Banking & Finance

Top proxy advisors demand greater oversight of Korea Zinc's board

Major domestic and international proxy advisory firms, as well as global sovereign wealth funds, called for stronger oversight of Korea Zinc’s current board ahead of Friday's regular shareholders’ meeting — widely seen as a pivotal moment in the prolonged management rights dispute, industry officials said Tuesday. They recommended supporting some or all director nominees proposed by the alliance of MBK Partners and Young Poong, which has been seeking to oust company Chairman Choi Yun-beom, while opposing those put forward by Choi. Norges Bank Investment Management, which oversees one of the world's largest sovereign wealth funds, Norway’s government pension fund, on Monday opposed all key proposals backed by Choi's side, including a proposal to cap the number of directors at 19. It also rejected all director nominees put forward by Choi. In contrast, it supported the shareholder proposal by the MBK alliance to appoint 17 directors and approved all 17 of its nominees. The two leading global proxy advisory firms — Institutional Shareholder Services (ISS) and Glass Lewis — both

Insurance firms' 2024 net rises 4.6% on investment returns

Insurance companies in Korea saw their combined net profit gain 4.6 percent from a year earlier in 2024 on the back of investment returns, data showed Tuesday. The combined net profit of 22 life insurers and 32 non-life insurance companies here came to 14.14 trillion won ($9.65 billion) last year, up from the previous year's 13.51 trillion won, according to the data from the Financial Supervisory Service. The on-year rise was attributed to an increase in investment returns, which offset a decline in the profitability of insurance-related business, according to the financial watchdog. Life insurance firms' net profit gained 7.1 percent on-year to 5.64 trillion won, with that of non-life insurers growing 3.1 percent to 8.51 trillion won. The companies' insurance premium income came to 241.05 trillion won last year, up 1.4 percent from a year earlier, the data showed. The insurance firms' return on assets stood at 1.13 percent at end-December, up 0.03 percentage point from a year earlier, with their return on equity increasing 1.08 percentage points to 9.12 percent. Their total assets stood a

How reward apps win over Korean boomers amid economic slump

A sharp, lively beep echoed through the home as Seo tapped her mobile screen. She was collecting digital points based on the number of steps she had taken the day — a new habit she picked up after long days out. The points she collects are converted into mobile coupons, which she can use at various stores, including cafes, bakeries and even cosmetic shops. "It has become my favorite pastime. As I walk more, I not only stay healthy, but I can also enjoy a free cup of coffee," said the 54-year-old kindergarten teacher based in Gwangju. "The amount is small, but it feels rewarding and helps me save money. I really like that." The growing trend — a blend of mobile applications and personal finance — allows users to accumulate small amounts of money through simple daily activities. Users can earn 100 won ($0.07) or even 1,000 won by completing tasks such as checking into their apps daily, tracking their steps or watching reward-based ads. With the growing importance of non-face-to-face financial services, the industry is promoting these features to boost monthly active users by encoura

Hanwha Life nurtures AI ecosystem in Vietnam

Hanwha Life continued its sponsorship of the Vietnam Informatics Olympiad, taking the lead in nurturing the next generation of experts and introducing an artificial intelligence (AI) track this year, company officials said Monday. This AI initiative goes beyond corporate social responsibility (CSR) as Hanwha Life aims to support the development of AI experts in Vietnam and drive sustainable innovation. The sixth Informatics Olympiad, sponsored by Hanwha Life, was held on Friday and Saturday at Vietnam-Korea University of Information and Communication Technology (VKU). As a premier IT competition, the Olympiad identifies and fosters outstanding students across Vietnam. The company has been sponsoring the event for two consecutive years, strengthening its commitment to regional technological advancement. This year, the competition garnered significant attention, with a record-breaking number of participants. The number of participating schools surged by 48.3 percent year-on-year to 525, while student participation increased by 19.5 percent, with 2,848 competitors — the largest turnout so f

Jeonbuk Bank signs Korea-Philippines deal on credit information sharing service

INTERVIEW US multifamily homes promising for Korean investors despite market uncertainty: Eldridge Acre Partners

Market uncertainty driven by the Donald Trump administration's tariff policies has stalled many investment markets. Yet, Warren Wachsberger, CEO of Eldridge Acre Partners, sees strong opportunities in the U.S. housing market, particularly in multifamily housing. "It's very much haves and have-nots. We've got a lot of short term cyclical issues in the U.S. — high interest rates, inflation, tariffs. That's causing problems, especially for developers," Wachsberger said. "But we'd like to capitalize on those problems. We see very good long-term structural trends." Wachsberger shared his insights in an exclusive interview with The Korea Times during a business trip to Korea, where he met with local partners. He represents Eldridge Acre Partners, a privately held real estate investment firm in U.S. with global investors. According to Wachsberger, the U.S. housing market is at a turning point due to a severe supply-demand imbalance. The housing shortage is estimated at nearly 2.5 million homes or more. Rising construction costs, combined with tighter financing, make it even more difficult to

Eximbank issues $627 mil. bond in Australian market

The Export-Import Bank of Korea (Eximbank) said Sunday it has issued a kangaroo bond worth 1 billion Australian dollars ($627 million). The issuance marks the largest-ever kangaroo bond offering by a Korean issuer, tying the record set by Eximbank last year. A kangaroo bond is a bond issued in the Australian market by non-Australian entities. The offering consists of AU$800 million in 5-year bonds and AU$200 million in 10-year bonds. The bank said it set a new record for the largest single-maturity issuance among Korean kangaroo bonds by making the 5-year tranche — where investor demand was most concentrated — the primary offering. With its 10-year tranche, the bank successfully met long-term demand from both domestic and international investors, reinforcing its position as a leading SSA issuer. SSA bonds refer to highly creditworthy debt issued by sovereigns, supranationals and agencies. The bank said it chose to raise funds in the Australian market as it continues to demonstrate robust investor demand supported by ample liquidity, even amid heightened uncertainties triggered by the

Financial stocks not attractive enough for foreigners despite revised Commercial Act

Major financial holding companies rarely attract new foreign investors on the stock market, despite the recent passage of a revision to the Commercial Act, which was anticipated to boost undervalued stocks. For years, these companies were grouped as undervalued stocks despite massive earnings driven by their banking affiliates’ interest incomes. The companies were often criticized for relying on “windfall profits” and faced pressure from financial authorities on sales policies. The regulatory pressure negatively affected investor sentiment. The interest income-reliant business portfolio also negatively affected investor sentiment, as diversifying portfolios was seen as crucial to survive in the rapidly evolving financial industry. Under the circumstance, the revised Commercial Act fueled speculation that financial stocks would gain traction, especially from large investors such as foreigners. Approved by the National Assembly on March 13, the amendment to the legislation expands corporate directors’ duty to shareholders and, therefore, enhances shareholders’ rights for returns. N

More than 70% of consumers willing to spend more on ESG goods

Seven out of 10 consumers are willing to pay extra for products made by firms that have excellent track records in environmental, social and corporate governance (ESG) practices, a survey showed Friday. The finding underscores the need for a continued green corporate drive, increasingly being revisited due to the second Donald Trump administration’s “America First” policy that deprioritizes diversity, equity and inclusion — a key part of the sustainable growth initiative that has dominated the world over the past decade. According to a survey jointly conducted by the Korea Economic Research Institute and Korea Research, 73 percent of respondents said they were willing to pay more for products made by companies that bolster environmental protection. About 70 percent said they would do the same for companies that fulfill corporate responsibilities. Respondents in the 50 to 60 age group were more willing to pay extra, compared to their peers in the 20 to 29 age group. More than a third —35 percent — said they would evaluate companies highly if they made significant corporate effo

National pension subscribers to pay more, receive more under first reform in 18 years

National pension subscribers will pay 13 percent of their monthly incomes, and receive 43 percent of their average monthly earnings after they retire, under a sweeping reform bill approved by the National Assembly, Thursday. The bill aims to achieve a goal of “pay more, receive more,” which came after years of debate concerning the country’s universal pension scheme that policymakers and other stakeholders hesitated to address due to its political sensitivity. Currently, each working individual contributes 9 percent of their monthly income as premium. Such contribution rate will be hiked to 13 percent. Rate hikes will be made for eight years beginning 2026, with an annual increase of half a percentage point. The income replacement rate, which determines the amount of pension a subscriber will take in proportion to their pre-retirement income on monthly average, will be raised from the current 40 percent to 43 percent in 2026. The pension reform is the first in 18 years, and marks the third major overhaul since the pension was formed in 1988. The pension scheme had faced growing call