Business - The Korea Times

INTERVIEW Fintech CEO enhances tourists' financial experience in Korea with WOWPASS

Korea can be a fun destination for travelers. In 2024, its food, nightlife, attractions and K-pop culture attracted about 16.3 million travelers. Their financial experience, though? Well, not so fun. While Koreans routinely use mobile payments and a variety of credit or debit cards, the country's payment system isn't as accommodating to foreign travelers. Without a Korean phone number and credit card, it’s difficult for visitors to use essential services like delivery and taxi apps. "Foreign travelers hope to experience the authentic Korean lifestyle as they've seen in K-dramas. However, their experiences can be filled with inconveniences," Lee Jang-back, CEO of Orange Square, said in a recent interview with The Korea Times. "Everything is so convenient and comfortable here that Koreans often don’t realize the barriers." To enhance foreign travelers’ financial experience, Lee launched a service called WOWPASS in 2022. At 274 machines nationwide, foreign travelers can scan their passports to receive physical cards that work at most Korean stores, including public transportation. Tra

Apr 10, 2025By Lee Yeon-woo

[INTERVIEW] Fintech CEO enhances tourists' financial experience in Korea with WOWPASS

KB, Shinhan, Hana hit by economic downturn in Southeast Asia amid Trump tariff uncertainties

Major Korean banks are facing growing uncertainties over their businesses in Southeast Asia as the region has been weighed down by years of stagnant economy and worsening financial market soundness amid U.S. President Donald Trump's global tariff war, market watchers said Thursday. Four major commercial lenders — KB Kookmin, Shinhan, Hana and Woori — have a combined 26 percent of overseas business exposure in Southeast Asia. Vietnam and Indonesia top the list with 7.1 percent exposures each, followed by Singapore at 6.7 percent and Cambodia at 4.7 percent. Over the past decade, the number of their combined branches increased to 65, up 2.5-fold from 25. Their combined assets are also said to have surged by more than six times. On Wednesday (local time) Trump paused his threatened "reciprocal" tariffs against most countries for 90 days. “The Trump tariff policies have been delayed, but the last-minute measure is far from a guarantee of stable business conditions in the weeks or months to come,” a KB Kookmin official said. The implementation of the high tariffs against the region will

Apr 10, 2025By Lee Kyung-min

KB, Shinhan, Hana hit by economic downturn in Southeast Asia amid Trump tariff uncertainties

Hahn & Co. emerges as likely buyer for SK Siltron

Korean private equity firm Hahn & Co. has emerged as a potential buyer of SK Siltron, as SK Group, the country’s second-largest conglomerate, seeks to divest its semiconductor wafer manufacturer, industry officials said Thursday. If the deal goes through, Hahn & Co. will have invested in 10 SK Group affiliates, further solidifying its position as a key strategic partner in the group’s ongoing restructuring efforts. According to sources in the investment banking industry, SK Corp., the holding company of SK Group, recently initiated talks with major private equity firms — including Hahn & Co. — to explore a potential sale of SK Siltron’s management rights. The stake under consideration reportedly includes 51 percent directly held by SK Corp. and an additional 19.6 percent secured through a total return swap agreement, bringing the total to 70.6 percent. The deal is expected to be valued at around 5 trillion won ($3.4 billion). The SK Siltron deal is seen as part of the group’s ongoing efforts to restructure its business portfolio. As the conglomerate continues to offload its no

Apr 10, 2025By Jun Ji-hye

Hahn & Co. emerges as likely buyer for SK Siltron

Mirae Asset chair donates dividends for 15th consecutive year

Mirae Asset Group’s Global Strategy Officer and Chairman Park Hyeon-joo donated 1.6 billion won ($1 million) in dividends earned last year, bringing his total donations over the past 15 years to 33.1 billion won, the company said Thursday. He made this commitment in 2008, writing in a letter to Mirae Asset employees that he planned to donate all of his dividends to support the development of the younger generation in Korea. He first began donating his dividends in 2010 and has continued the annual drive since. The donation will be routed through two group-operated foundations, each dedicated to supporting either education or career development programs for young people. Included are scholarship programs, leadership projects and cultural exchange opportunities. As of last year, the two foundations have invested 106.9 billion won in various social contribution initiatives. The group said it will continue to nurture future generations, upholding the chair’s motto: “I would rather be the greatest giver than the richest man.” In his view, science and technology are other key areas for fo

Apr 10, 2025By Lee Kyung-min

Mirae Asset chair donates dividends for 15th consecutive year

Why was Korea's WGBI inclusion delayed until April next year?

Korea’s inclusion in the World Government Bond Index (WGBI), operated by the London-based FTSE Russell, was delayed from November to April next year, the finance ministry said Wednesday. The five-month delay is said to have centered on growing concerns over the domestic financial market conditions among Japanese investors, a group with a significant bond market influence, according to market watchers. In addition, a bigger culprit appears to be months of political turmoil from former President Yoon Suk Yeol’s Dec. 3 martial law declaration and ensuing impeachment proceedings, they said. The assessment is underpinned by Korea’s export-reliant economy extremely vulnerable to U.S. tariff shocks, as evidenced in part by the Korean currency crashing to nearly 1,500 won relative to the U.S. reserve currency. Equally concerning is a series of downward revisions to the country’s economic growth forecast for this year. Wednesday’s development pushes back the much-anticipated series of benefits. They include the inflow of foreign funds of up to 90 trillion won ($60 billion), stabilization

Apr 9, 2025By Lee Kyung-min

Why was Korea's WGBI inclusion delayed until April next year?

Regulator to ease rules on IBs for more active role in corporate financing

The financial regulator said Wednesday that it will revamp rules on investment banks (IBs) in order to encourage them to increase investments in smaller firms and risky but profitable assets. According to the Financial Services Commission (FSC), IBs will be able to be actively involved in corporate restructuring and increase their exposure to smaller firms under eased regulations on credit line ceiling. The FSC said IBs with capital base of 4 trillion won ($ 2.69 billion) or more will be required to invest 25 percent of capital raised via commercial bill issuance in risky but profitable assets, such as low-rated firms and high-yield funds. In contrast, their ceiling of investments funded through the sale of commercial bills in real estate will be gradually cut to 15 percent in 2026 and 10 percent the following year, from the current 30 percent. The measures come as local IBs are largely focused on safe, low-yielding investments, such as real estate and others, according to the FSC. The FSC said it will also assign IB licenses to more players by easing related regulations this year. Details

Apr 9, 2025By Yonhap

Regulator to ease rules on IBs for more active role in corporate financing

Disruptions in dairy, rice supply to Homeplus raise concerns among farmers

Farmers are increasingly concerned about potential losses amid delays in dairy and rice deliveries to Homeplus, which is currently undergoing corporate rehabilitation, agriculture industry officials said Monday. The country’s No. 2 supermarket chain abruptly filed for corporate rehabilitation with the Seoul Bankruptcy Court on March 4 amid liquidity concerns following a credit rating downgrade. Fearing nonpayment, Seoul Milk, Korea’s largest dairy company, suspended deliveries to the retailer on March 20. Homeplus notified Seoul Milk of its plan to begin installment-based payment of unpaid deliveries incurred prior to entering a rehabilitation procedure starting in June. It also pledged to pay on time for products delivered after the court-led process began. Despite this, the dairy producer remains firm, calling for a one-time settlement of the overdue payments and requiring upfront cash payments for any future deliveries. The ongoing delivery halt by Seoul Milk is raising concerns about financial strain among its secondary partners — including raw milk suppliers, material vendors a

Apr 7, 2025By Jun Ji-hye

Disruptions in dairy, rice supply to Homeplus raise concerns among farmers

Banks organize matchmaking events to tackle low birthrates

Commercial lenders are rushing to organize matchmaking events to help single employees find dates and possibly tie the knot, in a bid to help boost the ultra-low birthrate, industry officials said Monday. KB Kookmin, Hana and Woori will hold a joint matchmaking event at Hana Bank headquarters in Seoul on April 26. A total of 30 – five men and five women from each of the three firms — will join the event. They will submit self-introductions by Tuesday. They will disclose their Myers-Briggs Type Indicator (MBTI) results, a self-report questionnaire that makes pseudoscientific claims to categorize individuals into 16 distinct “psychological types” or “personality types.” Leisure activities they do for fun and reasons for applying can also be included. They will participate in bank-organized activities that involve meals, dates and group recreational exercises. The event is gaining popularity among the bank's employees, according to a Hana official. “Before the 52-hour workweek took effect, many became couples after spending well over 12 hours at the branch every day,” he said.

Apr 7, 2025By Lee Kyung-min

Banks organize matchmaking events to tackle low birthrates

IMM PE urges Kyobo Life chairman to honor put option as ordered by Korean court, ICC

IMM Private Equity (IMM PE) is urging Kyobo Life Insurance Chairman and CEO Shin Chang-jae to fulfill his obligations to repurchase the insurer’s shares under a put option, citing the Korean court’s recent recognition of the International Chamber of Commerce's (ICC) arbitration ruling. A put option lets investors sell assets such as company shares at a fixed price by a certain date if they choose to. In the context of the Kyobo Life dispute, financial investors including IMM PE secured a put option that gave them the right to sell their shares back to Shin if Kyobo Life failed to go public by an agreed deadline. A yearslong legal dispute between IMM PE and Shin began in October 2018, when a consortium led by Hong Kong-based Affinity Equity Partners — and including IMM PE, EQT Partners and Singaporean sovereign wealth fund GIC — exercised its put option, demanding that the chairman repurchase their shares at 410,000 won ($280) per share after the insurer failed to go public. “The ICC International Court of Arbitration clearly acknowledged that Shin is obligated under the shareh

Apr 6, 2025By Jun Ji-hye

IMM PE urges Kyobo Life chairman to honor put option as ordered by Korean court, ICC

Banks outline contingency plan to bolster foreign liquidity

Local commercial lenders are rushing to outline emergency plans contingent upon volatile foreign exchange (FX) movements, in a collective move to fortify financial soundness and capital liquidity, market watchers said Friday. Central to the concerns are the weakening of the Korean won relative to the U.S. dollar amid soaring demand for the world's reserve currency due to tariff uncertainties caused by the Trump administration. Many lenders are closely monitoring capital soundness and FX liquidity, mindful of a weaker won translating into a lower Common Equity Tier 1 (CET1) ratio and liquidity coverage ratio (LCR). The lower the figures, the worse their financial soundness. The financial regulators say the CET1 ratio should be maintained at over 12 percent, and the LCR at over 80 percent. The Koran currency weakening by 10 won leads to a CET1 ratio falling by 2 or 3 basis points. According to the financial industry, Woori Bank has set up a new emergency committee to better counter FX volatilities and to formulate plans to factor in fluctuations in FX levels. Tighter credit limits will be i

Apr 4, 2025By Lee Kyung-min

Banking & Finance