The Korea Herald

Nonfinancial firms to be allowed to run Internet-only banks

May 6, 2015

The financial authority has decided to allow nonfinancial companies to establish Internet-based banks, which are currently allowed only for stock brokerages, insurance firms and second-tier financial firms, by easing regulations on bank ownership. Detailed guidelines will be announced in the coming weeks, the Financial Services Commission said Wednesday. The FSC also unveiled aggressive plans to foster the country’s financial technology industry, a move to create a lucrative melting pot of infor
Korea Eximbank hit by bad loan shock

May 6, 2015

The state-run Export-Import Bank of Korea has come under fire for failing to properly evaluate companies’ financial soundness when giving out loans or credit approvals.With over 100 of its loan-borrowers having gone out of business, the state-run policy bank is now at the risk of losing up to 1.3 trillion won ($1.2 billion).Among companies that have taken loans from the bank since 2011, a total of 102 have entered court receivership, according to data released Wednesday by Rep. Park Won-suk, a l
Regulator set to allow banks to fund fintech firms

May 6, 2015

South Korea's top financial regulator said Wednesday that it will pave the way for local banks to invest in financial technology firms as part of its efforts to boost the integration of the two industries.According to current financial laws, financial institutions are allowed to buy stakes in or make contributions only to companies in the same business sector.In a report submitted to the presidential office, the Financial Services Commission said it will clarify the definition of "same business
Banks fare well in Q1

May 5, 2015

Despite the impact on net interest margins of the central bank’s key rate cut in March, major banking groups saw their net earnings spike in the first quarter of this year from a year earlier.But they are up against a harder challenge in the second quarter, as the prolonged low rate and the recently implemented loan transfer program is expected to cut into banks’ profits in the coming months.Financial observers pointed out that banks will soon lose most of their momentum as it was mostly trigger
[Photo News] Korea-Vietnam free trade pact

May 5, 2015

Korean Trade Minister Yoon Sang-jick (left) and his Vietnamese counterpart Vu Huy Hoang sign a bilateral free trade agreement in Hanoi, Vitenam, Tuesday. The trade pact is expected to take effect this year. (Yonhap)
Household loan growth hits 9-year high

May 4, 2015

The nation’s households have rapidly increased their borrowing from commercial banks amid the record-low interest rates and brisk property transactions, data showed Monday.The Financial Supervisory Service said Monday that the banks’ (won-denominated) outstanding loans to the household sector reached 526.1 trillion won ($487.1 billion) at the end of March, up 4 trillion won from a month earlier.This increase marked the highest growth in nine years ― for March every year ― since the FSS started t
Controversy flares over ex-KEB chief’s new role with Lone Star’s law firm

May 4, 2015

Controversy rises as U.S. buyout fund seeks huge compensation
IPOs regain popularity as bourses grow bullish

May 3, 2015

More companies are seeking to go public on the first-tier Korea Exchange and the secondary KOSDAQ market amid the growing bullish sentiment.According to the Korea Exchange, about 60 to 70 companies, most of which trade on the over-the-counter market, reportedly plan to make initial public offerings during the second half of the year.The number of companies pushing for an IPO, as a prerequisite to be listed on the KRX or registered on the KOSDAQ, is estimated to reach 120 this year including thos
[Photo News] Heading South

May 3, 2015
Builders face grim outlook

Apr 30, 2015

Samsung Engineering, SK E&C see profitability worsen due to lackluster performance overseas
Imperial named No. 1 in customer satisfaction

Apr 30, 2015

Pernod Ricard Korea, the local branch of the world’s second-largest distiller, said that its flagship Korean brand Imperial Whiskey had won the top prize in a leading customer satisfaction index here.The premium Scotch whisky was named No. 1. in the 2015 Korea Customer Surprise Brand Index, administered by the Trade Ministry-affiliated Korea Brand Management Association, officials said Thursday.The K-CSBI aims at assessing the level of customer satisfaction for individual brands by converting cu
[Herald Interview] Finance clearing institute seeks to reform corporate payment system

Apr 30, 2015

In such a conglomerate-dominated Korean economy, small and medium-sized subcontractors and ventures cannot thrive without a healthy business-to-business payment system. Without one, the Asian financial crisis and the global financial crisis doomed countless SMEs to bankruptcy.“Most unfair practices in business come from inappropriate payment systems,” said Rha Moon-soo, president and chief executive of the Korea Electronic Finance Clearing Institute, in an interview with The Korea Herald last we
[Newsmaker] New NH chief takes office amid doubts

Apr 29, 2015

NH Financial Group welcomed Kim Yong-hwan as the new chairman on Wednesday, but it appeared to have done so with a rather heavy heart.The new chief not only has to prove himself a capable successor to Yim Jong-yong ― who became chairman of the Financial Services Commission ― but is also facing allegations that he had illicit ties with the disputed Keangnam Enterprises.Hit by the sudden exit of its much-reputed leader, NH Financial initially welcomed the nomination of Kim, who had served in key f
KB Kookmin Card rolls out Ollim series

Apr 29, 2015

KB Kookmin Card’s most recent Ollim card series is attracting customers with its abundant services and benefits.The KB Kookmin Good Day Ollim Card provides discounts on everyday items such as gas, telecommunications and public transport. It also provides a discount on major supermarkets as well as foreign card affiliates. The card increases in benefits when the amount of usage in the past month increases.The KB Kookmin Wise Ollim Card provides more point accumulation benefits than its predecesso
KOTRA to open food expo next month

Apr 29, 2015

Korea will kick off Seoul Food 2015, Asia’s third-largest food industry exhibition, next month at KINTEX, in Ilsan, northwest of Seoul, trade promotion officials said Wednesday. The Korea Trade-Investment Promotion Agency said the four-day convention, themed “Wave on the Table,” aims at sharing the latest innovations to the healthy, modern diet.“The exhibition itself is like a huge table, featuring the latest wave of changing consumer trends,” said an official at KOTRA, the event organizer.The e