Indonesian shareholder drops $1.5b charge against KB Kookmin over Bank Bukopin acquisition

Seoul-based KB Kookmin Bank has steered clear of litigation in controlling Indonesian subsidiary Bank Bukopin, as its minority shareholder in Indonesia dropped all charges against South Korea‘s largest commercial bank, a filing showed Tuesday. Bosowa Corporindo, which was holding a 11.6 percent stake in the Indonesian midsized bank, has reached an out-of-court settlement for the 20.8 trillion-Indonesian-rupiah ($1.5 billion) charges against the bank‘s new controlling shareholder an

June 8, 2021

Seoul stocks open slightly lower amid valuation pressure

South Korean stocks opened slightly lower Tuesday on increased valuation pressure after the key stock index closed at an all-time high the previous session. The benchmark Korea Composite Stock Price Index (Kospi) fell 3.08 points, or 0.09 percent, to reach 3,249.04 points as of 9:17 a.m. The Kospi got off to choppy start after it finished the previous session at a record high of 3,252.12 points. Stock prices fluctuated as investors take a wait-and-see mode, seeking more clues to fathom the ou

June 8, 2021

Kospi notches record high closing above 3,250

South Korea’s key stock index Kospi set an all-time record high at Monday’s closing, nearly a month after the benchmark logged the previous closing high, backed by institutions and retail investors’ net purchases. The benchmark advanced 0.37 percent to close at 3,252.12 points, breaking its previous record of 3,249.3 points from May 10. It started off at 3,244.59 points and got as high as 3,264.41 in the early morning trade. The index erased some earlier gains to trad

June 7, 2021

Jeonse price soars 44 percent since Moon’s presidency: data

Two-year apartment leases, known locally as jeonse, have jumped by some 44 percent in Seoul since the beginning of the current Moon Jae-in administration, data showed Monday. The average price of a two-year refundable lease on a high-rise apartment came in at 426.2 million won ($384,000) when the Moon administration began in May 2017, but the price had risen 44.2 percent to 614.5 million won as of last month. During the same period, the average jeonse price per square meter soared 43 percen

June 7, 2021

Seoul stocks close at fresh all-time high on eased tapering jitters

South Korea's stock market closed at an all-time high Monday as weaker-than-expected US jobs data helped ease concerns over the potential rollback of the country's expansive monetary policy. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 12.04 points, or 0.37 percent, to close at 3,252.12 points, marking the highest closing ever. Trading volume was high at about 1.7 billion shares worth some 18.8 trillion won ($16.9 billion), with lo

June 7, 2021

Mirae Asset pools W10tr for retirement schemes

South Korean asset management firm Mirae Asset Global Investments said Monday its assets under management for retirement schemes have surpassed the 10 trillion-won ($9 billion) mark for the first time among Korean peers. As of June 1, assets pooled for Mirae Asset’s retirement schemes came to a total of 10.1 trillion won. The asset management unit of Mirae Asset Group pooled nearly 2 trillion won during the first five months of 2021. Since 2011, the figure has jumped more than eightfold

June 7, 2021

Seoul stocks open higher on US jobs report

South Korean stocks opened higher Monday as investor sentiment was boosted by slower-than-expected US jobs data that partially eased concerns of early inflation. The benchmark Korea Composite Stock Price Index (KOSPI) rose 17.48 points, or 0.54 percent, to reach 3,257.56 points in the first 15 minutes of trading. The KOSPI got off to a bullish start as investors are relieved that the increase in US non-agricultural jobs in May turned out to be slower than the market consensus. The key stock i

June 7, 2021

[Herald Interview] AI for stock picking, and beyond

Every financial services company yearns for benefits from artificial intelligence, but oftentimes, the technology itself does not necessarily bring success. Amid the intensifying technology race, a local AI solution provider behind the actively-managed equity exchange-traded funds listed on the New York Stock Exchange is seeking to prove its effectiveness.  “AI-enhanced ETFs’ track record is a testament to the thesis that AI can be an efficient tool to the entire financial in

June 6, 2021

Concerns over real estate speculation rise in S. Korea

In recent years South Korea has seen a surge in real estate investment deals that were thought to be speculative, but some market watchers say the country still lacks effective measures to prevent property speculation and the resulting price hikes. Data compiled by the Ministry of Land, Infrastructure and Transport showed that foreign individuals owned 21.35 million square meters of land in the nation in 2020, up 78 percent from 11.99 million square meters in 2016. Separate data from real es

June 6, 2021

Financial workers, employers agree on paid vaccination leave

The Korean Financial Industry Union and the Finance Industry User Council have agreed that workers who get vaccinated for COVID-19 are entitled to up to three days of paid leave, officials said Sunday. Under the agreement, which will take effect Monday, employees of 22 financial institutions registered with the Korea Federation of Banks -- a body that represents commercial banks -- will receive two days off work, the day of the vaccination and the day after.  Those who show signs of ad

June 6, 2021

Virtual golf booms while crowded driving ranges suffer due to COVID-19

Despite the prolonged COVID-19 pandemic and social distancing rules in place, some indoor golf facilities featuring simulators and golf courses have been enjoying increased popularity, thanks largely to their relatively less crowded environments, a report said Sunday.  According to the report published by research firm KB Financial Group Research Institute, Golfzon, the nation’s leading virtual golf simulator company, saw its total sales increase more than 20 percent on-year in 202

June 6, 2021

Citibank Korea’s retail biz sell-off faces rocky road

Multiple financial companies have expressed interest in acquiring Citibank Korea’s retail business by submitting letters of intent, but they have taken a negative stance toward retaining all employees, the lender recently said. It has also put a complete pull-out of its retail business “in phases” as a viable option on the table as well, hinting that it would rather pursue an exit than carry out a subpar deal. In an email sent to reporters, Citibank Korea said its “e

June 4, 2021

Seoul stocks snap 5-day winning streak on profit-taking

South Korean stocks snapped a five-day winning streak Friday, as investors took to the sidelines to lock in gains amid increased valuation pressure. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) retreated 7.35 points, or 0.23 percent, to close at 3,240.08 points. Trading volume was moderate at about 1.4 billion shares worth some 15.8 trillion won ($14.2 billion), with losers outnumbering gainers 483 to 371. Foreigners bought a net 162 billi

June 4, 2021

Korea Investment’s ESG fixed income fund raises W1.5tr

Korea Investment Management, the fund operating unit of Korea Investment Holdings, said Friday that its fixed income fund dedicated to environmental, social and governance-related investments has surpassed 1.5 trillion won ($1.34 billion) by the size of assets it manages. The size of the product, dubbed KIM Credit Focus Feeder ESG Bond 1, has rapidly increased, backed by investors’ appetite for stable profits amid possible changes in interest rates, the company said. The amount of assets

June 4, 2021

Woori Financial picks 17 startups to join its startup incubator

Woori Financial Group said Friday it selected 17 companies to join its startup incubation program, beefing up its effort to find new partners and accelerate digital transformation. Established in 2019, “Dinno Lab” -- an abbreviation for “digital innovation lab” -- is a training program provided by the banking group to nurture tech startups. From among 274 applications for this year’s program, startups from seven sectors, including ecommerce, blockchain, artificia

June 4, 2021

Seoul stocks open lower amid high valuation pressure

South Korean stocks opened lower Friday on increased valuation pressure after gaining for the past five sessions.  The benchmark Korea Composite Stock Price Index (KOSPI) fell 16.73 points, or 0.52 percent, to reach 3,230.7 points in the first 15 minutes of trading. The KOSPI got off to a weak start after finishing only an inch away from its all-time high the previous session. A tech slump led the KOSPI's retreat. Market bellwether Samsung Electronics declined 0.72 percent, and No. 2 c

June 4, 2021

Samsung Life invests W20tr in ESG projects

Samsung Life Insurance has set up a plan to invest 20 trillion won ($17.98 billion) in financial projects linked to environmental, social and governance initiatives by 2030, the company said Thursday. After holding ESG meetings among executives recently, the insurer announced its long-term plan to make investments in renewable energy businesses and ESG bonds while cutting carbon emissions in half and reducing paper use by 60 percent by the end of 2030. The company said it will also try to pu

June 3, 2021

KakaoBank launches task force to beef up lending

Online-only KakaoBank has launched a task force to expand its lending services for customers with low and midrange credit scores, the company said Thursday. The bank is planning to roll out various loan services this year, lower interest rates for credit loans and increase credit lines, offering up to 70 million won ($62,927) for customers with low and midrange credit scores. In addition, its new credit rating model will factor in both financial and nonfinancial information, such as data on

June 3, 2021

AI bankers foreshow the future of retail banking

An image of a neatly dressed man welcomes visitors and answers questions on finance services on a monitor at KB Kookmin Bank in Yeouido, western Seoul. The male character, powered by artificial intelligence and modelled on TV personality Kim Hyun-wook, explains the difference between a debit and a credit card in a tone and manner identical to a real human staffer. He is a prototype of the AI bankers set to work alongside human bank staff in the near future.  KB plans to test the AI ba

June 3, 2021

Seoul stocks up for 5th day on easing inflation jitters

South Korean stocks advanced for a fifth straight session Thursday, backed by the US Federal Reserve's economic diagnosis that partially eased market jitters over early post-pandemic inflation. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 23.2 points, or 0.72 percent, to close at 3,247.43 points, just shy of its all-time high close of 3,249.3 points on May 10. Trading volume was moderate at about 1.6 billion shares worth some 16.7 tri

June 3, 2021