Loan rates drop to record low in June

[THE INVESTOR] The interest rate on residential property-backed loans dropped to a record low in June, Band of Korea data showed on July 28.According to the BOK, the average interest rate on residential property-backed loans dropped to 2.77 percent in June, lowest seen since the BOK began compiling related data in September 2001. The previous record low was 2.81 percent in April 2015.  (123rf)The average interest rate on all household loans dropped 0.1 percentage point from May to come in at 3.0

July 28, 2016

Mirae Asset Global Investments denies IPO plan for REITs unit

[THE INVESTOR] Mirae Asset Global Investments denied July 28 a report that the firm plans to take its real estate investment trust unit public next year on stock exchanges in the US and Singapore to raise multitrillion won funds to accelerate its property investment business. “We have long wished for setting up a real estate investment trust unit and its initial public offering. But we haven’t mapped out any plans,” an official at Mirae Asset Global Investments told The Investor. On July 28, a l

July 28, 2016

Samsung Securities to start trading Taiwanese stocks

[THE INVESTOR] Samsung Securities will launch a brokerage service on Taiwan-listed securities for institutional investors in a partnership with KGI Securities, the second-largest brokerage in Taiwan.According to Samsung Securities, the two companies signed a memorandum of understanding to cooperate on strengthening their brokerage businesses and expanding equity research coverage at KGI Securities’ headquarters in Taiwan on July 28.　“Samsung Securities will expand its footprint to the entire Asi

July 28, 2016

Korea's foreign VC investment fund breaks W1tr mark

[THE INVESTOR] Foreign VC Investment Fund has attracted more than 1 trillion won (US$881.87 million), the Small and Medium Business Administration announced on July 27.Foreign VC Investment Fund is fund operated by foreign venture firms that invests a set proportion in South Korean companies. The fund was first established in 2013, and about 930 billion won was gathered through 11 foreign venture capital firms. With four venture capital firms being added to the list in the first half of the year

July 27, 2016

Smaller hedge funds make headway in Korea

[THE INVESTOR] Smaller and new hedge funds are making headway in South Korea, rising to rival those operated by large financial companies. According to industry sources, Anda Asset Management has attracted 288.3 billion won (US$254.41 million) over the past year to become the country’s third largest hedge fund. Anda Asset Management now trails the industry’s second-largest player Mirae Asset Securities by 109 billion won. A year ago the gap was 248.5 billion won. Anda Asset Management founder Ke

July 27, 2016

UK fintech firm Anthemis to operate US$10m fund with Hanwha Life

[THE INVESTOR] Anthemis Group, one of UK’s leading fintech investment firm, has joined hands with Hanwha Life to operate a US$10 million (11.3 billion won) fund. Anthemis was founded in 2010. Its main area of expertise is investing in financial services companies, mainly those in retail banking and consumer finance, data technology and infrastructure, and wealth and asset management. Hanwha Life headquarters in Yeouido, Seoul.Hanwha currently manages up to 100 trillion won (US$ 87.88 billion) of

July 26, 2016

Foreign securities firms cut S. Korean operations

[THE INVESTOR] Foreign securities companies are reducing their South Korean operations as potential profitability falls. According to local financial industry sources, the number of executives at foreign securities firms’ local operations fell from 42 in 2011 to 22 by March this year. The number of employees also fell from 904 to 735 over the same period. The workforce cut, which had been focused on nonessential departments, has now spread to sales and others linked directly to business operatio

July 25, 2016

Korea’s Supreme Court dismisses suit filed by ex-KEB shareholders against Lone Star

[THE INVESTOR] A lawsuit filed by minority shareholders of KEB Hana Bank against Lone Star Funds was dismissed by South Korea’s highest court. A group of shareholders including a former lawmaker and bank union leader had filed a suit to cancel dividend payouts worth 280 billion won (US$244.97 million) made out to the US private equity fund. In 2011, Lone Star pocketed the dividends from its 51 percent stake in Korea Exchange Bank. The amount was decided at a shareholders meeting in March that ye

July 22, 2016

State-run banks to receive W1.4tr injection

[THE INVESTOR] The government will inject 1.4 trillion won (US$1.23 billion) into state-run banks closely involved in shipbuilding and shipping industries’ restructuring. According to the supplementary budget plans approved by the Cabinet on July 22, the Korea Development Bank will see injection of 400 billion won, and the Export-Import Bank of Korea will get 1 trillion won. The government estimates that state-run banks, including KEXIM and KDB, need to secure as much as 8 trillion won for the o

July 22, 2016

Hanwha Life targets Indonesian market for growth

[THE INVESTOR] Hanwha Life Insurance will invest 150 billion won ($131.77 million) into its Indonesian unit to strengthen its foothold in the fast-growing market, the firm said on July 21. To expand its life insurance business in Indonesia, the firm will commit 80 billion won into the sales channel to boost the number of branches to 44 by 2025 from the current 10. “The future of Korea’s insurance industry, which has reached a saturation point, depends on readiness to dominate the promising overs

July 21, 2016

Shinhan aims to transform into major investment bank

[THE INVESTOR] Shinhan Financial Group, a major South Korean banking group, has decided to increase capital by 500 billion won (US$439.63 million) through rights issue in a bid to morph into an investment bank, the group said on July 21. With the proposed capital increase the firm’s equity capital will reach over 3 trillion won, the minimum threshold level to meet the government’s requirement to receive official permits to conduct a full-range of investment banking activities. From 2013, the nat

July 21, 2016