Business - The Korea Times

Talks with startups

Shinhan Financial Group Chairman Cho Yong-byoung, front row center, poses with startup employees at L7 Hongdae Hotel in Seoul, Tuesday. Shinhan held its Uni-Talk event there to talk with startup owners supported by Shinhan Future's Lab startup accelerator program. / Courtesy of Shinhan Financial Group

Oct 15, 2019By Park Jae-hyuk

Kakao Bank seeks to raise capital next month

Kakao Bank head office in Seongnam, Gyeonggi Province / YonhapBy Jhoo Dong-chanKakao Bank, which has long suffered a decline in cash reserves, is seeking to increase capital next month, sources said Monday.The internet-only bank had originally planned to increase capital by issuing new stocks after buying back a 50 percent stake owned by Korea Investment Holdings.According to media reports and sources, however, Kakao Bank decided recently to raise capital by issuing new stocks first since the bank's cash reserve has been deteriorating more rapidly than anticipated. “We are still reviewing our plan about recapitalization,” a Kakao Bank official said. “Rumor has it we'd like to raise up to 500 billion won next month, but we have yet to decide on the details.” According to industry sources, Kakao Bank will hold a board meeting this month to conclude its plan to increase up to 500 billion won ($422.4 million) by issuing new stocks next month.In July, the Financial Services Commission (FSC) approved the bank's plan to reduce the 50 percent stake owned by Korea Inve

Oct 14, 2019By Jhoo Dong-chan

Kakao Bank seeks to raise capital next month

Lime could halt redemption of W1.33 tril in funds

Lime Asset Management CEO Won Jong-jun bows in apology to investors for suspending redemption of funds, at a press conference the hedge fund manager held at the IFC on Yeouido, Seoul, Monday. / YonhapBy Kim Bo-eunLime Asset Management could suspend the redemption of private equity funds (PEFs) amounting to 1.33 trillion won ($1.12 billion), the head of the hedge fund manager said Monday. “The redemption of a total 1.33 trillion won in funds could be suspended if liquidity problems are not resolved,” Lime CEO Won Jong-jun said in a press conference held on Yeouido, Seoul.The press conference was held to offer an explanation after Lime stated in the past weeks it would suspend redemption of a number of funds.Last week, Lime said it would halt redemption of funds worth 620 billion won invested in private bonds and Mezzanine instruments, a hybrid of debt and equity capital.While it said the measure was taken to protect investors from losses, suspicions arose over a liquidity shortage.“Due to the low stock prices on the Kosdaq, the rate of returns on Mezzanine funds has

Oct 14, 2019By Kim Bo-eun

Lime could halt redemption of W1.33 tril in funds

South Korea's nation brand value surpasses Italy to become the world's 9th: report

South Korea is the world's ninth most valuable "nation brand," according to a Brand Finance report. GettyimagesbankBy Jung Min-hoSouth Korea has surpassed Italy to become the world's ninth most valuable “nation brand,” according to the annual report by Brand Finance, a brand consultancy in London.South Korea's brand value, which increased 6.7 percent in the past year, is estimated at $2.13 trillion, followed by Italy ($2.11 trillion), which dropped to 10th from eighth.With a brand value of $27.715 trillion, the United States retains No. 1 position, followed by China, which had a 40.4 percent surge in its brand value, Germany, Japan and the United Kingdom.The world's two largest economies have been in a trade war since July 2018, with tariffs imposed by both sides on billions of dollars' worth of imports and exports.“Despite this, China's brand value has defied the expectations of a slowdown, benefitting from the glowing success of some of its most dominant and valuable brands, including ICBC, Huawei, and Alibaba,” the report says.“Behind the U.S., China

Oct 14, 2019By Jung Min-ho

Golf concert

KB Kookmin Bank CEO Hur Yin, right, poses after handing a gift and handwritten card to golfer Park Inbee at the lender's “Golf Concert” event at the Woo Jeong Hills Country Club in Cheonan, South Chungcheong Province, Friday. KB's VIP customers met with the golfer and learned golf tips at the event. / Courtesy of KB Kookmin Bank

Oct 14, 2019By Kim Bo-eun

For AI-based financial service

Shinhan Bank CEO Jin Ok-dong, left, and Naver Search & Clova CEO Shin Jung-ho hold a memorandum of understanding at the bank's main branch in downtown Seoul, Monday. The two companies agreed on a strategic alliance to enhance artificial intelligence-based financial services. / Courtesy of Shinhan Bank

Oct 14, 2019By Park Jae-hyuk

FSS in conflict with Hana over DLF document deletion

The Financial Supervisory Service's building 0n Yeouido, Seoul, left, and KEB Hana Bank's head branch in Eulji-ro, Seoul. / Korea Times fileBy Kim Bo-eunThe Financial Supervisory Service and KEB Hana Bank are in a conflict over the latter deleting documents related to the sales of derivative-linked funds (DLF) that caused huge losses for investors.KEB Hana Bank was found to have deleted related data around the time the FSS stated its plans to conduct inspections of banks on Aug. 19.The FSS confirmed Sunday it has conducted digital forensics to recover the lost data, but declined to provide details.“Based on findings, if it is determined that the bank was involved in disrupting inspections, measures can be taken against those considered responsible, according to existing regulations,” an FSS official said.During the National Assembly's inspection of the FSS held last week, FSS Governor Yoon Suk-heun said the agency was looking into the matter and reviewing legal aspects. He said the agency would “take stern action” against the bank's conduct.The data deletion w

Oct 13, 2019By Kim Bo-eun

FSS in conflict with Hana over DLF document deletion

Named honorary citizen

Hana Financial Group Vice Chairman Ham Young-joo, left, poses with Liu Xin, mayor of China's Changchun, after being named an honorary citizen of the city in Jilin Province, at City Hall, Wednesday. Ham was recognized for his contributions to the financial development of the city. / Courtesy of Hana Financial Group

Oct 13, 2019By Kim Bo-eun

Banks reluctant to join consortiums for internet-only bank

The Financial Services Commission headquarters / YonhapBy Jhoo Dong-chanThe Financial Services Commission (FSC) is receiving preliminary applications for the nation's third internet-only bank until Oct. 15, but consortiums for the bid are experiencing difficulties in securing partners with solid cash reserves. Kiwoom and Toss, which financial authorities rejected in their bids for an internet-only bank in May, are seeking a commercial bank's participation in their consortiums, but banks have been lukewarm in joining them, sources said Friday.Existing internet-only banks ― K bank and Kakao Bank ― have commercial banks as their major stakeholders. KB Kookmin Bank is one of Kakao Bank's largest shareholders while Woori Bank is the K bank's largest stakeholder.However, banks seemed reluctant to join a partnership for a new internet-only bank this time. Rumors said Standard Chartered (SC) Bank Korea is interested in joining hands with Toss' consortium in its race for an internet-only bank, but an SC Bank Korea official denied the allegations.“I do not know the source of the rumors,

Oct 11, 2019By Jhoo Dong-chan

Banks reluctant to join consortiums for internet-only bank

Citibank with PGA golfer Kim Si-woo

Citibank Korea CEO Park Jin-hei, left, speaks during the invitational event for golfer Kim Si-woo, right, at the Callaway Golf Korea Outdoor Performance Center in Icheon, Gyeonggi Province, Thursday. Citibank Korea hosted a golf clinic event with Kim for the bank's customers on the day. / Courtesy of Citibank Korea