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Bank CEOs to join Moon on Southeast Asia trip

Korea Federation of Banks Chairman and CEO Kim Tae-young, center, is seen with Shinhan Bank CEO Jin Ok-dong, right, and KB Kookmin Bank CEO Hur Yin, left, in this file photo. / Korea Times fileBy Kim Bo-eunThe chiefs of state-run and commercial banks will accompany President Moon Jae-in on his trip to Southeast Asia next month, according to industry sources, Monday.Korea Federation of Banks Chairman and CEO Kim Tae-young, Industrial Bank of Korea (IBK) Chairman Kim Do-jin and Korea Export-Import Bank (Eximbank) Deputy President Kang Seung-joong are part of the mission to Myanmar.The chiefs of the four major commercial banks ― Jin Ok-dong of Shinhan, Hur Yin of KB Kookmin, Ji Sung-kyoo of KEB Hana and Sohn Tae-seung of Woori ― will also join the delegation to Myanmar.All four banks either have a subsidiary, a branch or an office in Myanmar. Both IBK and Eximbank have offices there.The chief of the Korea Federation of Banks is also set to visit Thailand.“The chairman will visit the country to establish ties with the federation's counterpart there,” a federation official sai

Aug 26, 2019By Kim Bo-eun

Moon subscribes to 'patriotic fund'

President Moon Jae-in, center, waves at NongHyup Bank's main branch in Seoul, Monday, after subscribing to an equity fund that invests in domestic small- and medium-sized enterprises engaging in the sectors of materials, components and equipment. Moon subscribed to a fund for the first time in his life to support Korean companies affected by Japan's export curbs. First from left is NH Financial Group Kim Gwang-soo and first from right is NongHyup Bank CEO Lee Dae-hoon. / Courtesy of NH Financial Group

Aug 26, 2019By Park Jae-hyuk
Moon subscribes to 'patriotic fund'

'If you succeed in Korea, you can make it anywhere'

AXA Korea CEO Gilles Fromageot / Korea Times photo by Choi Won-sukAXA seeks to merge healthcare, lifestyle, and insurance servicesBy Lee Kyung-min Korea is a tough market for foreign insurers. In a market that is nearly saturated, consumers with high standards are sophisticated, exacting and demanding. The service needs to be perfect. This is why attaining success in Korea is a sure sign that a similar outcome can be achieved in other countries, according to AXA Korea CEO Gilles Fromageot. “It is true that satisfying Korean consumers is not easy. A product and strategy proven to be successful in Korea will likely succeed in other countries. Getting recognized in the Korean market is not easy, but at the same time, it could be a guarantee of success elsewhere,” he said in a recent interview with The Korea Times at the insurer's head office in Seoul. The Fraud Detection System (FDS) is among many valid cases in point, according to the 45-year-old French executive. Distinguished by its speech analytics and text mining techniques, the current system underwent a continued upg

Aug 26, 2019By Lee Kyung-min
'If you succeed in Korea, you can make it anywhere'

Financial group chiefs try to understand 'millennials'

NH Financial Group Chairman Kim Gwang-soo, second from left, speaks with the group's “young board members,” consisting of 11 employees, during a luncheon at a restaurant near the group's headquarters, Thursday. / Courtesy of NH Financial GroupBy Park Jae-hyukHeads of the nation's leading financial groups have gone all out to understand “millennials,” as the generation born between 1980 and 2000 has emerged as a major customer group in the financial industry, according to officials, Friday.NH Financial Group said its Chairman Kim Gwang-soo had a surprising luncheon near the group headquarters in Seoul, Thursday, with the group's so-called “young board members.”According to the group, the chairman proposed the meeting to encourage them and share insights.The board of directors, which consists of 11 employees from each of NH Financial Group's departments, was launched in March and its members have discussed various topics, including ways to enhance the digital competence of the group's employees.“Thank you for making efforts for NH Financial Gro

Aug 26, 2019By Park Jae-hyuk
Financial group chiefs try to understand 'millennials'

Bank shares dip over 10% following BOK rate cut

By Lee Kyung-min Shares of KB, Shinhan, Woori, Hana and other banks have been heading south since July 17 when the central bank lowered its key interest rate to 1.5 percent from 1.75 percent, which will slash their net interest margins, data showed Sunday.The stocks are unlikely to pick up any time soon as the Bank of Korea is widely expected to cut the rate one more time this year amid growing downside risks at home and abroad.According to the Korea Exchange, the nation's leading financial groups saw their share price drop by as much as 16 percent following the central bank's rate cut.Shinhan Financial, largest financial holding company by assets saw its shares drop to 40,350 won Aug. 23, down 10.73 percent from 45,200 won, July 17.The second-largest holding firm KB Financial's shares lost 13.14 percent from 44,900 won to 39,000 won. Woori Financial suffered the greatest loss of 16.3 percent with its share price falling to 11,550 won from 13,800 won. Hana Financial's shares dropped to 32,100 won from 36,250 won, suffering an 11.45 percent loss. Mid-tier financial groups ― DGB, BNK,

Aug 25, 2019By Lee Kyung-min
Bank shares dip over 10% following BOK rate cut

Excessive sales pressure causes DLS fiasco

gettyimagesbank Banks urged to strengthen risk management By Lee Kyung-min The recent fiasco involving a set of high-risk, high-yield financial products sold by the nation's top commercial banks resulted from a blind push to generate profit, a key directive from the lenders' management to boost non-interest income, industry officials said Friday.The products are derivative-linked securities (DLS) and derivative-linked funds (DLF), structured to track the performance of underlying assets such as interest rates and government-issued bond yields. Their returns are determined by movements of those underlying assets. Of the about 822 billion won ($681 million) investment in the DLS and DLF in question, nearly half was sold by Woori Bank and the other half by KEB Hana Bank, with many investors set to incur losses. Of them, Woori sold DLS worth over 126 billion won linked to the performance of 10-year German treasuries, which are set to incur 95 percent losses.This means a

Aug 25, 2019By Lee Kyung-min
Excessive sales pressure causes DLS fiasco

Bithumb to assess eligibility on listed virtual coins

The Bithumb head office in Seoul / YonhapBy Jhoo Dong-chanBithumb will conduct an eligibility screening on virtual coins listed on the exchange.Bithumb, the nation's largest cryptocurrency exchange, said Thursday it will establish the eligibility committee monitoring each cryptocurrency's trading volume to decide whether it should still be listed on Bithumb.The committee will start its operations in September. The exchange will delist virtual coins with insignificant daily trading volume for more than a month, rapidly deteriorating capitalization for more than a month, or inactive developer support.“This will contribute to investors' interest,” a Bithumb official said.“Bithumb will continue doing its best to strengthen transparency in crypto coin transactions while supporting blockchain firms' innovation.”In a bid to form the committee, Bithumb will start recruiting experts in various fields, including law, technology and finance, by the end of August.The exchange's operator BTC Korea said Bithumb posted a 205.5 billion won net loss last year due to the massiv

Aug 23, 2019By Jhoo Dong-chan
Bithumb to assess eligibility on listed virtual coins

KB Card's Cambodian subsidiary sees brisk performance

KB Daehan Specialized Bank's office in Cambodia Courtesy of KB Kookmin CardBy Lee Kyung-min KB Daehan Specialized Bank (KDSB), a Cambodian subsidiary of KB Kookmin Card, posted $114,000 (137 million won) in net profit for the first half of 2019, less than a year after the branch began operations, the firm said Wednesday. This is a resounding success for the subsidiary in Phnom Penh set up as a joint venture with LVMC Holdings to provide auto financing and mortgages.The KDSB saw its operating profit jump to over $2.9 million in the first half of the year, about a three-fold increase from the four-month period after the launch of the branch in September 2018. The figure was $898,000 in the September to December period. The performance was driven by CEO Lee Dong-cheol's localization strategy to serve the specific needs of Cambodians.Lee introduced a marketing strategy that he considers a highly effective way to secure new customers who need auto financing by requiring cars produced by LVMC Holdings be tied to the firm-operated financing program. Cooperation with SsangYong Motor and Ford

Aug 22, 2019By Lee Kyung-min
KB Card's Cambodian subsidiary sees brisk performance
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