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NongHyup Bank expands presence in Australia

NongHyup Bank CEO Lee Dae-hoon, left, poses for a photo with Austrade North East Asia General Manager Brett Cooper, at the bank's headquarters in Seoul, Sept. 10. Courtesy of NongHyup BankBy Lee Kyung-min NongHyup Bank CEO Lee Dae-hoon is accelerating efforts to help boost business expansion in Australia, a country with substantial demand for agricultural projects, which is a strong suit of the bank specializing in financing and developing traditional businesses, it said Wednesday. Lee met with two senior trade and investment officials from Australia's Trade and Investment Commission (Austrade) at the bank's headquarters in Seoul, Sept. 10, to discuss plans to help enhance human resources exchanges as part of a long-term business strategy to expand in Australia. They are Austrade North East Asia General Manager Brett Cooper and Austrade Senior Trade & Investment Commissioner to Korea Rodney Commerford. Under the plan, officials from Australia will be invited to visit the bank's innovation campus that encompasses the Research & Development center and a startup center in Yangja

Sep 11, 2019By Lee Kyung-min

'Language barrier' bars expats from buying life insurance

Foreigners still required to understand terms and conditions in KoreanBy Park Jae-hyukThe language barrier still remains as one of the major stumbling blocks for foreigners wanting to sign up for insurance policies here despite a steady rise in foreign residents.According to a survey by The Korea Times published Tuesday, many domestic and foreign life insurance companies are still reluctant to offer foreign language services for expats seeking insurance plans out of concerns over mis-selling claims or due to their ignorance of the potential of a newly-emerging market.Despite growing demand for life insurance among expatriates in Korea, insurers have demanded that they understand contract terms and conditions only in Korean, if they want to sign up for policies.Although some life insurers offer counselling services in foreign languages in order to minimize the mis-selling of insurance to foreigners, such services are merely “after-sales services,” targeting those who have already subscribed to their life insurance policies.Kyobo Life, which started offering a counseling se

Sep 10, 2019By Park Jae-hyuk
'Language barrier' bars expats from buying life insurance

Banks face stronger headwinds

Analysts believe bank profitability could deteriorate. / Korea Times fileBy Kim Bo-eunFinancial firms, particularly banks, are facing increasingly tougher conditions amid low interest rates and falling investor sentiment.Analysts said profitability is expected to deteriorate due to a mixture of falling net interest margins and sluggish corporate demand for loans.Banks have been trying to offer more loans but there is less demand because companies have been reluctant to invest amid the economic slowdown at home and abroad. Figures show the value of loans the five major banks provided to conglomerates fell to 73.74 trillion won in July from 76.59 trillion won in February.What is of more concern is that the situation is likely to worsen as worries grow over the possibility of a prolonged slump based on a vicious cycle of less investment, fewer jobs, decreasing income and shrinking consumption.An additional rate cut is likely to weigh further on banks in the coming quarters.Expectations are growing that the Bank of Korea will lower its key rate as early as next month amid falling consume

Sep 10, 2019By Kim Bo-eun
Banks face stronger headwinds

Woori raises W400 bil. by issuing corporate bonds

/By Jhoo Dong-chanWoori Financial Group raised 400 billion won ($334 million) by issuing subordinated corporate bonds, the group said Friday.The firm issued 300 billion won worth of 10-year contingent convertible bonds and 100 billion won of eight-year bonds to strengthen the group's cash reserve. The eight-year and 10-year bonds offer a 2.13 percent and 2.2 percent interest rate, respectively, the lowest among recent contingent convertible bonds issued by the nation's financial groups since the Basel III International Regulations were introduced in 2010.“Considering 500 billion won worth of corporate bonds were issued in July, Woori Financial Group's capital adequacy ratio will be boosted by 40 basis points compared to its June figure,” a Woori Financial Group official said.“Woori will continuously secure enough of a capital buffer to withstand the effects of the growing global uncertainties.”

Sep 6, 2019By Jhoo Dong-chan
Woori raises W400 bil. by issuing corporate bonds

Shinhan seeks to strengthen foothold in Indonesia

An Indonesian employee promotes Shinhan SOL Indonesia at Shinhan Bank Indonesia's local branch, Friday. / Courtesy of Shinhan BankDigital banking app SOL available thereBy Park Jae-hyukShinhan Bank is seeking to strengthen its foothold in Indonesia by releasing its mobile banking platform, Shinhan SOL Indonesia, which will allow customers there to use banking services more conveniently, the nation's largest bank said Friday.This is the second time the bank has launched its SOL mobile banking platform in another country.SOL, which attracted 10 million users within 18 months of its release here, has earned favorable reviews in Vietnam as well, since its launch there in November 2018, according to the bank.Shinhan said it took Indonesia's culture and environment into account when optimizing the mobile banking platform, so as to offer the best user experience to local customers.“Given that the island country offers far slower mobile network speeds compared to its neighbors, our new app shows signal strength and is equipped with a technology that enhances speeds of the app and trans

Sep 6, 2019By Park Jae-hyuk
Shinhan seeks to strengthen foothold in Indonesia

K bank CEO tasked with capital increase within this year

K bank CEO Shim Sung-hoon speaks during an interview with The Korea Times in this November 2018 file photo. / Korea Times photo by Shim Hyun-chulBy Park Jae-hyukK bank's CEO recommendation committee has extended CEO Shim Sung-hoon's term to Jan. 1 next year so he can finish a capital increase, the nation's first internet-only bank said Thursday.Shim was originally set to end his three-year term Sept. 23.“Our recommendation committee made its decision regarding Shim and other executives, considering stable management and innovative growth,” a K bank official said.“In order to carry out important tasks, including the paid-in capital increase, the committee decided to extend the terms of the CEO and the vice president temporarily.”The online bank has struggled to increase its capital since the start of this year.It initially planned to receive a massive capital injection from KT, the de facto largest shareholder of K bank, so that the mobile carrier could raise its stake to 34 percent.But it hit a snag as the Financial Services Commission decided to halt the revi

Sep 5, 2019By Park Jae-hyuk
K bank CEO tasked with capital increase within this year

Korean banks seek expansion in Myanmar

Export-Import Bank of Korea (Eximbank) Deputy President Kang Seung-joong, center, poses with Eximbank Economic Development Cooperation Fund (EDCF) Operations Director General Um Sung-yong, left, and ranking officials from Myanmar's construction and finance ministries in Naypyitaw, Myanmar, Sept. 3. Courtesy of EximbankBy Lee Kyung-minA group of CEOs from Korea's leading commercial and state-run banks are stepping up efforts to expand in Myanmar, one of many untapped markets in Southeast Asia known for its huge growth potential. They are part of President Moon Jae-in's delegation to Myanmar, a viable alternative to the Chinese market. Those accompanying Moon include Shinhan Bank CEO Jin Ok-dong, KB Kookmin Bank CEO Hur Yin, KEB Hana Bank CEO Ji Sung-kyoo, Woori Financial Group Chairman Sohn Tae-seung, Industrial Bank of Korea (IBK) CEO Kim Do-jin and Korea Federation of Banks (KFB) Chairman Kim Tae-young. KFB CEO Kim signed a memorandum of understanding (MOU) with his counterpart in Myanmar on Sept. 4 to boost the Financial Knowledge Sharing Program, a personnel exchange program to bo

Sep 4, 2019By Lee Kyung-min

KB Securities, JB Asset entangled in overseas investment fraud

KB Securities headquarters in Seoul / Korea Times fileBy Park Jae-hyukKB Securities and JB Asset Management have been entangled in overseas real estate investment fraud in Australia due to a local borrower's breach of contract there, which is likely to incur up to 100 billion won ($82.7 million) in losses for institutional and individual investors.The brokerage said Wednesday the two Korean financial firms started an emergency fund withdrawal recently from LBA Capital, since they found out the Australian borrower of JB Australia NDIS Fund used the money for different purposes. According to the securities firm, JB Australia NDIS Fund, set up by JB Asset Management, is a private equity fund (PEF) that invests in businesses related to the Australian government's housing policy for the disabled.KB Securities, which was in charge of sales of the fund, attracted 326.4 billion won in investments between March and June ― 236 billion won from institutional investors and 90.4 billion won from individual investors and corporate bodies.JB Asset Management lent the money to LBA Capital so the Aus

Sep 4, 2019By Park Jae-hyuk
KB Securities, JB Asset entangled in overseas investment fraud
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