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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.

Pledging support for startups

Korea Technology Finance Corporation (KOTEC) Chairman Jeong Yoon-mo, fourth from left, and SMEs and Startups Minister Park Young-sun, fifth from left, pose with bank CEOs after signing an agreement to finance promising start-ups, at Shinhan's digital campus in central Seoul, Monday. / Courtesy of KOTEC

May 21, 2019By Kim Bo-eun
Pledging support for startups

JKL may need more capital for Lotte Insurance

By Park Hyong-kiLotte's financial unitsJKL Partners, a local manager of private equity funds, may need to raise more capital from its investors for the acquisition of Lotte Insurance, according to industry sources. Otherwise, it will have to pursue a stake sale of the insurance company to raise capital after it buys Lotte Insurance, they added. This is because the new owner will need to increase Lotte Insurance's risk-based capital (RBC) ratio toward 200 percent.Its reserves, measured by the RBC ratio, stood at 163 percent as of the end of March, according to the Financial Supervisory Service (FSS). The regulator requires insurers to keep their RBC ratios at above 150 percent. But for financial market stability, they are suggested to keep it at 200 percent. This means JKL, Lotte Insurance's preferred bidder, will need at least 200 billion won ($180 million) in additional capital to boost its RBC ratio to the suggested level. The private equity manager has bid 427 billion won for a 58.5 percent stake in Lotte Insurance, which is estimated to be valued at 730 billion won, industry sour

May 21, 2019
JKL may need more capital for Lotte Insurance

Volunteering at park

MetLife Korea's financial planners pose with customers and their families after volunteering at Seoul Children's Grand Park, Saturday. The activities to improve the park's environment were organized by the MetLife Foundation. / Courtesy of MetLife Korea

May 20, 2019By Kim Bo-eun
Volunteering at park

Korean Re establishes subsidiary in Switzerland

By Kim Bo-eunKorean Re CEO Won Jong-gyuKorean Reinsurance Company (Korean Re) has established its third overseas subsidiary in Switzerland, the company said, Monday.Korean Re Switzerland AG will start a reinsurance business in property and casualty insurance from June, after receiving a license from the country's financial authorities last week.The subsidiary in Zurich was established one year and six months after Korean Re began pushing forward with the plan in late 2017.The reinsurer is turning to overseas markets as it faces declining profits here.Korean Re's earnings peaked in 2015, but have been falling due to the country's saturated insurance market.CEO Won Jong-gyu has emphasized overseas expansion since he assumed his position in 2013.The company has set a goal to make 16 trillion won in overseas sales, up from the 1.8 trillion won it made last year.“We established the subsidiary in Switzerland as a strategic point to enter European markets,” a Korean Re official saidKorean Re established its first overseas subsidiary in Hong Kong in 1995, and its second at Lloyd'

May 20, 2019By Kim Bo-eun
Korean Re establishes subsidiary in Switzerland

Boosting social responsibility

Joo Cheol-soo, left, vice president of Shinhan Bank's consumer protection group, poses with DNV GL Korea President Lee Jang-sup at the bank's headquarters in Seoul, May 17. The two sides agreed to collaborate in carrying out a so-called equator principle framework to assess and manage environmental and social risks before making financial decisions. Courtesy of Shinhan Bank

May 20, 2019
Boosting social responsibility

Financial chiefs attract foreign investors

By Park Hyong-kiChairmen of the country's top three local financial groups have departed for overseas conferences and meetings in an effort to attract foreign investors and share insights on digital business, industry sources said Monday.Woori Financial Group Chairman Sohn Tae-seungWoori Financial Group Chairman Sohn Tae-seung has left for Tokyo, Japan and Hong Kong where he will hold investor relations meetings for three days until May 22.The group said Sohn will meet executives from global sovereign wealth funds, asset management companies and pension funds.“He will explain to them personally Woori's plans to boost its non-bank business portfolio through acquisitions,” a Woori Financial spokesperson said.This is part of efforts to increase Woori's foreign institutional ownership to around 35 percent, the group added.Foreign investors hold a 30 percent stake in Woori Financial after it sold a 2.7 percent stake in the company in blocks to a group of unidentified foreign institutional investors last March, according to the Korea Exchange (KRX). Woori Chairman Sohn will fur

May 20, 2019
Financial chiefs attract foreign investors

Kakao Bank sees improving profitability, plans to go public

By Jhoo Dong-chanKakao Bank has turned a profit for the first time in the first quarter of this year. Observers expected it would take at least three years to start making money, but it took only 18 months since the internet-only bank was launched.Kakao Bank said it will go public next year if the bank's uptrend continues.“Kakao Bank will go public by the fourth quarter of next year if it posts a profit throughout the year and continues its uptrend next year,” a Kakao Bank official said.“What really matters here is that we should maintain the current uptrend throughout the year. If not, the Korea Exchange won't allow us to go public.”Kakao Bank's plan for an initial public offering (IPO) was first introduced during co-CEO Lee Yong-woo and Yoon Ho-young's press conference in July last year. They said the bank would take the necessary steps this year, but market observers displayed their skepticism about the IPO because of its prolonged streak of losses last year.“I thought it would take about four to five years for Kakao Bank to turn a profit,” said

May 19, 2019By Jhoo Dong-chan
Kakao Bank sees improving profitability, plans to go public

Insurers urged to target foreigner residents

By Jhoo Dong-chanInsurers should target foreign residents here to boost their performance amid the increasingly saturated insurance market,a study said Sunday.Due to the country's low birthrate, an influx of foreigners is now leading Korea's population growth. The study proposed major insurers such as Samsung Life and Hyundai Marine & Fire Insurance should introduce more diversified insurance products for foreign residents here.“Despite years of the government's efforts to promote childbirth, the country's birthrate has been consistently decreasing,” said a recent study released by the Korea Insurance Research Institute (KIRI).“The number of deaths is expected to outnumber the number of births this year.”According to the Ministry of Health and Welfare, the nation's average birthrate dipped below one per woman for the first time last year. The number of annual births has been below the 300,000 level since 2016.In the meantime, the number of foreigners who stay more than 90 days in Korea surpassed 400,000 in 2017. The Ministry of the Interior and Safety said

May 19, 2019By Jhoo Dong-chan
Insurers urged to target foreigner residents

Woori Bank launches aval-based service

A model holds a sign promoting Woori AVAL service launched by Woori Bank, Sunday, Courtesy of Woori BankBy Lee Kyung-min Woori Bank has launched an “aval-based” service to help local firms complete safe business transactions with their foreign counterparts, it said Sunday. Woori is the first Korean bank to initiate the advanced, good faith-based financial service. Aval refers to a guarantee that a third party adds to a debt obligation.Under the Woori AVAL service, the bank will ensure payment to foreign exporters for goods imported by local firms in case the latter defaults, even when both parties have not signed a letter of credit (LC). Only large conglomerates and their affiliates maintain LC-based transactions, a complicated and time-consuming process for small- to medium-sized enterprise (SMEs) that don't have the same resources and manpower. “Establishing an LC-based business relationship remains the norm with large companies, but it takes several months to complete,” a Woori official said.“Furthermore, having necessary papers ready from related cer

May 19, 2019By Lee Kyung-min
Woori Bank launches aval-based service

Helping disabled

Hana Nanum Foundation Chairman Ham Young-joo, right, and Seo Sang-mok, head of the Korea National Council on Social Welfare (KNCSW) hold a sign promoting a corporate responsibility program at the KNCSW in Mapo, Seoul, May 17. The two entities agreed to give financial support to strengthen the infrastructure at living facilities for the disabled to help improve their mobility. Courtesy of Hana Nanum Foundation

May 19, 2019By Lee Kyung-min
Helping disabled
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