The chiefs of South Korea’s two main financial regulators -- the policymaking Financial Services Commission and the market watchdog Financial Supervisory Service -- have met with the heads of major insurance companies and banking groups here to discuss policy initiatives to support the growth of market players through deregulation, the two said Wednesday. “The rapid digital transformation of finance and the growth of online platform businesses are rapidly changing the nation’s

South Korean banks’ lending rates neared 5 percent following the central bank’s first pandemic-era rate hike in August, which ramped up cash flows into bank deposits, data showed Tuesday.  The adjustable rate charged on mortgage loans extended by the nation’s four major banks -- KB Kookmin Bank, Shinhan, Hana and Woori -- remained between 3.31 and 4.8 percent, as of Monday. Both the bottom and upper ends of the range rose nearly 0.6 percentage point from 2.62 to 4.2 perce

South Korea saw its number of “non-regular” workers with four-year college degrees grow to an all-time high in August, data showed Monday, sparking concerns about the quality of jobs being created. According to data from Statistics Korea, the number of workers holding degrees from four-year colleges but employed on temporary or part-time contracts stood at 2.84 million, up 320,000, or 12.7 percent from a year earlier. It marked the highest since the agency started to compile such da

  South Korea’s financial authorities have called on local banks to take action to ensure a stable supply of credit loans and tighter supervision of household debts, officials said Sunday.  The policymaking Financial Services Commission and the market watchdog Financial Supervisory Service reportedly advised the nation’s commercial banks to submit the action plans, which can be either monthly or quarterly, for personal unsecured loans. The authorities also ur

The nation‘s top financial regulator on Thursday vowed policy efforts to forge an integrated online platform for conventional players to accelerate digital transformation of their financial services in face of rising big tech companies.  “The growth of contactless banking transactions, the so-called ‘unbundling’ as well as ‘rebundling’ trend, and the entry of tech giants into financial services have added fuel to market competition. It is time to

The policymaking Financial Services Commission said Wednesday that Citibank Korea’s plans to gradually phase out its consumer banking operations are not subject to the regulator’s authorization.  “According to the current banking act, Citibank Korea‘s withdrawal of retail business in phases is not regarded as a ‘shutdown of banking business,’ which falls under the FSC‘s approval,” the authority said in a statement, which indicates the forei

South Korea’s fiscal policy chief said Wednesday that the nation’s overheated housing market is showing signs of cooling down with the government’s tightened grip on ample liquidity amid the COVID-19 pandemic as well as its home supply plans.  “Affected by a series of government measures, including announcements of housing supply plans, benchmark interest rate hike and tougher household debt control measures, an upward trend in housing prices has slowed and changes

South Korea’s top financial regulator on Tuesday said it will implement stricter lending calculations for mortgage loans, called the “debt-service ratio,” or DSR, months earlier than expected as part of additional debt control measures.  The DSR gauges how much borrowers pay for principal and interest in proportion to yearly income.  Since July, a 40 percent DSR has been applied to borrowers seeking to receive loans for buying properties valued at over 600 million w

   Citibank Korea, the South Korean unit of Citigroup, said Monday that it has decided to shut down its consumer banking operations in phases, instead of selling them off as planned.  Citing constraints in finding potential buyers with intentions to buy the units in one piece, the bank said plan B is to minimize customer inconvenience and protect employees’ jobs. The announcement, however, has drawn strong opposition from unionized workers who say the envisioned closure

The amount of “jeonse” loans for homes extended to Koreans in their 20s and 30s surged by nearly 60 trillion won ($50.9 billion) in the last five years, raising alarm over the growing household debt burden among young borrowers, a lawmaker said Friday.  Jeonse is a housing lease system unique to Korea whereby tenants pay a lump-sum deposit instead of monthly rent on a two-year contract. The outstanding balance of jeonse loans at five major lenders here -- KB Kookmin Bank, Shin

South Korea will temporarily cut fuel taxes to soften the blow of skyrocketing gasoline prices, which put upward pressure on inflation, First Vice Finance Minister Lee Eog-weon said Friday.  “The government will temporarily lower fuel taxes. We’ll finalize further details, including the extent of fuel tax cuts and when the envisioned measure will take effect, as soon as possible,” Lee said, adding that the formal announcement will be made during a government meeting nex

The Bank of Korea’s August decision to raise its key rate has sent a market signal that the pandemic-triggered liquidity party in South Korea could be nearing an end. The International Monetary Fund, a global organization striving for financial stability, however, remained cautious about the central bank’s hawkish turn to fight rising inflationary pressure and soaring household debt, advising it to slow down the pace of rate normalization. “Korea’s monetary policy stanc

Stock-secured borrowing by the families of South Korea’s conglomerate founders amounted to almost 5 trillion won ($4.3 billion), led by managerial transfers and business restructuring, data showed Monday.  According to local market analysis company Leaders Index, as of October the nation’s 29 family-controlled conglomerates had received a combined 4.82 trillion won worth of loans backed by stocks in the groups’ affiliates, up 92 percent from 2.5 trillion in the first half

South Korea‘s major banks are set to loosen control on extension of “jeonse” loans for homes, but their tightened grip over personal credit loans will continue under pressure from financial authorities, industry sources said Sunday. Jeonse is a housing lease system unique to Korea whereby tenants pay a lump-sum deposit instead of monthly rent on a two-year contract. NH NongHyup Bank, which in August decided to temporarily stop offering jeonse loans until Nov. 30, will resume

The International Monetary Fund maintained its forecast for South Korea’s economic growth for this year at 4.3 percent, while revising down its projection for the global economy, the Ministry of Economy and Finance said Tuesday. The IMF’s latest outlook for Asia’s fourth-largest economy remained unchanged from the earlier figure suggested in July. It is well above the growth estimates made by the government and the Bank of Korea -- 4.2 percent and 4.0 percent, respectively.&

  Even with the government’s 20 percent rate cap on loans to ease financial burdens on low-income borrowers, major private lenders have maintained high interest rates for credit loans, a lawmaker said Friday. The balance of personal credit loans at the nation’s 20 leading private lenders, including Apro Financial, Sanwa Loan and Welcome Creditline, stood at 4.41 trillion won ($3.35 billion), as of the end of June. Among the loans, those with an interest rate exceeding 20 perc

The Korean Pension Association, a group of experts conducting research on the nation‘s public and private pension systems, on Thursday held a joint seminar with the Finnish Center for Pensions based in Helsinki, Finland, a research institute dedicated to developing the nation’s earnings-related pension scheme. Titled “International Symposium on the Pensions of South Korea and Finland: Demographic Challenges and Future Responses,” the event was aimed at providing expert k

The global craze over “Squid Game,” Netflix’s original Korean drama series, is adding momentum to the fast-growing South Korean media and entertainment market. Tving, the country’s leading streaming service provider run by entertainment and media firm CJ ENM, recently set out to lure investments from private equity funds at home and abroad, in partnership with Nomura Securities, according to industry sources Thursday.  Tving plans to sell its new shares worth 300 b

The nation’s top financial regulator said Wednesday it is preparing to announce new measures to curb snowballing household debts.  “South Korea‘s growth pace of household debt has been much more rapid than other countries. The Financial Services Commission has been stepping-up efforts to prevent households’ high indebtedness from posing a major threat to the Korean economy,” said FSC Chairman Koh Seung-beom at a parliamentary audit session for the financial re

Amid the rapid digital transformation brought on by the COVID-19 era, local banks have increasingly turned their backs on brick-and-mortar branches and automated teller machines, data showed Wednesday. The number of physical bank branches stood at 6,326 as of the end of June, down 10.9 percent from the end of 2016, when the figure came in at 7,101, according to data from the market watchdog Financial Supervisory Service submitted to Rep. Yoo Dong-soo of the ruling Democratic Party. Meanwhile,