Hana faces crisis over executives’ alleged sexism

Hana Financial Group has been receiving intense backlash over its credit card unit chief and bank branch manager’s alleged inappropriate and sexist behaviors that were reported only weeks apart. On April 6, Hana Card’s then-CEO Jang Kyung-hoon stepped down after a leaked audio recording of him saying picking a credit card was like “choosing a wife,” went viral last month. He also drew comparisons to female companions in so-called “room salons” here, which are

April 19, 2021

Kospi hovers around 3,200 points amid recovery hopes

South Korea’s benchmark Kospi hovered around the 3,200-point threshold Monday amid hopes of a global economic recovery, raising hopes of a bounce back to over 3,200 points at the closing bell for the first time in nearly three months. Local market watchers also presented a positive outlook on the index’s upward moves, with some suggesting that it might touch 3,300 points soon. The Kospi closed at 3,198.84, having inched up 0.22 points, or 0.01 percent, from the previous session&rsq

April 19, 2021

Seoul stocks nearly flat on valuation pressure

South Korean stocks opened nearly flat Monday as investors took to the sidelines amid increased valuation pressure. The benchmark Korea Composite Stock Price Index (Kospi) rose 0.16 points, or 0.01 percent, to 3,198.78 points. Stocks got off to a muted start after the Kospi gained in the past five sessions, closing Friday just shy of the 3,200-point mark on expectations of a global economic rebound and better earnings reports in the January-March season. In Seoul, market kingpin Samsung Elec

April 19, 2021

[Herald Interview] Avellino Labs balances focus between COVID tests, gene therapy ahead of IPO

After achieving a strong earnings growth last year, biotech firm Avellino Labs is seeking to refocus on its pipeline with gene editing technology ahead of its planned market debut on South Korea’s secondary Kosdaq market. Unaudited financial results of the firm, born in Korea but now headquartered in the US, showed its sales shot up from $2.6 million in 2019 to $122 million in 2020 with a net income of $56 million, due to the exploding demand for its COVID-19 diagnostic testing se

April 18, 2021

[#WeFACE] How ESG is changing the ratings game for financial giants

Financial soundness, capital size, and business potential have long been the criteria of measuring the value of financial companies here, but a new method, though subjective and somewhat abstract, is changing the assessment game. Since the pandemic, financial firms have been expanding services and products conscious of environmental, social and governance values while investors keep a close eye on whether business decisions of banking firms, stock brokers, card issuers or insurance firms run

April 18, 2021

What will Citibank’s consumer banking exit strategy be?

Citigroup has yet to announce the details of its retail banking exit strategy from South Korea as of Sunday, but the most probable scenario is that the firm will break up its consumer business here before selling, according to industry watchers. On Friday, Citigroup decided to exit retail banking in Korea and other 12 markets across Asia, Europe, the Middle East and Africa as part of reorganization plans. The move signals a significant downsizing for Citibank Korea, a wholly owned subsidiary o

April 18, 2021

State pension cashes in W2tr of Samsung Electronics profits

The National Pension Service, South Korea’s largest institutional investor, has gained nearly 2 trillion won ($1.79 billion) worth of profits after selling a 1.2 percent stake in top-cap Samsung Electronics over the past year and a half, data showed Sunday. According to DART, the Financial Supervisory Service’s electronic disclosure board, the NPS’ stake has dropped to 9.99 percent, now owning some 596 million shares, by trading the tech giant’s common shares 738 times f

April 18, 2021

Seoul stocks to continue rise on earnings hope next week

South Korean stocks are likely to maintain their upward momentum next week as expectations of estimate-beating first-quarter corporate earnings run high, although investors may be attempted to cash in recent gains.  The benchmark Korea Composite Stock Price Index closed at 3,198.62 points on Friday, up 2.13 percent from a week before. The index gained for the five sessions since Monday, with brokerages predicting the index may stay above the 3,200-point threshold despite the increased val

April 17, 2021

Seoul stocks up for 5th session on economic rebound hope

South Korean shares advanced for the fifth day Friday, finishing just shy of the 3,200-point mark, as expectations of a global economic rebound and sound corporate earnings boosted investor sentiment. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (Kospi) rose 4.29 points, or 0.13 percent, to close at 3,198.62 points. Trading volume was moderate at about 961 million shares worth some 14.6 trillion won ($13.1 billion), with gainers outnumbering loser

April 16, 2021

Financial authorities vow to minimize inconveniences from Citigroup’s exit from S. Korea

South Korea’s top financial regulator vowed Friday to minimize inconveniences caused by Citigroup’s decision to withdraw retail banking operations in 13 markets, including South Korea, as part of its business reorganization for Asia.  “The Financial Services Commission and the Financial Supervisory Service will closely monitor future progress regarding the group’s latest decision and review necessary measures to minimize any possible consumer inconveniences, stabili

April 16, 2021

Dongbu-led consortium to take over Hanjin Heavy as debt restructuring nears end

An investor group led by South Korean builder Dongbu Corp. signed a deal to acquire a controlling stake in debt-saddled shipbuilder Hanjin Heavy Industries & Construction, filings showed Friday. According to the filings, a consortium composed of Dongbu and local private equity firm Echoprime Private Equity will buy a combined 55.7 million common shares, or 66.85 percent voting rights, from eight banks including the state-run Korea Development Bank and the Philippines-based BDO Unibank. T

April 16, 2021

Mirae Asset’s Canadian subsidiary rolls out Bitcoin futures ETF

South Korean asset management firm Mirae Asset Global Investments has launched two exchange-traded funds tracking the value of Bitcoin futures via its Canadian subsidiary Horizons ETFs. Along with the Bitcoin-based ETFs it also rolled out a fund investing in stocks in the battery, bitotechnology, internet, and gaming industries, often collectively referred to as the BBIG sectors. Of the newly launched cryptocurrency ETFs is an inverse product, called BetaPro Inverse Bitcoin ETF, which profi

April 16, 2021

Construction workers’ fund to commit W60b to PEs, VCs

South Korean institutional investor, the Construction Workers Mutual Aid Association, has selected four domestic external partners for its 60 billion-won ($53.7 million) commitment to have exposure to private equities and venture capital, an official said Friday. The institutional investor, dedicated to the welfare of workers in the field of construction, has decided to allocate a combined 40 billion won to Dominus Investment and Stic Investments for its private equity exposure. The external p

April 16, 2021

Citibank Korea union head says preparation for legal action on the way

Unionized workers at Citibank Korea voiced criticism against Citibank Korea’s decision to withdraw its retail banking operations, calling it unilateral. “(Citibank Korea’s labor union) can‘t accept Citigroup’s unilateral announcement. Since Bloomberg reported on the group’s possible divestiture plan in February, we have been preparing legal action and systematic countermeasures,” said Jin Chang-geun, head of the Citibank Korea labor union. “We&r

April 16, 2021

Seoul stocks open higher on Wall Street rally

South Korean shares opened higher Friday, taking a cue from an overnight rally on Wall Street over strong signals of economic rebound. The benchmark Korea Composite Stock Price Index (Kospi) rose 7.79 point, or 0.24 percent, to 3,202.12 in the first 15 minutes of trading. Overnight, the S&P 500 gained 1.11 percent and the Dow Jones Industrial Average advanced 0.9 percent, both reaching all-time highs, as steep improvement in US jobs and sales data raised hopes of global economic rebound.

April 16, 2021

[Newsmaker] Cryptocurrency turnover in S. Korea doubles over past month

The cryptocurrency turnover in South Korea has more than doubled over the past month, a market tracker said Friday, as retail investors scramble to the virtual currency amid the fallout of the coronavirus pandemic. The combined turnover of 14 cryptocurrency exchanges in Asia's fourth-largest economy came to $21.63 billion as of 4 p.m. Thursday, according to CoinMarketCap. In particular, the top four exchanges -- Bithumb, Upbit, Corbit and Coinone -- had a combined turnover of $18.85 billion, o

April 16, 2021

Citibank to pull retail biz out of Korea, but no timeline set

Citibank Korea, the South Korean unit of Citigroup, said Thursday that it would withdraw its retail business as part of its parent company’s reorganization plans for Asia. 　 The decision was made to streamline operations and enhance global competitiveness by focusing investments and resources on its consumer banking franchise, it said in a statement. But the bank has not yet set a timeline or made detailed plans and will take time to conduct a thorough review, as well as hold discussion

April 15, 2021

Kakao at No. 6 on Kospi in market cap after stock split

South Korea’s top mobile messenger operator, Kakao, replaced Samsung Biologics as the No. 6 company on the Kospi in terms of market capitalization Thursday, a day after its stock split. Shares of Kakao, after a 5-for-1 stock split, jumped 7.59 percent to 120,500 won ($108.07) at the closing bell, lifting the company’s market cap to 53.48 trillion won. The price of Kakao stocks with lowered face value surged over 18 percent during intraday trading, before the bourse operator interru

April 15, 2021

Seoul stocks up for 4th day on economic recovery hope

South Korean stocks finished higher to extend their gains to a fifth session Thursday amid expectations that the economic recovery would be quicker and stronger than expected. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (Kospi) rose 11.95 points, or 0.38 percent, to close at 3,194.33. Trading volume was moderate at about 1.3 billion shares worth some 17.4 trillion won ($15.6 billion), with losers outnumbering gainers 468 to 375. Foreigners bought

April 15, 2021

Foreign investors to return to market when short selling resumes: FSC chief

The head of South Korea’s financial regulator said Thursday that he expects to see a greater inflow of foreign capital to the nation’s stock market with the reactivation of short selling activities next month. “Resumption of short-selling signifies that the market is going back to normalization and (I hope) foreigners to return to the market,” said Financial Services Commission Chairman Eun Sung-soo in an impromptu meeting with reporters. While the government is set to

April 15, 2021