Business - The Korea Times

Kakao Bank logs largest-ever earnings in Q1

Online lender Kakao Bank said Wednesday its net profit hit a record high in the first quarter of the year on increased non-interest income and a steady rise in its customer base. Its net profit came to 137 billion won ($99.1 million) in the January-March period, up 23.6 percent from a year earlier, the company said in a regulatory filing. Operating profit surged 23.3 percent to 183 billion won over the cited period. Revenue gained 9.3 percent on-year to 785 billion won. The company attributed the sharp increase in its earnings to a steady rise in non-interest income and more customers. Its non-interest income came in at 282 billion won, up 33 percent from a year earlier, while its interest income declined 0.6 percent on-year to 503 billion won over the cited period. Its loans to households stood at 42.02 trillion won at the end of March, up 1.83 trillion won from a year ago. The company said its number of customers had stood at 25.45 million as of end-March, up from 24.88 million from three months earlier. Its monthly active users hit 18.9 million, according to the bank.

May 7, 2025By Yonhap

Kakao Bank logs largest-ever earnings in Q1

Consumers frustrated with rising lending rates, falling deposit rates

Min, a 40-year-old office worker, says she gets a headache every time she checks the household lending rate. She hopes to move into a larger home in Daejeon, but high interest rates continue to hold her back. "Even though the benchmark rate is coming down, loan interest rates don’t seem to be dropping," she said. "It’s hard not to worry about the second half of the year." According to the Korea Federation of Banks (KFB), the interest rate gap between household loans and deposits at the five major commercial banks hit a record high in March, ranging from 1.38 to 1.55 percentage points. This means borrowing has become more expensive, while saving is less rewarding — leaving households financially squeezed on both ends. For Shinhan Bank and Hana Bank, the gap was the largest since the KFB began publishing this data in July 2022. KB Kookmin, Woori and NH NongHyup also recorded their widest spreads since 2023 — a period marked by aggressive policy rate hikes aimed at curbing high inflation. The trend was even more pronounced among regional banks. Despite the Bank of Korea initiating a

May 6, 2025By Lee Yeon-woo

Consumers frustrated with rising lending rates, falling deposit rates

Interview'US domestic demand-focused ETFs worth buying amid global trade uncertainties'

Blue-chip companies that primarily make profits in the United States are recommended when buying an exchange-traded fund (ETF), in order to mitigate risks from global economic uncertainties heightened by the widening trade war. At the same time, companies that are highly competitive in the global artificial intelligence (AI) race are also worthy in the ETF market even if they are from outside the U.S., namely China. Pedro Palandrani, head of Global X's Product Research & Development, made the recommendations as he provided a set of guidelines for leveraging opportunities in the U.S. ETF market amid a challenging investment environment. An ETF is a collection of securities, such as stocks or bonds, that trade on an exchange like a regular stock. Based in New York, Global X is one of 13 overseas ETF subsidiaries of Mirae Asset Global Investments. Others are found in Australia, Canada, Hong Kong, India and Japan, among other locations. “We wake up and there is new news around trade policies, and given that uncertainty in the geopolitical environment, we’re finding clients who are micro-t

May 5, 2025By Yi Whan-woo

'US domestic demand-focused ETFs worth buying amid global trade uncertainties'

Banks seek to attract young customers for future business

A growing number of commercial lenders are offering cash-equivalent vouchers to parents with children in order to lock in a possible future revenue stream, according to industry officials Thursday. Driving these efforts is the rapid loss of market share to internet-only peers, whose mobile app-based services are tailored to a young, digitally savvy demographic. Most traditional lenders are expanding promotional campaigns in which parents are given up to 70,000 won ($49.14) for opening savings or home subscription accounts under their children’s names. Woori Bank recently offered 50,000 won to parents for opening new accounts under the names of children born in 2024. It also offered an additional 20,000 won for parents opening a home subscription account, meant to help save towards future house purchases, under their children’s name. KB Kookmin Bank had a similar campaign where up to 30,000 won worth of mobile gift coupons were provided. The lender offered 10,000 won worth of coupons redeemable on Baemin, a food delivery app, to parents who opened savings accounts for children under 14

May 1, 2025By Lee Kyung-min

Banks seek to attract young customers for future business

Will Kyobo’s SBI takeover revive interest in struggling savings banks?

Kyobo Life Insurance’s acquisition of SBI Savings Bank — the largest player in Korea’s savings bank industry — has drawn interest in whether the deal could revitalize mergers and acquisitions (M&As) in the sector, which has been grappling with declining profitability and worsening asset quality, industry officials said Wednesday. There are currently 79 savings banks operating in Korea, but many are small in terms of loan volume and face rising delinquency rates, prompting ongoing calls for industry-wide restructuring. Insiders say it may take time for the M&A market in the savings bank sector to gain meaningful momentum, as the industry remains in a slump with few players willing to jump in. They noted that Kyobo Life’s acquisition of SBI is considered an exceptional case, largely due to the bank’s strong position in the industry and its long-standing business ties with the insurer. On Monday, Kyobo’s board of directors approved a plan to gradually acquire a 50 percent plus one share stake in SBI Savings Bank by October 2026. The shares will be purchased from SBI Holdings,

Apr 30, 2025By Jun Ji-hye

Will Kyobo’s SBI takeover revive interest in struggling savings banks?

Woori Financial floats $280 mil. in hybrids

Woori Financial Group, a major Korean banking group, said Wednesday it has raised 400 billion won ($280 million) by selling hybrid securities to bolster its capital base. The hybrid bonds have a coupon rate of 3.45 percent, according to Woori Financial. Woori Financial, whose flagship is major lender Woori Bank, said it has jacked up the amount from an initially planned 270 billion won due to more-than-expected subscriptions.

Apr 30, 2025By Yonhap

Woori Financial floats $280 mil. in hybrids

SK Telecom cyberattack fuels data breach concerns in finance sector

A growing number of commercial lenders, card companies, insurance firms and brokerages are strengthening user authentication systems in response to a recent cyberattack on SK Telecom, which partially exposed customers' universal subscriber identity module (USIM) data, market watchers said Tuesday. They say at least two additional steps beyond telecom carrier-mediated user verification are needed to authorize mobile financial transactions, including cash remittances. The USIM data will therefore not be enough to sign in or change personal information online, they added. Many financial companies are adding face recognition features for better data protection. Fraud detection systems are also being strengthened to identify unauthorized financial transactions. According to KB Kookmin, Shinhan, Hana and Woori banks, facial recognition will be required for SK Telecom users for ID verification. This will apply to users seeking to issue new digital certificates or attempt to complete mobile financial transactions on a new cellphone. “An attempt to wire money, for example, will be denied without

Apr 29, 2025By Lee Kyung-min

SK Telecom cyberattack fuels data breach concerns in finance sector

Foreign residents’ debit card spending in Korea jumps 75% over past 5 years

The number of foreign residents in Korea using debit cards has grown significantly, with their total spending on these cards soaring by 75 percent over the past five years, according to KB Kookmin Card Tuesday. In its latest analysis, the card issuer also reported that the number of its foreign debit card users rose by 46 percent in 2024 compared to 2019. This sharp increase is attributed to the growing population of foreign workers and international students living in Korea. Notably, the share of debit card holders in their 20s has risen markedly over the past three years. In 2024, foreign residents made an average of 22.8 debit card transactions per month and spent an average of 516,000 won ($359), marking increases of 20 percent and 19 percent, respectively, compared to five years earlier. Among all foreign debit card holders, those in their 30s accounted for the largest share at 27 percent. However, over the past three years, there has been a noticeable increase in the proportion of people in their 20s, who made up 39 percent of new card issuances. In terms of nationality, Chinese nat

Apr 29, 2025By Jun Ji-hye

Foreign residents’ debit card spending in Korea jumps 75% over past 5 years

Seoul shares open lower amid tariff concerns

Seoul shares opened lower Tuesday following a mixed close on Wall Street, as investors remained cautious over the future direction of tariff policies under U.S. President Donald Trump's administration. The benchmark Korea Composite Stock Price Index (KOSPI) fell 5.2 points, or 0.2 percent, to 2,543.66 in the first 15 minutes of trading. Overnight, the Dow Jones Industrial Average rose 0.28 percent, while the tech-heavy Nasdaq composite slipped 0.1 percent. In Seoul, tech and shipbuilding stocks led the losses. Market bellwether Samsung Electronics fell 0.36 percent, and chip giant SK hynix lost 1.15 percent. Among shipbuilders, HD Hyundai Heavy Industries dropped 2.38 percent, while its smaller rival Hanwha Ocean plunged 10.53 percent. On the upside, top carmaker Hyundai Motor rose 1.01 percent, and its smaller affiliate Kia gained 1.47 percent. Leading battery maker LG Energy Solution advanced 0.29 percent, and beverage firm Hitejinro edged up 0.52 percent. The local currency was trading at 1,438.75 won against the U.S. dollar at 9:15 a.m., up 3.85 won from the previous session.

Apr 29, 2025By Yonhap

Seoul shares open lower amid tariff concerns

Hana seeks tailored financial education for vulnerable groups in North Chungcheong Province

Hana Financial Group signed a business agreement with the Financial Supervisory Service, the government of North Chungcheong Province and the province’s education office to strengthen tailored financial education programs for youth and financially vulnerable groups in the region, the company said Monday. At the signing ceremony, Hana Financial Group Chairman Ham Young-joo vowed to provide comprehensive and effective education, saying, "We aim to expand a range of tailored programs specifically designed for children and teenagers." Lee Bok-hyun, governor of the Financial Supervisory Service (FSS) who was also present at the event, stressed that finance is not just a tool for economic activities but plays a vital role in shaping both individuals’ daily lives and society. “I hope this agreement marks the beginning of establishing a financial education ecosystem in the North Chungcheong region, where access to financial education has been more limited compared to the capital area and its surroundings,” Lee said. Under the agreement, a new initiative called the “Children’s Financi

Apr 28, 2025By Jun Ji-hye

Banking & Finance