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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

Welcome to economics 101

Children who participated in the KB Happy Houschool pose at the Hongik University training center in Sejong, Thursday. Sponsored by the Korea House & Urban Guarantee Corp. (HUG), the three-day camp provides educational opportunities for children to learn about the economy, finance and the housing market. KB Kookmin Bank and the HUG have jointly hosted the event since 2016. / Courtesy of KB Kookmin Bank

Jul 25, 2019By Jhoo Dong-chan
Welcome to economics 101

Brokerages gearing up efforts to become mega IB

The Shinhan Investment headquarters on Yeouido, Seoul / Korea Times fileBy Park Jae-hyukCompetition has been heating up among securities firms here to become the nation's sixth “mega investment bank (IB).”According to banking industry officials, Tuesday, local brokerages have been recently making various efforts to bulk themselves up, given that giant IBs enable their parent financial groups to raise larger funds amid the trend of low growth and low interest rates.Shinhan Investment is the latest one that made such an effort.The brokerage unit of Shinhan Financial Group said Monday it will increase its capital Thursday by issuing new stocks worth 660 billion won ($560.3 million).After the issuance, the company, which has, 3.4 trillion won in equity capital, will be able to meet the 4 trillion won equity capital requirement, a prerequisite to seeking a license from the Financial Services Commission (FSC) to become a mega IB.Shinhan Investment plans to seek the license in November, after announcing its third-quarter earnings.If it gets the approval from the financial regula

Jul 24, 2019By Park Jae-hyuk
Brokerages gearing up efforts to become mega IB

Savings banks seek major overhaul

A logo of Korea Federation of Savings BanksBy Lee Kyung-min Savings banks in Korea have set up a joint taskforce to carry out organizational reform and facilitate a long-term image makeover, an industry official said Tuesday. The move seeks to remove negative notions long associated with the lower-profile banks and find new and sustainable sources of revenue amid fast-declining profitability compounded by the prolonged economic slowdown.The Korea Federation of Savings Banks (KFSB), which represents 79 savings banks nationwide, said the taskforce will work to find ways to better implement regulatory guidelines and overcome business challenges.Working-level officials from 11 banks will meet regularly to discuss pressing issues and subsequent measures drawn up reflecting the needs of banks regardless of their locations.“We face hundreds of regulatory challenges,” a KFSB official said.“Whether we have to seek greater cooperation with fintechs will be determined later."A review is underway by a group of academic financial experts to pinpoint the most pressing issues and

Jul 24, 2019By Lee Kyung-min
Savings banks seek major overhaul

Kakao to become Kakao Bank's largest shareholder

Kakao Chairman Kim Beom-suBy Park Jae-hyukKakao, operator of the nation's most widely used messenger app KakaoTalk, has been allowed to become the largest shareholder of its internet-only bank subsidiary Kakao Bank. The Financial Services Commission (FSC) said Wednesday it approved Kakao's application that the messenger app operator had submitted to the financial regulator on April 3 to become the bank's largest shareholder with a 34 percent stake.Kakao filed the application as lawmakers last year eased related internet-only bank laws prohibiting non-financial firms from owning more than a 10 percent stake in a financial firm. After the revision, non-financial entities have been able to become major shareholders in internet banks, owning stakes up to 34 percent.Since then, Kakao has sought to increase its shares of Kakao Bank, as a larger share enables the company to inject more funds into the bank and scale up its business.On July 12, it said in its regulatory filing that it decided to acquire 41.6 million shares worth 208 billion won ($176 million) from Korea Investment Holdings to

Jul 24, 2019By Park Jae-hyuk
Kakao to become Kakao Bank's largest shareholder

Financial groups face uphill battle in non-banking sector

By Jhoo Dong-chanLocal financial groups are likely to face a fiercer battle in the non-banking sector as their leaders are placing top priority on beefing up their competitiveness in the sector in the second half of 2019. During Shinhan Financial Group's management meeting, Chairman Cho Yong-byung stressed the importance of enhancing the group's non-banking businesses to become Asia's leading bank“We shouldn't settle for the status quo,” he said.“Shinhan has just retaken the nation's leading bank position. It is essential for a financial firm to closely monitor its profitability and financial soundness. Keep eyeing these two pillars.”In a bid to maintain the nation's leading bank position, a Shinhan Financial Group official said Cho emphasized the group's digitalization and non-banking businesses as its future growth engine.“Cho is considering the possibility that the group's businesses could not be as favorable as its earnings last year,” he said. “He also encouraged heads of the group's subsidiaries to fulfill their own goals to become Asia

Jul 23, 2019By Jhoo Dong-chan
Financial groups face uphill battle in non-banking sector

Korean banks focus on Vietnam business

A riverside view of Ho Chi Minh city / gettyimagesbankBy Kim Bo-eunBanks are accelerating efforts to capture opportunities in Vietnam's fast-growing market. KEB Hana Bank said Monday it signed a deal to acquire 15 percent of the Bank for Investment and Development of Vietnam (BIDV)'s shares, at a cost of 1.25 trillion won. BIDV is Vietnam's largest bank by assets.The State Bank of Vietnam held a 95.3-percent stake in BIDV, a state-run commercial bank. It has affiliates in stock brokerage, insurance and asset management.BIDV's assets amounted to 66.3 trillion won as of the end of 2018 and the bank posted 381 billion won in net profit.The bank has focused on corporate loans, and KEB Hana Bank's investment is set to help expand its business into retail finance, as well as boost its digital banking and risk management capabilities.KEB Hana is seeking for BIDV to expand cooperation with other affiliates of Hana Financial Group in the Southeast Asian country.KEB Hana Bank has two branches in Vietnam ― one in Hanoi and the other in Ho Chi Minh.“We believe the investment in BIDV will h

Jul 23, 2019By Kim Bo-eun

Standard Chartered Bank Korea issues Sigma Card

A model holds a sign promoting Standard Chartered (SC) Bank Korea's Sigma Card. Courtesy of SC Bank KoreaBy Lee Kyung-min Standard Chartered (SC) Bank Korea has rolled out a credit card that meets the needs of frequent overseas travelers, the firm said Tuesday.Holders of the new Sigma Card will be able to use some 850 airport lounges worldwide, the use of which is strictly limited to priority pass holders. Up to three people are allowed to accompany the card holder into the lounge. Entrance is granted up to three times a year. Other privileges include a favorable foreign currency exchange rate as well as an exemption of a 0.35 percent overseas transaction fee. “The card is gaining popularity among vacationers that travel overseas during summer,” an SC official said.“The exclusive access to lounges with up to three accompanying travelers is a benefit that has received great reviews from our customers, especially parents with children on a trip during summer or winter vacations,” the official added. The card offers many other benefits in proportion to the amount

Jul 23, 2019By Lee Kyung-min
Standard Chartered Bank Korea issues Sigma Card

Deutsche Securities leaving Seoul bourse

By Kim Bo-eunDeutsche Securities will close its brokerage and research division, as part of global restructuring efforts, the company said Monday.Deutsche Securities' subsidiary here concluded the matter at a board meeting last week. It will be finalized at a general shareholders' meeting Wednesday.The subsidiary is set to focus on investment banking and fixed income, foreign currencies and commodities business.The move comes as part of Deutsche Bank Group downsizing of its global brokerage business to save costs.Earlier, Deutsche Bank stated it would exit its equity trading business while retaining a focused equity capital markets operation. Deutsche Securities' subsidiary is also seen to have reflected bleak business prospects in the securities market here.A number of major foreign finance firms have left in the past years.Goldman Sachs Asset Management pulled out in 2012, and Fidelity International closed down its asset management business here in 2013.Royal Bank of Scotland Securities ended its business in Korea in 2015. JP Morgan Asset Management left in 2017 and UBS handed over

Jul 23, 2019By Kim Bo-eun
Deutsche Securities leaving Seoul bourse

Woori bank's campaign for environment

Woori Financial Group Chairman Sohn Tae-seung, right, holds up a plant in a recycled plastic cup, with executives at Woori Bank's headquarters in central Seoul, Monday. The plants were given out to employees. Woori is running a campaign to promote an environmentally friendly culture within the group through Aug. 30. / Courtesy of Woori Financial Group

Jul 23, 2019By Kim Bo-eun
Woori bank's campaign for environment

Firms lukewarm about internet-only bank

The Kiwoom Securities headquarters on Yeouido and the Viva Republica headquarters in Gangnam, Seoul. / Yonhap By Park Jae-hyukThe financial regulator's renewed attempt to find a third internet-only bank is expected to be a tougher one as no potential bidders have yet shown any interest due to growing skepticism about profitability, according to industry officials, Monday. The Financial Services Commission (FSC) plans to receive applications for new internet banking licenses between Oct. 10 and 15. A preliminary approval is scheduled to be granted by January 2020.Although the FSC said it will offer consulting services to those seeking approval, companies that previously showed interest in the license have remained reluctant to join the bid.Kiwoom Securities and Viva Republica, both of which failed to get an internet banking license during the previous bid in May, are no exceptions.A Kiwoom spokeswoman said, “We have yet to make any decision on whether to reapply for

Jul 23, 2019By Park Jae-hyuk
Firms lukewarm about internet-only bank
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