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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.

SC, Citibank suffers setback in earnings

By Jhoo Dong-chanTwo foreign banks operating here ― Citibank and SC Bank Korea ― posted disappointing earnings in the first three months of the year.They have said the setback is temporary and their earnings will bounce back soon, but industry observers said the task won't be easy considering Korea's saturated financial market.SC Bank Korea said Wednesday it posted a 76 billion won ($63.8 million) net profit in the first quarter of the year. The figure jumped 55.5 billion won, or 270.7 percent, from the previous quarter, but was down 10.9 billion won, or 12.5 percent, from a year ago.The bank's return on assets (ROA) and return on equity (ROE) were also down 0.1 and 0.4 percentage points year-on-year to 0.48 percent and 4.05 percent, respectively, over the period. Its Bank for International Settlement (BIS) ratio stood at 15.72 percent.An SC Bank Korea official said the decline was attributed to an increase in its management costs.“Bond trading grew as market interest rates decreased in the first quarter, but management and extra costs rose over the period,” the official

May 19, 2019By Jhoo Dong-chan
SC, Citibank suffers setback in earnings

Have KEPCO shares hit rock bottom?

By Jhoo Dong-chanThe share price of Korea Electric Power Corp. (KEPCO) is collapsing due to disappointing earnings so far this year, with the state-run electricity provider's price-to-book ratio (PBR) plunging below 0.25 percent.Some investors claim KEPCO's current stock price is too low and will eventually display signs of a recovery, but market analysts say this is a false hope and the price won't turn around anytime soon.According to the Korea Exchange, KEPCO closed at 25,450 won ($22.08) per share Friday, down 300 won, or 1.17 percent, from the previous session.The firm's stock price has fallen over 20 percent so far this year, with the firm's disappointing quarterly performance adding fuel to the fire.KEPCO said in a regulatory filing that it had a 629.9 billion won operating loss in the first quarter of the year, which is 15 times higher than the market consensus of 41.9 billion won.The firm has continued a series of losses every quarter except the third quarter of last year since it marked a 129.4 billion won operating loss in the fourth quarter of 2017.Analysts said the gover

May 19, 2019By Jhoo Dong-chan
Have KEPCO shares hit rock bottom?

CEO Watch KB chief prepares for long digital journey

KB Kookmin Bank CEO Hur YinBy Park Hyong-kiAll local and global banks are seeking one thing ― digital transformation.It will be a long, hard process to change everything ― the way they interact with customers, use new technologies and develop human resources.And KB Kookmin Bank CEO Hur Yin knows this for sure, saying that transformation doesn't happen overnight because people can't change overnight. Whenever he receives a question about his digital plan, he said he would always respond: “We don't have a target when it comes to digital transformation. This will be an ongoing project. And we've got a long way to go.”The bank will have to take steps ― sometimes big and sometimes small ― through partnerships with tech giants and venture startups as part of the long journey.But it would become meaningless for KB Kookmin if it tries to forge ties without a specific mission.For instance, the bank partnered with Amazon Web Services and the Financial Supervisory Service (FSS) to tackle phishing and “smishing” ― a portmanteau of SMS and phishing. They developed an appli

May 19, 2019
[CEO Watch] KB chief prepares for long digital journey

Card firms turning to AI chatbots

By Kim Bo-eunAdopting artificial intelligence (AI) is now no longer a choice but a must for companies as it not only increases efficiency but also saves money.This is especially so for card firms, which face declining profits.Most card firms have AI chatbots for customer inquiries. These provide answers to questions on paying bills, expenditure and reports on missing cards. They also enable cards to be issued and recommend customized products.Shinhan Card was the first to introduce an AI chatbot in February 2017."Because the chatbot operates 24 hours, it is better able to attend to customers needs, especially those who are overseas," a Shinhan Card official said."It also saves costs in comparison to employing call-center workers." Call-center costs include training and wages. There also is a high turnover of workers. Shinhan upgraded its chatbot "Fani" last October so it is able to grasp the meaning of questions that are asked casually. Previously, the chatbot provided answers based on certain keywords in the questions.Hyundai Card was among the first to introduce a chatbot service.

May 17, 2019By Kim Bo-eun
Card firms turning to AI chatbots

Shinhan, Hancom pursue Vietnam smart city projects

Shinhan Bank CEO Jin Ok-dong, right, and Hancom CEO Kim Sang-chul pose after agreeing on strategic digital ties at Shinhan Bank's office in Seoul, Friday. Courtesy of Shinhan Bank.By Park Hyong-kiShinhan Card and Hancom have forged strategic ties to pursue smart city projects in Southeast Asia, including Vietnam, the bank said Friday.The two will also collaborate on developing new digital businesses in the region using blockchain and artificial intelligence (AI) technologies.This comes as they look for new opportunities abroad, with Hancom trying to be more than just a developer of the Korean word processing program.Lately, Hancom has been getting into cloud computing and pursuing acquisitions for new business.Hancom said: “The company will engage in strategic M&A and promotion of in-house ventures, as well as cooperation with the academic community to identify new engines of growth.”“We will collaborate in various digital areas for new growth,” a Shinhan Bank spokesman said. Shinhan Bank and Hancom will also conduct joint research and development of AI-ba

May 17, 2019
Shinhan, Hancom pursue Vietnam smart city projects

Eximbank backs ship parts makers

Export-Import Bank of Korea (Eximbank) CEO Eun Sung-soo, second from left, visits HSD Engine's ship equipment plant in Changwon, South Gyeongsang Province, Thursday. Eun said the policy bank will support the exports of small and medium makers of ship parts. Courtesy of Eximbank

May 17, 2019
Eximbank backs ship parts makers

For post-retirement

Shinhan Bank Deputy President Lee Hee-soo, right, and the bank's Manila branch manager Chung Yong-ho, second from right, pose with Philippines Retirement Authority (PRA) CEO Bienvenido K. Chy, second from left, after signing a memorandum of understanding at the PRA in Manila, the Philippines, May 16 (local time). Under the agreement, Koreans aged over 35 who obtain retirement visas for the Philippines will have to deposit at least $20,000 in a Shinhan bank account. Courtesy of Shinhan Bank

May 16, 2019By Lee Kyung-min
For post-retirement

Banks enhance mobile services for foreigners

By Kim Bo-eunThe country's major banks are competing to offer better mobile services for foreign customers as a means to secure another source of income.The move comes as there is growing demand from foreign residents for remittance and other financial services.To fulfil this demand, banks are moving to introduce mobile banking services tailored for foreign professionals and migrant workers. They are focusing on making foreign remittance more convenient. Banks also see this as an opportunity to build overseas networks and promote themselves globally. The number of foreign customers of the country's five major banks ― Shinhan, KB Kookmin, Woori, KEB Hana and Nonghyup ― is estimated to have exceeded the 5 million mark at the end of 2018. The figure is up from 4.6 million a year earlier.Banks' foreign customers are increasing as foreign residents in Korea grow. The number of foreign workers has increased accordingly, growing from 66,000 in 2013 to 88,000 last year.These foreign workers are increasingly transferring funds overseas _ a total of 2.98 trillion won was transferred overseas b

May 16, 2019By Kim Bo-eun
Banks enhance mobile services for foreigners

Kakao gets closer to Kakao Bank's major shareholder

By Kim Bo-eunKakao Chairman Kim Beom-suA local court's decision to acquit Kakao's chief on charges of violating fair trade regulations has raised the likelihood of the IT company getting the green light in becoming a major shareholder of Kakao Bank. The Seoul Central District Court on Tuesday acquitted Kakao Chairman Kim Beom-su on the charges raised against him for failing to report on five Kakao subsidiaries in 2016. The court determined the omission had not been intentional.Kakao needs to be clear of the charges to be eligible to become a majority shareholder of Kakao Bank.It has requested the Financial Services Commission (FSC) review its eligibility, after related regulations were revised last year to allow non-financial entities to become major shareholders of internet banks owning stakes up to 34 percent."With Kakao Chairman Kim Beom-su's acquittal, grounds have been established for positive views of [Korea Investment Holdings'] transfer of Kakao Bank's shares," said Lim Hee-yeon, an analyst at Shinhan Investment. Korea Investment Holdings currently holds 50 percent of Kakao B

May 16, 2019By Kim Bo-eun
Kakao gets closer to Kakao Bank's major shareholder

Celebrating Teachers' Day

The Seoul Symphony Orchestra performs during a concert sponsored by KB Kookmin Bank at Hwagok High School in western Seoul, Wednesday. KB organized the event for teachers and students, to mark Teachers' Day. / Courtesy of KB Kookmin Bank

May 16, 2019By Kim Bo-eun
Celebrating Teachers' Day
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