NongHyup Bank enters Indian market

[THE INVESTOR] NongHyup Bank’s overseas expansion has gained momentum with the launch of its representative office in India on June 29, a spokesperson of the agricultural bank said.The office is located in the nation’s capital, New Delhi. It marks the lender’s fourth overseas office, following New York, Beijing and Hanoi. NongHyup has been eyeing the growing Indian market since 2011 when it sent an employee to India to study the market. The spokesperson revealed that the bank plans expand its bu

June 29, 2016

Korean gov’t to ease regulations on insurers

[THE INVESTOR] Limitations on insurance companies’ investments will be lifted in a bid to help insurers improve finances. The Financial Services Commission said on June 27 that a number of revisions to related laws will be made, and submitted to the National Assembly around September. As part of the measures, the ceiling on overseas real estate and foreign currency insurance companies can hold will be removed. In addition, the limit on bonds, shares and derivatives issued by a single entity will

June 27, 2016

Won-yuan direct trading market in China to be launched next week

[THE INVESTOR] The Chinese market for direct trading of the South Korean won and Chinese yuan will be launched next week, the South Korean Finance Minister said on June 24.The won-yuan direct trading market will begin operations in Shanghai on June 27. The state-run Chinese Foreign Exchange Trading System will take charge of the management. “South Korea and China are important trade partners,” Finance Minister Yoo Il-ho said in an official opening ceremony held in Beijing. “The newly launched cu

June 24, 2016

Woori Bank needs to sharply increase provisions to retain top rating

[THE INVESTOR] Woori Bank needs to set aside loan-loss provisions of 700 billion won (US$ 594 million) to maintain its credit rating of AAA, credit rating agencies said on June 24. Woori Bank’s BIS capital adequacy ratio declined to 13.5 percent as of the end of the first quarter, the lowest level among commercial banks. Due to its exposure to debt-laden shipping and shipbuilding companies, the ratio has been plunged from 15.5 percent to 13.7 percent during two years between 2013 and 2015. Accor

June 24, 2016

KB Financial Group benchmarks BoA-Merrill Lynch merger

[THE INVESTOR] KB Financial Group, Korea’s leading banking group, seeks to set up a universal banking system to provide a wide variety of financial services from insurance to investment services, the firm said on June 23.After acquiring Hyundai Securities in April, the operator of KB Kookmin Bank plans to diversify its business portfolio to depart from its role of offering traditional financial products such as deposits and installment savings. Wealth management business and commercial investmen

June 23, 2016

Credit card spending jumps 22.3% in May

[THE INVESTOR] South Korea’s credit card spending rose more than 22 percent from a year earlier in May, data from the Credit Finance Association showed on June 23.Overall credit card purchases came to 63.2 trillion won (US$54.8 billion) last month, up 22.3 percent from the same month last year. The on-year rise marks a significant acceleration from a 7.1 percent on-year gain posted in May 2015.Such an increase was partly attributed to a surge in the amount of tax payments made with credit cards,

June 23, 2016

Moody‘s maintains A1 rating for Kyobo Life

[THE INVESTOR] Moody’s Investors Service has assigned the insurance financial strength rating of Kyobo Life Insurance, Korea’s third-largest life insurer by assets, to A1 for the second year in a row, the firm said on June 21. The rating outlook is stable.Last year, the ratings agency upgraded Kyobo Life Insurance’s rating from A2 to A1 for the insurer’s improvement in profitability and financial stability. Kyobo is the first Korean insurance firm that received the A1 rating from Moody’s. Big na

June 21, 2016

Foreign banks' Korean exodus: Banco Santander to exit from Korea

[THE INVESTOR] Spanish lender Banco Santander will shut its Korean operations after seven years, joining foreign banks’ exodus from Korean market in a bid to slash costs through global restructuring, a source said on June 21.The eurozone’s largest bank by market value will close its office in Seoul before the end of the year and some of its employees will be dispatched to Hong Kong.Launched in 2009, the Seoul office has been serving as a liaison between Korean corporates and official institution

June 21, 2016

Bad loans may put insurance firms at risk

[THE INVESTOR] Korean insurance companies’ financial status and profitability may take a blow following the industry-wide restructuring of shipbuilding and shipping sectors as corporate debts extended by insurers are on the rise, according to a local think tank’s report. “The size of corporate liabilities extended by insurance companies is only one-twelfth of banks’ lending but credit risks that they are taking can be relatively bigger,” said Jeon Yong-sik, a researcher at Korea Insurance Resear

June 20, 2016

Stocks, bonds offer investment options amid low interest rates

[THE INVESTOR] With the central bank slashing its benchmark interest rate to a historic low of 1.25 percent, putting money in bank accounts will not increase people’s income, as bank deposit rates will drop in line with the key base rate.Experts recommend reallocating funds in bank deposits to other assets that offer higher yields. Real estate may be an option, but not a lot of people can afford to invest in an apartment unless they borrow money from banks with low interest rates. Investing fund

June 17, 2016