The Financial Supervisory Service on Thursday issued warnings to two major banking groups here -- Woori and Hana -- directing them to improve their overall transparency and corporate governance. The financial watchdog noted that Woori Financial Group’s board meeting minutes -- which serve as official legal records -- between January and September 2019 lacked transparency. The minutes were treated “as mere formalities” and contained few details such as the substance of

Market March 26, 2020

Woori Financial Group Chairman Sohn Tae-seung was reappointed for three more years by shareholders Wednesday, despite disciplinary measures imposed by South Korean financial authorities. At the group’s annual shareholders meeting, Sohn’s appointment was approved by 50 percent stakeholders -- including private equity fund IMM Private Equity, Fubon Life Insurance, Kiwoom Securities and the Korea Deposit Insurance Corp. The KDIC is the largest shareholder, with a 17.25 percent stak

Market March 25, 2020

President Moon Jae-in on Tuesday announced plans to double the size of an economic rescue package to 100 trillion won ($80 billion) to boost local businesses suffering due to the novel coronavirus outbreak. The announcement follows a second emergency economic council session this year. Officials handling the nation’s fiscal and monetary policies including Finance Minister Hong Nam-ki, Bank of Korea Gov. Lee Ju-yeol and Financial Services Commission Chairman Eun Sung-soo were present at

Economy March 24, 2020

Standard Chartered Bank Korea, wholly owned by London-based Standard Chartered Bank, donated 5,000 face masks to a hospital in Daegu, which has become the epicenter of the novel coronavirus here since early last month, the bank said Monday. The masks were provided by Standard Chartered PLC via its Greater China and Northeast Asia headquarters in Hong Kong in a bid to help its Korean employees and clients, the firm said. SC Bank Korea donated the masks to Keimyung University Dongsan Medical Cen

Market March 23, 2020

Shinhan Financial Group said Monday that it has decided to adopt a new digital leadership system, assigning tasks of fostering different innovative technologies to the executive officers of its subsidiaries. The decision is based on Shinhan Financial Group Chairman Cho Yong-byoung’s remarks during a management meeting held Wednesday, where he said “in order to achieve a successful digital transformation, harmony of strategy and culture and the digital leadership of CEOs are crucia

Market March 23, 2020

Shinhan Investment CEO Kim Byung-cheol resigned on Friday, taking responsibility for the brokerage’s role as a key sales channel for now-frozen Lime Asset funds and derivatives that caused huge losses for investors. “In order for the company to win back customer trust and get back on track to normalize business, it would be right for me to take responsibility and step down,” Kim said during the company’s board meeting, according to Shinhan. “I have been delayin

Market March 20, 2020

While the financial authorities on Friday welcomed the $60 billion bilateral currency swap deal signed between South Korea and the US the previous day, some experts voiced concern that it may be too soon to rejoice because it is not yet clear what impact it will have on the market. The deal is the first of its kind since the 2008 global financial crisis and will remain in effect for six months, unless both parties decide to extend. “The $60 billion Korea-US bilateral currency swap wil

Market March 20, 2020

An intense bidding war for the takeover of Prudential Life Insurance of Korea, valued at some 2 trillion won ($1.6 billion), kicked off early Thursday as major banking groups and private equity houses vied to get their hands on the insurer. The bid for a 100 percent stake in the insurer came as the risks stemming from the novel coronavirus compounded those from the Bank of Korea’s latest rate cut. Those risks have slowed the momentum for the bid, which could be the largest acquisition d

Market March 19, 2020

South Korea’s major banking groups are operating under emergency systems to deal with impact by the central bank’s record-low key rate on the financial and forex markets. The current 0.75 percent interest rate has been putting pressure on the commercial banks’ profit margins, analysts say, which in turn is likely to affect related stock prices amid the general shareholders meeting season this month. Commercial banks are the flagship business units of banking groups here. &l

Market March 18, 2020

South Korean banks are expected to start lowering interest rates tied to fixed deposit products and mortgages on Tuesday amid the Bank of Korea’s decision to slash its benchmark interest rate to a record low of 0.75 percent. The rate affects what banks pay to borrow money overnight, affecting the level of interest rates of products that they offer to customers. At the moment, the most popular and main fixed deposit products are those with a tenure of one year. Such products designed a

Market March 17, 2020

South Korea’s central bank is likely to convene an emergency meeting of its monetary policy board this week to slash its interest rates to a record-low of 1 percent, amid growing calls to beef up economic stimulus against the novel coronavirus outbreak. On Friday, Bank of Korea Gov. Lee Ju-yeol attended a special economic meeting related to coronavirus at Cheong Wa Dae, presided by President Moon Jae-in. Economy-related ministers including Deputy Prime Minister and Finance Minister Hong

Economy March 15, 2020

Local brokerages and banks in Yeouido, the country’s main investment and financial district, have allowed employees to work from home as part of efforts to contain the new coronavirus. Over 73 percent of the nation’s financial companies are reviewing telecommuting plans, according to a poll conducted by job portal Saramin. “Except IT and other core departments, many employees are working from home through the company’s intranet,” said a 35-year-old office worker a

Market March 12, 2020

South Korea’s antitrust watchdog said Wednesday that it had fined four foreign banks a total of 1.3 billion won ($1.1 million) for fixing the prices of foreign exchange derivatives and manipulating the bidding process when dealing with local firms. According to the Fair Trade Commission, Citibank’s Korean subsidiary and local units of JP Morgan Chase, HSBC and Credit Agricole have colluded in price bids to win three forex derivatives contracts from four public and private companies

Market March 11, 2020

Even though the novel coronavirus outbreak is increasing “social distancing,” local banking groups are set to hold shareholders meetings as scheduled, but are also considering complementary measures to prevent infection. KB, Hana, Woori and Shinhan have all asked participating shareholders to bring face masks and warned that they will prohibit attendees from entering the venues if thermal scanners detect high temperature. KB’s shareholders meeting is scheduled to take place

Market March 11, 2020

With the novel coronavirus outbreak dealing a major blow to South Korea’s economy, a far-reaching welfare measure to give every citizen 1 million won ($839,00) is igniting a heated debate. Suggested as a temporary scheme, primarily designed to support citizens financially crippled by the rapid spread of COVID-19, politicians and liberal-leaning opinion leaders claim it could also stimulate the sluggish economy. There are mixed responses, with some questioning who the beneficiaries sho

Economy March 10, 2020