Economy - The Korea Times

Korea Eximbank to extend $103 bil. export financing amid growing trade uncertainty

The Export-Import Bank of Korea (Korea Eximbank) Chairman and CEO Hwang Ki-yeon pledged on Wednesday to mobilize the bank’s full policy capacity to help small and mid-sized enterprises (SMEs) weather mounting global trade uncertainties, aided by a financial support package that will revitalize exports, bolster regional economies and secure Korea’s strategic industries. Marking his 100th day in office, Hwang held a press conference at the Korea Federation of Banks building in central Seoul to outline policy goals to overcome what he described as a “trade crisis” and to foster a healthy industrial ecosystem where not only large conglomerates but SMEs are able to seek support. Central to the drive is a strengthened policy package for exporters worth 150 trillion won ($103 billion), designed to help firms struggling with heightened geopolitical tensions, supply chain disruptions and slowing global demand, as well as artificial intelligence (AI) transformation. “We will concentrate all of our policy capabilities on overcoming trade challenges, building a robust industrial ecosystem

Feb 11, 2026By Lee Kyung-min

Korea Eximbank to extend $103 bil. export financing amid growing trade uncertainty

Labor union blocks new IBK head from entering office over wages

Chang Min-young, the new Industrial Bank of Korea (IBK) head, remains blocked from entering the bank’s headquarters in Seoul amid disputes with the state-run lender’s union over unpaid overtime wages and demands that they be exempt from the government-imposed total wage cap system, market watchers said Tuesday. Authorities reportedly prefer paying the roughly 780 billion won ($580 million) in unpaid wages over time to ease the impact on IBK’s capital. However, the union has rejected this, claiming that installment payments only exacerbate what they consider “ongoing wage theft.” As for the wage cap, the Financial Services Commission is in a bind due to fairness concerns. The cap applies broadly to state-run institutions, so granting the IBK union’s labor demands could trigger opposition from other entities that have long complied with budget limits. According to the financial market, the IBK union has blocked Chang from entering bank headquarters for 19 days. Chang maintains that discussions with the government are underway and progress is being made in forming “a broad con

Feb 10, 2026By Lee Kyung-min

Labor union blocks new IBK head from entering office over wages

Bad loans at 4 major financial groups surge amid ‘inclusive finance’ drive

Bad loans at the country’s four largest financial groups have increased at record pace over the past year as a government-led push for “inclusive” and “productive” finance collides with an economic slowdown and weakening asset quality, according to industry officials Tuesday. Critics say the seemingly well-intentioned policy is amplifying credit risk in a weakening economy, long under strain due to years of sluggish postpandemic economy. With bad loans on the rise, financial groups’ profits could be undermined by growing credit risk management concerns. According to financial market data, KB Kookmin, Shinhan, Hana and Woori banks posted a combined net profit of nearly 14 trillion won ($10.4 billion) last year. This was the highest on record, with each lender earning more than 3 trillion won. However, as of the fourth quarter, precautionary loans at the four institutions surpassed 7.9 trillion won, up 11 percent from a year earlier and nearly 49 percent compared with 2021. Those loans are between one and three months late. Similarly, non-performing loans that are overdue by more

Feb 10, 2026By Lee Kyung-min

Bad loans at 4 major financial groups surge amid ‘inclusive finance’ drive

Bull market paves smoother path for brokerages to join W1 tril. club

An increasing number of brokerage houses are joining the so-called “1 trillion won club” with greater confidence than before, driven by an accelerated rally in the stock market that has subsequently boosted the companies’ profits, industry officials said Monday. In the brokerage sector, the club typically refers to companies that post more than 1 trillion won ($682.03 million) in yearly operating profit. The term now extends to the more demanding target of annual net income, with five companies — Mirae Asset Securities, Korea Investment Securities, Kiwoom Securities, NH Investment & Securities and Samsung Securities — so far having achieved both benchmarks. Mirae Asset Securities, one of the top-two companies, announced in its 2025 earnings report Monday that its operating profit totaled 1.91 trillion won and its net income 1.59 trillion won. Each figure set a record high, rising 72.2 percent and 61.2 percent, respectively, from the previous year. Korea Investment Securities, the other top-two company, has already secured entry into the club, with full-year earnings set to be an

Feb 10, 2026By Yi Whan-woo

Bull market paves smoother path for brokerages to join W1 tril. club

Financial groups’ record profits raise prospects for higher shareholder dividends

A retail investor using the moniker “Jingle all the way” wrote on an online forum that he is thrilled about the expected returns from financial holding companies after taking a calculated risk that their profits would grow despite the government’s tighter lending regulations. He also expected that these gains would be shared generously with shareholders in line with the government’s stronger emphasis on investor rights. “And I could not be happier about the record earnings from the financial holding companies last week,” the investor wrote. He was referring to the record cumulative net income of 17.95 trillion won ($12.26 billion) posted by the four major KOSPI-listed financial holding companies — KB, Shinhan, Hana and Woori — in 2025. The amount rose 9.4 percent from a year earlier, despite the financial authorities’ curbs on housing loans and other lending restrictions. Such regulations had raised speculation that loan interest income, a major revenue source for the holding companies’ banking affiliates, would decline. Interest income still increased 2.6 percent year

Feb 10, 2026By Yi Whan-woo

Financial groups’ record profits raise prospects for higher shareholder dividends

Retirement pension revision draws lukewarm response amid concerns over low returns

Ahn Soo-myung, who is in her 50s, said her retirement savings of more than 20 years should be spent and managed however she wants without any government intervention. “My retirement fund is mine, not public money for the government to manage,” she said. “It is my private property I have earned over many decades, and I don’t agree with the idea of using that in a fund that could be managed according to the government's policy goals rather than my individual choice.” She is among many Koreans expressing skepticism over the recent tripartite agreement between labor groups, management and the government to introduce a fund-type retirement pension where workers’ retirement savings are pooled into a single fund to be professionally managed. Supporters say it can improve returns in an aging society, while critics say it could limit individual control and expose retirement savings to losses. The major difference between the fund-type and the existing defined contribution plan is that the latter allows workers to individually choose investment products such as deposits, insurance and

Feb 9, 2026By Lee Kyung-min

Retirement pension revision draws lukewarm response amid concerns over low returns

Insurers' poor performance poses burden on financial groups

Korea’s major financial groups’ weak insurance subsidiaries dragged down profits last year, no longer functioning as the growth driver they once were, market watchers said Monday. The insurers’ investment income improved last year, but their profitability weakened as loss ratios rose. Regulatory shifts also led to revised projections reflecting lower expected future earnings, which translated to an increase in loss-making contracts and tax-related expenses. Sluggish new sales also played a role, compounded by little success in new products, with a continued bull equity market rally drawing more consumer funds away from insurance. According to financial market data, the insurance arms of the country’s four top financial groups saw profits fall last year, despite the holding firms' overall record profits. KB Financial Group's non-life insurer, KB Insurance, reported net profit of 778.2 billion won ($530 million) in 2025, down 5.3 percent from a year earlier. KB Life posted 244 billion won in net income, down 9.4 percent from the previous year. Shinhan Financial Group's life insurer

Feb 9, 2026By Lee Kyung-min

Insurers' poor performance poses burden on financial groups

Tightened lending leads to record profits for ‘Big 4’ financial groups

Korea’s top four financial groups posted a combined net profit of more than 18 trillion won ($12 billion) last year, aided paradoxically by aggressive government measures to curb household lending, market watchers said Friday. The record figure came after the banks raised lending rates through higher discretionary add-ons in line with policy guidance to rein in loan growth, while keeping deposit rates below 3 percent. This effectively charged more on loans and paid less on savings. Market conditions were favorable, notably due to a weak won relative to the U.S. dollar. However, the four firms recorded double-digit growth in non-interest income, driven by rising sales and management fees involving equity-related products amid the KOSPI rally. Also strong were foreign exchange derivatives trading and bancassurance businesses, in which banks sell insurance products through their branch networks or digital channels. According to financial market data, KB Financial recorded a net profit of over 5.8 trillion won last year, maintaining its position as the industry leader. Shinhan Financial fol

Feb 6, 2026By Lee Kyung-min

Tightened lending leads to record profits for ‘Big 4’ financial groups

Securities firms gain on banks in bullish stock market

Securities firms are increasingly outperforming banks and their holding companies in the finance industry, an unusual reversal in a sector long dominated by traditional banking, industry officials said Friday. Among the leading brokerages, Mirae Asset Securities surpassed Woori Financial Group — the holding company of flagship affiliate Woori Bank — in market capitalization, while Korea Investment & Securities outperformed NH NongHyup Bank in net income. As of Friday, Mirae Asset Securities’ market capitalization stood at 27.22 trillion won ($18.53 billion), ranking 27th on the benchmark KOSPI among 841 listed companies. It trails KB Financial Group, the country’s largest financial holding company with 55.66 trillion won (12th), Shinhan Financial Group at 45.44 trillion won (15th) and Hana Financial Group at 31.89 trillion won (22nd). Woori Financial Group, the smallest of the four bank groups, occupies 31st place with 23.82 trillion won. According to the Korea Exchange, it is the first time that a securities firm’s market capitalization has surpassed any of the top four financ

Feb 6, 2026By Yi Whan-woo

Securities firms gain on banks in bullish stock market

Upbit operator Dunamu donates $68,000 in bitcoin to support Korean Olympic athletes

Dunamu, operator of Korea’s largest crypto exchange Upbit, donated 100 million won ($68,000) in bitcoin to support Korean athletes at the 2026 Milan Cortina Olympics, the firm said Friday. The donation comes amid the growing role of digital assets in sports sponsorship. Dunamu said it made the donation to the Korean Sport & Olympic Committee to help boost morale for the national team and contribute to the long-term development of Korea’s winter sports. The donation was delivered Wednesday at 6 p.m. (local time) in Milan, one of the host cities for the upcoming Games. The donation ceremony was attended by Sunghoon of K-pop group ENHYPEN, a former figure skater who currently serves as a promotional ambassador for the committee. As part of its Olympic partnership, Dunamu plans to roll out a series of promotional campaigns during the Games from Friday to Feb. 22. These include sending messages of support to all 71 Korean athletes and hosting Olympic-themed events through the Upbit app. The donation follows Dunamu’s broader sponsorship agreement with the committee signed in October last y