The amount of international money transfers handled by South Korea’s fintech firms have increased more than 25 times over the past year, hinting at the growing popularity of small-sum cross-border money transfer services.According to the Financial Supervisory Service, Korea handled $365 million worth of small-sum money transfers in the first quarter of 2019, up 2,507 percent from $14 million handled in the fourth quarter of 2017 when such services began operations here.This total figure is

South Korea’s central bank on Friday froze the key interest rate at 1.75 percent, leaving the rate unchanged for six consecutive months, amid lingering concerns over weakening economic growth and rising global risks.The Bank of Korea’s Monetary Policy Board voted to leave the rate unchanged, with Gov. Lee Ju-yeol reiterating that now is not the time for a rate cut considering macroeconomic conditions and financial stability. “Expectations for a base rate cut seem to be eme

South Korea’s global competitiveness ranking dropped one place this year, amid an economic slowdown hit by reduced exports and capital investments, an annual report by a Switzerland-based international institute showed Wednesday.The International Institute for Management Development said in its report that Korea ranked 28th in terms of world competitiveness among the 63 countries surveyed. It was ranked 27th last year.The institute, since 1997, has been ranking economies based on four cate

South Korea’s composite consumer sentiment index fell in May for the first time in six months, due to a slowing economy, volatile stock market and concerns over the escalating trade war between the US and China.　The Bank of Korea said Tuesday that the CSI -- which measures consumers’ optimism about the economy -- came to 97.9 for May, down 3.7 points from the previous month.It marks the first decline in the index since November 2018, when it fell to 95.7. It had been on a five-month

Sales of e-cigarettes, electronic devices that simulate the experience of smoking a cigarette, have been rising in South Korea as more people make the switch from traditional cigarettes.According to data from the Ministry of Economy and Finance, e-cigarette sales accounted for 21.3 percent of all cigarette sales in Korea in March this year. In the first quarter of 2019, the figure was 10.9 percent.(khnews@heraldcorp.com)

South Korea’s Incheon International Airport conducted a series of emergency response drills last week to ensure a swift response to urgent situations while minimizing customer inconvenience, the airport’s operator said Sunday.The training dealt with a mock scenario involving a fire within the intra-airport transit system, an autonomous train system that connects passengers to different terminals. Airport authorities and officials from the Ministry of Land, Infrastructure and Tra

The inaugural Korea Fintech Week event kicked off in Seoul Thursday, bringing together more than 50 local startups and 2,500 attendees to share business ideas and clinch new investment opportunities.The three-day event taking place at the Dongdaemun Design Plaza in Seoul through Saturday is organized by the Financial Services Commission, Financial Supervisory Service and Fintech Center Korea.The CEOs of fintech operators, including mobile payment platform Kakao Pay, personal finance managem

As South Korea’s financial regulators prepare to issue new operational licenses for internet-only banks here next week, all eyes are on the approval prospects of Toss Bank and Kiwoom Bank -- the two consortia currently in the running for preliminary permits. 　Up to two licenses are up for grabs, though the Financial Services Commission, the country’s chief financial regulatory body, has hinted it may approve only one. 　 The FSC’s review panel and the Financial Supervisory Servi

The South Korean government has been running the Accelerator Investment-Driven Tech Incubator Program for Startups, or TIPS, with public and private sector partners, to discover and nurture promising startups Startups under three years old are eligible to apply for the program led by the Ministry of SMEs and Startups. Each selected team is eligible to receive up to 1 billion won ($838,000) in funding, used as seed capital, research and development expenses or marketing fees.For years, the progra

Lotte Holdings said Tuesday that it has selected a consortium of MBK Partners and Woori Bank as the new preferred buyer of Lotte Card, amid legal irregularities surrounding former negotiations partner Hahn & Co.　 The holdings unit of the Korean-Japanese retail conglomerate said in a disclosure that it had initially chosen local private equity fund Hahn & Co. as its preferred bidder on May 3, but that the priority period for negotiations had expired as of May 13. As a result, Lotte deci

Costco Wholesale Korea, the South Korean unit of the US wholesale giant, will officially switch to Hyundai Card as its credit card partner from Friday in line with contract stipulations, the credit card company said Tuesday. This means that starting Friday at all Costco outlets in Korea, Costco members will only be able to pay with a Hyundai credit card or cash under the wholesaler’s single-network credit card policy. Samsung cards will no longer be accepted.The change follows an agreement

The pending sale of Lotte Group’s credit card unit, Lotte Card, appears uncertain, as an executive of its preferred bidder, Hahn & Co., faces an investigation over alleged tax irregularities -- a development that could preclude the private equity firm from completing the acquisition. Further complicating the situation, Lotte Card’s labor union has strongly opposed the idea of a takeover by a profit-driven PEF due to concerns of employment stability, pledging group acti

Hana Financial Group’s latest win over Lone Star Funds over the purchase of KEB Hana Bank, formerly known as the Korea Exchange Bank, prevented the South Korean banking group from paying the US private equity fund some $1.44 billion in compensation. All eyes are now on how this outcome will affect another high-profile arbitration that is still pending -- the investor-state dispute settlement between the Korean government and Lone Star involving a $4.68 billion damage claim.Hana Financial s

A list of South Korea’s top 500 companies ranked by revenue saw major shifts last year, with companies in the top 10 trading places and 38 companies newly entering the list, data released Wednesday showed.　According to local corporate tracker CEO Score, Samsung Electronics retained the No. 1 spot and Hyundai Motor No. 2. Meanwhile, Posco came in at No. 3, bumping LG Electronics down to No. 4.At the same time, chipmaker SK hynix and oil refiner GS Caltex became new entrants to the top 10, buoyed

Hana Financial Group, one of South Korea’s four major banking groups, said Wednesday that it has won an international arbitration against US private equity fund Lone Star Funds over its purchase of KEB Hana Bank, formerly known as Korea Exchange Bank. Lone Star had filed a suit at the International Court of Arbitration under the International Chamber of Commerce in 2016, accusing Hana Financial of internationally lowering the price of KEB in negotiating the deal.　But the court has dismisse

Technology is shaking up South Korea’s banking-finance industry, with players embracing digital transformation as a core part of their business strategy going forward.　　Reflecting this shift, 71 of the 108 (65.7 percent) finance companies here are pursuing various business projects aimed at digital transformation. And this year, these firms have set aside 584.5 billion won ($492.7 million) toward running such projects, an analysis by the Financial Supervisory Service showed Tuesday.　The 10

SKT-MICROSOFT PARTNERSHIP -- SK Telecom CEO Park Jung-ho (left) and Microsoft CEO Satya Nadella shake hands during a meeting at Microsoft’s headquarters in Redmond, Washington. SKT said Monday the two have signed a memorandum of understanding agreeing to collaborate in areas including 5G, artificial intelligence and cloud computing to foster new business opportunities. (SKT)　

South Korea’s balance of payments surplus for industries linked to K-pop businesses has recovered to levels seen before China’s 2016 ban on domestic cultural contents over soured diplomatic relations, tracking data showed Sunday. According to the Bank of Korea Economic Statistics System, Korea recorded a BOP surplus of $114.7 million for music, video and related services in the first quarter of this year -- highest surplus for the category since $132.4 million recorded in the third q

In South Korea, credit cards have long dominated the payment scene. Most locals prefer credit cards over other forms of payment and the use of cash is on the wane, particularly among consumers in their 20s and 30s. But now a new form of payment -- the prepaid card model -- is rising in popularity here, revitalizing cash usage and diversifying the offline payment landscape.Put simply, “prepaid cards” are cards that people can charge with cash and use like debit cards. Launched by loca

The chiefs of global insurance group AIA and South Korean telecom-to-chips conglomerate SK Group met in Seoul Thursday to discuss ways to cooperate in creating shared value and strengthening social value. AIA Group CEO and President Ng Keng Hooi met with SK Chairman Chey Tae-won at SK Telecom’s headquarters in Seoul for an in-depth discussion on corporate social responsibility and creating shared value for the local community, AIA said. The two exchanged ideas on ways to strengthen social