KB Financial, free from fund fiasco, replaces Shinhan’s top banking position

Woori Bank and Industrial Bank of Korea reported on Monday that their second-quarter net profit plummeted by 45 percent and 25 percent, respectively, weighed down by risks stemming from the coronavirus and hedge fund misselling. Woori Bank’s net profit for the April-June period slipped 45.28 percent on-year to 682.1 billion won ($570.2 million), while its operating profit fell 35.04 percent to 1.3 trillion won. But revenue increased 21.34 percent to 13.8 trillion won. The commercial ban

South Korea’s online-only lender K bank said Monday it plans to launch a new untact -- non face-to-face -- loan balance transfer service in the second half of this year, the first of its kind in the industry.  Customers will have digital signatures registered to its own electronic system, so it can lend money instead of having to go through paper work needed to verify the authenticity of one’s seal certificate. A loan balance transfer is a service that allows borrowers to

Hedge fund fiasco becomes game changer in top-tier competition

The initial public offerings of South Korean real estate investment trusts are drawing lackluster response from retail investors before their listing on the local stock market, estimates showed Sunday. The latest was the undersubscription of the stock offering to individual investors, when JR Asset Management’s REIT was going public on the main bourse Kospi to invest in Finance Tower Complex in Brussels, Belgium. REITs are companies designed to generate returns for investors in the for

Samsung Asset Management disclosed Sunday it has put a merger plan with its wholly owned hedge fund subsidiary on hold. The Seoul-based asset manager that oversees 26.9 trillion won ($22.3 billion) assets -- largest in South Korea -- added it would make an announcement once the date of merger is rescheduled. The deal was initially set to be closed by Aug. 1, following regulatory approval. The news comes amid intensifying scrutiny by authorities of Korean privately pooled funds -- private equ

South Korean stocks are expected to log mild gains next week on hopes for a US stimulus package in the pipeline, analysts said Saturday. The benchmark Korea Composite Stock Price Index closed at 2,200.44 points on Friday, nearly unchanged from 2201.19 points a week ago. The index managed to stay above the psychologically important 2,200-point mark despite disappointing economic indices and Sino-American tensions. Local analysts said the KOSPI is likely to post a gradual hike next week, large

Lina Life Insurance, an affiliate of Cigna, on Friday denied market rumors that it is up for sale. According to recent market rumors, the US-based health service company plans to sell its stake in the wholly owned South Korean insurance firm. The company has reportedly selected Goldman Sachs as a lead manager for the sale. As per reports, Cigna could have fetched over 3 trillion won ($2.5 billion) from the sale. Founded in 1987, Lina Life, the 13th largest insurer here, has made most of its

An asset management arm of South Korea’s JB Financial Group said Friday it has purchased the headquarters of Italian energy firm ENI for 200 million euros ($232 million) as part of its efforts to expand global investments. JB Asset Management has been expanding its infrastructure investment fund overseas since last year, making 300 billion won ($250 million) investment in gas–fired combined cycle power plants in New England and Ohio in the US. Earlier this month, JB forged a partn

IGIS Asset Management said Thursday it has canceled a plan to renovate an apartment building in Gangnam, an affluent southern district of Seoul, it acquired in April. The nation’s largest commercial property investor added it would liquidate the privately pooled fund that was created to invest in the redevelopment project, immediately after it sells the residential building. The asset management company purchased Samsung World Tower from an individual for 42 billion won ($35 mil

The nation’s financial watchdog said Thursday its probe revealed that scandal-ridden hedge fund Optimus Asset Management faked the fund portfolio to its investors, misappropriated their money and obstructed the authorities’ investigation. “Optimus misguided fund investors to pool their money, which led to fraudulent transactions,” Financial Supervisory Service Deputy Governor Kim Dong-hoe, who is in charge of financial investment services supervision, said in a briefing

TR Investment has been given exclusive rights to negotiate with shareholders of MP Group, the operator of pizza restaurant chain Mr. Pizza, to buy a 41.39 percent stake for 35 billion won ($29.19 million), a disclosure showed Thursday. Under the binding memorandum of understanding, the South Korean private equity firm has agreed to buy 10 million existing shares of MP Group -- which operates pizza restaurants and coffeehouse chain -- from its current major shareholders including founder and e

South Korea’s financial regulator said Wednesday it has permitted BC Card to acquire a 34 percent controlling stake in internet-only K bank. With the Financial Services Commission’s approval, the credit card processing subsidiary of telecom giant KT will become the largest shareholder of the country’s first online-only lender. Earlier in May, the company had requested the FSC to review its eligibility to become K bank’s largest shareholder.  Initially, KT had so

Foreign currency deposits at banks in South Korea surged to a new record high in June, central bank data showed Wednesday, amid pandemic-caused uncertainties that pushed both businesses and individuals to boost their currency holdings. Foreign currency deposits held by local residents came to $84.53 billion as of end-June, up $3.61 billion from a month earlier, according to the data from the Bank of Korea (BOK). The amount marks the highest since the BOK began compiling such data in June 2012

Founder of Seoul-based same-day deliery startup Kurly, Sophie Kim, was listed among the top 10 female founders in the world by fundraising, data showed Tuesday. The founder of Market Kurly had raised the eighth-most money on the list as of June, raking in a combined $282 million since Kurly’s inception in 2014, according to data compiled by Businessfinancing.co.uk, a research and information provider in UK. Kim was the only Korean and one of four from Asia. The list of Asian entreprene