The Korea Herald

IBK to expand investment in fintech

Industrial Bank of Korea CEO Kwon Seon-joo on Tuesday said the bank would provide increased support for local fintech startups and upgrade its mobile banking applications to offer total solution financing next year.IBK will select financial technology companies through meticulous screening to offer them wider support, starting with the initial research phase, Kwon said during a news conference celebrating the first anniversary of her inauguration. “The banking industry has faced many hurdles, in

Dec. 23, 2014

KB Kookmin’s Gold & Wise offers smart private banking

KB Kookmin Bank’s Gold & Wise private banking center in Seocho-dong, southern Seoul (KB Kookmin Bank)Private bankingGold & Wise (KB)KB Kookmin Bank launched Gold & Wise in 2002 as its private banking brand in a bid to provide customers with a smarter, more effective way of managing their assets. What best differentiates KB Kookmin is its exclusive private banking products, which are created based on the investment guidelines offered by KB Financial Group’s asset strategy commission. Managers of

Dec. 23, 2014

KB Kookmin’s Gold & Wise offers smart private banking

Seoul shares down on strong foreign selling

South Korean stocks closed lower Tuesday as foreigners and retail investors continued to offload local equities on global economic uncertainty and fluctuating oil prices, analysts said. The local currency weakened against the greenback.The benchmark Korea Composite Stock Price Index (KOSPI) lost 4.1 points, or 0.21 percent, to 1,939.02. Trading volume was light at 295.2 million shares worth 3.26 trillion won (US$2.97 billion), with gainers beating decliners 407 to 387. Foreigners remained net se

Dec. 23, 2014

S. Korea to issue 102.7 tln won in state bonds in 2015

South Korea will issue 102.7 trillion won (US$93.1 billion) worth of state bonds in 2015 to finance its expansionary spending plans aimed at economic recovery, the finance ministry said Tuesday.The ministry said it will issue 8-9 trillion won worth of Treasurys every month in the new year. Some 20-30 percent of state bonds will be issued with a maturity of three years, with five-year bonds and 10-year bonds to make up 20-30 percent and 25-35 percent of the total, it said. The government will als

Dec. 23, 2014

S. Korea's corporate bill default rate dips to 1-year low

The default rate of corporate bills in South Korea dropped to the lowest level in a year as the number of failures by cash-strapped firms declined in the metropolitan area, central bank data showed Tuesday.The default rate of corporate bills -- bonds, checks and promissory notes -- reached 0.12 percent last month, down from 0.19 percent in October, according to the Bank of Korea (BOK). The figure is on par with 0.12 percent logged in November 2013.The central bank credited the on-month decline t

Dec. 23, 2014

Listed firms’ debt ratio down in first 9 months

South Korean listed firms’ debt ratio fell in the first nine months of this year as their current assets grew faster than liabilities, data showed Monday. The average debt ratio for 609 of 700 companies listed on the Seoul main bourse came to 78.18 percent at the end of September, down 1.87 percentage points from the end of last year, according to the data compiled by the Korea Exchange.The debt ratio measures a firm’s total debt to its total assets, representing a company’s level of financial r

Dec. 22, 2014

Pension fund to pocket nearly W1tr in dividends

South Korea’s national pension fund is expected to receive at least 930 billion won ($847 million) in dividends this year from companies that it invests in, some of which are planning to jack up dividend payouts for the year, data showed on Monday.According to financial information provider FnGuide, the National Pension Service will pocket dividends from 274 companies in which it holds a stake of more than 5 percent.Samsung Electronics Co., the country’s top market cap, is expected to deliver up

Dec. 22, 2014

NongHyup to focus on asset management

NongHyup Financial Group, the nation’s fourth-largest financial holding company by assets, has vowed to focus on asset management as its new growth engine. As part of these efforts, the group’s chairman Yim Jong-yong said it would promote NongHyup CA Asset Management as a core unit, which could also merge with other entities to gain a sharper edge in the industry. Yim also said the group would strategically place more people in the asset management arm, particularly in sectors such as research a

Dec. 22, 2014

S. Korea's pension fund to pocket nearly 1tln won in dividends this year

South Korea's national pension fund is expected to receive at least 930 billion won (US$847 million) in dividends this year from companies that it invests in, some of which are planning to jack up dividend payouts for the year, data showed on Monday.According to financial information provider FnGuide, the National Pension Service (NPS) will pocket dividends from 274 companies in which it holds a stake of more than 5 percent.Samsung Electronics Co., the country's top market cap, is expected to de

Dec. 22, 2014

Financial regulator to soften regulation on fintech

The South Korean chief financial regulator said Sunday that he will remove hurdles to the fast-growing financial technology (fintech) and fully support the sector to refresh the country's long-sluggish financial industry."I will change the paradigm of regulation on fintech," Financial Services Commission (FSC) Chairman Shin Je-yoon said to a group of reporters. "I will minimize pre-registering requirements, and at the same time clarify liability and maximize consumer protection and information s

Dec. 21, 2014

Seoul shares up 1.71% as Samsung shines

South Korean stocks closed 1.71 percent higher Friday, snapping a four-session slump as Samsung Group affiliate shares rallied, analysts said. The local currency slipped against the U.S. dollar.The benchmark Korea Composite Stock Price Index soared 32.48 points to 1,929.98. Trading volume was moderate at 261.4 million shares worth 4.2 trillion won ($3.8 billion).“Given that external circumstances have not changed much, it seems that there was a Cheil Industries effect, with other Samsung shares

Dec. 19, 2014

Korean financial market relatively unaffected by Russian risk

South Korea’s financial market has been relatively insulated from global financial instability originating in Russia compared to other emerging countries, market data showed Thursday.The benchmark KOSPI dropped 3.9 percent in the first 16 days of December, placing South Korea 11th among 35 major economies in terms of decline in stock price indices, according to the data.Russia’s stock market nosedived 37.2 percent over the cited period, as a sharp drop in oil prices coupled with crippling Wester

Dec. 18, 2014

Woori Bank forges close ties with local communities

Woori Bank employees deliver coal briquettes for fuel to low-income families in Nowon-gu, Seoul, last December. (Woori Bank)Woori Bank is forging closer partnerships with local community centers to more actively engage in corporate social responsibility activities, the bank said Thursday. The company said that through these partnerships it was stepping up its social responsibility campaigns to share its benefits with more regional communities under the mission of pursuing humanity, happiness and

Dec. 18, 2014

Woori Bank forges close ties with local communities

Eximbank teams up with Australian export credit agency

The export credit agencies of South Korea and Australia recently signed a deal to reinforce their partnership and to support the overseas expansion of their countries’ companies. The Export-Import Bank of Korea said Wednesday that it had signed a memorandum of understanding with Australia’s Export Finance and Insurance Corporation outlining an agreement to exchange information concerning the overseas expansion of the small- and medium-sized companies in the two countries.“We will be able to shar

Dec. 18, 2014

Eximbank teams up with Australian export credit agency

S. Korean financial market relatively unaffected by Russian risk

South Korea's financial market has been relatively insulated from global financial instability originating in Russia compared to other emerging countries, market data showed Thursday. The benchmark KOSPI dropped 3.9 percent in the first 16 days of December, placing South Korea 11th among 35 major economies in terms of decline in stock price indices, according to the data. Russia's stock market nosedived 37.2 percent over the cited period, as a sharp drop in oil prices coupled with crippling W

Dec. 18, 2014

KB Financial poised to reshuffle execs

KB Financial Group chairman and Kookmin Bank CEO Yoon Jong-gyoo is expected to carry out a major reshuffle prior to the financial regulator’s approval of the group’s LIG acquisition, industry sources saidThe upcoming shake-up is mainly focused on executives involved in an internal power struggle that took place earlier this month. Several KB officials were penalized by the financial watchdog for a dispute over changing the computing system of the group’s flagship unit, Kookmin Bank.Industry watc

Dec. 16, 2014

Data leaks top financial news in 2014

The Financial Consumer Agency, a leading local financial civic group, said massive customer information leaks from major credit card companies, involving over 100 million units of personal information, was the top financial news topic of the year. “This served as momentum to promote the public’s awareness of financial security, but the compensation system for victims has shown little improvement,” the agency said.The top 10 financial news topics of 2014 ranged from the massive customer informati

Dec. 16, 2014

Banks aim to cut household loan growth next year

South Korean lenders are expected to lower their household loan targets for next year as growing household debt is feared to heighten credit risks, industry sources said Tuesday. Nonghyup Bank, which saw household debt grow 6.9 percent in the first 11 months of the year, set its target for next year at 3.3 percent amid views that household debt growth will slow in 2015 amid a sagging property market and slowing economic growth. Demand for household loans has been climbing in Asia's fourth-la

Dec. 16, 2014

[Graphic News] Bank loans per person continue to rise

The number of debtors and their loan balances from local banks are projected to hit record highs this year amid rising household debt, industry data indicated Monday.Some 10.5 million people took out loans from commercial banks as of the end of June, data showed, totaling 487.7 trillion won ($442.6 billion). The figure peaked at 10.45 million people in 2012 and dipped to 10.44 million in 2013.The loan total translates to individual debtors owing 46.41 million won each on average.Market watchers

Dec. 15, 2014

[Graphic News] Bank loans per person continue to rise

Korean won rises to fresh 2-week high against U.S. dollar

The South Korean won suffered a choppy session on Monday before advancing against the U.S. dollar.The local currency finished at 1,099.10 per dollar, up 4.0 won from the previous session’s close, moving in lockstep with the yen’s rise against the greenback. The closing price marks the highest since Nov. 27 when the comparable figure was 1,098.40 won.Japan’s Prime Minister Shinzo Abe won a landslide victory in a weekend election, which means that the Abe government may push for further monetary e

Dec. 15, 2014