NH Financial chairman stresses ‘chemistry’ in brokerage merger

NH Financial Group chairman Yim Jong-yong (front row, fourth from right) poses with NH executives at a workshop held at its headquarters in Seoul on Friday. (NH Financial Group)Developing a new corporate culture in which people can share value and growth is the key to a successful merger between NH Financial’s brokerage units of NongHyup Investment & Securities and Woori Investment & Securities, said NH chairman Yim Jong-yong.“A successful merger between the two brokerages depends on having chem

Sept. 22, 2014

KB, Woori last to stick to IBM mainframes

As most commercial banks here have undergone the transition from the conventional IBM-monopolized mainframe system to a Unix-based system, KB Kookmin Bank has now become one of the few remaining banks batting against the change. Once the state-run Industrial Bank of Korea completes its system replacement early next month, only KB and Woori Bank will be left using IBM.IBK recently announced that it would temporarily halt operations for three days early next month as it installs its new Unix-based

Sept. 22, 2014

Trade Ministry launches English SNS channels

The Ministry of Trade, Industry and Energy kicked off the English version of its social media service on Monday in a move reflecting its pledges to actively promote the government’s trade and economic policies.By using global social media channels such as Facebook, Twitter and Flickr, the ministry plans to offer frequent updates on the nation’s economic trends and policies to those at both home and abroad, according to officials.“Welcome! I hope our new English social network service pages help

Sept. 21, 2014

Hana Financial pushes for early merger in Oct.

Top management of Hana Financial Group decided to ask the Financial Services Commission for an approval to integrate with the Korea Exchange Bank in October, a Hana group chairman said on Thursday. “We have basically prioritized reaching an agreement with KEB’s labor union, but we will just push ahead with the merger if the unionists continue to refuse the idea,” Hana chairman Kim Jung-tae told reporters.The chairman added that the group may fast-track the application plan if it reaches a consen

Sept. 19, 2014

‘Korea can become successful yuan hub’

South Korea can become one of the world’s most successful hubs for the Chinese yuan, given its geographical proximity to China and the importance of their economic relations, said Martin Tricaud, president and CEO of HSBC in Korea.“The 19th century was the century of the sterling, the 20th century was the century of the dollar, the 21 century will be the century of the RMB,” Tricaud told the press, referring to renminbi, another name for the yuan.The London-based financial group’s aggressive pus

Sept. 18, 2014

[Herald Interview] ‘Pension service should take more risks’

The National Pension Service, South Korea’s pension fund manager, should stop playing safe by investing in low-yielding bonds, a notable Korean economist said.Instead, it should be a little more aggressive by seeking riskier assets overseas to secure “medium returns, if not high returns,” through investment diversification, he said. Otherwise, the country’s pension fund will soon run dry up for people who are depending on it after retirement.“It is time for the NPS to move on to investing in ass

Sept. 18, 2014

[Newsmaker] Defiant KB chief creates stir

KB Financial Group chairman Lim Young-rok has become known for two things: being the first financial group chairman to be slapped with a severe penalty and the first to defy the authorities’ sanction. Late Tuesday night, Lim filed an administrative suit against the Financial Services Commission to have the watchdog withdraw its three-month suspension order.“Through the legal procedure, I look forward to revealing the distorted truth (surrounding the banking unit’s computing system change) and th

Sept. 17, 2014

Prosecution raids KB over IT misconduct

Prosecutors on Tuesday raided KB Kookmin Bank’s computer center in Seoul over alleged irregularities in the bank’s introduction of a new computing system, according to KB officials Tuesday.Investigators seized documents and emails sent between IT department employees and KB Financial Group CIO Kim Jae-yeol, prosecutors said.“The seized emails will help us check conversations concerning the process of switching the bank’s mainframe system,” an investigator said.The raid came after the Financial S

Sept. 16, 2014

Economic slowdown caused by complex structural problems

South Korea’s current economic slowdown is not a “temporary” phenomenon affected by cyclical factors but by complicated structural problems, the finance minister said Tuesday, worrying that the economy might take the road of Japan’s lost decades “if we do not respond in a timely manner.” Meeting with foreign journalists to explain Seoul’s economic policy measures that his team has taken since mid-July, Finance Minister Choi Kyung-hwan reaffirmed that the government will implement expansionary ma

Sept. 16, 2014

BOK governor cautions against weakening yen

The chief of South Korea’s central bank on Tuesday raised worries that a weakening yen may hurt local exporters, reiterating the currency issue that he addressed earlier this month.BOK Gov. Lee Ju-yeol told lawmakers that additional easing by central banks in the European Union and Japan may add further pressure on the won-yen exchange rate, eroding the competitiveness of exporters.“Despite the weakening yen, there have not yet been many difficulties (for Korean firms). The weakening yen has boo

Sept. 16, 2014