South Korea's KakaoBank posts record profit in 2025, eyes overseas expansion SEOUL, February 04 (AJP) - South Korean internet-only lender KakaoBank reported record annual earnings on Wednesday with pledges to pursue overseas expansion and mergers and acquisitions to secure future growth. In a regulatory filing, KakaoBank said net profit last year rose 9.1 percent to a record 480.3 billion won ($360 million), compared with 440.1 billion won a year earlier. The bank said declining market interest rates weighed on interest income, but noninterest income posted strong growth. Operating revenue reached 3.08 trillion won. Interest income fell 2.9 percent to 2 trillion won from 2.06 trillion won the previous year, while noninterest income jumped 22.4 percent to 1.1 trillion won, surpassing 1 trillion won for the first time and accounting for more than 35 percent of total operating revenue. Annual fee and platform revenue rose to 310.5 billion won, supported by growth in lending and investment platform services as well as advertising operations, the bank said. To diversify revenue sources, KakaoBank plans to introduce new services this year, including foreign-currency accounts in the second quarter and financial services for foreign customers in the fourth quarter to strengthen its deposit base. The bank is also expanding overseas operations. Superbank in Indonesia, in which KakaoBank holds a stake, completed an initial public offering, prompting a change in accounting treatment and generating a first-quarter valuation gain of 99.3 billion won, the bank said. KakaoBank is also moving ahead with plans to establish a virtual bank in Thailand in partnership with Thai financial holding company SCBX. To reinforce existing businesses and expand into new areas, KakaoBank said it is reviewing acquisition opportunities focused on nonbank financial sectors, including payments and capital companies. Chief Financial Officer Kwon Tae-hun said acquiring a capital firm could help the bank enter market segments not easily accessible to internet-only lenders. While profitability has softened following the recent interest rate cycle, such a deal could deliver strong returns during future rate upturns, he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-04 15:55:30

KakaoBank Posts Record 480.3 Billion Won Net Profit, Eyes Payments and Capital M&A Internet-only lender KakaoBank said it posted another record year on the back of rising noninterest income such as fees, even as interest income fell. The company said it will focus this year on overseas business and mergers and acquisitions to secure longer-term growth drivers. KakaoBank said in a regulatory filing on Tuesday that its net profit for last year totaled 480.3 billion won, up 9.1% from 440.1 billion won a year earlier, marking its highest annual result. Interest income declined amid factors including falling market rates, but gains in noninterest income kept overall growth intact. Of last year’s operating revenue of 3.0836 trillion won, interest income was 1.9977 trillion won, down 2.9% from 2.0565 trillion won the previous year. Noninterest income rose 22.4% to 1.0886 trillion won, topping 1 trillion won for the first time and accounting for more than 35% of operating revenue. Annual fee and platform revenue came to 310.5 billion won, helped by growth in its loan and investment platform and advertising business. KakaoBank said it plans to roll out new services this year to diversify revenue. It said it will launch a foreign-currency account in the second quarter and services for foreign customers in the fourth quarter to strengthen its deposit business with new customer segments. The bank also said it will expand overseas operations. It said Indonesia’s Superbank, in which KakaoBank has invested, went public, prompting a change in accounting treatment for its stake and resulting in a first-quarter valuation gain of 99.3 billion won. KakaoBank also said it is speeding up the establishment of a Thailand “virtual bank” in cooperation with Thai financial holding company SCBX. To bolster existing businesses and enter new ones, KakaoBank said it is reviewing acquisitions focused on nonbank financial areas such as payments and capital companies. Kwon Tae Hoon, KakaoBank’s chief financial officer, said a capital company is a positive M&A target because it would allow entry into new markets that internet banks have not been able to reach. He said profitability has weakened after a period of rising rates, but the financial contribution could be significant when considering return on equity levels during boom periods. 2026-02-04 15:42:00

South Korea’s January Corporate Lending Growth Halves as Rates, FX and Delinquencies Rise Corporate lending at the start of the year grew at about half the pace of a year earlier, slowing efforts to expand so-called productive finance. Banks and companies are facing what the industry calls a “three-high” environment — higher interest rates, a weaker won and rising delinquencies — while policy incentives have yet to take hold in the market. As of the end of January, corporate loan balances at South Korea’s five biggest banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — totaled 847.3530 trillion won, according to the financial industry on Monday. That was up 2.6276 trillion won from the previous month’s 844.7254 trillion won, about half the 5.1003 trillion won increase recorded in January last year. January is typically the busiest month for corporate borrowing as companies set annual business plans and banks reset sales targets, making this year’s slowdown unusual, analysts said. The trend stands out because the Lee Jae Myung government has urged banks to expand lending and investment for businesses, and corporate loans are not subject to the same volume caps applied to household lending. Banks attribute the slowdown to a mix of worsening macro conditions. With high rates expected to persist, companies have delayed borrowing for new investment or relied on existing credit lines. As of December, the corporate loan interest rate was 4.16% annually, up 0.06 percentage points from a month earlier. Greater exchange-rate volatility has also made banks more cautious. The industry estimates that for every 10-won rise in the exchange rate, banks’ common equity tier 1 ratio falls by 0.01 to 0.03 percentage points, reducing available capital. The longer the won stays weak and volatile, the more conservatively banks tend to handle corporate lending. Rising delinquencies have further tightened risk management. As of the end of November, the corporate loan delinquency rate was 0.73%, the highest since November 2018, when it was 0.86%. Delinquencies rose for both large-company loans, from 0.14% to 0.16%, and small- and midsize-business loans, from 0.84% to 0.89%. Policy support meant to offset these pressures has yet to be fully felt. In September, financial authorities said they would lower the risk weight applied when banks invest in unlisted shares to 250% from 400% to encourage more venture-style capital and expand funding for innovative and growth companies. But regulators have not finished revising detailed rules needed to implement the plan, delaying banks’ ability to finalize business strategies and adding uncertainty. The Financial Supervisory Service said it plans to complete the revisions in the first quarter. “A pullback in corporate lending is less about demand collapsing than about uncertainty rising, with both financial firms and companies taking a wait-and-see approach,” a financial industry official said. “If institutional measures that ease risk burdens do not work on time, defensive behavior will not change easily.” 2026-02-03 15:51:00

South Koreans rush to hoard dollars amid weakening won SEOUL, January 15 (AJP) - South Koreans have been hoarding U.S. dollars as the greenback continues its strong run. According to financial data released on Thursday, individual customers of South Korea's five major banks -Hana, KB Kookmin, NH Nonghyup, Shinhan, and Woori - exchanged South Korean currency for U.S. dollars worth about US$480.81 million over the past three weeks. The amount breaks down to $22.90 million per day on average, more than double the daily average of $10.43 million from January through November last year. The main trigger was a strong verbal intervention by financial authorities on Christmas Eve, which briefly strengthened the won against the dollar and prompted individual investors to aggressively buy U.S. dollars. The exchange rate fell 33.8 won that day and continued declining for three consecutive sessions, trading from the 1,480-won range to the 1,420-won range. Many seemed to consider it a buying opportunity, anticipating the won would soon weaken again. The buying frenzy drove currency exchanges to about $63.04 million that day alone, nearly equivalent to an entire week's transactions. Demand was so high that several bank branches ran out of Benjamins. Demand for dollars remained strong even as the won weakened again, with individuals exchanging US$17.44 million on Tuesday, reflecting a persistent hoarding spree. In contrast, only $90.31 million was exchanged from dollars into won between Dec. 24 and last Tuesday, averaging $4.30 million per day. Market analysts see that heavy dollar buying may reflect expectations of further gains in the exchange rate. The won has weakened for 10 consecutive trading sessions since the start of the new year, trading at 1,477.5 won per dollar on Wednesday. Park Sang-hyun, an analyst at iM Securities, said, "The government's currency measures announced late last year have yet to show clear effects, failing to dispel concerns over the weakening won," adding that demand for foreign exchange has been driven mainly by individual investors buying foreign stocks. 2026-01-15 14:07:30

Taiwan, Singapore surge on chip boom while Korea lags at 1% amid regulatory drag SEOUL, January 02 (AJP) -Taiwan and Singapore posted markedly stronger economic growth in 2025, powered by the global semiconductor boom, while South Korea lagged far behind despite being one of the world’s leading chip producers, highlighting the growing role of regulatory and policy conditions in shaping economic performance. Taiwan’s economy is projected to have expanded by 7.37 percent last year, according to last estimate by the Directorate-General of Budget, Accounting and Statistics, while the Ministry of Trade and Industry on Friday placed preliminary annualized growth of Singapore at 4.8 percent for 2025, accelerated from 4.4 percent in 2024. The Bank of Korea estimate for South Korea's growth in 2025 despite record exports is at around 1 percent. The widening gap underscores how differently Asia’s export-driven economies are translating the semiconductor upcycle into broader growth. “The wide gap in last year’s growth rates for South Korea and Taiwan — 1 percent and 7 percent — largely reflects differences in how aggressively companies invest and the regulatory environment that supports that investment,” said Jang Sang-sik, head of the Institute for International Trade at the Korea International Trade Association, in a survey conducted by Aju Business Daily. Although South Korea and Taiwan share similar industrial structures and heavy reliance on exports, Taiwan has taken a more proactive role in removing bottlenecks related to land, electricity, water supply and permits, Jang said. He added that Taiwan also enhances policy predictability by giving advance notice of regulatory changes and collecting feedback before implementation. Regulation weighs on Korea’s growth outlook Survey respondents to New Year's survey by the Aju Business Daily pointed to South Korea’s regulatory environment as a key factor holding back investment, especially as new technologies converge with traditional industries. Experts warned that preemptive or overly restrictive regulation in areas such as autonomous driving, artificial intelligence, drones and biotechnology could stifle innovation before it reaches commercial scale. They argued that allowing companies to compete within clearly defined boundaries is more effective than imposing broad preventive controls. Criticism has also focused on South Korea’s reliance on after-the-fact enforcement. Lee Su-won, a member of the Korea Chamber of Commerce and Industry’s corporate policy team, said uncertainty over legal liability discourages bold investment decisions, mergers and acquisitions, and corporate restructuring, ultimately weakening competitiveness. Labor and governance reforms raise business concerns Concerns have intensified under the Lee Jae Myung administration as a series of labor and corporate governance reforms move forward. In the New Year survey conducted on major business organizations, corporate groups and academic experts, respondents overwhelmingly identified the so-called Yellow Envelope Act — revisions to the Trade Union and Labor Relations Adjustment Act — as the most serious risk to corporate management this year. All respondents said the law would undermine companies’ ability to make independent management decisions, with 42.9 percent saying its impact would be “very large.” The legislation expands bargaining obligations to subcontractors and limits liability for damages related to labor disputes, raising concerns about increased labor conflicts and legal uncertainty. Business groups also expressed strong reservations about revisions to the Commercial Act, including expanded directors’ fiduciary duties to shareholders, strengthened audit committee rules and mandatory cancellation of treasury shares. More than 70 percent of respondents said the first two revisions would negatively affect corporate management, while a majority also viewed the treasury-share rule unfavorably. Views were more divided on raising the mandatory retirement age to 65. While many companies said they could adapt through rehiring or internal adjustments, they warned of higher labor costs and reduced flexibility. Experts stressed that any reform should be phased in carefully and tailored by industry and company size. Call for productivity-led reform Despite differing views on specific policies, experts broadly agreed that productivity gains — particularly through artificial intelligence — will be critical to sustaining growth as Korea faces demographic decline. “We need to combine the experience of older workers with efficiency gains driven by AI,” said Yoon Won-joo, a professor at Hankuk University of Foreign Studies, calling for a “productivity revolution through AI collaboration.” Business groups urged policymakers to slow the pace of regulatory changes and clarify standards before enforcement, warning that uncertainty itself has become a major drag on investment. Several executives said clearer distinctions are needed between intentional wrongdoing and normal business judgment, arguing that excessive legal risk discourages long-term decision-making. 2026-01-02 09:53:33

Lee to lead large entourage for his trip to China SEOUL, December 31 (AJP) - President Lee Jae Myung will be accompanied by a group of financial leaders on his trip to China next week for a summit with President Xi Jinping. Among his entourage is Shinhan Financial Group Chairman Jin Ok-dong, who will join Lee during his state visit to China from Jan. 4 to 7, according to industry sources on Tuesday. With the Korea Chamber of Commerce and Industry (KCCI) organizing the entourage, Jin, who chairs the business lobby's financial committee, would be the sole top financial executive. Several heads of major banks including KB Kookmin Bank CEO Lee Hwan-ju, Hana Bank CEO Lee Ho-sung, Woori Bank CEO Jung Jin-wan and NH Nonghyup Bank CEO Kang Tae-young will also be part of the delegation, along with business tycoons and leaders. While their detailed itinerary has not been finalized, a large number of the delegation are expected to help strengthen cooperation between Seoul and Beijing. Lee is expected to lead an entourage of about 200 businesspeople including the heads of the country's four largest conglomerates such as Samsung chief Lee Jae-yong, SK Group chairman Chey Tae-won, who also leads the KCCI, Hyundai Motor Group chairman Chung Eui-sun and LG Group chairman Koo Kwang-mo. 2025-12-31 15:36:39

Shinhan Financial Chairman Jin Ok-dong poised for extended term SEOUL, December 04 (AJP) - Shinhan Financial Group Chairman Jin Ok-dong is set to secure a second three-year term after delivering consecutive record earnings since taking office in March 2023. On Thursday, the group’s chairman nomination committee named Jin as its final candidate for the next chairman, following interviews with him and other shortlisted contenders, including Shinhan Bank President Jeong Sang-hyeok and Shinhan Investment Corp. CEO Lee Sun-hoon. The committee cited Jin’s “strategic insight, operational expertise and strong ethical leadership,” saying he had strengthened Shinhan’s performance and long-term competitiveness through digital transformation, overseas expansion and tighter internal controls. Born in 1961, Jin began his career at the state-run Industrial Bank of Korea in 1980 and joined Shinhan Bank in 1986, where he held key roles including Osaka branch manager and CEO of the Japanese subsidiary SBJ. Under Jin’s leadership since March 2023, Shinhan has posted steady record operating profits, excluding one-off factors. The group’s cumulative net income reached 4.46 trillion won in the third quarter, placing Shinhan on track to surpass the 5 trillion-won mark for the first time this year. Jin’s renewed term is expected to be finalized at the group’s annual shareholders’ meeting and board meeting in March. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-04 14:26:21

Foreign visitors surge 17.6 percent as S. Korea approaches post-COVID record in arrivals SEOUL, November 09 (AJP) - Nearly 6.5 million foreign visitors arrived in South Korea between January and September with the country on track to match last year’s post-pandemic record of 7.54 million, according to data from the Ministry of Justice's immigration office, Sunday. The figure represents a 17.6 percent increase from the same period a year earlier, when 5.52 million tourists entered the country. Monthly arrivals have consistently topped 500,000 this year, with each month from July through September surpassing 800,000. Tourism had plunged after the onset of the pandemic, dropping from a high of 7.15 million visitors in 2019 to just 939,000 in 2020 and a mere 115,000 in 2021. The recovery began in earnest last year, with 7.54 million visitors marking a full rebound from the COVID-19 downturn. The ministry also reported a growing number of entries through the Korea Electronic Travel Authorization, or K-ETA, system. In September, 92,000 travelers entered the country using K-ETA, about 10,000 more than in August. Introduced in 2021, the system allows citizens from 112 countries to apply online for entry authorization before traveling. The largest groups of K-ETA users in September came from Thailand, with 24,000 visitors; Malaysia, with 22,000; Russia, with 9,000; and Kazakhstan, with 4,000. Since its launch, nearly 6 million travelers have used the system, the ministry said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-09 09:50:06

OPINION: Stricter regulations push young people's dreams of owning home further out of reach SEOUL, October 17 (AJP) - "I waited for the government to bring housing prices under control, but now it's almost impossible to buy a home even with dual incomes," lamented one salaried worker. Two years ago, he put off purchasing a home, but his dream has now collapsed, following a new set of even stricter real estate and loan regulations announced earlier this week by the Ministry of Land, Infrastructure and Transport. Under the measures aimed at curbing soaring housing prices, the so-called speculative zones, previously limited to several districts in Gangnam and Yongsan, have been expanded to include all 25 districts of Seoul as well as parts of Gyeonggi Province. In Seoul's Seongdong district, just north of the Han River, mid-sized apartments that cost 900 million won at the end of 2023 now sell for over 1.2 billion won. Homes for jeonse or traditional lump-sum deposit leases there also jumped from 500 million won to around 800 million won. What seemed affordable to a dual-income couple two years ago is now out of reach. This is not limited to them. For many people in their 30s, owning a home in Seoul, once considered a key indicator of middle-class status, is no longer an attainable dream. The average price of a 59-square-meter apartment, popular among many young couples, has surpassed 1 billion won, with Seoul's upscale districts of Gangnam, south of the Han River, exceeding 2 billion won. Even with an annual salary of 100 million won, it would take more than a decade of saving every penny just to afford a small apartment in Seoul. No wonder many young people see the housing market as where inequality begins. The measures restricted regulations on leases and loans for those who want to have their home without plans to increase housing supply, in a bid to curb high-priced homes and speculative investors, fueling anxiety among young people. Without specific plans to increase housing supply, the measures merely tightened regulations on leases and loans for those hoping to secure at least an affordable home for themselves, in a bid to curb high-priced homes and speculative investors, fueling anxiety among young people. Strict loan restrictions alone cannot resolve issues in the real estate market, which are intertwined with broader social factors such as marriage, fertility, and labor mobility. To address the market spiraling out of control, policymakers should come up with separate measures for genuine homebuyers and speculators. If housing supply cannot keep pace with demand, direct government intervention would also be necessary. Even if these measures and policies are headed in the right direction, they will be in vain if not implemented in a timely manner. The government must also strive to achieve tangible results, rather than making empty pledges. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-17 10:11:00

Gold prices hit record high, surpass $3,900 point SEOUL, October 06 (AJP) - Gold prices have reached an all-time high, surpassing $3,900 per troy ounce for the first time. This surge is attributed to increased demand for safe-haven assets amid the ongoing U.S. federal government shutdown. According to Reuters, gold prices briefly hit $3,919.59 early Monday, with December futures reaching $3,926.80. Gold has risen 49% this year, frequently setting new records. The price increase is driven by the prolonged U.S. government shutdown, economic and political uncertainties surrounding President Donald Trump, and expectations of Federal Reserve interest rate cuts. Analysts note that central banks are diversifying portfolios beyond the dollar, boosting demand for safe assets like gold. Traditionally, gold is seen as a secure asset during crises, leading to increased investment amid uncertainty. Market experts predict gold could soon exceed $4,000 per ounce. HSBC's recent report suggests that if central banks continue to buy gold and institutional investors diversify portfolios, prices may rise further. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-06 15:44:01