S. Korea’s top financial regulator offers to resign ahead of Cabinet reshuffle

Financial Services Commission Chairman Choi Jong-ku said Thursday he has offered to resign, to give President Moon Jae-in a wider range of options in the upcoming Cabinet reshuffle. “The term of office for a Financial Services Commission chairman is three years, but I have tendered my resignation to give (President Moon) a wider option in the reshuffle under the current situation, where Cheong Wa Dae is considering a Cabinet reshuffle,” Choi told reporters during a briefing held at t

July 18, 2019

Israeli economic delegation visits Hyundai Card HQ

A 15-member economic mission from Israel visited Hyundai Card’s headquarters Wednesday, amid Israeli President Reuven Rivlin’s state visit to South Korea, the firm said Thursday. The delegation, which consisted of Israeli government officials and heads of startups in the auto-tech and ICT sector, met with Hyundai Card CEO Chung Tae-young at the firm’s headquarters in Yeouido, western Seoul.  Chung joined the tour of the office, explaining the firm’s key design projec

July 18, 2019

Financial regulator launches squad with investigative power

South Korea's financial regulator said Thursday it launched a squad with investigative power to effectively crack down on unfair practices in the financial market. So far, financial authorities have audited financial firms and referred unfair trading cases to police or prosecutors because they have no investigative power. The launch of a "special judicial police" at the Financial Supervisory Service came after the National Assembly passed a revised law in 2015 that gives investigative

July 18, 2019

South Korean FIs nervous on trade row with Japan

With mounting anti-Japanese sentiment, financial institutions in South Korea, especially lenders, are closely monitoring how it could affect them, according to sources Wednesday. Tokyo’s decision to tighten controls on exports of key materials needed for the Korean tech industry, coupled with mounting tensions over Japan’s wartime forced labor has fueled strong anti-Japanese sentiment here in recent weeks. Of the four major commercial banks in Korea, Shinhan is known to have a s

July 17, 2019

S. Korea to receive applications for new internet bank in October

South Korea's financial regulator said Tuesday it will receive applications in October for a third internet bank, as it seeks to reinvigorate the nation's financial industry. The Financial Services Commission said applications will start being received Oct. 10 and an initial approval will be granted by early January next year. If things go well, a final approval will be granted by early February next year, it said. "Financing ability is one of the important standards used by an evaluation c

July 16, 2019

[Herald Interview] Mirae Asset stands tall on Wall St. amid strong rivals

NEW YORK -- Located a few blocks north of the bustling Times Square on 7th Avenue Manhattan, a South Korean brokerage is standing its ground and making inroads in the bustling financial sector.“It’s been nearly 25 years since our foray on Wall Street,” Mirae Asset Securities New York Office CEO Jae Ryu told The Korea Herald recently. “The significance of having a foothold in New York is that the office helps us expand globally and build our brand image.” But the fic

July 14, 2019

Kakao Bank accounts top 10 million

Kakao Bank, one of the first internet-only banks launched in South Korea nearly 2 years ago, said Friday that its customer count surpassed 10 million the previous day. Launched in July, 2017, the online bank owned by Kakao Corp. has been outperforming its industry rival K-Bank in terms of popularity and users. Kakao and K-Bank are the nation’s only internet banks at the moment, with financial authorities currently mulling the approval of the nation’s third and fourth candidates. 

July 12, 2019

Lotte shares stagger on anti-Japanese sentiment

Shares of Lotte Group subsidiaries continued to stagger Wednesday following anti-Japanese sentiments due to trade restrictions on exports of key raw materials to local tech conglomerates. The retail giant with its owner family’s roots in Japan is in hot water due to its association with popular Japanese brands including Uniqlo and Asahi.Shares of Lotte Corp., holding company of Lotte Group, closed nearly 1.5 percent lower from the previous session at 40,400 won ($34.19). Lotte Shopping, wh

July 10, 2019

Korean stocks roiled by Japan’s export controls, lower odds of US rate cut

South Korean stocks suffered extended losses Tuesday, likely the result of Japan’s decision to place export restrictions on key semiconductor materials along with the growing possibility that the US Federal Reserve will leave interest rates unchanged this month. The benchmark Kospi closed 0.59 percent lower from the previous trading at 2,052.03, despite opening higher. It fell more than 2 percent Monday, the worst decline in two months, amid a strong mood of lowered anticipation of an aggr

July 9, 2019

Process for internet-only bank applications to resume

South Korea’s financial regulator is to resume the process to select a new online-only bank here, hoping to announce the result by the year’s end, according to officials Monday.The Financial Services Commission plans to announce later this month its plan to receive applications for business approval for an internet-only bank, officials said. The feasible timeline is to receive applications starting October and grant a preliminary license to one or more successful applicants by the en

July 8, 2019

Japan’s export curbs bring attention to Tokyo’s capital in local market

Japan’s decision to restrict key supplies for South Korea’s semiconductor industry has shed light on the considerable size of Japanese investment in the nation’s financial market, stoking concerns over its impact on the nation’s economy if political bickering spreads to the capital market.According to data from the Korea Center for International Finance on Sunday, Japanese banks held nearly 21 trillion won ($17.6 billion) worth of outstanding loans in Korea. The instituti

July 7, 2019

Watchdog to wrap up multitrillion won KIKO dispute review

South Korea’s financial market watchdog is set to wrap up its long-stalled arbitration over the disputed sales of currency-option contracts within the month, and is likely to suggest a compensation rate of 20-30 percent on the product by banks.The dispute arbitration committee of the Financial Supervisory Service will hold its final meeting as early as next Tuesday to confirm its recommendations on the damage compensation for the so-called KIKO case, officials said Monday.The given arbitra

July 1, 2019

[Feature] Korean banks ready to work less but pressured to hire more

Starting Monday, local banks and financial companies come under the 52-hour workweek rule, becoming late starters in South Korea’s initiative to reduce long working hours and improve the quality of life.Due to the one-year grace period, the financial sector is apparently off to a better start than the manufacturing sector which had undergone radical changes in the labor environment last year, simultaneously with the double-digit hike in the nation’s hourly minimum wage.Their core dil

June 30, 2019

Divorce news rattles Song-Song couple-related stocks

Entertainment shares and others related to “Descendants of the Sun” power couple, Song Joong-ki and Song hye-kyo, displayed a weak performance Thursday following the surprise announcement of their divorce filing. Studio Dragon, the main production studio behind “Arthdal Chronicles,” closed 1.29 percent lower from the previous day’s trading at 68,800 won ($59.40).  “Arthdal Chronicles” is a blockbuster historical-fantasy series starring Song Joong-ki

June 27, 2019

S. Korea to maintain criteria for setting minimum wage

The Minimum Wage Council decided on Wednesday not to consider employers' ability to pay salaries in setting the minimum wage for next year.Business groups, mainly small firms and mom-and-pop stores, have been demanding that they be allowed to establish different minimum wages depending on industry and business sizes.The wage council -- a trilateral panel of business and labor representatives and outside experts -- closed its deliberations earlier in the day and deci

June 26, 2019

Retired MLB pitcher hopes to give back as SparkLabs partner

Retired Major League Baseball pitcher Park Chan-ho is hoping to have a good influence on the South Korean startup ecosystem and give back to society as a venture partner of Seoul-based global accelerator SparkLabs.“I’m glad I was given a chance to have a virtuous influence on startups,” Park said in a press conference on Wednesday. “Young entrepreneurs are brimming with passion and dreams. I think I can share with them my experience and know-how (as a former professional

June 26, 2019

[News Focus] Government offloading Woori stakes to elevate holding company

The government’s latest decision to dispose of its remaining stakes in Woori Financial Holdings is seen as a turning point for South Korea’s financial sector, indicating the withdrawal of decadeslong public interference triggered by the 1997 Asian financial crisis.While the financial holding company will henceforth gain further momentum in the market as a fully privatized player, state coffers will at last be able to recoup taxpayers’ money.According to the Financial Services C

June 26, 2019

[Best Brand] Shinhan Card seeks to cater to customers’ lifestyles

Shinhan Card/ Credit card Shinhan Card has maintained its position as the nation’s leading credit card issuer for years, but it now aims to go a step further by integrating its services with customers’ lifestyles. The firm has the largest number of customers among credit card issuers -- around 22 million -- which it hopes to expand to 30 million by 2023. It has been offering a slew of services, such as sign-up bonuses, rewards, and original services, to evolve into a lifestyle platfo

June 26, 2019

KRX helps Kosdaq firms deal with stricter audit law

The nation’s sole bourse operator has been running an accounting program that helps firms listed on the secondary bourse Kosdaq deal with the reinforced external audit act.According to the Korea Exchange, the number of Kosdaq firms that faced the risk of delisting due to disclaimer of opinion this year increased 66 percent on-year to 30 firms. A disclaimer of opinion is issued when an auditor is unable to complete the audit report due to insufficient information provided by the company.&nb

June 25, 2019