[HERALD INTERVIEW] ‘Era of free banking is over’: Citibank

Brendan Carney, head of consumer banking at Citibank Korea, speaks during an interview with The Korea Herald at his office in central Seoul on Dec. 27. (Yoon Byung-chan/The Korea Herald)As banking becomes more mobile and branchless, it is also to bring a change in the way people perceive traditional banking services, and Citibank has introduced a new maintenance fee system to encourage consumers to adopt faster to the new trend, according to Brendan Carney, head of consumer banking of Citibank K

Jan. 8, 2017

Financial institutions promote education for the young

Financial institutions in South Korea are moving to reinforce education for the young.The Financial Supervisory Service last week launched an online board game service to encourage children’s financial education. The FSS developed the board game last February, and this time, offered the game’s PC version in the hope of reaching out to a wider range of students.The game, “Exciting Financial Journey,” is aimed at students in elementary and middle school. There are several options available accordi

Jan. 8, 2017

Digital bank seeks gov't approval for service

A consortium led by Kakao Corp. on Friday applied for the government's approval for its plan to establish an Internet-only bank.Kakao Bank submitted the application to the Financial Services Commission to start business. If approved, it would become the nation's second full-time digital bank after K-Bank led by KT Corp.The envisioned lender to be headquartered in Pangyo, Gyeonggi Province, has nine shareholders including Kakao Corp., the operator of the mobile chat app Kakao Talk, and KB Kookmin

Jan. 6, 2017

ETN market growing but improvement in quality needed

South Korea's exchange traded notes market grew sharply in size in 2016, but it still leaves much to be desired "in quality," the nation's stock market operator said Friday.The market size has grown to 3.4 trillion won ($2.8 billion) from 1.9 trillion won in 2015 in terms of total asset issuance, as the number of listed products jumped to 132 from 78, according to the Korea Exchange.  A image of the exchange-traded note market in an undated file photo (Yonhap)The daily average turnover rose 85 p

Jan. 6, 2017

Barings names new CEO of Korean unit

Barings said Friday it has named its Korean unit’s sales head Bae In-su the new CEO of the company.Bae replaces former CEO Kwharg Thae-surn, who retired at the end of December.Before joining Barings’ Korean unit in 2011, Bae worked at Hanwha Securities and AB Asset Management. Bae has a Master of Business Administration from the Columbia Business School of Columbia University in New York.Assets under the management of Barings’ Korean unit exceeded 10 trillion won ($8.42 billion) as of December,

Jan. 6, 2017

Banks strive to make branches more customer-friendly

Kim So-yul, a resident in Yongsan district, central Seoul, drops by a cafe for a cup of coffee, but the forty-something woman has another thing to do while there -- use banking services.While waiting her turn at the bank, she orders an Americano and browses the Internet on her smartphone while sitting in a soft, cushioned chair in the cafe just next to the bank branch run by Woori Bank. Sometimes, she even meets her friends at the cafe-style bank branch. Woori Bank's cafe branch in Yongsan-gu, c

Jan. 6, 2017

Shinhan Financial Group to select chairman soon

South Korea’s largest financial institution Shinhan Financial Group said it has begun the process for selecting the next chairman of the group.The term of current Chairman and CEO Han Dong-woo is to expire in March when the group is to hold its regular general shareholders meeting.Shinhan’s corporate governance and CEO recommendation committee held a meeting Wednesday and reviewed candidates, the financial company said in a statement.After narrowing down the candidates, the committee plans to re

Jan. 5, 2017

ETF net asset value tops W25t

South Korea's exchange traded fund market expanded sharply in 2016, with the total net asset value surpassing 25 trillion won ($21 billion) for the first time, the country's bourse operator said Thursday.The Korea Exchange said the nation's ETF market achieved growth in both size and quality last year. An image of exchange traded funds. (Yonhap)The net asset value of local ETFs amounted to 25.1 trillion won in 2016, up 16.1 percent from a year earlier. Sixty-six new products were introduced duri

Jan. 5, 2017

Seoul stocks edge down on sell-off by institutional investors

South Korean stocks fell slightly Thursday as institutional investors remained net sellers. The Korean won jumped against the dollar. The benchmark Korea Composite Stock Price Index shed 3.69 points, or 0.18 percent, to close at 2,041.95. Trade volume was moderate at 525 million shares worth 3.99 trillion won ($3.36 billion), with gainers outnumbering losers 504 to 290.The local stock market opened slightly higher, tracking overnight gains on Wall Street. But, the main stock index traded in a ti

Jan. 5, 2017

Financial watchdog vows support for smaller exporters against currency risks

The chief of South Korea's state financial watchdog said Thursday he will explore ways to support smaller exporters, as they are susceptible to uncertainty over foreign exchange rates.Zhin Woong-seob, governor of the Financial Supervisory Service, delivered the message during a visit to an aluminum product exporting company based in Incheon, just west of Seoul. He pointed out potential trouble stemming from increased volatility in the foreign exchange market. Zhin Woong-seob, governor of the Fin

Jan. 5, 2017

Seoul's FDI hits all-time high last year

Foreign direct investment in Seoul hit a new record high last year, helped by the capital city's aggressive efforts to attract investment from abroad, a city official said Thursday. As of the end of last year, the FDI amount that arrived in Seoul reached US$9.55 billion, up 12.1 percent from the previous record of $8.52 billion in 2014, Suh Deung-rok, the head of the city's economic promotion headquarters, said. The figure accounted for 45 percent of $21.3 billion in total FDI that came into the

Jan. 5, 2017

KOSPI-listed firms' net profits top W100t in 2016

South Korean companies listed on the country's main KOSPI market are estimated to have reaped a record net profit of more than 100 trillion won ($84 billion) in 2016, market analysts said Thursday.But it was mainly attributable to cost-cutting and other belt-tightening measures rather than a sharp increase in sales, they pointed out.An image of South Korea's financial and industrial markets (Yonhap)NH Investment & Securities Co. said the combined operating profits and net profits of the KOSPI-li

Jan. 5, 2017

'Woori Bank to pick new CEO from within’

Recently privatized Woori Bank will select a new CEO among candidates of current or former executives at the bank or subsidiaries under Woori Financial Group, the bank’s new outside directors said Wednesday.Their decision came at a meeting of the board of directors earlier in the morning, said outside director Ro Sung-tae, who was appointed chairman of the boardroom the same day. Woori Bank‘s outside directors: (from left) Park Sang-yong, former chairman of the Public Fund Oversight Committee; R

Jan. 4, 2017

Samsung Electronics’ holding firm could merge with SDS: analyst

Samsung Electronics could consider a merger with Samsung SDS’ IT service unit after turning into a holding company system, a local securities brokerage said Wednesday.According to a report by Mirae Asset Daewoo, the country’s largest securities brokerage, Samsung’s newly established holding company might choose to incorporate with the IT service unit of Samsung SDS, an IT solution provider, to enhance its control over the entire group. Samsung Group and its owner family currently hold a combined

Jan. 4, 2017

Demand for bank loans expected to shrink in Q1

Demand for fresh loans from major local lenders in Korea is likely to shrink in the first quarter as the government strives to curb a surge in household debt, official data showed Wednesday.The overall index measuring demand for bank loans came to 11 for the January-March quarter, down from 21 a quarter earlier, the Bank of Korea  said in a statement.A reading above zero means bank lending will continue to increase, while a reading below the benchmark means demand will likely shrink.The quarterl

Jan. 4, 2017

Mirae Asset Daewoo to boost equity capital: group chief

Park Hyeon-joo, the founder and chairman of Mirae Asset Financial Group, said on Tuesday he is reviewing four or five options to boost equity capital of the group’s subsidiary Mirae Asset Daewoo Securities. Park Hyeon-joo, the founder and chairman of Mirae Asset Financial Group. (Yonhap)Park, dubbed Korea’s Warren Buffet, made a 2.4 trillion won ($2 billion) bet in acquiring what was then known as KDB Daewoo Securities early last year.Mirae Asset Daewoo’s equity capital is currently estimated at

Jan. 3, 2017

Augmented reality to feature in Hana Financial’s mobile app

Hana Financial Group has added augmented reality to its mobile application, in a first for the industry, it said Tuesday. Named “Hana Money GO,” the new mobile financial service has some elements similar to “Pokemon Go,” a global hit game equipped with the augmented reality technology.  (Hana Members)Users of Hana Members, a financial life app provided by the group, can experience the augmented reality technology by using the new service when they need to buy something. With the new function tur

Jan. 3, 2017

Korean stock market looks steadfast on first day

South Korea’s main equity barometer had a steadfast first trading day this year due to sell-offs by foreign and institutional investors Monday. The Kospi slightly rebounded to the 2,030 mark during the day with some rallies in large-cap shares after a brief fall in the morning. Market bellwether Samsung Electronics and large-caps like SK hynix, Hyundai Motor, Hyundai Mobis, Naver and SK Telecom showed rallies during the day’s trading. However, the index went downhill again due to falls in chemic

Jan. 2, 2017

South Korea has fastest growing government debt in G-20

South Korea’s government debt has grown at the fastest pace among Group of 20 major economies in recent five years, while the G-20’s combined government debt reached $57.28 trillion, international data showed Monday.According to data by the Bank for International Settlements based in Basel, Switzerland, Korea’s total credit to the government sector at market value surged 67 percent to $590 billion as of June 2016 from $354 billion at the end of 2011.(123rf)The combined government debt of the wor

Jan. 2, 2017

Banks cut nearly 3,000 jobs in 2016: data

Nearly 3,000 employees at local banks left the industry mainly due to layoffs in 2016 amid the challenging environment for profitability, industry data showed Monday.The banking industry’s move to cut jobs is expected to continue this year, as it faces new competition against financial technology companies and internet-only banks, observers say. (123rf)According to data from the Financial Supervisory Service, the number of employees at banks declined by 1,507 to 115,516 at the end of September c

Jan. 2, 2017