Business - The Korea Times

Banks on edge as president warns against 'easy profits' from mortgages

Banks are on high alert following President Lee Jae Myung's warning against relying on "easy profits" from mortgages, referring to their interest margin-driven business models, industry officials said Sunday. The timing of the president's call for a shift toward more productive financing adds to the pressure, as the four major financial groups — KB, Shinhan, Hana and Woori — posted a record-breaking combined net profit of over 10 trillion won ($7.2 billion) for the first half of the year, largely fueled by interest income. As political criticism grows over the banks' profit structures, calls for reform are intensifying. However, shifting focus to small and medium-sized enterprises (SMEs) and self-employed loans, as urged by the president, presents a dilemma for banks. Expanding such loans too aggressively could weaken key financial soundness indicators, potentially undermining their shareholder return strategies. During a meeting with his senior presidential secretaries last Thursday, Lee sharply criticized domestic financial institutions for their heavy reliance on interest income w

Jul 27, 2025By Jun Ji-hye

Banks on edge as president warns against 'easy profits' from mortgages

Major financial groups post record profits in H1 despite economic slowdown, rate cuts

Four major financial holding companies in Korea posted record earnings in the first half of this year despite economic uncertainties and declining interest rates, data showed Sunday. The combined net profit of KB Financial, Shinhan Financial, Hana Financial and Woori Financial totaled 10.33 trillion won ($7.47 billion) during the first six months of 2025, marking a 10.5 percent increase from the same period a year earlier, according to their regulatory filings. KB, Shinhan and Hana each posted double-digit on-year growth in net profit, setting new records for first-half earnings. In detail, KB saw its profit surge 23.8 percent on-year in the first half to 3.44 trillion won. Shinhan came in a distant second, reporting 3.04 trillion won in net profit, up 10.6 percent on-year. Hana Financial's net profit advanced 11.2 percent to 2.3 trillion won during the cited period. But Woori posted a decline in the first-half reading, with net profit falling 11.6 percent to 1.55 trillion won. The stellar performance was attributable to an increase in both interest and non-interest income. The four financi

Jul 27, 2025By Yonhap

Major financial groups post record profits in H1 despite economic slowdown, rate cuts

Korean card firms scramble to maintain footing amid won-based stablecoin push

The credit card industry is forming a joint task force and taking other measures in response to a perceived threat to its position in the payments market amid growing discussions of the introduction of won-based stablecoins and related legislation, industry officials said Thursday. Stablecoins are digital currencies designed to maintain a stable value by being tied to central bank-issued currencies, such as the U.S. dollar, or to physical assets like gold. As the promotion of won-based stablecoins was one of President Lee Jae Myung's campaign pledges, a related subcommittee has been established within the presidential state affairs committee. The ruling Democratic Party of Korea is also set to announce a bill on the issuance and operation of won-based stablecoins. According to financial industry officials, the Credit Finance Association and eight major credit card companies plan to form a task force on stablecoins and hold its inaugural meeting next week. The task force is expected to explore how the card industry should navigate the potential legalization of stablecoins and what role co

Jul 24, 2025By Jun Ji-hye

Korean card firms scramble to maintain footing amid won-based stablecoin push

MetLife chief underlines importance of Korea market

MetLife will stay focused on fulfilling the needs of Korean customers on its path to widen its customer base worldwide, according to company President and CEO Michel Khalaf. Khalaf made the remarks during his third visit to Korea, after serving as the head of the New York-headquartered, multinational insurer since 2019. MetLife has been eyeing Korea for its significant increase in life expectancy, which offers a wide range of sales opportunities concerning its products, including life insurance, health insurance and disability insurance. As of 2023, life expectancy in Korea was 83.5 years, some 3.2 years longer than the OECD average. "For 157 years, MetLife has focused on delivering value to our customers and on helping more people build confident futures,” Khalaf said. The company has approximately 90 million customers in over 60 countries. He said as people look to improve their health and well-being amid their longer lifespans, MetLife can offer its expertise and innovation to enhance the "healthspans" of Koreans. The Seoul branch of the company, MetLife Korea, has set the goal of bec

Jul 24, 2025By Yi Whan-woo

MetLife chief underlines importance of Korea market

Eximbank holds crisis response briefing for small businesses in Daegu

The Export-Import Bank of Korea (Eximbank) held a briefing for small businesses in Daegu and North Gyeongsang Province to better navigate crises and prepare for financial risk events, the state-run lender said Thursday. In attendance were 60 officials from state-run financial institutions, including the Korea International Trade Association and groups representing mid-sized enterprises and small businesses. During the event, held at the Daegu Trade Center, the state lender introduced a package of financial and nonfinancial programs for small and mid-sized businesses, including the emergency response program and foreign exchange risk management strategies. The lender said it will lower interest rates by as much as 2 percentage points for small businesses and mid-sized firms with low credit ratings. Also eligible are those struggling with wild fluctuations in their trade environments. Eximbank said consulting services will be provided, including environmental, social and corporate governance strategies and new market growth strategies. In addition, an automotive expert from the Korea Instit

Jul 24, 2025

Eximbank holds crisis response briefing for small businesses in Daegu

InterviewLocalization no longer optional: Ex-reporter guides Korean firms in US property market

Sydney Chun, a former journalist who worked for SBS CNBC covering macroeconomics and Korea's chaebols, wanted to go beyond reporting to help shape the very deals she once covered. This led her to join Cushman & Wakefield Korea, the Korean branch of the global real estate services firm. Now, as a deputy general manager leading the firm's cross-border transaction management team, she helps domestic conglomerates turn strategic intent into global real estate execution, especially in the United States, where, she said, "localization is no longer optional." The team was established in September 2023 to support Korean companies expanding overseas. It provides end-to-end advisories on global site selection, regulatory strategy, incentive negotiations and financial analysis for acquisitions or leases across sectors including IT, biotech, finance and manufacturing. In a recent interview with The Korea Times, Chun said Korea Inc. is betting big on the U.S. market and pursuing local production. But she noted this is not just about avoiding the Donald Trump administration’s aggressive tariffs —

Jul 24, 2025By Jun Ji-hye

Localization no longer optional: Ex-reporter guides Korean firms in US property market

Tougher measures to be introduced against illegal stock trading

Korea's financial regulator said Wednesday that tougher measures will be taken against unfair, illegal stock trading as part of efforts to root out such trading practices in the local stock market. The Financial Services Commission (FSC) said revised enforcement decrees to the Capital Market Act and others will take effect starting October, under which those caught for illegal stock trading will face fines of up to twice the amount of their unjust gains, while the market monitoring system will be based on individuals rather than trading accounts. The current account-based system results in excessive monitoring and makes it difficult to detect links between accounts held by the same individual. Stock manipulators will be barred from the capital market for up to five years through restrictions on trading financial investment products and disqualification from serving as executives at listed companies. Major shareholders and executives involved in illegal or unfair trading cases will be publicly named shortly after a resolution by the Securities and Futures Commission under the financial re

Jul 23, 2025By Yonhap

Tougher measures to be introduced against illegal stock trading

Seoul shares open higher amid multiple US trade deals

Seoul shares kicked off higher Wednesday following news the United States had struck a tariff agreement with Japan and the Philippines. The benchmark Korea Composite Stock Price Index (KOSPI) gained 12.1 points, or 0.38 percent, to 3,182.04 in the first 15 minutes of trading. Overnight, Wall Street closed mixed amid a slide in tech shares and expectations brewed by U.S. Treasury Secretary Scott Bessent's remarks that he will meet with his Chinese counterpart in Stockholm next week for trade talks. The Dow Jones Industrial Average rose 0.4 percent, and the S&P 500 edged up 0.06 percent. The tech-heavy Nasdaq composite, however, shed 0.39 percent as major semiconductor shares lost ground following reports the ambitious artificial intelligence project "Stargate," led by OpenAI and SoftBank, has been facing internal disagreements. Meanwhile, U.S. President Donald Trump's announcement over trade deals with Japan and the Philippines boosted hopes for eased trade uncertainties. In Seoul, tech giant Samsung Electronics lost 0.3 percent, and its chipmaking rival SK hynix went down 0.93 percent. Defe

Jul 23, 2025By Yonhap

Seoul shares open higher amid multiple US trade deals

Financial sector braces for major leadership shake-up this year

An unprecedented wave of leadership changes is expected in Korea's financial sector in the second half of this year, industry officials said Tuesday, as the new government administration takes office. The terms of key figures — including Shinhan Financial Group Chairman Jin Ok-dong, Woori Financial Group Chairman Yim Jong-yong, the heads of the three major state-run banks and CEOs of other state-owned financial institutions — are all set to expire. Jin and Yim are both expected to complete their first terms next March. Their reappointment prospects will likely be decided toward the end of the year by their respective groups' recommendation committees. Industry observers view their chances of renewal positively, citing strong group performance and favorable evaluations. Jin has been credited with advancing the government's Corporate Value-Up Program and accelerating the group's transition to artificial intelligence. During his tenure, Yim spearheaded the successful acquisitions of Tongyang Life Insurance and ABL Life Insurance, strengthening Woori's nonbanking sector. The heads of all

Jul 23, 2025By Lee Yeon-woo

Financial sector braces for major leadership shake-up this year

Settlements for securities up 15% in H1: data

Settlements for securities traded in the Korean market amounted to 3,326 trillion won ($2.4 trillion) in the January-June period, data showed Tuesday. The figure represents a 15 percent spike from a year earlier, according to the Korea Securities Depository (KSD). Of that total, the value of settlements for stock transactions fell 1.6 percent on-year to 106.9 trillion won, while the figure for bond transactions rose 16.6 percent to 3,087 trillion won. Institutional settlement of stocks recorded 132.8 trillion won, a slight decline compared to 135.5 trillion won in the same period last year. Institutional settlement of bonds, however, jumped 17.8 percent to 2,728 trillion won, KSD data showed.

Jul 22, 2025By Yonhap

Banking & Finance