Business - The Korea Times

Hyundai Card CEO mired in family feud

Hyundai Card Vice Chairman and CEO Chung Tae-youngBy Park Jae-hyukThe “family feud” involving Hyundai Card Vice Chairman and CEO Chung Tae-young has been making headlines after someone claiming to be his sister, posted a petition on the Cheong Wa Dae website Sunday, alleging he has broken the law frequently. The petitioner urged the government to take measures against the illegal acts Chung allegedly committed while managing Seoul PMC, which was previously Jongro Academy.Jongro Academy was founded by Chung's father in 1965 and was involved in multiple businesses, including the country's oldest cram school, and changed its name to Seoul PMC in 2015 after its education business was sold to Haneul Education. Since 2015, Seoul PMC has been focusing on real estate leasing services.Jongro Academy became an affiliate of Hyundai Motor Group in 2005 when Chung, a son-in-law of the automotive group's chairman, received a 57 percent stake in the academy from his father.The petitioner claimed Chung was given the huge stake because he was a son, not a daughter.Alleging that Chung

Aug 20, 2019By Park Jae-hyuk

Recognized as premium brand

Shinhan Financial Group chief public relations officer Lee Byeong-cheol, left, holds a trophy with Korean Standard Association Chairman Lee Sang-jin, during the 2019 Korean Standard Premium Brand Index (KS-PBI) awards ceremony at the Lotte Hotel in Seoul, Tuesday. Shinhan Bank won the first prize in the banking sector for the sixth straight year. / Courtesy of Shinhan Bank

Aug 20, 2019By Park Jae-hyuk

Korean woman joins IFAC education panel for 1st time

Choi DhalBy Lee Kyung-min Choi Dhal, a senior certified public account (CPA), has been appointed as a member of an accountancy education panel with an international accountants' organization, a group representing Korean CPAs said Monday. Choi is the first among over 4,000 female Korean CPAs to become a member of the international body. The Korean Institute of Certified Public Accountants (KICPA) representing some 17,000 CPAs nationwide said Choi will serve as one of at least 10 members of the International Panel on Accountancy Education with the International Federation of Accountants (IFAC).IFAC Board established the panel to contribute to the advancement of accountancy education through providing strategic advice and facilitating access to expertise and resources.Her four-year term will begin Sept. 1. Choi could be eligible for reappointment for a second term based on her performance. Choi, the current head of the education department at Korea's leading assurance, tax, and consulting services firm Samil PricewaterhouseCoopers (PwC), was reportedly recognized for her excellent under

Aug 19, 2019By Lee Kyung-min

FSS to inspect sales of controversial derivative products

DLF investors to lose 95.1% of principal: FSSBy Kim Bo-eunThe Financial Supervisory Service (FSS) said Monday it will launch a comprehensive inspection this month into banks and securities firms over certain derivative products that are set to cause huge losses for investors.They are derivatives-linked securities structured to track the performance of underlying assets such as interest rates and government-issued bond yields. “As these products with complicated structures and possibilities of principal loss were sold by financial firms to large numbers of individual investors, we will inspect the entire process from the product design to sales, and look into the firms' internal control system,” the FSS said in a statement.According to the FSS, a total of 822.4 billion won ($677.8 million) of derivatives-linked products have been sold to 3,654 individual investors and 188 institutional investors through banks and brokerages. Banks sold 99 percent of the products.Of the total amount, products facing the largest losses are those that have been tied to yields on 10-year treas

Aug 19, 2019By Kim Bo-eun

FSS to inspect sales of controversial derivative products

KCGI considers acquiring Asiana Airlines

Korea Corporate Governance Improvement CEO Kang Sung-booBy Jhoo Dong-chanThe Korea Corporate Governance Improvement (KCGI) is reviewing its plan to acquire debt-ridden Asiana Airlines, according to industry sources and media reports.Multiple sources said that KCGI CEO Kang Sung-boo said the homegrown PEF “received an Information Memorandum (IM) from Asiana Airlines and is reviewing its options” for the possible acquisition.Kumho Engineering & Construction (E&C), Asiana's holding company, announced July 25 that it will sell its stake in its airliner unit. Under the decision, it will receive a letter of intent (LOI) from prospective bidders to single out the shortlist by the end of September. The main bid is scheduled to be proceeded in October.Rumors alleged a number of domestic conglomerates, including SK, Hanwha, Aekyung and CJ, have expressed their interest in the bid, but none of them, except Aekyung, confirmed their interest.Sources said the KCGI is expected to form a consortium with local firms to acquire Asiana Airlines' stakes.“The nation's airline in

Aug 19, 2019By Jhoo Dong-chan

KCGI considers acquiring Asiana Airlines

Woori, Hana Bank face inspections for mis-selling allegations

By Kim Bo-eunThe Financial Supervisory Service building on Yeouido, Seoul / Korea Times fileThe Financial Supervisory Service (FSS) is set to inspect Woori and KEB Hana Bank later this week over suspicions of mis-selling derivatives linked funds (DLFs) that are expected to incur huge losses for investors.DLFs are comprised of derivatives-linked securities (DLSs). DLSs refer to financial products 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.The two banks are estimated to have sold about 1 trillion won worth of DLFs from March through May this year.The DLFs that have come under scrutiny are those comprised of DLS products that have been tied to yields on Treasury bonds of Germany, the U.K. and the U.S.Investors of these funds, especially those comprised of DLS products whose returns are determined by the performance of Germany's state bonds, are facing a loss in principal.This is because German bonds' yields have fallen in line with economic contrac

Aug 18, 2019By Kim Bo-eun

Woori, Hana Bank face inspections for mis-selling allegations

IBK to launch IBK Indonesia in September

Industrial Bank of Korea Chairman Kim Do-jin / Korea Times fileBy Kim Bo-eunIndustrial Bank of Korea (IBK) will launch its corporate body in September, as it has received approval from the Indonesian financial authorities to merge two Indonesian banks it took over in January, IBK said, Sunday.The state-run lender said in a statement that the Indonesian authorities gave the green light to unite the two lenders ― Agris and Mitraniaga Bank ― into one new entity.The approval came eight months since authorities issued approval in January for IBK to acquire the two banks.Through the merger, IBK plans to launch IBK Indonesia Bank next month. The bank is set to financially assist not only Korean businesses there, but also local Indonesian businesses.IBK's plan is to increase the number of branches there from 30 to 55 by 2023.This is in line with IBK's vision to expand its presence in the fast-growing region of Southeast Asia.“Indonesia is a key partner of the government's renewed policy focus on Southeast Asia, and around 2,000 Korean firms have a presence there,” an IBK official

Aug 18, 2019By Kim Bo-eun

IBK to launch IBK Indonesia in September

English education for teenagers

Teenagers wave at Seoul English Village Suyu Camp in northern Seoul, Wednesday. KB Kookmin Bank said Sunday it invited 400 teenagers for a five-day English-learning camp. Since 2016, 1,920 teenagers have participated in the English camp. / Courtesy of KB Kookmin Bank

Aug 18, 2019By Park Jae-hyuk

Concerns growing over non-life insurers' rising marketing fees

By Lee Kyung-min Major non-life insurers are found to have increased marketing fees to boost market capitalization, raising concerns that consumers will end up shouldering the costs in the form of increased premiums. The collective move comes ahead of implementation of revised insurance policies set to take effect 2021, after which the firms will no longer be able to spend as much on per-contract incentives for sales agents, better known as general agency officials. According to General Insurance Association of Korea, the nation's 31 non-life insurers spent over a combined 7.2 trillion won ($5.9 billion) in marketing fees in the first five months of 2019, a 6.4 percent increase from a year earlier. Of them, the top 10 industry players spent over 6.5 trillion won, up 7.6 percent from the year before. They saw a subsequent increase in marketing fee rate ― the rate of marketing fees spent from the companies' premium income. The 31 non-life insurers' average marketing fee rate jumped to 21.5 percent, up 0.6 percentage points from a year earlier.The top 10 players' rate increased to 22.1

Aug 16, 2019By Lee Kyung-min

Concerns growing over non-life insurers' rising marketing fees

Mirae Asset bids for W6.7 tril. hotels deal

JW Marriott Essex House hotel in New York / Courtesy of JW Marriott Essex HouseBy Jhoo Dong-chanMirae Asset Financial Group is seeking to acquire 15 luxury hotels in the U.S., a package deal worth about 6.7 trillion won ($5.53 billion), the group official said Friday.According to the official, Chinese insurer Anbang Insurance Group placed its 15 luxury hotels in the U.S. on sale en bloc. The 15-property deal includes the Westin St. Francis in San Francisco, the Loews Santa Monica Beach Hotel, the JW Marriott Essex House in New York and the Four Seasons in Jackson Hole, Wyoming.Bloomberg said Mirae Asset is already in talks with Anbang to arrange financing and reach an agreement on terms of a purchase. If talks are successful, Mirae Asset is expected to make a nonrefundable deposit by the end of this month.A Mirae Asset Group official, however, partly denied the allegations.“Mirae Asset has participated in the bid to acquire Anbang Insurance Group's 15 properties. But the deal hasn't concluded yet,” the official said.“We understand Mirae Asset has just been nominated

Aug 16, 2019By Jhoo Dong-chan

Banking & Finance