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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

Financial regulator to push for PEF reform after MBK controversy

The country’s top financial regulator will review the need for private equity fund (PEF) reforms amid the ongoing controversy over MBK Partners, which has been criticized for irresponsibly placing Homeplus into corporate rehabilitation a decade after acquiring the retailer through a leveraged buyout, Financial Services Commission (FSC) Chairman Kim Byoung-hwan said Wednesday. Kim revealed that the FSC had officially commissioned the Korea Institute of Finance to conduct a study to analyze the influence of financial capital on the control of industrial capital. “The MBK case has sparked discussions about the issues surrounding PEFs,” Kim said during a press conference. “As it has been about 20 years since PEFs were introduced in the country, we will take a closer look at both their achievements and shortcomings, assessing their positive effects as well as the problems currently being raised.” He added, “We also plan to examine how PEF regulations have evolved in different countries over the years and compare them with our own regulatory framework to identify any gaps or areas

Mar 26, 2025By Jun Ji-hye
Financial regulator to push for PEF reform after MBK controversy

Financial groups vow to fortify internal controls amid employee misconduct, loan scandals

The country’s three leading financial groups — KB Kookmin, Shinhan and Woori — vowed to strengthen internal control measures at their respective shareholders’ meetings Wednesday in a collective move to address brewing public criticism over a slew of employee embezzlement cases and poorly granted loans. Also among the groups’ efforts to restore investor confidence and shareholder returns were KB’s appointment of a woman outside director, Woori’s policy exempting shareholders from 15.4 percent financial income tax and Shinhan’s ethical management. According to KB Financial, the former head of KT Capital, Cho Wha-joon, was appointed chair of the group’s board of directors. The measures are part of bolstering diversity in the makeup of the group’s top decision-making body. Cho succeeds Kwon Seon-joo, a former CEO of the state-run Industrial Bank of Korea. KB Financial Chairman Yang Jong-hee said the group would improve its corporate structure and advance the business model for management efficiency and innovation. KB's wealth management and small- and medium-sized enterpri

Mar 26, 2025By Lee Kyung-min
Financial groups vow to fortify internal controls amid employee misconduct, loan scandals

'De-Seoulization' critical to tackling low birthrate: BOK, Statistics Korea

Korea should promote decentralization, granting fiscal and policy autonomy to municipalities with populations between 5 million and 10 million to enhance economic growth and administrative efficiency, according to the country’s central bank and statistics agency, Wednesday. The "de-Seoulization" efforts will be further solidified through improvements in living conditions for highly skilled workers in research and development, as well as region-specific policies that ensure a steady inflow of investments. This will help reduce the economic polarization between the Seoul metropolitan area and the rest of the country, a gap that has widened since the 2000s, as reflected in low birthrates and sluggish economic growth. These were the key findings of a study jointly conducted by the Bank of Korea (BOK) and Statistics Korea, presented at a conference hosted by the central bank. Officials from state-run think tanks and economists also shared their insights. The current balanced growth initiative fails to account for the rapid population declines taking place in a number of cities, according to

Mar 26, 2025By Lee Kyung-min
'De-Seoulization' critical to tackling low birthrate: BOK, Statistics Korea

Woori Bank to help foreigners find jobs in Korea

Woori Bank has signed a business agreement with JobKorea, the country’s leading job search platform, to provide a job matching service and enhance employment support for foreign residents in Korea, the bank said Wednesday. Starting in the first half of this year, foreign nationals seeking jobs in Korea will be able to easily access job listings and recruitment information provided by JobKorea through the bank’s foreigner-exclusive platform, Woori WON Global. The customized mobile banking service enables foreign customers to conveniently access financial services such as account inquiries, transfers and international remittances in 17 languages, as well as essential daily life services, including departure maturity insurance services. “We hope this new service will assist our foreign customers in overcoming language barriers and limited access to job information,” a Woori Bank official said. “As the number of foreign residents in Korea has exceeded 2.65 million and continues to rise, we are committed to offering not just financial services but also a range of tailored services

Mar 26, 2025By Jun Ji-hye
Woori Bank to help foreigners find jobs in Korea

IBK head apologizes for $60.2 mil. in improper loans

Industrial Bank of Korea (IBK) CEO Kim Sung-tae issued an apology Wednesday and announced a comprehensive reform plan in response to the Financial Supervisory Service's (FSS) findings on improper lending practices totaling 88.2 billion won ($60.2 million). "I extend my sincere apologies to our customers and the public who may have been disappointed by this incident," Kim said. "We will take the FSS audit findings as an opportunity for serious reflection and will make every effort to restore trust." Kim delivered the apology during a meeting at IBK's headquarters attended by all senior executives of the bank, following the FSS announcement on Tuesday. The investigation revealed that a retiree with 14 years of work experience at IBK engaged in real estate development and colluded with 28 IBK employees. These included his spouse, who still works at the bank, colleagues and business associates. Between June 2017 and July 2024, the retiree submitted falsified loan documents, with IBK employees either conspiring with him or turning a blind eye to the misconduct. With additional minor cases inc

Mar 26, 2025By Lee Yeon-woo
IBK head apologizes for $60.2 mil. in improper loans

Watchdog chief urges MBK Partners to share 'pain' over Homeplus fiasco

The chief of the country's financial watchdog called on private equity firm MBK Partners Ltd. to be more responsible for the recent Homeplus fiasco Wednesday. Since last week, the Financial Supervisory Service (FSS) has been inspecting MBK Partners to look into whether there have been any flaws in the process of the private equity fund-controlled retailer's short-term debt sale and its filing for court rehabilitation. On March 4, Homeplus entered court-led rehabilitation proceedings after two rating appraisers lowered the rating of its corporate bonds to A3- from A3, citing the company's lack of efforts to improve its financial health. The company issued asset-backed short-term bonds (ABSTBs) worth 82 billion won (US$56.3 million) through Shinyoung Securities on Feb. 25, despite being notified by a credit rating agency on the same day that its rating was likely to decline. In a radio interview, Lee Bok-hyun, the head of the FSS, raised questions over Homeplus's recent plan to pay off some 400 billion won worth of ABSTBs. "We can't believe MBK's plan, and I think they are cheating us," Lee

Mar 26, 2025By yonhap
Watchdog chief urges MBK Partners to share 'pain' over Homeplus fiasco

Banks rush to introduce collaborative accounts with popular companies

Four major commercial banks — KB, Shinhan, Hana and Woori — are partnering with leading companies in the commerce sector to encourage more customers to open bank accounts, industry officials said Tuesday. The target audience consists of millennials and Gen Zers, known as brand-conscious consumers with a significant influence on corporate marketing strategies. The banks' strategies focus on offering accounts branded with a partner company's name, providing account holders with various financial benefits when they use the partner company's products and services. In April, KB Kookmin Bank plans to launch the tentatively named "Starbucks Account" in collaboration with Starbucks Korea, the country’s leading coffee franchise. While the country’s largest lender did not specify the benefits to be offered, industry officials speculate that they may include an unusually high deposit interest rate. “The KB Kookmin Bank-Starbucks Korea partnership can appeal to millennials and Gen Zers considering each company is the top brand from their respective industry,” a market observer said. Both S

Mar 25, 2025By Yi Whan-woo
Banks rush to introduce collaborative accounts with popular companies

Hana Financial chairman kicks off 2nd term with overwhelming shareholder support

Hana Financial Group Chairman Ham Young-joo secured a second term with an overwhelming shareholder support rate of 81.2 percent, thanks to its largest shareholder, the National Pension Service (NPS), and most offshore investors, the group said Tuesday. His extended term will last through March 2028. Shareholders recognized the group’s record performance under his leadership, largely quashing growing criticism from proxy voting advisories. The term extension was widely expected, as indicated by nearly 44 percent of the over 281.6 million offshore voting shares cast during the early online voting commissioned by the Korea Securities Depository. This, along with the state pension fund’s stake of 26.5 million shares — accounting for about 9.4 percent — helped the chair secure the yes votes by a comfortable margin. The offshore investors’ collective move was a major shift from three years ago. In 2022, a majority of offshore investors opposed Ham's appointment. Driving the support is the group’s net income of over 3.7 trillion won in 2024, up 9 percent from a year earlier. The group

Mar 25, 2025By Lee Kyung-min
Hana Financial chairman kicks off 2nd term with overwhelming shareholder support

Nextrade gains popularity among office workers

Park Suk-jun, an office worker at an electronics company, says he is no longer tempted to trade stocks during work hours after Nextrade, the country’s first alternative stock exchange, launched on March 4. Nextrade operates from 8 a.m. to 8 p.m. on weekdays, longer than the trading hours of the Korea Exchange (KRX), the country’s main securities exchange operator, which runs from 9 a.m. to 3:30 p.m. “Thanks to Nextrade, I can sell and buy stocks even after I get off work at 6 p.m. and both the KOSPI and Kosdaq are closed,” Park said, referring to the two stock exchanges run by KRX. Park is among more than 14 million retail investors nationwide who have become the most active users of Nextrade. According to Nextrade, retail investors accounted for 98 percent of the transaction volume, which totaled 136.91 billion won ($93.1 million) in the first two weeks after its opening. “Many of these investors are daytime salaried workers who work in industries other than the securities sector, and therefore can’t freely trade stocks during working hours,” Jung Eui-jung, head of the Kore

Mar 25, 2025By Yi Whan-woo
Nextrade gains popularity among office workers

INTERVIEW Korea's digital assets integrated into regulated financial markets: crypto expert

Korea’s pilot program on corporate investments in cryptocurrencies is a strong signal that digital assets are becoming integrated into regulated financial markets, according to a U.S.-based crypto expert with a background in certified public accounting and law. By allowing institutional crypto trading and recognizing tokenized securities, the government is setting a precedent for broader adoption, John Matheson, co-founder and managing director at Asset Token Ventures said in a recent interview with The Korea Times. The U.S. Virgin Islands-based firm has introduced various real-world asset (RWA) tokens. Its flagship product is the mortgage-backed securities-oriented MBSToken. This provides security, transparency and stability in the cryptocurrency market, he said. “The Korean government's approach demonstrates that digital assets can coexist with traditional finance under clear regulations, providing a blueprint for other nations,” Matheson said. “It also indicates that crypto trading will become more mainstream, increasing institutional participation and investor confidence.”

Mar 25, 2025By Lee Kyung-min
[INTERVIEW] Korea's digital assets integrated into regulated financial markets: crypto expert
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