Faster than anyone could have imagined, South Korea’s IT platforms, which have had no banking experience at all, have quickly become a dominant force in the nation’s retail banking scene.  The COVID-19 pandemic has been defining moment for digital transformation, according to industry watchers, with the rising number of consumers preferring non-face-to-face banking services.  According to the Bank of Korea, the volume of money transfers and loan applications carried out

A growing number of South Koreans in their 40s have increased savings to prepare for life after retirement, a report said Monday.  The survey published by Hana Bank’s in-house research center showed that nearly 42 percent of 1,000 people born between 1972 and 1981 answered that they feel the urge to save money for their later lives, among other things. The list of their priorities on spending included home purchases and children’s private education with 36 percent and 16 perc

Financial Supervisory Service Gov. Yoon Suk-heun, known as a hard-line reformist of the financial industry, is set to retire next week without resolving a massive misselling scandal involving Korean hedge funds Lime Asset Management and Optimus Asset Management. Blamed for the watchdog’s lax oversight over the now-defunct hedge fund operators, it is unlikely that Yoon will continue to serve after his term ends on May 7, industry sources said. The alleged fraud cases caused investor los

Children of the late Samsung chairman are set to receive massive loans from local lenders to pay more than 12 trillion won ($10.8 billion) in inheritance taxes, the largest-ever amount in the country’s history, according to industry sources on Thursday.  Two domestic commercial banks, which were not identified, will issue credit loans of hundreds of billions of won to the family of the late Samsung Group Chairman Lee Kun-hee, later in the day, they said.  The decisions were m

South Korea resumes the short selling of stocks Monday, ending a 14-month ban imposed to protect investors from a sudden market fall triggered by the pandemic.  Despite the government’s cautious moves -- leaving some restrictions in place even after the temporary ban expires -- retail investors are still wary over a possible drop in stock prices, according to industry sources Wednesday. The regulator’s decision to permit short selling within limits starting May 3 came after

Talk in political circles favors the legal acceptance of cryptocurrencies such as Bitcoin, despite the government’s skepticism over digital assets.  Rep. Kim Byung-wook of the ruling Democratic Party is working on a proposed legal framework that would embrace the trading of digital assets and regulate cryptocurrency markets. It has gained momentum largely due to the ample liquidity driven by the government’s monetary easing stance amid the COVID-19 pandemic, according to indu

A warning from the head of the nation’s financial regulator about the risks of investing in crypto assets has sparked criticism from traders of virtual coins, who reject his opinion that digital tokens are speculative tools. Financial Services Commission Chairman Eun Sung-soo on Thursday voiced concern about the recent crypto frenzy, saying “cryptocurrencies, which have no intrinsic value, are not a real currency,” during a meeting of the National Assembly’s National P

Woori Financial Group said Sunday it has established “ESG financing principles,” a framework for the incorporation of environmental, social and corporate governance factors into the group‘s business portfolios.  The ESG finance principles introduce a definition and initial purpose of ESG finance, while stipulating how to integrate ESG values when making business decisions regarding various business models, including credit loans, project financing and wealth management,

South Korea’s top financial regulator on Sunday unveiled measures to supply mid-range interest rate loans worth 32 trillion won ($28.7 billion) to 2 million borrowers with weak credit ratings by the end of this year. The policymaking Financial Services Commission plans to advise both conventional and internet-only banks to extend more mid-rate loans to borrowers with low to moderate credit scores like young people and small business owners, who find it difficult to access cheap bank loa

The top executives of Shinhan Financial Group and Shinhan Bank received light sanctions Thursday over the sale of problematic funds structured by hedge fund firm Lime Asset Management.  A sanctions committee under the market watchdog Financial Supervisory Service handed down an admonition to Shinhan Financial Group Chairman Cho Yong-byoung and a cautionary warning to Shinhan Bank CEO Jin Ok-dong for their lax oversight of the Lime fund misselling.  The decision was made late Thursda

Shinhan Bank said Tuesday it has signed a memorandum of understanding with Kakao Mobility to financially support the taxi-hailing company’s employees and cooperate on developing new business models.  Under the deal, Shinhan Bank will provide loan programs offering favorable interest rates to taxi drivers and employess of nine taxi compnies operated by TJ Partners. The company is a subsidiary of Kakao Mobility, an affiliate of the country’s dominant mobile messenger operator,

The nation’s top financial regulator said Monday it will launch a new stock loan system for retail investors to have better access to stock borrowing for short selling.  Short selling is a trading technique where investors sell borrowed stocks on the belief that share prices will fall in the near future. Short sellers profit if they buy the stocks back for less than they sold them for. Under the new system, a total of 17 local brokerages, including Korea Investment & Securitie

Responding to the prolonged crisis in Myanmar, the South Korean government has decided to halt financing for government infrastructure projects there until next year, a source told The Korea Herald on Friday. “The Ministry of Economy and Finance has temporarily suspended financial support through the Korea Economic Development Cooperation Fund for any new infrastructure projects by the military government,” said an official at the Export-Import Bank of Korea, who requested anonymity

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

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

Hana Bank applied for trademark rights to the name “Hana Payments” last month, signaling that it is gearing up to enter the nation’s easy-to-use digital payment market. Industry sources told The Korea Herald on Thursday that the lender applied to register the name with the Korean Intellectual Property Office on March 19. This suggests that the lender may soon join the race to offer online-based easy payment solutions, market watchers said. Major financial groups including K

하나은행이 간편결제 서비스로 예상되는 하나 페이먼츠 (Hana Payments)를 상표로 출원해 간편결제시장 진출에 속도를 내고 있다. 　 15일 금융권에 따르면 하나은행은 3월 중순 해당 상표를 특허청에 출원했다. 최근 금융지주의 간편결제 시장 진출이 가속화되고 있는 만큼 이번 상표 출원이 간편결제 사업의 일환이라는 해석이 나온다.  하나은행이 “Hana Payments 브랜드 관련 사업은 하나카드 소관”이라고 밝히면서 이러한 관측에 힘을 실리고 있다. 　 하나카드 관계자는 이에 대해 “Hana Payments 관련해 구체적인 사업 콘텐츠나 아이템이 정해진 건 아직 없다“며 ”이번 상표 출원은 나중에 쓸 수 있는 네이밍 확보 차원의 선제적 대응”이라고 말을 아꼈다. 　 하지만 최근 카카오페이·네이버페이 등 국내 빅테크들이 주도하고 있는 간편결제 시장에 KB금융과 신한금융지주가 본격적으로 진출했

Provincial bank-led financial institution JB Financial Group said Wednesday it had launched an intraboard committee responsible for making business decisions focused on environmental, social and corporate governance values.  As the top decision-making body for ESG management, the new committee will develop corporate strategies and policies regarding the incorporation of ESG criteria into the group’s business portfolios, while supervising ESG-related initiatives conducted by its af

The government should not set legal requirements for companies adopting environmental, social and corporate governance, or ESG, principles, but should instead provide incentives for those accepting green and ethical management practices voluntarily, a top lawyer said.  Lim Sung-taek, a managing partner at law firm Jipyong, said in an interview that excessive state-imposed restrictions regarding ESG commitments could lead to market backlash because ESG is about paradigm shifts created by ma

BNP Paribas South Korea said Sunday it had recently hosted a webinar to offer insight into green finance at home and abroad, as well as on law firms’ key roles in supporting companies’ environmental, social and governance management.  Co-hosted by local law firm Shin & Kim, the virtual event featured Kwon Yong-kwon, head of debt capital markets division at BNP Paribas Securities Korea, Song Soo-Young, a partner lawyer at Shin & Kim, and Lee Ji-sun, leader of Posco&rsq