Journalist

Kim yoon seop
  • March COFIX for New Loans Slips to 2.81%, Easing Some Variable Mortgage Rates
    March COFIX for New Loans Slips to 2.81%, Easing Some Variable Mortgage Rates The COFIX (Cost of Funds Index), a key benchmark for variable-rate mortgage loans at South Korean banks, fell back into decline after a one-month rise. The Korea Federation of Banks said Tuesday that the March COFIX based on new loan issuance came to 2.81%, down 0.01 percentage point from the previous month. The index had dropped in January for the first time in five months, falling 0.12 percentage point, then turned higher in February before easing again in March. Over the same period, the COFIX based on outstanding balances held steady at 2.85%, while the “new outstanding balance” COFIX slipped 0.02 percentage point to 2.45%. COFIX is the weighted average interest rate of funds raised by eight domestic banks. It moves up or down as rates on major funding products such as deposits and bank bonds rise or fall. The federation said the new-loan COFIX reflects market-rate changes more quickly because it is calculated using funds newly raised during the month. It advised borrowers seeking COFIX-linked loans to fully understand how market-rate shifts affect the index before choosing a loan product. Commercial banks are set to apply the newly announced COFIX to variable rates on new mortgage loans starting Wednesday. At KB Kookmin Bank, the six-month variable mortgage rate tied to the new-loan COFIX will fall 0.01 percentage point to 3.98% to 5.38% from 3.99% to 5.39%. Under the same benchmark, the rate on jeonse deposit loans backed by the Korea Housing Finance Corp. will also edge down to 3.74% to 5.14% from 3.75% to 5.15%. At Woori Bank, the six-month variable mortgage rate tied to the new-loan COFIX will drop to 3.79% to 5.39% from 3.80% to 5.40%.* This article has been translated by AI. 2026-04-15 15:51:29
  • Shinhan Bank Tops South Korea’s Retirement Pension Market With 54.74 Trillion Won
    Shinhan Bank Tops South Korea’s Retirement Pension Market With 54.74 Trillion Won Shinhan Bank said it has become the top financial institution in South Korea’s retirement pension market. The bank said Tuesday that its retirement pension assets reached 54.7391 trillion won, based on disclosures on the Financial Supervisory Service’s Integrated Pension Portal. It said the figure is the largest across the financial industry, including banks, securities firms and insurers. Shinhan Bank said assets grew evenly across defined benefit (DB), defined contribution (DC) and individual retirement pension (IRP) plans. On returns, the bank said that as of the first quarter of this year, 10-year returns for its non-principal-protected products were 5.17% for DC plans and 4.78% for IRP plans. The bank said it is expanding its lineup of performance-linked products, including exchange-traded funds (ETFs) and target-date funds (TDFs), as customer demand rises. It said it currently offers 242 ETF products, the most among banks. To mark the No. 1 ranking, Shinhan Bank said it plans an event offering My Shinhan Points to customers enrolled in DC and IRP plans. “This achievement reflects the pension asset management capabilities we have built as an asset management-focused bank, along with competitive returns,” a Shinhan Bank official said. “We will continue to provide differentiated services as a pension specialist bank that customers can trust.”* This article has been translated by AI. 2026-04-15 09:12:00
  • NH NongHyup Bank CEO Kang Tae-young Pledges More On-Site Support in South Gyeongsang
    NH NongHyup Bank CEO Kang Tae-young Pledges More On-Site Support in South Gyeongsang Kang Tae-young, CEO of NH NongHyup Bank, visited key industrial sites in South Gyeongsang Province to review business strategy and discuss ways to expand what the bank called “productive finance.” NH NongHyup Bank said April 15 that Kang toured the region for two days, from April 13 to 14, to inspect major local industries and consider financial support measures. The bank said the trip aimed to strengthen support for the province’s core marine, aerospace and defense sectors and to improve customer-focused service through communication with frontline staff. On April 13, Kang attended the opening ceremony at the bank’s South Gyeongsang headquarters for the “Southeast NongHyup Financial Comprehensive Support Center for Marine, Aerospace and Defense Industries.” The center will provide tailored financial consulting and specialized products for companies in shipbuilding and marine industries, aerospace, and defense in the region. On April 14, Kang visited Samsung Heavy Industries’ Geoje shipyard and Hanwha Aerospace’s plant in Changwon. He met with company officials to discuss financial support and cooperation measures aimed at expanding exports and shifting toward higher value-added industries. “South Gyeongsang is a key hub of Korea’s manufacturing base, and sustained growth in marine, aerospace and defense industries will strengthen the nation’s economic competitiveness,” Kang said. “We will continue to expand NongHyup Bank’s productive finance by providing on-site, field-centered support and growing together with local communities.” 2026-04-15 08:54:00
  • KB Kookmin Bank Launches New KOSPI 200-Linked Deposit With Up to 13.8% Annual Return
    KB Kookmin Bank Launches New KOSPI 200-Linked Deposit With Up to 13.8% Annual Return KB Kookmin Bank said April 14 it has launched the “KB Star Equity-Linked Deposit (ELD) 26-3,” a principal-protected product if held to maturity that can offer additional returns depending on the performance of the underlying asset. The one-year product is linked to the KOSPI 200 index and comes in three structures: an upside participation type (minimum-rate guaranteed), an upside knock-out type (minimum-rate guaranteed), and an upside knock-out type (high-yield seeking). For the upside participation type (minimum-rate guaranteed), the maturity rate is set based on the index’s gain, ranging from an annual 2.95% minimum to an annual 3.05% maximum (as of April 13, before taxes). For the upside knock-out type (minimum-rate guaranteed), the maturity rate ranges from an annual 2.95% minimum to an annual 3.50% maximum. The upside knock-out type (high-yield seeking) offers an annual 2.00% minimum to an annual 13.8% maximum. For the upside knock-out type (minimum-rate guaranteed), if the underlying index rises more than 25% during the observation period, the maturity rate is fixed at the minimum rate. For the upside knock-out type (high-yield seeking), the same applies if the index rises more than 20%. Subscriptions will be accepted through April 22. The sales cap totals 250 billion won: 100 billion won each for the upside participation type (minimum-rate guaranteed) and the upside knock-out type (minimum-rate guaranteed), and 50 billion won for the upside knock-out type (high-yield seeking). A KB Kookmin Bank official said the bank increased the subscription limit for product structures that drew strong demand in the previous sale, and asked for customers’ interest and participation.* This article has been translated by AI. 2026-04-14 15:27:18
  • Banks Brace for Fierce Bidding for Seoul, Incheon and Other Local Government Depository Deals
    Banks Brace for Fierce Bidding for Seoul, Incheon and Other Local Government Depository Deals Local governments’ depository contracts are emerging as a major battleground for South Korea’s banks, with competition expected to intensify as several large jurisdictions near the end of their current agreements. According to the financial industry on April 14, five governments — Seoul, Incheon, Sejong City, South Jeolla Province and North Gyeongsang Province — will see their depository agreements with banks expire at the end of December. Shinhan Bank currently handles Seoul’s first and second depositories. Incheon’s first and second depositories are managed by Shinhan Bank and NH NongHyup Bank, respectively. Sejong City uses NongHyup and Hana Bank; South Jeolla uses NongHyup Bank and Gwangju Bank; and North Gyeongsang uses NongHyup Bank and iM Bank. Seoul is widely viewed as the biggest prize, given its budget size and the prestige of being the city’s main banking partner. Seoul’s total budget this year (general account plus other special accounts) is 51.4778 trillion won, the largest among local governments nationwide. Other banks are signaling strong interest in unseating Shinhan. All five major commercial banks, including Shinhan, attended a proposal briefing held April 9, according to industry officials. Seoul plans to accept proposals through May 6 and then hold presentations by each bank. A revised scoring system could further sharpen the contest. The weighting for interest rates on demand deposits has been increased to 8 points from 6, raising expectations of more aggressive rate offers. Incheon, with a depository of about 15 trillion won, is also expected to be closely contested. The city plans to begin preparing its bid process in June and aims to sign an agreement as early as July. While Shinhan and NongHyup currently serve as depository banks, Hana Bank — which is set to relocate its headquarters to Incheon’s Cheongna International City in September — is emerging as a leading challenger. Analysts say interest rates could be decisive as Incheon pushes an ordinance change that would require rates to be disclosed within 30 days after a depository agreement takes effect. Outside the capital region, competition is also expected for Sejong, South Jeolla and North Gyeongsang. Their budgets this year total more than 28 trillion won: North Gyeongsang at 14.0363 trillion won, South Jeolla at 12.7023 trillion won and Sejong at 2.0829 trillion won. Banks pursue these contracts largely because managing public funds can secure large volumes of low-cost deposits. The average interest rate paid on local government depository funds nationwide last year was 2.53%, according to the Interior and Safety Ministry’s Local Finance Integrated Disclosure System released in January. The contracts are also seen as valuable for reputation. “A city or provincial depository carries symbolic value, but it also delivers substantial practical benefits in areas such as corporate and investment banking,” a financial industry official said. “With some evaluation criteria adjusted and disclosure of contracted rates becoming mandatory, strategic competition among banks is likely to grow even more intense.” 2026-04-14 15:21:00
  • KB Kookmin Bank Tightens Oversight of Loan Process to Strengthen Consumer Protection
    KB Kookmin Bank Tightens Oversight of Loan Process to Strengthen Consumer Protection KB Kookmin Bank said on the 14th it will strengthen internal management standards across the entire loan process to bolster financial consumer protection. The measures include monitoring using the Consumer Protection Quality Index (CPQI), tighter management of loans to vulnerable groups, and an overhaul of a pre-review checklist for consumer protection. Within this month, the bank will add key credit indicators to CPQI — including the status of new loans to older customers and first-time workers, and changes in delinquency rates — to step up monitoring for warning signs. CPQI is a data-based management index designed to assess consumer protection levels and support rapid responses when irregularities are detected. The bank also plans to strengthen loan management for financially vulnerable customers. It will expand verification of borrowers’ actual repayment capacity, rather than relying mainly on collateral, to help prevent excessive borrowing, and will operate a tailored management system that reflects customer characteristics. At the pre-consultation stage for consumer protection, KB Kookmin will revamp its checklist to reinforce advance screening. It will improve related processes so headquarters departments can review, in advance and from the customer’s perspective, key considerations when setting loan products and interest rate and fee policies. “Maintaining a balance between stronger consumer protection and expanding inclusive finance is important,” a KB Kookmin Bank official said. “We will continue to do our best to ensure meaningful consumer protection from the customer’s point of view.”* This article has been translated by AI. 2026-04-14 10:15:00
  • Mortgage Rates Near 7% While Deposit Rates Stay in 2% Range, Widening Bank Spreads
    Mortgage Rates Near 7% While Deposit Rates Stay in 2% Range, Widening Bank Spreads Mortgage loan rates have pushed toward 7% while deposit rates remain stuck in the 2% to 3% range, widening the gap between what banks charge borrowers and what they pay savers. With loan rates jumping amid the Middle East situation, borrowers’ interest burdens are rising. According to the financial sector on the 13th, fixed-rate (five-year) mortgage rates at the five major commercial banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — stood at 4.16% to 6.76% a year, with the top end nearing 7%. The upper bound briefly exceeded 7% as of March 27 after the benchmark five-year bank bond yield (AAA) surged on fallout from the Middle East situation. Deposit rates, however, have remained in the 2% to 3% range, widening the spread. Disclosures from the Korea Federation of Banks show the headline rates on the five banks’ flagship 12-month time deposits at 2.85% to 3.10% a year. Base rates, excluding preferential rates, were in the low 2% range. Loan rates tend to move faster than deposit rates because they are set off market benchmarks. Banks typically calculate lending rates by adding a spread to a base rate that reflects indicators such as the Bank of Korea’s policy rate and COFIX (the cost of funds index), then subtracting discounts. Data from the Korea Financial Investment Association show the five-year unsecured AAA bank bond yield rose from 3.57% at the end of February to 4.05% at the end of last month, up nearly 0.5 percentage point. A recent government move to tighten oversight of high-value mortgages by revising contribution rates to the Korea Housing Finance Credit Guarantee Fund has also added upward pressure, as differentiated rates apply to larger loans. Deposit rates that had topped 4% under the high-rate environment fell into the 2% range early this year and have not rebounded. Analysts say tighter household lending rules have curbed loan demand, reducing banks’ need to raise funding and weakening incentives to lift deposit rates. Market watchers expect the widening spread to persist for now. If market rates keep rising while banks maintain a focus on managing household lending, lenders are likely to keep loan rates elevated. The Bank of Korea has held its policy rate at 2.5% for seven straight meetings, but expectations of a rate hike later this year continue to circulate, also supporting higher loan rates. The concern is that a wider spread translates directly into heavier interest burdens for borrowers. The Bank of Korea said variable-rate loans accounted for 28.9% of outstanding mortgages as of the end of February, the highest level in three years and seven months. As rates rise, more borrowers are falling behind. A Financial Supervisory Service survey found the delinquency rate on banks’ household loans was 0.42% at the end of January, up 0.04 percentage point from a month earlier. Mortgage delinquencies rose 0.02 percentage point to 0.29%. A financial industry official said uncertainty has not fully eased and some analyses suggest central banks at home and abroad could begin raising policy rates in the second half even if they do not move immediately. The official added that market rates feed quickly into loan rates while deposit rates tend to follow later, making the widening spread difficult to reverse soon.* This article has been translated by AI. 2026-04-13 17:21:00
  • Woori Bank, Kim & Chang and Samil PwC Form Joint Team for Business Succession Support
    Woori Bank, Kim & Chang and Samil PwC Form Joint Team for Business Succession Support Woori Bank said on the 13th it signed a memorandum of understanding with Kim & Chang and Samil PwC to cooperate on business succession services. The agreement aims to provide integrated support across finance, legal services and tax matters. The three organizations said they will work together to address issues that arise during succession and to jointly design practical, executable succession strategies, going beyond simple advice. As founders of small and midsize companies age rapidly, business succession is increasingly seen as a key issue affecting corporate survival and employment, not just a family inheritance matter. If succession is not handled smoothly, companies can face abrupt sales or closures, increasing the need for specialized support. Under the MOU, the partners will provide legal and tax advice on succession, jointly run education programs and seminars for companies, and share research and information to help develop related systems and the market. They also plan to support structures tailored to each company, reflecting a shift from child-centered succession to broader options such as third-party sales, including mergers and acquisitions, and to assist through execution. "Business succession is not simply a transfer of shares, but a process of designing a company's future," Woori Bank CEO Jeong Jin-wan said. He said the partnership will help companies transition more steadily to the next generation through a model that combines financial, legal and tax support. * This article has been translated by AI. 2026-04-13 17:07:02
  • Shinhan Bank CEO Jeong Sang-hyeok Joins SOL Mate Trusts to Boost Senior Wealth Services
    Shinhan Bank CEO Jeong Sang-hyeok Joins SOL Mate Trusts to Boost Senior Wealth Services Shinhan Bank CEO Jeong Sang-hyeok has moved to strengthen the bank’s competitiveness in senior wealth management. Shinhan Bank said April 13 it held a pledge ceremony for executives to enroll in its Shinhan SOL Mate will-substitute trust and dementia-care trust. Jeong and 21 executives took part. The bank said the campaign was designed to have management consider the purpose and need for specialized trust products from a customer’s perspective. The Shinhan SOL Mate will-substitute trust allows customers to manage their assets during their lifetime while designating beneficiaries in advance when needed. The Shinhan SOL Mate dementia-care trust is intended to help customers plan asset management in advance in case of dementia or other health issues. A Shinhan Bank official said the campaign reflects the bank’s commitment to supporting senior customers’ stable retirement and the transfer of assets. The official said the bank will continue expanding senior-focused financial services that closely address customers’ needs across their lives.* This article has been translated by AI. 2026-04-13 16:09:00
  • NH NongHyup Bank, BNK Busan Bank Join Financing for Sinan Ui Offshore Wind Project
    NH NongHyup Bank, BNK Busan Bank Join Financing for Sinan Ui Offshore Wind Project The Sinan Ui offshore wind power project, the first investment backed by the National Growth Fund, has moved into full-scale funding execution, putting the development on track. According to the financial industry on the 13th, NH NongHyup Bank said it will join the project financing agreement for the Sinan Ui offshore wind power project. The project will build a 390-megawatt offshore wind complex in waters near Uido, Sinan County, South Jeolla Province. Total project costs are 3.4 trillion won. It is the first case of the National Growth Fund supplying capital to an industrial project. NH NongHyup Bank will provide a total of 207 billion won, including 120 billion won in senior loans and 87 billion won in indirect investment through its Future Energy Fund. The bank also plans tailored support for partner companies by using its strong branch network in South Jeolla. It will introduce reverse factoring — early purchases of accounts receivable — to help local equipment and materials suppliers that may face cash shortages during the large-scale PF process. Companies with strong wind technology will be eligible for a technology-finance special program offering low-interest loans and guarantees. “Participation in the Sinan Ui offshore wind power project is an excellent example of the locally focused, productive finance NH NongHyup Bank pursues,” a bank official said. “We will continue expanding productive finance that helps environmentally friendly energy industries and regional small and midsize companies grow together.” BNK Busan Bank will also join the PF agreement. Drawing on its experience in shipbuilding and maritime finance, Busan Bank said it is the only regional bank to participate in the lending group for the project. Busan Bank has positioned maritime finance as a core specialty, providing services across ship finance, refund guarantees and port infrastructure. It said the PF participation will help speed efforts to diversify its business portfolio. Noh Hae-dong, head of Busan Bank’s Maritime and IB Group, said the deal will be an opportunity to expand financial support into energy infrastructure based on the bank’s maritime finance experience. He said the bank will continue strengthening financing for renewable energy such as offshore wind and for maritime infrastructure.* This article has been translated by AI. 2026-04-13 11:30:16