Business - The Korea Times

Insurance firms' lending down in Q4

Loans extended by insurance companies in Korea fell in the fourth quarter of 2024 from a year earlier amid high interest rates and tightened lending rules, data showed Sunday. Insurers' outstanding loans reached 269.6 trillion won ($183 billion) as of the end of December, down 3.6 trillion won from a year earlier, according to the data from the Financial Supervisory Service. The reading, however, marks a 2.7 trillion-won gain from three months earlier. The on-year decrease was attributed to a decline in loans extended to businesses. Household lending stood at 135.7 trillion won as of end-December, up 0.7 trillion won from a year before, while corporate lending shrank by 4.3 trillion won to 133.8 trillion won over the cited period. The loan delinquency rate, which measures the proportion of loan principal or interest unpaid for at least a month, stood at 0.61 percent at end-December, up from 0.42 percent a year earlier, according to the financial watchdog. The rate of insurers' nonperforming loans came to 0.64 percent, down from 0.74 percent a year earlier, the data showed. (Yonhap)

Mar 30, 2025By yonhap

Nearly 40 companies raise product prices on high costs

About 40 companies have recently raised or will raise their product prices to reflect higher manufacturing costs, data compiled by Yonhap News Agency showed Sunday, sharply putting upward pressure on inflation. The companies, which mainly sell food and beverages, cited a weak won against the dollar and higher raw material costs as the main reasons for their price hikes. Industry watchers note the firms may have made the decision to raise prices as the government is facing difficulties in tightening its grip on consumer prices amid political uncertainties that followed the Dec. 3 imposition of the short-lived martial law by President Yoon Suk Yeol. There are concerns that the on-year growth rate of processed goods and restaurant prices may soon exceed 3 percent, affecting overall consumer prices, they said. Restaurant prices already jumped by 3 percent from a year earlier in February, while the prices of processed goods increased by 2.9 percent, according to earlier reports. Twenty-nine companies, including Starbucks Korea, Paris Baguette, CJ Cheiljedang and Nongshim, have already increase

Mar 30, 2025By yonhap

Nearly 40 companies raise product prices on high costs

SK hynix is top pick for foreign investors in Q3

Major chipmaker SK hynix was the top pick for foreign investors in the first quarter of the year, data showed Saturday. These investors scooped up a net 1.88 trillion won ($1.28 billion) worth of SK hynix shares during the January-March period on hopes for a turnaround in the sector, according to the data compiled by the Korea Exchange. Defense firm Hanhwa Aerospace and internet portal operator Naver came in next with net buying of 733 billion won and 434 billion won, respectively. In contrast, they heavily sold shares worth 1.18 trillion won worth of shipbuilder Hanhwa Ocean in the first quarter, followed by top automaker Hyundai Motor with 790 billion won and leading banking group KB Financial with 548 billion won, the data showed. In the first three months of the year, foreigners sold a net 4.73 trillion won worth of local stocks. (Yonhap)

Mar 29, 2025By yonhap

SK hynix is top pick for foreign investors in Q3

Korea Zinc chairman defends management rights after fierce battle with MBK

Korea Zinc Chairman Choi Yun-beom, who has been engaged in a monthslong managerial dispute with the alliance of private equity firm MBK Partners and Young Poong, successfully defended his control at a regular shareholders’ meeting Friday. Based on simple shareholding percentages, the MBK alliance, which holds about 41 percent of the shares, outnumbers Choi’s side, which holds about 34 percent. However, Choi was able to retain his management rights by utilizing the cross-shareholding voting rights restriction under the Commercial Act. This allowed his side to neutralize voting rights on Young Poong’s 25.4 percent stake in Korea Zinc, preventing the MBK alliance from taking control of the board. The MBK alliance strongly criticized Choi, saying he has repeatedly resorted to illegal practices to create the cross-shareholding structure. As the alliance signaled its willingness to pursue legal action to nullify the decisions made during the meeting, the ownership battle over the world’s largest zinc smelting firm could enter a new phase depending on the court’s decision. When decla

Mar 28, 2025By Jun Ji-hye

Korea Zinc chairman defends management rights after fierce battle with MBK

Toss posts first-ever annual profit in 2024

Viva Republica, the operator of the mobile financial service Toss, said Friday that it posted its first annual profit since its establishment in 2015. The firm's revenue also reached a record high. According to the company’s 2024 full-year earnings report, its consolidated revenue, including that of its subsidiaries, reached a record 1.95 trillion won ($1.3 billion), marking a 42.7 percent increase year-over-year. Excluding subsidiaries, Toss alone reported revenue of 587.1 billion won, a 74.6 percent increase compared to the previous year. The strong performance also led to Toss’ first-ever consolidated full-year profit, indicating that the company has entered the stage of monetization. It reported 90.7 billion won in consolidated operating income and 21.3 billion won in consolidated net income. The firm noted that the results reflect a significant improvement across all profitability indicators, largely driven by growth in its high-margin consumer services segment — money transfers, brokerage, advertising, simple payments, securities and tax services. It demonstrates the success

Mar 28, 2025By Lee Yeon-woo

Toss posts first-ever annual profit in 2024

Banks expand services for foreign residents in Korea as their population grows

Banks are enhancing their services for foreign customers in response to the ongoing increase in the country’s foreign population, industry officials said Friday. Beyond merely supporting financial transactions for foreign workers, banks are expanding their offerings by introducing platforms to help foreign nationals better settle in Korea and launching services tailored to wealthy foreign individuals and corporations. JB Financial Group, which owns Kwangju Bank and Jeonbuk Bank, will become the first domestic financial company to launch a comprehensive financial and social integration platform for foreign nationals in April. Through this platform, tentatively named Bravo Korea, foreign customers will be able to access financial services such as deposit, installment savings and loan applications, as well as a wide range of essential everyday information, including visa-related services, Korean language education, house searches and job listings. To enhance these offerings, the group is collaborating with start-ups that specialize in services for foreign residents. Major commercial banks

Mar 28, 2025By Jun Ji-hye

Banks expand services for foreign residents in Korea as their population grows

More salaried workers go into debt to buy homes

A group chat for working moms on KakaoTalk mobile messenger frequently sees comments that they are stressed about making repayments for years as salaried workers. Many of them are in their 40s, who, together with their husbands, took out loans from banks to buy an apartment as it is the most popular form of housing and, therefore, is considered a worthwhile investment. “And surprisingly, the number of comments from these indebted individuals appears to be increasing in recent years,” said Shin Ji-kyung, an office worker whose spouse also sits behind a desk. Shin is not wrong, according to Statistics Korea’s latest data, which showed that the average amount of debt for wage workers increased from 2022 to 2023. The data showed the loans taken out by salaried workers nationwide averaged 51.5 million won ($35,100) in 2023. The amount slightly ticked up from 51.15 million won in 2022 after going down from 52.02 million in 2021. “The finding suggests the costly borrowing rate has not been stopping salaried workers from living in debt,” Ha Joon-kyung, an economics professor at Hanyang

Mar 27, 2025By Yi Whan-woo

More salaried workers go into debt to buy homes

JB chairman to lead group for 3 more years, launch 'Season II' of dynamic financial group

JB Financial Group confirmed the reappointment of Chairman Kim Ki-hong at its annual shareholders’ meeting held at its headquarters in Jeonju, North Jeolla Province, Thursday. Kim first took the helm of JB Financial in March 2019 and was reappointed in 2022, leading the group for the past six years. With this latest reappointment, he will serve as chairman for an additional three years, marking his third consecutive term. Over the past six years, Kim has pursued a vision of building a “small but strong financial group,” focusing on profit-driven qualitative growth. This approach has enabled JB Financial to achieve record-breaking performance year after year. In his inaugural address, Kim reaffirmed his commitment to continuing this vision, vowing to further strengthen the group’s competitive and sustainable profit base while also focusing on identifying new core businesses. Kim introduced his “Season II Strategy” to drive the discovery of new core businesses, highlighting three key focus areas. First, the group plans to strengthen strategic alliances with fintech and platform

Mar 27, 2025By Jun Ji-hye

JB chairman to lead group for 3 more years, launch 'Season II' of dynamic financial group

How wealthy are financial regulators, central bankers?

Financial Services Commission (FSC) Chairman Kim Byoung-hwan, Financial Supervisory Service head Lee Bok-hyun and Bank of Korea Gov. Rhee Chang-yong hold assets worth approximately 733 million won ($500,580), 1.7 billion won and 4.4 billion won, respectively, government data showed Thursday. Kim Byoung-hwan's assets, valued at 733.5 million won, include a 500 million won leasehold deposit for an apartment in Seoul and a house in Busan worth 184 million won, which is owned by his mother. Additionally, he has a 233 million won loan from NH NongHyup Bank. Lee's assets grew by approximately 50 million won, mainly due to the increase in value of his apartment in Seocho, southern Seoul, which is jointly owned with his wife. He also has a combined debt of 300 million won from Shinhan Bank and KakaoBank. Rhee's increase in assets was partly due to over 15.6 million won in royalties from four books he authored for college freshmen majoring in economics. His properties, valued at over 2.3 billion won, include an apartment in Yeoksam, southern Seoul, and a leasehold deposit. The combined value of t

Mar 27, 2025By Lee Kyung-min

How wealthy are financial regulators, central bankers?

Hana Financial chair pledges assistance for struggling small businesses in Seoul

Hana Financial Group Chairman Ham Young-joo paid a visit to a small eatery in Seoul, where the business owner suffered significant damage due to a fire that broke out late last year, the group said Thursday. It was Ham’s first official customer engagement effort after having his term renewed with the overwhelming support of over 80 percent of shareholders on Tuesday. It shows the chairman’s commitment to a mutual growth drive with small- and medium-sized enterprises, a financially strained group burdened by high-interest costs and a stagnant economy, Hana said. The chair offered words of consolation and hope for the future. He visited a number of nearby businesses — their corporate borrowers — and stressed the importance of in-person, face-to-face time spent with customers. Ham also reiterated his commitment to customer-oriented financial services, as outlined under the “customer first” drive under the group’s overarching environmental, social and corporate governance (ESG) practices. Hana pledged to spend 10 billion won ($6.8 million) for 3,500 small businesses as part of t