FSC designates 9 fintech services for finance regulatory sandbox scheme

South Korea’s financial regulator on Wednesday designated nine financial technology services as the first participants in the newly enacted “regulatory sandbox” policy for the finance sector.The Financial Services Commission’s special panel selected nine services based on the “strength of their innovation, envisioned consumer benefits, and user protection and security measures.” As a result, these services will operate as part of a regulatory sandbox -- a mech

April 17, 2019

Hyundai Capital, Santander Group launch JV Banco Hyundai Capital Brasil

Hyundai Capital, the financing arm of South Korea’s Hyundai Motor Group, and Santander Brasil celebrated the launch of their joint venture, Banco Hyundai Capital Brasil S.A., in Sao Paulo on Wednesday, pledging tailored auto financing services for customers and dealers in Brazil.The joint venture marks Hyundai Capital’s first foray into the Latin American market and forms the first exclusive consumer financing service provider in Brazil for Hyundai Motor, the firm said.Banco Hyundai

April 17, 2019

[News Focus] Korea to launch ‘open banking’ system at year-end

South Korea’s financial regulator plans to launch at the year’s end an “open banking” system that grants financial technology firms access to the payment networks of commercial banks, moving forward the government’s ongoing effort to spur fintech innovation.The open banking network, scheduled to go live in December, will make way for the operation of all-in-one banking apps that allow users to access the money transfer and payment functions of various banks on a sin

April 16, 2019

FSS, BOK co-audit 4 major banks over loans to small business owners

South Korea’s chief financial supervisory body and the central bank on Monday launched a joint audit into the country’s four major commercial banks to scrutinize their loan products offered to small business owners. The Financial Supervisory Service and the Bank of Korea are working together to examine the related business practices of the four banks: Shinhan Bank, KB Kookmin Bank, Woori Bank and KEB Hana Bank. Shinhan was the first bank to undergo the audit Monday, which was initiat

April 15, 2019

[News Focus] Korea’s 1st-generation internet banks face murky future amid regulatory hurdles, incoming competition

Since their launch two years ago, South Korea’s two internet-only banks, Kakao Bank and K bank, have steadily built up a sizeable user base, proving the merits of branchless banks to financial consumers here.　And now, Kakao Bank, run by Korean mobile messaging giant Kakao, and K bank, led by telecommunications firm KT, have set out to expand the scope of their business through capital injection enabled by a recent change to the local banking law.However, the two firms have encountered new

April 14, 2019

Savings deposits above W1b rise at record pace

Large-sum savings deposits over 1 billion won ($880,000) increased at the fastest pace in eight years in 2018, central bank data showed Sunday.According to the Bank of Korea, such accounts topped 565.8 trillion won, up 66.6 trillion won, or 13.3 percent from a year earlier.This marked the steepest on-year increase since 79.4 trillion won in 2010. Also, the superrich accounts expanded at almost double the pace of savings accounts in general, indicating the polarization in cash savings.The on-year

April 14, 2019

Brokerages to gain from oil price rally, weakened won

Local brokerages are projecting a rosy outlook with their high-risk investment products, amid an ongoing oil price rally coupled with signs of a weakened Korean currency, analysts said Sunday. “The record-high oil prices represent (a shift in investors’) preference for high-risk assets,” Oh Tae-wan, an analyst at Korea Investment & Securities, said.Last week, US oil prices rose to the highest level in more than a year with Brent crude futures, -- the international benchmark

April 14, 2019

Mirae Asset Global Investments boasts distinguished global portfolio

South Korea’s Mirae Asset Global Investments has been making notable strides in its global investments, which the firm attributed to more direct engagement in deals with overseas investment banks and pursuing a balanced portfolio. The Seoul-based asset management company has been clinching deals with foreign IBs through its global network and alternative investment portfolio. Its acquisition of US golf equipment brand Titleist in 2011, luxury hotel chain Four Seasons in Sydney and Fairmont

April 11, 2019

Shinhan’s fintech innovation hub to ramp up startup support with FOF firm

Shinhan Futures Lab, a South Korean innovation hub owned by Shinhan Financial Group, said on April 11 it is poised to ramp up support for startups by teaming up with Korean fund of funds management firm Korea Growth Investment Corp. Shinhan Financial has signed a memorandum of understanding with the state-led FOF manager, also known as K-Growth, to foster investments in startups dedicated to fintech, according to the banking group.Under the agreement, the two will share information about fintech

April 11, 2019

Korea issues gov’t bonds worth record-high W48tr in Q1

The volume of fixed-income securities issued by the South Korean government reached an all-time high of 48.5 trillion won ($42.5 billion) in the first quarter, according to the Korean Financial Investment Association on Wednesday. The figure was a 42.3 percent increase from the same quarter last year. It also surpassed the record set for the previous quarterly high -- 46.4 trillion for the second quarter of 2014. Net debt issuance also posted a quarterly high with 34.07 trillion won. Net debt is

April 10, 2019

FSC tries to soothe credit card sector reeling from transaction fee cuts

The chief of South Korea’s top financial regulator met with the CEOs of local credit card companies Tuesday to finalize measures aimed to diversify income sources and prevent further losses suffered by the card industry following a cut in card transaction fees.　The measures included putting a cap on lofty marketing expenses and allowing credit card firms to operate services analyzing and managing credit information in order to help improve profitability.　While the card industry acknowledge

April 9, 2019

Goldman Sachs affiliate again faces fine for naked short selling

South Korea’s financial authority has fined a Goldman Sachs affiliate 72 million won ($63,000) for naked short selling, marking the third case of the US-based investment bank facing sanctions here.The Securities and Futures Commission of the Financial Services Commission judged earlier this year that Singapore-based Goldman Sachs India Investments conducted short selling without securing underlying assets, officials said Monday.Naked short selling refers to the sale of borrowed shares in o

April 9, 2019

BOK head to attend G20, IMF meetings this week

South Korea's central bank chief will attend international meetings this week to discuss pending economic and financial issues with this counterparts from the world's major economies, the Bank of Korea said Tuesday.BOK Gov. Lee Ju-yeol will head for Washington DC on Wednesday to participate in the G20 Finance Ministers and Central Bank Governors meetings slated for the following day, according to the central bank.Lee also plans to attend annual meetings of the International Monetary Fund and the

April 9, 2019

Hanjin chairman’s death exposes cruel effects of owner risk on stocks

Stock prices of South Korea’s flagship carrier Korean Air and Hanjin KAL soared Monday, buoyed with grave irony by the news of Chairman Cho Yang-ho’s death earlier in the day. Analysts are seeing the price soar as the “cruel effect” of an “owner risk” -- a risk that stems from investors’ distrust in the owner of a company -- which is more defined in Korea due to massive family-owned enterprises called chaebol.As of 10:10 a.m., Korean Air shares increased

April 8, 2019

Woori Financial inks 1st M&A as holding company

Woori Financial Group said Monday it has closed a deal to acquire Tongyang Asset Management and ABL Global Asset Management, marking its first acquisition deal since the group’s adoption of a holding company structure earlier this year. Woori Financial signed a stock purchase agreement with China’s Anbang Insurance Group to acquire its two asset management subsidiaries, closing a deal that is expected to help the group expand its nonbanking business segment. The deal comes around thr

April 8, 2019

Entertainment stocks send rebound signals amid return of star singers

Despite lingering concerns over the latest sex scandal surrounding a former K-pop boy band member, shares of major entertainment management agencies here are showing signs of rebounding, analysts said Sunday.Steering the possible rally could be a series of recent album releases by popular artists, such as Blackpink, EXO and Twice, and the upcoming discharge of megastar G-Dragon from military service.“There have been plunges in share prices across the entertainment sector amid dampening inv

April 7, 2019

S. Korean shares end higher on trade deal hopes

South Korean shares ended higher Friday, with investors expecting a US-China trade deal. The won fell against the dollar. 　The benchmark KOSPI rose 3.08 points, or 0.14 percent, to close at 2,209.61. Trading volume was moderately heavy at 511.71 million shares worth 4.13 trillion won ($3.6 billion), with gainers outnumbering losers 452 to 372.　Foreigners and institutions bought a combined 161.311 billion won worth of stocks, offsetting individuals’ stock selling worth 154.63 billion won. 　

April 5, 2019

Korea’s financial supervisor stresses ‘inclusive finance’ and ‘responsible innovation’ in age of fintech

The chief of South Korea’s financial supervisory body on Friday stressed “inclusive finance” and “responsible innovation” as the key drivers of its regulatory oversight this year as the country prepares for explosive growth in the fintech sector.Financial Supervisory Service Gov. Yoon Suk-heun called on foreign financial firms here to “bring in a new wave of financial inclusion and responsible innovation to the Korean financial industry.”Yoon was speakin

April 5, 2019

KVIC sees record profit amid venture boom

As South Korea’s venture investment hit a record high last year, Korea Venture Investment, South Korea’s fund of funds management institute, saw a jump in revenue growth, data from the Financial Supervisory Service showed on April 4. KVIC logged operating sales of 22.9 billion won ($20.1 million) and operating profit of 6.4 billion won, growing 38.59 percent and 385.76 percent, respectively. Its revenue soared 456.01 percent to 5.3 billion won during the same period, the company&rs

April 5, 2019

[News Focus] Inside the ‘excessive dividends’ controversy plaguing foreign banks in Korea

Global banks operating in South Korea have once again come under close scrutiny for the size of dividends they have paid their parent companies, following their recent announcement of annual earnings and dividend policies for the year. Come every year, major global banks -- namely Standard Chartered Bank Korea and Citibank Korea -- get flak for paying their parent firms generous dividends that exceed their annual net profit. And this year is no exception.While within legal bounds, their dividend

April 4, 2019