The Korea Herald

Foreign securities firms cut S. Korean operations

Jul 25, 2016

[THE INVESTOR] Foreign securities companies are reducing their South Korean operations as potential profitability falls. According to local financial industry sources, the number of executives at foreign securities firms’ local operations fell from 42 in 2011 to 22 by March this year. The number of employees also fell from 904 to 735 over the same period. The workforce cut, which had been focused on nonessential departments, has now spread to sales and others linked directly to business operatio
Korea’s Supreme Court dismisses suit filed by ex-KEB shareholders against Lone Star

Jul 22, 2016

[THE INVESTOR] A lawsuit filed by minority shareholders of KEB Hana Bank against Lone Star Funds was dismissed by South Korea’s highest court. A group of shareholders including a former lawmaker and bank union leader had filed a suit to cancel dividend payouts worth 280 billion won (US$244.97 million) made out to the US private equity fund. In 2011, Lone Star pocketed the dividends from its 51 percent stake in Korea Exchange Bank. The amount was decided at a shareholders meeting in March that ye
State-run banks to receive W1.4tr injection

Jul 22, 2016

[THE INVESTOR] The government will inject 1.4 trillion won (US$1.23 billion) into state-run banks closely involved in shipbuilding and shipping industries’ restructuring. According to the supplementary budget plans approved by the Cabinet on July 22, the Korea Development Bank will see injection of 400 billion won, and the Export-Import Bank of Korea will get 1 trillion won. The government estimates that state-run banks, including KEXIM and KDB, need to secure as much as 8 trillion won for the o
Hanwha Life targets Indonesian market for growth

Jul 21, 2016

[THE INVESTOR] Hanwha Life Insurance will invest 150 billion won ($131.77 million) into its Indonesian unit to strengthen its foothold in the fast-growing market, the firm said on July 21. To expand its life insurance business in Indonesia, the firm will commit 80 billion won into the sales channel to boost the number of branches to 44 by 2025 from the current 10. “The future of Korea’s insurance industry, which has reached a saturation point, depends on readiness to dominate the promising overs
Shinhan aims to transform into major investment bank

Jul 21, 2016

[THE INVESTOR] Shinhan Financial Group, a major South Korean banking group, has decided to increase capital by 500 billion won (US$439.63 million) through rights issue in a bid to morph into an investment bank, the group said on July 21. With the proposed capital increase the firm’s equity capital will reach over 3 trillion won, the minimum threshold level to meet the government’s requirement to receive official permits to conduct a full-range of investment banking activities. From 2013, the nat
Bank chiefs see slowing household debt

Jul 21, 2016

[THE INVESTOR] Household debt increase rate will drop during the second half of the year, the chiefs of South Korean commercial banks said on July 21.Speaking at a meeting with Bank of Korea Gov. Lee Ju-yeol, they forecast a drop in the rate due to the efforts made by the government and banks. Saying that the effects of the measures rolled out by the financial authorities and the banks’ risk management will start to show during the second half despite the rapid increase seen during the first six
Korean insurers’ overseas investments hit all-time high

Jul 21, 2016

[THE INVESTOR] South Korean insurance companies’ investments overseas rose to a record high in the first quarter in 2016 as they are branching out into higher-return foreign assets to combat falling yields at home.Local insurers committed US$49.4 billion for foreign assets and companies during the January-March period, up 15.9 percent from a quarter earlier or up 50.9 percent on-year, according to data from financial investment industry. The Q1 figure remarks the all-time high amount and has sur
Finance union to stage nationwide strike in September

Jul 20, 2016

[THE INVESTOR] The Korean Financial Industry Union announced on July 20 that it will stage a nationwide strike in September.The union put the strike plans to the vote on July 19, and 95.7 percent of the voting members approved the plans. The industry union said that of the 95,168 members, 82,633 participated in the vote. If the financial union goes ahead with the plans, it will be the first time since September 2014 that the union will go on a nationwide strike. The Korean Financial Industry Uni