South Korea’s financial regulator has rejected one of three contenders seeking a license to operate a new internet-only bank here, making way for a two-way competition between two local finance powerhouses: fintech company Viva Republica and local brokerage Kiwoom Securities.　The Financial Services Commission said late Tuesday that it had rejected Anyband Smart Bank’s application due to a weak shareholder base and the submission of inadequate documents -- a move that had been widely

South Korea is moving to amend its finance and investment-related laws to allow more diverse players to utilize crowdfunding for raising capital and ease requirements for those engaging in the asset management business.The Financial Services Commission said Tuesday that a bill to amend the Financial Investment Services and Capital Markets Act has been passed by the Cabinet.As a result, the bill will now move to the National Assembly for further deliberation by the relevant committees. Korea&rsqu

Household loans given out by South Korean banks grew at the fastest rate since the start of the year last month, industry data showed Friday, indicating possible signs of worsening economic conditions in Asia’s fourth-largest economy.　As of end-April, outstanding household loans by Korea’s five major banks -- KB Kookmin Bank, Shinhan Bank, KEB Hana Bank, Woori Bank and NH NongHyup Bank -- came to 579.5 trillion won ($494.8 billion), up 3.38 trillion won from the previous month, the b

The finance chiefs of 13 Asian countries, including South Korea, on Thursday agreed on a preliminary framework to strengthen regional currency swap agreements, with aims to avoid overreliance on the US dollar.According to the Bank of Korea, the consensus was reached during the 22nd ASEAN Plus Three Finance Ministers’ and Central Bank Governors’ Meeting held in Nadi, Fiji.The ASEAN+3 is a regional body consisting of the 10 Association of Southeast Asian Nations members as well as Kore

South Korea’s special task force for “innovative finance” kicked off its first meeting Tuesday, with the participating government ministries and finance corporations pledging some 225 trillion won ($194 billion) in total investment and loan financing.　The collaborative task force is being led by the chief of the Financial Services Commission, the country’s top financial regulator, with participation by the Ministry of Economy and Finance, the Ministry of Justice and the F

Bank of Korea Gov. Lee Ju-yeol departed for Fiji on Monday to take part in a meeting of finance ministers and central bank governors representing the ASEAN nations as well as China, Japan and South Korea. While there they will exchange views on regional economic development and forge closer financial cooperation.　It is the 22nd meeting of ASEAN+3 finance and central bank chiefs and will take place Thursday in the Fijian city of Nadi. The same day, the finance and central bank heads of China, Jap

Woori Bank has established a strengthened anti-money laundering surveillance system whose protocols are on par with global standards to fight financial crime and strengthen compliance, the bank said Sunday.Woori said it has become the first commercial bank in Korea to adopt an anti-money laundering system that meets the standards of the Financial Action Task Force. FATF is a global standard-setting body to fight money laundering and finance terrorism of which South Korea is a member.  In st

South Korea’s Fair Trade Commission said Thursday that it has filed a report with the prosecution against KT over alleged violations of antitrust law, a move that puts the telco’s plans to increase its stake in the internet-only K bank on indefinite hold.　The FTC imposed fines totaling 13.38 billion won ($11.54 million) on Korea’s four major telecom-cable companies -- SK Broadband, KT, LG Uplus and Sejong Telecom -- for collusion in a government-led business project. Calli

South Korea’s economy shrank in the first quarter of this year in the biggest contraction since the 2008 global financial crisis, owing to a sharp drop in exports and slowing capital investments, an advanced estimate by the central bank showed Thursday.According to the Bank of Korea, the country’s gross domestic product for the first three months of 2019 shrank 0.3 percent quarter-on-quarter -- a surprise figure considering the median market forecast of a 0.3 percent gain for the per

The Financial Services Commission and the Justice Ministry on Wednesday announced a series of policies aimed at improving local firms’ annual general meeting of shareholders, which have become more of a formality than a platform for shareholders to exercise their rights. 　To encourage shareholder participation, the FSC will amend the Capital Markets Act so that a listed company can obtain the email addresses of its shareholders from securities brokerage firms. 　The regulator will also amen

K bank, one of South Korea’s two internet-only banks, is on the brink of financial troubles as plans for new capital injection by its operator KT have been halted by a regulatory delay.Though K bank’s shareholders have begun drawing up a new action plan for capital procurement, it is uncertain whether it can be executed to success.The Financial Services Commission decided last week to indefinitely suspend its review of KT’s application to increase its stake in K bank due to an

The Korea Herald is publishing a series of articles spotlighting the stories and opinions of female executives in Korea’s finance-banking industry, where the glass ceiling remains. - Ed.In the early 1990s, South Korea’s corporate landscape had a distinct characteristic: Men made up and led the country’s primary workforce. The banking-finance industry was no exception. During this time, Korean banks had separate hiring and wage systems for men and women. Female employees were al

With Hanwha Group having dropped out, Hana Financial Group has emerged as a strong bidder for ownership of Lotte Card -- a development that portends major shifts in South Korea’s credit card business.Last week, Hana Financial and two private equity funds officially joined the bidding process to acquire Lotte Card. Hanwha, which had shown an interest in the deal, did not enter the bidding, leaving Hana as the sole big-name financial corporation in the race.If Hana Financial ends up acquirin

South Korea’s financial regulator is seeking to bolster the business of local firms in Southeast Asia, widely considered the “next China.”　The Financial Supervisory Service hosted an event Friday in light of the Moon Jae-in government’s “New Southern Policy” which strives to elevate diplomatic and economic ties with the Association of Southeast Asian Nations, as well as India. Yoo Kwang-yeol, first senior deputy governor of the FSS, called on Korean firms to b

South Korea’s financial regulator on Wednesday designated nine financial technology services as the first participants in the newly enacted “regulatory sandbox” policy for the finance sector.The Financial Services Commission’s special panel selected nine services based on the “strength of their innovation, envisioned consumer benefits, and user protection and security measures.” As a result, these services will operate as part of a regulatory sandbox -- a mech

Hyundai Capital, the financing arm of South Korea’s Hyundai Motor Group, and Santander Brasil celebrated the launch of their joint venture, Banco Hyundai Capital Brasil S.A., in Sao Paulo on Wednesday, pledging tailored auto financing services for customers and dealers in Brazil.The joint venture marks Hyundai Capital’s first foray into the Latin American market and forms the first exclusive consumer financing service provider in Brazil for Hyundai Motor, the firm said.Banco Hyundai

South Korea’s financial regulator plans to launch at the year’s end an “open banking” system that grants financial technology firms access to the payment networks of commercial banks, moving forward the government’s ongoing effort to spur fintech innovation.The open banking network, scheduled to go live in December, will make way for the operation of all-in-one banking apps that allow users to access the money transfer and payment functions of various banks on a sin

South Korea’s chief financial supervisory body and the central bank on Monday launched a joint audit into the country’s four major commercial banks to scrutinize their loan products offered to small business owners. The Financial Supervisory Service and the Bank of Korea are working together to examine the related business practices of the four banks: Shinhan Bank, KB Kookmin Bank, Woori Bank and KEB Hana Bank. Shinhan was the first bank to undergo the audit Monday, which was initiat

Since their launch two years ago, South Korea’s two internet-only banks, Kakao Bank and K bank, have steadily built up a sizeable user base, proving the merits of branchless banks to financial consumers here.　And now, Kakao Bank, run by Korean mobile messaging giant Kakao, and K bank, led by telecommunications firm KT, have set out to expand the scope of their business through capital injection enabled by a recent change to the local banking law.However, the two firms have encountered new

South Korea’s employment rate reached a record 60.4 percent in March, with the number of newly added hires rising by around 250,000 from the previous month, data from the state-run statistics agency showed Wednesday.　Statistics Korea said the number of employed people stood at 26.8 million in March, increasing by 250,000 from the same month last year. This builds on the improvement seen in February, when the employed population grew by 200,000 on-month. 　This brings the employment rate --