Naver and Kakao -- Korea’s two largest online service providers -- are prompting financial companies to better meet fintech needs and regulators to write rules that are fair to both of them. Naver Financial, a key Naver fintech subsidiary, started offering loans last year to small businesses with Woori Bank. The Naver Financial CEO said last month that he was considering seeking a permit to oversee more banking services to issue insurance and credit cards. Meanwhile, Kakao Pay, a mo

Economy Jan. 2, 2022

Upbeat corporate earnings and robust retail demand set the key benchmark Kospi and junior Kosdaq on track for their best year since trading began on the exchange decades ago. The stock market, which will open Monday after a three-day break, saw the Kospi hitting a record high of 3,305 on July 6, while the Kosdaq soared to trading around 1,000, a first in 20 years. The Kospi closed at 2977.65 on its final trading session in 2021, while the Kosdaq ended at 1033.98.　 Kospi-listed companies r

Market Dec. 30, 2021

NongHyup Bank said Wednesday that it has developed a pin pad that kills germs like the coronavirus with a UV light after customers have used it to enter their passcodes. The pad, the first of its kind adopted by a local bank, will be used at NongHyup branches nationwide after a trial run at its key offices in Seoul, the bank said. It added that the pad does not pose health risks. Meanwhile, Lotte Chemical also said it has come up with an antiviral plastic to be used for credit cards issued by

Economy Dec. 29, 2021

South Korean shares could recede early next year but will gradually pick up speed in robust rebound on upbeat corporate earnings and consumer sentiment, while the home price rise will slow but with room for a moderate hike, market experts here said. 　 The benchmark Kospi -- which hit a record high on July 6 this year at 3,305 amid ample liquidity and pandemic recovery hopes -- could reach as high as 3,480 next year, though it could also dive down as low as 2,710, according to analysts citi

Market Dec. 28, 2021

The chip, renewable energy and entertainment industries are set to grow next year, auditing firm Samjong KPMG said Monday in its annual industry forecast report for 24 industries. The supply of system chips will improve as production expands while sales of memory chips next year will not be as strong as this year, because of oversupply, the report said, noting that the South Korean government should work with local chipmakers like Samsung Electronics to localize parts for chip independence. Sa

Economy Dec. 27, 2021

The Bank of Korea said Friday that it would adjust its monetary policy next year in an announcement seen as preparing for a rate hike to dampen inflation. The BOK, which raised the rate to 1 percent after two rate hikes in August and November this year to prop up the pandemic-hit economy, is expected to lift the rate in January when the bank’s seven-member board meets. BOK Gov. Lee Ju-yeol said he would not rule out a hike in the first quarter. “The financial imbalances -- manifes

Market Dec. 24, 2021

Shinhan Financial Group, one of the four banking giants in the country, has named a former IBM managing director as its digital chief officer to accelerate a push to expand its digital services. Kim Myoung-hee, who spent the last 23 years developing digital operations at IBM before joining SK telecom to oversee digital efforts at the country’s largest mobile carrier, is considered one of the leading women experts on digital transformation. Kim was the first senior women chief to lead the

Economy Dec. 24, 2021

South Korea’s benchmark Kospi faces a long transition to a bullish rally, during which investors will have to navigate uncertainties complicated by supply bottlenecks, a rate hike and a presidential election, according to Goldman Sachs and Morgan Stanley. Goldman Sachs cut the Kospi target to 3,350 from 3,700, changing its view on Korean shares from “overweight” to “marketweight,” saying it would be hard to expect market-beating corporate earnings again next year.

Market Dec. 23, 2021

Ham Young-joo (left), vice chairman of Hana Financial Group, congratulates Hong Hwa-jin, leader of the data & investment division at Hana Bank, who led the first 33 participants for the last six months in the group’s program designed to nurture women leaders.

Industry Dec. 23, 2021

The Bank of Korea appears to be facing a dilemma ahead of its rate decision in January, as producer and consumer prices soar in defiance of anemic growth. Producer prices in November hit a record high, up 0.5 percent on-month and 9.6 percent on-year. The prices have been on a steady rise since November 2020, the longest since May 2011, when they ended a 19-month rally. “The base effect makes the (price) rises look worse than what they actually are. In November last year, oil and raw mate

Economy Dec. 21, 2021

South Korea’s four major bank holding firms are expected to hand out record-high dividends this year amid their highest net profit estimates buoyed by pandemic recovery, officials said Monday. The total dividends the four companies -- KB Financial Group, Hana Financial Group, Shinhan Financial Group and Woori Financial Group -- would pay is estimated to be 3.8 trillion won ($3.2 billion), about 26 percent of the combined net profit of 14.6 trillion won. “We were asked to refer to 2

Economy Dec. 20, 2021

Mirae Asset Securities Chairman Choi Hyun-man was named person of the year by the Korea Exchange, Korea’s sole bourse operator, for his contribution to the local capital market, officials said Monday. “Chairman Choi heads a leading brokerage company that helped 21 firms go public this year, including game maker Krafton, in what was the biggest initial public offering in 2021,” the Korea Exchange said. The exchange credited its first awardee Choi for becoming the first non-fa

Market Dec. 20, 2021

Local investment house IMM Investment has acquired a 41 percent stake in GS Power, a subsidiary owned by GS Energy, an energy arm of GS Group, for 1.1 trillion won ($926 million), officials said Friday. GS Energy will maintain a 51 percent majority, after selling 3,136 shares totaling 1.1 trillion won. Last year, GS Energy bought back the 50 percent stake it sold to a local consortium of banks in 2012. A GS Energy official said the sell-off is part of broader efforts to fund ESG projects, whic

Industry Dec. 19, 2021

In 2021, South Korea’s two biggest financial technology firms, Naver and Kakao, saw their market capitalization expand on-year, while drugmakers faced a dip in market value. As of last week, Naver, the country’s largest internet portal, had seen a 36 percent jump in its market cap at 63 trillion won ($53 billion), while the market value for Kakao, which runs the country’s largest messenger app for smartphones, almost tripled at 115 trillion won. The hike mainly came from Kaka

Market Dec. 19, 2021

Expanding environmental, social and governance investment and building digital businesses make capitalism sustainable, the research chief of Mirae Asset Securities said Wednesday. “It’s all about quality, not quantity, when it comes to growth in capitalism. ESG offers a fresh perspective, while metaverse makes possible a digital world built on private property and a free market, which is the essence of capitalism,” said Seo Cheol-soo, head of research at South Korea’s la

Market Dec. 16, 2021