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Kookmin leading industry through innovation

By Yoon Ja-young Staff reporter KB Kookmin Bank is unarguably the leading bank in the country. Its total asset stands at 273.8 trillion won ($265 billion), and it is serving 26.5 million customers through 1,195 branches nationwide, meaning more than half of all Koreans are its customers. KB has been at the top for the past decade despite turbulence in the market and successfully survived the global financial crisis thanks to thorough risk management. Its bank for international settlement (BIS) ratio, which measures the bank's financial health, stands at 13.85 percent, the highest in the country, and it delinquency ratio is a low 0.89 percent thanks to preemptive risk management. This stable financial and business structure has given the bank good credit ratings. Moody's recently raised its rating on the bank to "A1" from "A2," and S&P upgraded its outlook on the bank to stable from negative, rating it "A." Fitch, another global credit rating agency, rates KB at "A+." KB is the only bank in the country that is rated equal to the country's sovereign ratings by the th

Citibank pursues growth through differentiation

By Yoon Ja-young Staff reporter Citi was the first and is the largest foreign financial firm in Korea. Citi started business as the first foreign bank in Korea in 1967, when the country's per capita gross domestic product (GDP) was merely $142. Since then, Citi has accompanied the country in achieving economic and industrial growth. When Citi invested $2.73 billion to acquire KorAm bank in 2004, then Deputy Prime Minister of Finance Lee Hun-jai even said that the acquisition would provide more comfort and security to the country than the of one division of U.S. troops. More significantly, Citi has helped the country whenever it suffered financial difficulties; the oil crisis in the 1970s, the Asian financial crisis in 1997 and the global financial crisis in 2008. "There is a proverb: a friend in need is a friend indeed. Citibank was such a friend to Korea," former finance minister Kang Man-soo said in 2008. Citi injected $800 million to strengthen Citibank Korea's capital to the highest level in the industry. With 5.38 trillion won capital, Citi is currently the larg

Can G-20 fix world economy?

World leaders in desperate search for elusive global stability By Kim Tong-hyung Staff reporter South Korea, desperately craving global attention, has been engaging in a shopping spree for mega international events over the past two decades, and the next big exposure comes in November. However, descending on Seoul this time around wouldn't be star Olympians or millionaire footballers, but a less athletic group of men who nonetheless are equal as the planet's most powerful individuals, gathering over a task none other than to save the world. The Group of 20 leading economies has now replaced the narrower, Western-dominated G-8 as the primary global forum for economic policy. And the meeting in Seoul between the leaders of G-20 member countries will double as a deadline to produce an outcome that goes beyond diplomatic blather and provides a detailed set of measures to inject new life into the world economy, and fix global financing. The Nov. 11 to 12 meeting in Seoul, which will be the fifth summit following the fourth in Toronto next month, will also be an imp

Korea Deposit Insurance Corporation Chairman & ...

US, Japan face similar challenges with Europe

By Jim O'Neil Goldman Sachs chief global economist As we approach the Korea G-20, it seems clear that we are entering a new economic order. Many of the largest emerging nations, especially the so-called BRICs , are showing signs of very strong cyclical recovery from the crisis, while at the same time, many of the Western economies are struggling to maintain sustainable recoveries without the involvement of substantial government actions. It is a good job that the G-20 has come into existence in this regard, and it is important that this meeting is taking place. It is important that G-20 members, which after all make up the majority of the world's economy get to not only understand each other better, but interact between their economies. On a truly global basis, for example, thinking about all of these economies together, the world is actually recovering from the crisis well. We forecast world GDP growth close to 5 percent for the next two years, quite optimistic. The consensus is somewhat less excited but nonetheless is forecasting a robust 4.3 to 4.4 percent. Of cour

Models showcase LG Electronics’ new mobile phones ...

A French chef presents a variety of aperitifs and dishes ...

SC serves Korean firms abroad

By Kim Jae-won Staff reporter Standard Chartered (SC) has grown exponentially over the last five years since the U.K.-based banking group acquired Korea First Bank in September 2005. Now it plans to reach out to more customers with its international network and localization strategy. Standard Chartered Korea continues to show growth, posting net income of 111.4 billion won in the first quarter of 2010 with net assets of 4.8 trillion won. Standard Chartered First Bank (SC First Bank), a major subsidiary of Standard Chartered Korea, showed a solid underlying performance with net income growing 15 percent year-on-year. Richard Hill, President and CEO of Standard Chartered Korea and SC First Bank, said "In a global economic environment, which remains unpredictable, Standard Chartered Korea and its subsidiaries continue to deliver a solid performance and remain well positioned to achieve our longer term strategic objectives in Korea." The bank aims to provide best services for customers leveraging the bank's global network as a bridge between local corporations and overseas

KOFIA to improve finance industry

By Kim Jae-won Staff reporter The Korea Financial Investment Association (KOFIA) seeks to enforce international competitiveness of the local financial investment industry by expanding the customer base of the capital market. To achieve this goal, the organization plans to establish a self-regulatory system focused on enhanced risk management and investor protection. KOFIA is a non-profit organization founded in February 2009 under the Financial Investment Services and Capital Market Act, whose main functions are ensuring fair business practice among members, the fair trading of securities, and investor protection. All securities, asset management, and futures firms in Korea are members of the organization and are subject to its self-regulatory operations. KOFIA is also a think-tank for the financial investment industry, dedicating its efforts to take a leading role in promoting the development and globalization of local capital market. Korea's Financial Investment Services and Capital Market Act was enacted to advance the Korean financial market by improving the com

Exim takes lead in job creation

By Kim Jae-won Staff reporter The Export-Import Bank of Korea (Korea Eximbank) has stepped up efforts to expand the scope of its role as a policy lender by actively participating in the government-initiated job creation campaign to bolster the Korean economy. Now, the state-run lender is offering incentives for companies hiring more employees by reducing annual interest for loans up to 0.7 percentage point for those adding 3 percent more workforce a year to their payrolls. It has also enhanced support for IT industry and culture-related businesses, which create many jobs for the youths. The lender has given additional interest of up to 0.2 percentage points for them. It expects to create 3,000 more jobs with these projects. Kim Dong-soo, chairman and CEO of the lender leads the projects. "A top priority for 2010 is increasing employment opportunities in Korea as the unemployment rate has yet to improve despite recent signs of national economic recovery," Kim said at the lender's 2009 annual report. "As such, the bank has set "Developing Growth Engines for Job Creati