Korean banks’ household lending growth picks up speed in April

Household loans given out by South Korean banks grew at the fastest rate since the start of the year last month, industry data showed Friday, indicating possible signs of worsening economic conditions in Asia’s fourth-largest economy.　As of end-April, outstanding household loans by Korea’s five major banks -- KB Kookmin Bank, Shinhan Bank, KEB Hana Bank, Woori Bank and NH NongHyup Bank -- came to 579.5 trillion won ($494.8 billion), up 3.38 trillion won from the previous month, the b

May 3, 2019

[Photo News] Heading for Myanmar

May 2, 2019

Mirae Asset Daewoo issues world’s first 3-year SRI bond

South Korean brokerage firm Mirae Asset Daewoo has simultaneously issued a three-year dollar-denominated, socially responsible investment bond and five-year senior notes, the firm said Tuesday. This makes Mirae Asset Daewoo the first among global securities firms to successfully issue a three-year overseas SRI bond while issuing both types of bonds at the same time.  SRI bonds are a type of bonds with proceeds earmarked for socially beneficial or environmentally friendly projects. Proceeds

May 1, 2019

WeWork files confidentially to hold initial public offering

WeWork, the world’s biggest co-working company, is planning to go public, joining a wave of highly valued technology startups moving to the U.S. markets.The New York-based company said Monday it filed paperwork confidentially with the U.S. Securities and Exchange Commission to hold an initial public offering. WeWork, which rents office space to companies and freelancers, would likely be the year’s biggest U.S. IPO after Uber Technologies, which expects to start trading next week

April 30, 2019

FSS’ revival of comprehensive inspection of financial firms prompts concerns

South Korea’s financial regulator will take initial steps in reviving the comprehensive inspection of financial firms within the next few weeks after four years, prompting concerns the practice may keep the sector on a tight leash. The Financial Supervisory Service will launch the inspection of at least five local financial firms, starting with KB Securities in May. The confirmed list as of Tuesday included KB Financial Group, KB Kookmin Bank, KB Securities, Hanwha Life Insurance, and Meri

April 30, 2019

Korea kick-starts ‘innovative finance’ body, pledging W225tr in investment

South Korea’s special task force for “innovative finance” kicked off its first meeting Tuesday, with the participating government ministries and finance corporations pledging some 225 trillion won ($194 billion) in total investment and loan financing.　The collaborative task force is being led by the chief of the Financial Services Commission, the country’s top financial regulator, with participation by the Ministry of Economy and Finance, the Ministry of Justice and the F

April 30, 2019

MBK teams up with Woori Financial in bid for Lotte Card

Private equity firm MBK Partners has teamed up with Woori Financial Group Inc., a major financial holding firm, in its bid to buy a majority stake in Lotte Card Co., an industry source said Monday.The move is expected to make the sale of Lotte Card a two-way race with Hana Financial Group Inc., another major financial holding firm, according to the source.  Lotte Card, a credit-card unit of Lotte Group, has been put up for sale as the business conglomerate stepped up efforts to turn itself

April 29, 2019

KB Financial launches council to support startups

KB Financial Group announced Monday it has launched the “KB Innovation Finance Council” to provide investment and credit support to innovative startups as well as small and medium-sized enterprises.The council, consisting of 12 executive members from KB affiliates including KB Investments, KB Securities, and KB Kookmin Bank, has been created to “revitalize venture capital and innovative finance among startups and SMEs,” said the group.Outlining various ways the council wi

April 29, 2019

Woori Bank strengthens anti-money laundering surveillance system

Woori Bank has established a strengthened anti-money laundering surveillance system whose protocols are on par with global standards to fight financial crime and strengthen compliance, the bank said Sunday.Woori said it has become the first commercial bank in Korea to adopt an anti-money laundering system that meets the standards of the Financial Action Task Force. FATF is a global standard-setting body to fight money laundering and finance terrorism of which South Korea is a member.  In st

April 28, 2019

FTC files against KT, puts brake on K bank majority ownership review

South Korea’s Fair Trade Commission said Thursday that it has filed a report with the prosecution against KT over alleged violations of antitrust law, a move that puts the telco’s plans to increase its stake in the internet-only K bank on indefinite hold.　The FTC imposed fines totaling 13.38 billion won ($11.54 million) on Korea’s four major telecom-cable companies -- SK Broadband, KT, LG Uplus and Sejong Telecom -- for collusion in a government-led business project. Calli

April 25, 2019

Korea to strengthen laws governing companies’ annual shareholder meetings

The Financial Services Commission and the Justice Ministry on Wednesday announced a series of policies aimed at improving local firms’ annual general meeting of shareholders, which have become more of a formality than a platform for shareholders to exercise their rights. 　To encourage shareholder participation, the FSC will amend the Capital Markets Act so that a listed company can obtain the email addresses of its shareholders from securities brokerage firms. 　The regulator will also amen

April 24, 2019

Envisaging homegrown unicorn, Korea seeks to fend off foreign investor-led round funding

Venture capitalists in the global startup scene have to pay a hefty price -- hundreds of millions of dollars -- to take part in a later-stage round of investment. In South Korea, one of the nations riding the up cycle in the startup ecosystem, domestic venture investment in startups has mainly been concentrated in small- and midsized investment rounds with a risk-averse stance. Startups lose out on early-stage seed funding and larger-scale investment rounds.Now, the Korean government appears to

April 24, 2019

Internet-only K bank on brink of financial troubles

K bank, one of South Korea’s two internet-only banks, is on the brink of financial troubles as plans for new capital injection by its operator KT have been halted by a regulatory delay.Though K bank’s shareholders have begun drawing up a new action plan for capital procurement, it is uncertain whether it can be executed to success.The Financial Services Commission decided last week to indefinitely suspend its review of KT’s application to increase its stake in K bank due to an

April 23, 2019

[Female Finance Leaders] Corporate Korea on track to welcoming more female leaders: Woori Bank executive VP

The Korea Herald is publishing a series of articles spotlighting the stories and opinions of female executives in Korea’s finance-banking industry, where the glass ceiling remains. - Ed.In the early 1990s, South Korea’s corporate landscape had a distinct characteristic: Men made up and led the country’s primary workforce. The banking-finance industry was no exception. During this time, Korean banks had separate hiring and wage systems for men and women. Female employees were al

April 22, 2019

[Monitor] Hana Financial emerges as likely preferred bidder for Lotte Card

With Hanwha Group having dropped out, Hana Financial Group has emerged as a strong bidder for ownership of Lotte Card -- a development that portends major shifts in South Korea’s credit card business.Last week, Hana Financial and two private equity funds officially joined the bidding process to acquire Lotte Card. Hanwha, which had shown an interest in the deal, did not enter the bidding, leaving Hana as the sole big-name financial corporation in the race.If Hana Financial ends up acquirin

April 22, 2019

JYP chief becomes top stock-rich K-pop agency owner

JYP Entertainment founder and Chief Communications Officer Park Jin-young topped the list of stock-rich entertainment agency owners in Korea, data showed Sunday, amid the industry’s struggle to recover from an ongoing sex scandal involving multiple K-pop stars. The value of JYP stocks held by Park had increased 1 percent, or 1.9 billion won ($1.7 million), from the end of 2018, to 192.2 billion won as of Thursday, according to conglomerate research firm Chaebul.com. Park is the largest sha

April 21, 2019

Seoul shares likely to trade in tight range on earnings concerns

South Korean shares are likely to trade in a tight range next week as investors digest a series of corporate earnings reports from major firms, analysts said Saturday.The benchmark Korea Composite Stock Price Index closed at 2,216.15 points on Friday, down 0.77 percent from a week earlier. Earlier this week, the main bourse extended its winning streak to 13 trading sessions but lost ground as investors opted to cash in recent gains.On Thursday, the KOSPI plunged more than 1 percent after the Ban

April 20, 2019

Hana Financial Q1 profit sinks on severance payments

Hana Financial Group, a major South Korean banking group, said Friday its first-quarter net profit fell 16.8 percent on-year, hit by one-off costs related to severance payments. 　Net profit stood at 556 billion won ($489 million) for the January-March period, compared with a profit of 668.6 billion won a year earlier, Hana Financial said in a statement. 　Hana Financial said it spent 126 billion won in severance payments in February, when it cut 241 jobs.  　Its interest income and earnings f

April 19, 2019

FSS seeks to bolster Korean financial firms in Southeast Asia

South Korea’s financial regulator is seeking to bolster the business of local firms in Southeast Asia, widely considered the “next China.”　The Financial Supervisory Service hosted an event Friday in light of the Moon Jae-in government’s “New Southern Policy” which strives to elevate diplomatic and economic ties with the Association of Southeast Asian Nations, as well as India. Yoo Kwang-yeol, first senior deputy governor of the FSS, called on Korean firms to b

April 19, 2019

Financial regulator halts review of KT's plan to raise stake in K bank

The financial regulator said Wednesday it has halted its review of a plan by KT Corp. to raise its stake in Internet-only K bank, citing an anti-trust inspection into the telecom firm. 　KT, the nation’s biggest fixed-line Internet operator, asked the Financial Services Commission to review its plan last month as it seeks to a larger stake in K bank, which was launched in 2017 by a KT-led consortium. 　K bank has planned to raise 592 billion won ($522 million) later this month via a rig

April 17, 2019