Business - The Korea Times

Regulator eases rules on data exchanges

Financial Services Commission Chairman Choi jong-ku, left, speaks at a meeting with executives of brokerages at the Korea Financial Investment Association's headquarters in Seoul, Thursday. YonhapBy Park Hyong-kiThe country's financial regulator will allow freer customer and corporate data exchanges between business divisions within brokerages, as well as between securities companies and their asset management affiliates. Also, it will revise relevant laws enabling them to work closely with fintech startups in stock trading and asset management. Financial Services Commission (FSC) Chairman Choi Jong-ku said in a meeting with executives of brokerages in Seoul that these are part of efforts to boost the capital market and build a fintech ecosystem.“I understand that the Financial Investment Services and Capital Markets Act does not reflect today's need for a change to boost innovation,” Choi said Thursday.He added the regulator will give them more freedom to exchange information, and collaborate with third-party fintech companies in processing customers' requests for stock

May 9, 2019

BC, Union Pay launch QR app for tourists to China

BC Card CEO Lee Mun-whan, left, and Union Pay International CEO Cai Jianbo show their joint QR application at BC Card's Seoul headquarters, Thursday. Courtesy of BC CardBy Park Hyong-kiBC Card has added another company to its alliance for electronic barcode payments. The local credit card firm of KT, the country's largest telecom company, said Thursday it launched a QR code app with Union Pay, enabling customers to pay for goods when traveling in China.Customers will not have to download another app for shopping and dining in China, the credit card firm said. They can just reset their existing BC paybooc app by clicking on “BC Union Pay Card” under settings. They can use the app at restaurants, malls and other shops that have a partnership with BC Card and Union Pay. It also removes the problem of visitors to China having to buy universal subscriber identity module cards for smartphones and signing up for a QR code account via a different module.Customers who use the BC-Union Pay QR code will not have to pay fees on currency exchange when using it to settle their bills in

May 9, 2019

BC, Union Pay launch QR app for tourists to China

Bank groups zero in on AI

gettyimagesbankBy Park Hyong-kiLocal banking groups are rushing to forge partnerships with tech companies both at home and abroad to develop new services and applications using artificial intelligence (AI). For some banks such as Woori and KB Kookmin, Naver, the country's largest search portal, has become the most attractive AI partner. Woori Bank and Naver's Line have agreed to set up an AI lab where both sides will use and integrate the latter's technology into Woori's banking services ranging from chatbots to recommendation functions.KB Financial Group and KB Kookmin Bank have also joined forces with Naver to develop an AI search engine featuring voice control. It will be converged with KB's internal cloud computing system.They are expected to unveil AI-based services in the latter half of this year.Industry sources say the alliance in AI is part of a step toward developing customized services.“With data analysis and cloud computing, AI will back companies to come up with services and products tailored to individual needs,” said a financial industry source. “AI d

May 7, 2019

Hahn, JKL named bidder for Lotte's financial units

By Park Hyong-kiLotte Card and Lotte Insurance in SeoulTwo local private equity fund managers have been named the preferred bidders for Lotte Group's credit card and insurance companies, the group said Friday.Hahn & Co. will continue to the next step and further negotiate to acquire Lotte Card. JKL Partners will do the same for Lotte Insurance, it said.“Executives of the two financial subsidiaries have notified their employees that Hahn and JKL have been chosen as their preferred bidders,” a Lotte Group spokesman said.“Now they are preparing for the next step, which will be signing a share purchase agreement (SPA) and asking for approval on the deal from the Financial Services Commission.”The SPA would come after the two private equity fund managers further examine the books of Lotte Card and Lotte Insurance. Citigroup Global Markets is Lotte Group's broker for the deals. Given the ongoing process, Lotte Group could not disclose the bids. But investment banking industry sources said it may cost Hahn 1.4 trillion won ($1.2 billion) for an 80 percent stake i

May 3, 2019

Hahn, JKL named bidder for Lotte's financial units

KB boosts BIS ratio through fundraising

By Park Hyong-kiKB Financial Chairman Yoon Jong-kyooKB Financial Group said Friday that its BIS capital adequacy ratio is expected to rise to 15 percent from 14.83 percent after it issued 400 billion won ($350 million) in hybrid bonds to institutional investors. Last month, a source with knowledge of the situation told The Korea Times that the group was planning to issue the bonds to boost its capital base. This was to “better take care of and manage” the group's BIS ratio, which stood at 14.6 percent as of the end of December 2018, the source added.“KB's issuance of the hybrid bonds was aimed foremost at improving its BIS ratio and boosting market trust in the group's finances,” said a KB Financial spokesman. The group initially sought to raise 300 billion won. But due to growing institutional demand, it issued 5-year and 10-year bonds worth 400 billion won in total, it said in a press statement. KB's ratio remains above the regulatory standard of 12 percent. The higher the ratio, the stronger and healthier they are against shocks from financial crises. Finan

May 3, 2019

Financial leaders to thwart protectionism

Finance Minister Hong Nam-ki, right, and Bank of Korea Governor Lee Ju-yeol, second from right, pose for a photo with their Chinese and Japanese counterparts at the 19th trilateral Finance Ministers and Central Bank Governors' Meeting in Nadi, Fiji, May 2 (local time). Courtesy of Bank of KoreaBy Lee Kyung-min Finance ministers and central bank governors of Korea, China and Japan reiterated their firm commitment to fighting trade protectionism, a collective opinion that recognizes the challenging global trade environment, notably the ongoing U.S.-China trade dispute.“We will remain vigilant against the downside risks, and reaffirm our commitment to resisting all forms of protectionism, upholding an open and rule-based multilateral trade and investment system, and accelerating intra-regional trade and investment activities,” the leaders said in a joint statement at the 19th trilateral Finance Ministers and Central Bank Governors' Meeting in Nadi, Fiji, May 2 (local time). Finance Minister Hong Nam-ki and Bank of Korea Governor Lee Ju-yeol attended the meeting to exchange v

May 2, 2019By Lee Kyung-min

Financial leaders to thwart protectionism

KEB Hana launches family-friendly events, products in May

A model holds a sign promoting family-related events in May organized by KEB Hana Bank, Wednesday. Courtesy of KEB Hana BankBy Lee Kyung-min KEB Hana Bank has introduced financial products and events that will help enrich family values in May, the month of family, it said Wednesday. The bank has a new installment savings account designed to help customers who seek a lump sum needed for family vacations.It can also help with large expenses needed for regular gatherings or special occasions including anniversaries and birthdays. The account, called “As I choose,” gives up to 2.3 percent annual interest rate including 1.8 percent guaranteed rate. A 0.5 percent prime rate will be offered to those who agree to have a certain amount of money deposited automatically in the account every month for over half of the preset holding period. The product can be purchased only through online channels, and monthly deposit amounts should not exceed 5 million won ($4,280).The account can be held for up to 60 months with the minimum holding period set for six months.The bank has also introd

May 1, 2019By Lee Kyung-min

KEB Hana launches family-friendly events, products in May

Regulator to inject W4 tril. for innovation

Financial Services Commission Chairman Choi Jong-ku, center, poses with the heads of local financial groups and policy banks ahead of their meeting on innovation at the Korea Federation of Banks in Seoul, Tuesday. YonhapBy Park Hyong-kiThe country's financial regulator will inject 4 trillion won ($3.4 billion) into the market through a state venture fund aimed at creating “new and advanced” industries this year.In a taskforce meeting with the heads of local financial groups in Seoul, Tuesday, Financial Services Commission (FSC) Chairman Choi Jong-ku said this was part of the 10 trillion won fund it has set aside with local financial companies to develop new industries for the next three years. “We can additionally allocate 2.5 trillion won depending on market demand,” Choi said. “Also, we will back policy banks to increase tech financing amid the downside risk to the economy.”Choi added it will have a revision ready by the end of June, cutting the stock transaction tax rate by 0.05 percentage points to 0.25 percent and enabling lenders to extend mo

Apr 30, 2019

Regulator to inject W4 tril. for innovation

SC Bank Korea issues 'Avengers' cards

SC Bank Korea's Marvel check cards / Courtesy of SC Bank KoreaThe world's mightiest heroes from Captain America and Iron Man to Thor and the Hulk are back on the big screen to once more fight the supervillain Thanos. The Avengers also made a comeback on SC Bank Korea's check cards for Marvel superhero universe fans over 20.The foreign bank issued the Marvel cards and account books in line with the worldwide opening of “Avengers: Endgame,” April 24. The movie is a follow-up to “Avengers: Infinity War” where more than half of people in the universe were killed by Thanos.The movie marks the final chapter of the Avengers led by Captain America and Iron Man, and opens a new beginning for Marvel's female superheroes led by Captain Marvel.SC Bank issued cards and account books featuring Captain Marvel, when Disney and Marvel Studios released the movie about the world's mightiest female superhero last march.To celebrate the opening of the new Avengers movie, SC Bank will be holding online events promoting not only characters but also its Marvel cards and account books

Apr 28, 2019

More Koreans default on card payment

 By Lee Kyung-min An increasing number of people are defaulting on credit card payments as they struggle with stagnant income growth amid a tight job market, and soaring living costs, according to plastic card issuers, Friday.Those who took out loans from card units of three financial groups ― Woori, KEB Hana and KB Kookmin― have seen their default rate on the rise over the past year. The shared concern is fueled by weak consumer sentiment, compounded by the government's policy including a rapid hike of hourly minimum wage and a shorter workweek, a toxic mixture of negatives that further bogs down the economy. KEB Hana Card saw the default rate increase to 1.96 percent in the first quarter of 2019, up 0.24 percentage points from 1.72 percent a year ago.The rate of Woori Card jumped to 1.52 percent, up 0.1 percentage point from 1.42 percent during the same period.KB Kookmin Card saw the rate increase to 1.32, up 0.07 percentage points from 1.25 percent a year earlier. The top market player Shinhan Card, a subsidiary of Shinhan Financial Group, saw the rate decrease to 1.37 perce

Apr 26, 2019By Lee Kyung-min

Banking & Finance