Business - The Korea Times

PHOTO KOSPI surges past 3,100 as geopolitical tensions ease

Electronic signboards at Hana Bank in Seoul show the benchmark KOSPI closing at 3,103.64, Tuesday, up 2.96 percent from the previous trading day. The secondary Kosdaq also gained 2.06 percent to close at 800.93. The KOSPI reclaimed the 3,100 mark for the first time in three years and nine months, as foreign and institutional investors turned to net buying following U.S. President Donald Trump’s announcement of a ceasefire between Israel and Iran. Newsis

Jun 24, 2025By Lee Yeon-woo

[PHOTO] KOSPI surges past 3,100 as geopolitical tensions ease

Banks propose new financial entity dedicated to small business support

The business lobby for commercial lenders has proposed that the Lee Jae Myung administration establish a dedicated financial entity to support small businesses, financial industry officials said Monday. It also urged the government to respect the banks' managerial autonomy, expressing concerns over "excessive" demands for contributions to society. The Korea Federation of Banks gathered input from its members and on Thursday submitted the final report, which includes the proposals, to the presidential state affairs committee. One industry official told The Korea Times that the banking sector conveyed its expectations and concerns ahead of the announcement of specific financial policies, hoping they would be taken into account. In particular, the report called for the creation of a dedicated financial institution for small business owners and the self-employed to improve the efficiency and specialization of policy implementation. It would offer a full range of tailored services, including direct and indirect lending, credit guarantees and consulting. This proposal comes against the backdrop

Jun 23, 2025By Lee Yeon-woo

Banks propose new financial entity dedicated to small business support

ContributionReducing US concentration, rotating to Asia

Investors who have most of their equity positioning in U.S. exposures are facing a common dilemma. This year, their equity portfolio returns have been dragged by not only U.S. equity underperformance relative to the rest of the world, but also a slump in the U.S. dollar. Will this double whammy persist for the rest of the year? More selective US equity positioning We continue to see the merits of staying invested in U.S. equities as the earnings outlook remains supported and superior to other regions. However, the earnings growth gap versus other regions is narrowing. Coupled with the twin pains of growing U.S. budget deficits and mounting debt concerns, it would be prudent to maintain a well-diversified portfolio across major regions, while becoming more selective in the U.S. equity market. As an illustration, within the U.S. technology sector, we are locking in some profit in the semiconductor segment after an impressive 40 percent rally since April. At the same time, we remain bullish on the software segment, where earnings are more resilient against macro uncertainty and have a more d

Jun 23, 2025By Raymond Cheng

Reducing US concentration, rotating to Asia

KOSPI breaches 3,000 points for 1st time in over 3 years

The benchmark KOSPI closed above 3,000 points for the first time in over three and a half years, buoyed by improved investor sentiment following the start of the Lee Jae Myung administration, market analysts said Friday. According to the Korea Exchange, the index ended the day at 3,021.84, up 1.48 percent from the previous session. It marked the first close above the 3,000 level since Dec. 28, 2021. The market capitalization also reached an all-time high of 2,472 trillion won ($1.8 trillion). The secondary Kosdaq also performed strongly, closing at 791.53, up 1.15 percent. Despite the absence of major global catalysts due to the U.S. market holiday Thursday (local time), both foreign and institutional investors remained net buyers. Foreign investors purchased approximately 567.2 billion won worth of shares, while institutions net bought 41.9 billion won. In contrast, retail investors offloaded around 597 billion won, continuing their net selling trend. Large-cap stocks such as Samsung Electronics and SK hynix led the rally, while funds rotated into sectors including IT and software, seco

Jun 20, 2025By Lee Yeon-woo

KOSPI breaches 3,000 points for 1st time in over 3 years

Major financial groups set for fierce competition in nursing care business

The four major financial groups — KB, Shinhan, Hana and Woori — are rapidly expanding into the elder care business through their life insurance subsidiaries amid the nation's accelerating population aging, industry officials said Thursday. Although the sector has yet to turn a profit due to high initial investment costs, the groups are placing a strong focus on it as a future growth engine. According to the Financial Supervisory Service's electronic disclosure system, KB Golden Life Care, a subsidiary of KB Life Insurance, posted a net loss of 2.5 billion won ($1.8 million) in the first quarter of this year. Shinhan Life Care, a subsidiary of Shinhan Life Insurance, also recorded a net loss of 600 million won. Despite continued losses, competition in the elder care market is expected to intensify as Hana and Woori have recently joined the race, following early movers KB and Shinhan. Hana Life Insurance has recently launched a new subsidiary, HANA THE NEXT Life Care, to spearhead its entry into the elder care industry. The company aims to provide comprehensive senior welfare services,

Jun 20, 2025By Jun Ji-hye

Major financial groups set for fierce competition in nursing care business

KakaoBank secures 'virtual bank' license in Thailand

Korea's internet-only lender KakaoBank said Thursday it has received approval from the Thai government to operate a "virtual bank," marking the first reentry of a Korean bank into the Thai market in 25 years. The Thai Ministry of Finance recently selected a consortium formed by KakaoBank and Thailand's leading financial group SCBX as one of three operators of the country's upcoming virtual banking system. "This license is a crucial step in exploring new markets and a valuable opportunity to showcase the excellence of Korea's digital finance technology," KakaoBank CEO Yun Ho-young said. Through the virtual bank project, KakaoBank aims to serve as a bridgehead for Korean banks and companies looking to enter the Thai market, he said. The KakaoBank consortium received high marks for its expertise in building digital banking infrastructure, advanced technological capabilities, and localization strategies. Thailand's virtual banking initiative is designed to offer financial services entirely through digital platforms without physical branches — similar to Korea's internet-only banks. Full-scal

Jun 19, 2025By Yonhap

KakaoBank secures 'virtual bank' license in Thailand

Woori Financial chairman conducts ChatGPT workshop to explore AI integration

Woori Financial Group said Thursday that it conducted hands-on training sessions on using ChatGPT as part of its efforts to strengthen digital finance leadership. The sessions, held on Wednesday, were attended by the group's Chairman Yim Jong-yong, along with executives from the holding company and its affiliates. According to the group, the training program was designed with a strong emphasis on real-world applications. It focused on four key areas: the current landscape of artificial intelligence (AI) in the financial industry, the principles and use of generative AI, shifts in the workplace and case studies of organizational adoption and insights for AI-driven decision-making. Executives participated by creating their own prompts and conducting work simulations, gaining firsthand experience in leveraging AI as a collaborative partner in their roles. The group said that it also expects AI to foster a culture of innovation across the organization. "AI technology is a powerful tool for leaders to make better decisions and create enhanced customer experiences," Yim said. "AI is no longer t

Jun 19, 2025By Lee Yeon-woo

Woori Financial chairman conducts ChatGPT workshop to explore AI integration

Credit card firms face mounting pressure amid fee cuts, fintech's rise

Credit card companies are struggling amid a prolonged industry downturn, company officials said Wednesday. Government-led policies aimed at lowering transaction fees have put mounting pressure on card issuers' profitability, while the rise of online payment platforms is accelerating the reshaping of the payment ecosystem, they said. In addition, the firms' ability to offset losses through lending products such as card loans is weakening due to cardholders' deteriorating financial soundness. These challenges are forcing the companies to undergo structural transformation and business reorganization in order to survive. Since the 2012 revision of the Specialized Credit Finance Business Act, financial authorities have recalculated the appropriate cost of credit card processing fees every three years, based on factors such as risk management, administrative expenses and marketing. These recalculations have consistently led to fee cuts, resulting in a steady decline in the share of merchant fee revenue in credit card firms' total income and weakening the core competitiveness of their primary bu

Jun 19, 2025By Jun Ji-hye

Credit card firms face mounting pressure amid fee cuts, fintech's rise

Mirae Asset launches first AI-assisted financial product

Mirae Asset Global Investments has released its first artificial intelligence (AI)-assisted financial product to cope with a greater reliance on AI among international investors, the company said, Wednesday. The Seoul-headquartered firm said Global X Investment Grade Corporate Bond ETF (GXIG) was developed through collaboration between its United States-based ETF subsidiary, Global X, and its AI unit, Wealth Spot. An ETF is a collection of securities, such as stocks or bonds, that trade on an exchange like a regular stock. GXIG selects and invests in high-demand corporate bonds based on insights from AI. In particular, it refers to the Bloomberg U.S. Corporate Bond Index in classifying investment-worthy bonds by sector, credit rating and maturity. “AI-based investment strategies are still uncommon in the ETF market, despite the vast, highly liquid nature of U.S. corporate bonds,” Mirae Asset Global Investments said. It expressed hope that GXIG thus can be a potential “game changer” and even a "killer product,” which refers to a product that is exceptionally successful and dominat

Jun 18, 2025By Yi Whan-woo

Mirae Asset launches first AI-assisted financial product

Global competitiveness key for Korean financial group amid slow growth

As Korea enters a period of low growth, its financial holding companies are being urged to strengthen their long-term global competitiveness, taking a cue from Japan’s earlier success on a similar path. The advice came during a press meeting hosted by the Woori Finance Research Institute Wednesday to mark the publication of its new book, "Japan’s Great Economic Transformation." "The key of Japanese financial groups' recovery was finding a 'second Japan' in the global market," said Park Jung-hoon, CEO of the Woori Finance Research Institute. According to data presented at the meeting, the annual domestic operating profit of Japan’s major financial groups — MUFG, SMFG and Mizuho — declined by 11 percent, from 6.8 trillion yen ($46.8 billion) in 2006 to 6 trillion yen in 2023. However, over the same period, their overseas operating profit rose nearly fivefold, from 1.2 trillion yen to 6.1 trillion yen. As a result, the share of overseas earnings in their total operating profits expanded from 15 percent to 50 percent. "Even financially solid Japanese groups took more than a decade t

Jun 18, 2025By Lee Yeon-woo

Banking & Finance