Kyobo became the first local life insurer to get the A+ rating in 2013, and has maintained the rating since.Kyobo recorded an accumulated net profit of 689.3 billion won in the first three quarters of the year, up 21 percent from the same period a year earlier.Its operating profit for the same perio

Nov 14, 2019By Kim Bo-eun

Kyobo gets best rating among insurers from Fitch, Moody's

Sohn drives Woori's global recognition

By Kim Bo-eunWoori Financial Group Chairman Sohn Tae-seung / Courtesy of Woori Financial GroupWoori Financial Group has managed to attract more foreign investors and see growth of earnings from Asia this year, under Chairman Sohn Tae-seung's reign.Sohn assumed his position as chairman when Woori became a financial holding company in January. He has doubled as the bank's CEO, a position he took in December 2017.Sohn has actively sought to meet investors overseas. In May he traveled to Japan and Hong Kong, and in October the Middle East and the U.S.The percentage of Woori's foreign investors has grown to 31 percent in November from 27.3 percent in January. The other three financial groups all saw their foreign ownership fall in the same period.More foreigners appear to have invested in Woori based on their expectations of the group's growth, as it actively seeks M&As to strengthen its non-banking units.This year, Woori acquired ABL Global Asset Management, Tongyang Asset Management and Kukje Asset Trust, a real estate management company. It also bought shares of Lotte Card.It recor

Nov 14, 2019By Kim Bo-eun

Diners cards will not be issued in Korea

The Hyundai Diners Card. / Courtesy of Hyundai CardBy Park Jae-hyukDiners Club cards will no longer be issued in Korea after Hyundai Card decided to end its partnership with the world's first credit card brand, industry officials said Wednesday.Since Nov. 4, the Hyundai Motor Group's card unit has told customers that its alliance with Diners Club International will end Dec. 31, and it will stop issuing all types of Diners Club cards from Jan.1.Those who have the Hyundai Diners card can use them until they expire. If cards have to be reissued, their expiration dates will be unchanged.A Hyundai Card spokesman said the two companies agreed to end their partnership following termination of the contract.Industry officials, however, regard the unfavorable market environment for domestic card issuers as the main reason for the card issuer's latest decision.Korean card firms have faced difficulties due to a transaction fee cut and intensifying competition.In addition, a growing number of Diners Club members keep the card just for free access to airport lounges, without using it to make trans

Nov 13, 2019By Park Jae-hyuk

Diners cards will not be issued in Korea

KEB Hana set to accelerate expansion in Vietnam

Hana Financial Group Chairman Kim Jung-tai, third from left, poses with KEB Hana Bank CEO Ji Sung-kyoo, first from left, and Bank for Investment and Development of Vietnam (BIDV) Chairman Duc Tu Phan, second from left, at a ceremony marking Hana's acquisition of BIDV's shares held at Melia Hotel in Hanoi, Monday. Fourth from left is Ngoc Lam Le, Vice President of BIDV. / Courtesy of Hana Financial GroupBy Kim Bo-eunKEB Hana Bank is set to speed up its expansion in Vietnam, after acquiring shares of the country's largest bank by assets.The bank said Tuesday it became the second largest shareholder of the Bank for Investment and Development of Vietnam (BIDV), by acquiring 15 percent of the bank's shares worth 1.01 trillion won.This is the largest investment made by a Korean bank in the Southeast Asian country. The acquisition of shares has made Hana a strategic investor in the bank. The process was completed last month, after the two signed a deal for the acquisition in July.Prior to Hana's investment, Vietnam's central bank held 95.3 percent of BIDV's shares. BIDV is a state-run comme

Nov 12, 2019By Kim Bo-eun

KEB Hana set to accelerate expansion in Vietnam

Reaching out to the elderly

Nonghyup Bank CEO Lee Dae-hoon, center, poses with participants of a volunteer project to reach out to senior citizens, in Yeongcheon, North Gyeongsang Province, Monday. Participants visited senior citizens in rural areas who live alone, and provided hairstyling services and winter supplies. / Courtesy of Nonghyup Bank