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Shinhan Card joins hands with Netflix

A banner ad for partnership between Shinhan Card and Netflix / Courtesy of Shinhan CardBy Park Jae-hyukShinhan Card became the nation's first financial firm to form a partnership with Netflix.The card issuer said Wednesday it signed a partnership agreement with the global online entertainment service provider, in order to offer differentiated benefits to customers using online streaming services regularly and to carry out various marketing campaigns utilizing Neflix's content.According to the card firm, users of Shinhan Pay FAN mobile platform are able to enjoy upgraded services on Netflix for lower prices.Shinhan Tops Club members will be offered a three-month free trial period for Netflix's content starting from Oct. 1.In addition, Shinhan Card will carry out a variety of joint marketing campaigns with Netflix, whenever the media-services provider releases its popular original content.Among many subscribers to Netflix, the card firm will especially focus on communication with millennials, who are familiar with mobile devices and prioritize a work-life balance.It also plans to invit

Sep 25, 2019By Park Jae-hyuk
Shinhan Card joins hands with Netflix

Financial group shares lose momentum on foreign selloff

By Jhoo Dong-chanKorea's financial groups have enjoyed record high earnings in 2019, but their share prices have remained sluggish due to foreign selloff caused by a series of skeptic outlooks on their future earnings.In a bid to encourage investment, financial group chairmen have made all-out efforts to prevent stock prices from further declining by buying back their firms' shares and leading investor roadshows.However, share prices of each firm fell over various negative external factors such as the Sino-America trade row, slowdown in Korea's growth and the country's low interest rate trend.According to the Korea Exchange, share price of Shinhan Financial Group closed at 42,650 won ($35.67) on the Tuesday session, down 200 won, or 0.47 percent from the previous session. The figure is also down over 1,500 won from its share price on Sept. 21, 2018. Share prices of KB, Hana and Woori Financial Group closed at 44,000 won, 35,850 won and 12,600 won, respectively, on the day. Each is also down 7,500 won, 7,350 won and 3,800 won from a year earlier.Their disappointing share prices were a

Sep 25, 2019By Jhoo Dong-chan
Financial group shares lose momentum on foreign selloff

Private moneylenders close down due to regulations

By Kim Bo-eunA growing number of private moneylenders are shutting down due to the government's tightening regulations on interest rates, according to industry sources. While the country's largest moneylender Sanwamoney declined to comment on its business, its website says it halted new loans in March this year.The number two player in the sector Apro Financial, known by its brand Rush N Cash, and the number four player Welcom Creditline, known by its brand Welcome Loan, are set to close down their private moneylending business.Apro took over OK Savings Bank and Welcome acquired Welcome savings bank in 2014. The Financial Services Commission (FSC) approved the deals on the condition that they shut down their private moneylending businesses by 2024.Woncash and Miz Sarang owned by OK Savings Bank also shut down their businesses.The moves come amid the government's continued lowering of the maximum interest rate. The rate has been lowered from 66 percent in 2002 to 24 percent last year.The private moneylending business, unregulated, thrived in the late 1990s when the Asian Financial Cri

Sep 25, 2019By Kim Bo-eun
Private moneylenders close down due to regulations

Non-life insurers suffer worsening loss rate

By Jhoo Dong-chanThe nation's non-life insurers, who were hit hard by more than a 100 percent loss rate in the automobile insurance sector last month, are expected to suffer an even worse loss rate in the sector this month.They have raised car insurance premium twice this year in an attempt to to cut the losses, but their ever-worsening business in the sector shows no signs of recovery.Samsung Fire & Marine Insurance CEO Choi Young-mooDomestic non-life insurers recently announced a plan to downsize their insurance benefits while again raising car insurance premiums, but face strong opposition from customers as well as the financial authorities.Industry insiders said domestic non-life insurers suffered disappointing earnings in the first half of the year and are likely to see a continued downtrend in the second half due to deteriorating loss rates in the sector.The nation's largest non-life insurer Samsung Fire & Marine Insurance said it posted a 426.1 billion won ($357.2 million) net profit in the first half, down 36 percent from a year ago.Another non-life giant, Hyundai Mar

Sep 24, 2019By Jhoo Dong-chan
Non-life insurers suffer worsening loss rate

Fitch warns of Korean banks' rapid expansion in ASEAN

Fitch Ratings' associate director of Asia-Pacific sovereign ratings Jeremy Zook, left, and director of financial institutions Matt Choi answer questions from reporters during a press conference at the Westin Chosun Seoul, Tuesday. / Courtesy of Fitch RatingsBy Park Jae-hyukFitch Ratings has warned of risks inherent in rapid expansion of Korean financial companies in the Southeast Asian market, saying their strategies will have a negative impact on their operating environment scores and credit ratings.The global ratings agency's warning is expected to weigh on domestic financial firms, which have sought new income sources in emerging markets including ASEAN nations.“A rapid growth in a bank's exposures to overseas markets, especially to developing markets, may expose it to greater volatility in the event of shock,” Fitch Ratings' director of financial institutions Matt Choi told reporters during a press conference in Seoul, Tuesday, which was held on the sidelines of the Fitch on Korea 2019 Conference.Backed by the Moon Jae-in administration's New Southern Policy, local ba

Sep 24, 2019By Park Jae-hyuk
Fitch warns of Korean banks' rapid expansion in ASEAN

Report shows growing gap in home ownership in Korea

The number of homes in Korea has increased by nearly 5 million over the past decade and more than half of them have been purchased by buyers who already own at least one home, a new report shows. GettyimagesbankThe number of homes in South Korea has increased by nearly 5 million over the past decade and more than half of them have been purchased by buyers who already own at least one home, according to a report released Monday. The Citizens' Coalition for Economic Justice (CCEJ), an NGO, and Rep. Chung Dong-young, leader of the minor opposition Party for Democracy and Peace, unveiled their joint analysis of housing data from government agencies, which showed deepening inequality in home ownership.According to the data, the total number of houses across the country increased by 4.89 million from 15.1 million in 2008 to 19.99 million in 2018. But the number of homeowners increased by 2.41 million from 10.58 million to 12.99 million during the same period. That means 2.48 million units were bought by existing homeowners, the report said, with 83.8 percent purchased by the top 10 percent

Sep 24, 2019
Report shows growing gap in home ownership in Korea

Naver, Kakao to utilize IT platforms to launch insurance business

KakaoPay CEO Ryu Young-joonBy Jhoo Dong-chanThe nation's IT giant duo Naver and Kakao are set to launch an insurance unit by the end of the year in a bid to diversify their business portfolio, the firms said.Utilizing their IT platforms to attract customers, especially young ones who are more familiar with non-face-to-face financial services, Naver and Kakao said they plan to introduce their insurance products as early as the first half of next year.Naver said it will carve its Naver Pay division up to establish a financial subsidiary in November. Mirae Asset Daewoo, the nation's largest securities firm by assets, promised to invest 500 billion won ($423.3 million) to help Naver set up a comprehensive financial platform.Under the platform, customers are expected to not only buy insurance products but also get a loan via its non-face-to-face service.“The two firms' partnership will create various opportunities in payment, insurance and loans,” said IBK Securities researcher Lee Seung-hoon.KakaoPay, Kakao's online wire transfer operator unit, also acquired cloud-based insur

Sep 23, 2019By Jhoo Dong-chan
Naver, Kakao to utilize IT platforms to launch insurance business

Regulations brake firms bidding for internet banks

The Financial Services Commission headquarters / YonhapBy Jhoo Dong-chanFinancial authorities plan to receive preliminary applications for the nation's new internet-only banks next month, but no potential major contenders, including large companies, have officially displayed an interest.Earlier this year, the Financial Services Commission (FSC) received preliminary applications from firms who want to establish an internet-only bank, but rejected all of their applications in May due to lack of innovation and mounting concerns about applicant firms' governance and financing.The FSC expected more firms to submit their applications in the October bid. However, not only major conglomerates but also existing contenders, such as Viva Republica, displayed signs of withdrawal from the bid.Since not many firms seem to be interested in establishing an internet-only bank this time, the FSC announced the agency will provide a comprehensive consulting service for each applicant firm. However, experts said firms wouldn't submit their applications unless financial authorities ease related regulation

Sep 23, 2019By Jhoo Dong-chan
Regulations brake firms bidding for internet banks

Korea's financial groups enhance 'responsible banking'

Shinhan Financial Group Deputy President Park Woo-hyuk, center, poses with U.N. Environment Program Finance Initiative (UNEP FI) head Eric Usher, left and UNEP FI Banking Team Lead Simon Dettling at the U.N. headquarters in New York, Sept. 22 (local time). Courtesy of Shinhan Financial GroupShinhan, KB sign up for UN-led sustainability initiativeBy Lee Kyung-min Korea's two leading financial groups vowed their continued commitment to join global efforts toward a more sustainable finance system, the groups said Monday. Shinhan Financial Group and KB Financial Group said the group's key executives attended a meeting held at the United Nations headquarters in New York, Sept. 22 (local time). They were among the top officials from 130 financial services firms from around the world gathered to sign up for the Principles for Responsible Banking, a set of climate and sustainability principles under the U.N. Environment Program Finance Initiative (UNEP FI). Under such principles, they exchanged and reaffirmed views on the need to boost communication and collaboration to institute measures th

Sep 23, 2019By Lee Kyung-min
Korea's financial groups enhance 'responsible banking'
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