Journalist

Ahn Seon-young and Seo Hye Seung
  • Korean Banks See Rush Into ETFs as Market Volatility Spurs Dip Buying
    Korean Banks See Rush Into ETFs as Market Volatility Spurs Dip Buying Geopolitical tensions in the Middle East have fueled volatility in South Korea’s stock market, prompting even typically conservative bank customers to look at investment products. As more investors try to buy after sharp declines in hopes of a rebound, bank counters and private-banking centers have seen a rise in inquiries about funds and exchange-traded funds, or ETFs. On March 8, the financial industry said demand for investment consultations and product sign-ups has noticeably increased at banks as swings in the Kospi have grown. Customers who had focused on safer assets such as savings deposits are increasingly viewing market sell-offs as a chance to buy at lower prices, banks said. Branch visits have climbed particularly among older customers who are less comfortable using mobile apps. Some branches have seen customers arrive with cash ranging from tens of millions of won to, in some cases, hundreds of millions of won to ask about signing up for products, reflecting demand for in-person advice during a steep downturn. At the four major banks — KB Kookmin, Shinhan, Hana and Woori — ETFs sold in trust form totaled 7.3351 trillion won in January and 8.2819 trillion won in February, for a combined 16.8450 trillion won, according to the industry. The figures marked record highs for two straight months. Sales in January and February last year were under 1.5 trillion won, meaning the total rose more than tenfold in a year. This month, the Kospi fell sharply for two consecutive days on March 3 and 4 amid the Middle East situation, but banks still sold 1.2279 trillion won of ETFs over that period. Banks attribute much of the increase to a surge in demand from middle-aged and older customers. Younger investors who are used to trading stocks tend to buy and sell ETFs through brokerage apps, while older, wealthier clients often prefer to select products with help from private bankers and purchase them through banks, industry officials said. The rush has also created bottlenecks online. For some fund products and ETF-linked trust products, non-face-to-face sign-ups require a video call to explain investment risks, and heavy demand has led to waits of 30 minutes to more than an hour in many cases. A private-banking official at one bank said, “High-net-worth clients at banks used to focus on tax strategies or stable asset allocation, but recently there has been a clear move to look for investment opportunities that take advantage of market volatility.” The official added, “Some customers often move funds in the hundreds of millions of won to sign up for investment products.” Banks cautioned, however, that investors should avoid overextending themselves while uncertainty remains high. A banking industry official said inquiries have surged, but “given concerns about short-term volatility, decisions should fully consider investment goals and risk tolerance.”* This article has been translated by AI. 2026-03-08 14:03:49
  • Korean Bank Overdraft Loans Jump 1.3 Trillion Won in Five Days as Demand Deposits Fall 8.6 Trillion
    Korean Bank Overdraft Loans Jump 1.3 Trillion Won in Five Days as Demand Deposits Fall 8.6 Trillion Volatility tied to the Iran situation has prompted some South Korean retail investors to treat the market swings as a buying opportunity, tapping bank credit lines to invest in stocks. Overdraft-style personal credit balances at major banks have surged in a short period while deposits have fallen, suggesting money is moving quickly into the market. As of March 5, personal overdraft loan balances at the five major banks — KB, Shinhan, Hana, Woori and NH NongHyup — totaled 40.7227 trillion won, according to the financial industry on Saturday. That figure reflects outstanding amounts actually used and rose 1.2979 trillion won in five days from the end of February (39.4249 trillion won). Adjusted for business days (March 3-5), the increase was effectively nearly 1.3 trillion won in three days. The balance is the largest for an end-of-month level since December 2022 (42.0546 trillion won). While the data cover only five days, the increase of 1.2979 trillion won is the biggest monthly-scale jump since November 2020 (+2.1263 trillion won). In the second half of 2020, ultra-low interest rates aimed at cushioning the COVID-19 shock fueled heavy borrowing for home purchases and stock investing. In the second half of last year, overdraft balances also climbed into the 40 trillion won range, reaching 40.0837 trillion won at the end of November, amid strong markets and spillover effects from tighter mortgage rules. After year-end and early-year bonuses helped bring balances back into the 39 trillion won range, overdraft borrowing has risen again following two days of sharp stock declines on March 3-4 linked to the Iran situation. At some banks, overdraft balances jumped by nearly 200 billion won in five days, an unusual move. Most of the funds are believed to have moved to brokerage firms. The surge in overdraft-led credit lending contrasts with mortgages, which have been flat or declining amid regulations and weak housing transactions. As of March 5, mortgage balances at the five banks stood at 610.1417 trillion won, down 579.4 billion won from the end of February (610.7211 trillion won). By contrast, total credit loans — general unsecured loans plus overdraft lines — rose 1.3945 trillion won in five days to 105.0765 trillion won. If that pace holds through month-end, it would be the largest increase since July 2021 (+1.8637 trillion won). Deposits have also seen sizable outflows. Time deposits at the five banks totaled 944.1025 trillion won as of March 5, down 2.7872 trillion won from the end of last month. Demand deposits, often viewed as idle cash awaiting investment, fell 8.5993 trillion won over the same period, to 676.2610 trillion won from 684.8604 trillion won. A commercial bank official said deposit rates have generally been rising along with market rates, yet deposits are still shrinking. The official said it is too early to draw firm conclusions but added that credit lending could increase further and more funds could continue flowing into stocks depending on developments in the Middle East and market conditions at home and abroad.* This article has been translated by AI. 2026-03-08 14:03:18
  • Delayed Korea Household Debt Plan Leaves Banks Uncertain; KB Kookmin, Toss Watch Closely
    Delayed Korea Household Debt Plan Leaves Banks Uncertain; KB Kookmin, Toss Watch Closely South Korea’s Financial Services Commission has delayed its annual household debt management plan by more than a month, leaving banks unable to lock in yearly caps for household lending and finalize business strategies. With talk that regulators could tighten overall lending limits, some lenders are weighing broader changes to their loan portfolios. Financial authorities are now expected to push the plan — originally slated for late February — to after the end of this month, the financial industry said Tuesday. The delay is widely attributed to last-minute adjustments tied to tougher rules for loans to multi-home owners and rental business operators, which require further revisions to the target growth rate for total household lending. All banks face uncertainty without a confirmed annual target, but the burden is heavier for lenders that exceeded last year’s goals. Regulators plan to impose a penalty by deducting the overage from this year’s limit, though they have not disclosed the deduction rate or calculation method. Among the five major banks, KB Kookmin Bank was the only one to exceed its target. Its household loan growth last year totaled 2.127 trillion won, surpassing its 2.0061 trillion won target by 120.9 billion won. Some internet-only banks and regional lenders are also believed to have exceeded their targets, raising the prospect of tighter constraints on lending this year. Regulators are expected to keep the principle of deducting excess growth, but may consider that annual growth targets were cut to about half during last year’s June 27 real estate measures. That has fueled expectations that authorities could add safeguards rather than apply a uniform penalty, given the policy-driven adjustment. Tension is higher among mutual finance institutions. Saemaul Geumgo’s household loan growth last year exceeded its target by 5.31 trillion won — about four times the originally set growth-rate goal. Authorities are reviewing an option to set this year’s household loan growth target near 0%. If adopted, new lending would be effectively constrained, forcing a broad overhaul of business plans. Regulators also see a need to strengthen Saemaul Geumgo’s household debt management system, raising the possibility of additional measures. Analysts say tougher household debt controls could reshape banks’ growth strategies and earnings. Stronger caps would limit loan expansion and directly pressure interest income, a key revenue source. Internet-only lender Toss Bank is also watching closely. It plans to launch a mortgage product this year, but would need approval of terms and an allocation of lending capacity under a tighter cap regime. For now, it is focusing less on target calculations and more on building systems and reviewing risk management. “Stronger total-volume controls are an unavoidable trend, but the delay in detailed standards makes it hard to set strategy,” a banking industry official said. “If the regulatory intensity is higher than expected, it could affect loan growth plans and the profit structure as well.” 2026-03-03 15:39:00
  • How MyData Services Are Automating Rate-Cut Requests and Boosting Credit Scores
    How MyData Services Are Automating Rate-Cut Requests and Boosting Credit Scores MyData services have taken a step forward. What once mainly gathered scattered personal information in one place is increasingly being used to deliver practical financial benefits. The Financial Services Commission said on the 27th that a service launched on the 26th will automatically file requests for loan rate cuts without requiring customers to visit bank branches each time. Under the system, a MyData-based artificial intelligence agent asks lenders for a rate reduction on behalf of borrowers. Users can sign up through MyData operators such as Naver Pay and Kakao Pay, as well as MyData services offered by banks, insurers and card companies, and then consent to automatic filing. Korea’s rate-cut request right allows borrowers to ask a financial company to lower loan interest when their credit standing improves, such as through higher assets or income. Until now, many consumers failed to use it because they had to track credit changes themselves and apply separately to each lender. With a one-time consent, the right can now be used automatically. Signals of improved credit — including financial assets, income gains, reduced debt and changes in credit scores collected through MyData — are analyzed in real time, and the system submits a request when conditions appear most favorable. Requests can be filed regularly up to once a month, and can also be submitted at other times when there is a clear reason such as higher income or an improved credit score. If a request is rejected, the AI identifies the specific reason and advises what needs to be improved. MyData can also be used to raise credit scores. Fintech firms such as BankSalad and Finda help “thin-file” consumers — those with little financial history or no current income — by reflecting nonfinancial and public data in ways intended to improve scores. Among mid- to low-credit users with scores of 850 or below on the KCB scale who used a credit-score-boosting service over the past three months, one case showed a score rising 226 points, from 692 to 918. The user moved into a prime-credit range, and based on pre-screened loan approval data, the expected interest rate fell to 5.6% from 10.2%, a drop of 4.6 percentage points. On average, mid- to low-credit users saw scores rise by 20 points. BankSalad’s interest-rate prediction model estimates that a 20-point increase can translate into an average rate reduction of 1.3 percentage points. MyData is also being used more broadly for personal finance. Consolidating insurance contracts spread across multiple insurers can help cut unnecessary coverage, such as overlapping benefits or excessive riders, and support policy redesign. Card-optimization tools can recommend cards that offer higher discounts based on an individual’s spending patterns.* This article has been translated by AI. 2026-02-28 07:03:00
  • KDB to Pick Mega-Project Investments No. 2 and 3 This Month, Expanding Regional Funding
    KDB to Pick Mega-Project Investments No. 2 and 3 This Month, Expanding Regional Funding Korea Development Bank said it will broaden the National Growth Fund’s investment focus beyond advanced strategic industries to include small and midsize companies outside the Seoul metropolitan area, stepping up efforts to support more balanced regional growth. The state-run lender plans to complete selection of follow-on “mega-project” investments under the 150 trillion won fund within this month, aiming to ease a capital-centered growth structure and build multiple growth hubs. KDB Chairman Park Sang-jin said at a news briefing Tuesday at the bank’s headquarters in Seoul’s Yeouido district that, after naming the Sinan Ui offshore wind power project as the fund’s first investment, the bank will select the second and third investments later this month. “We plan to approve all investments in the seven mega-projects within the first half of the year,” Park said. KDB is the operator of the 150 trillion won National Growth Fund and is responsible for identifying mega-projects and overseeing overall fund management. Park said early candidates were reviewed mainly in advanced strategic industries with broad spillover effects, such as semiconductors and artificial intelligence, but future projects are being considered with a greater focus on regions and smaller companies. To widen participation by regional firms with limited access to information, KDB plans to hold briefings by region in March and April. Park said the bank will take a proactive approach so local companies are not left out because of information gaps, including seeking out firms that need support. Park said KDB will also expand regional financial support. He said the bank will increase its preferential regional special products to 15 trillion won this year from 10 trillion won last year and plans to supply a total of 30 trillion won to non-capital regions this year. Beyond the National Growth Fund, he said KDB will create additional regional growth funds, including a regional revitalization investment fund, to tailor financing to local demand. Park also addressed the planned relocation of HMM, in which KDB holds a stake, to Busan and the bank’s future divestment plans. He said the Ministry of Oceans and Fisheries and the Korea Ocean Business Corp. have presented a schedule to complete the move in March and April, adding that KDB will actively support the relocation once it is confirmed. On a potential sale of HMM, Park said the overarching principle of divestment remains in place, but it is not at a stage to be pursued immediately. He said the bank will review whether to proceed after the Busan relocation is completed. KDB and the Korea Ocean Business Corp. are HMM’s largest shareholders, holding 35.42% and 35.08%, respectively. The two institutions have maintained a phased sale policy after providing a total of 6.9 trillion won in support since 2016.* This article has been translated by AI. 2026-02-25 17:03:00
  • IBK Bank Gains as Film ‘The King and the Man He Lives With’ Nears 6 Million Viewers
    IBK Bank Gains as Film ‘The King and the Man He Lives With’ Nears 6 Million Viewers IBK Industrial Bank of Korea is drawing attention again for its track record in cultural-content investing, as the film ‘The King and the Man He Lives With’ continues a strong run and is closing in on 6 million admissions. According to the Korean Film Council’s box-office tracking system, the movie drew 1,414,207 viewers over its third weekend, Feb. 20-22, bringing its cumulative total to 5,828,885. It has held the No. 1 spot since release, and some are even discussing the possibility of topping 10 million admissions. For IBK, which participated as an investor, the box-office momentum could translate directly into returns. The film has already passed its break-even point of 2.6 million admissions, and its pace suggests returns comparable to the bank’s past hits. IBK previously invested 790 million won in the 10 million-viewer film ‘Extreme Job,’ posting a 377% return. It invested 1 billion won in last year’s ‘Exhuma’ and earned a 129% return. Its investment in ‘The King and the Man He Lives With’ is also 1 billion won. Building on its experience in cultural content, IBK plans to invest more than 50 billion won this year. In line with its policy goal of fostering small and midsize content companies that struggle to raise funds, the bank said it will continue to back projects with both commercial appeal and artistic quality. IBK has also been expanding beyond film into performances and musicals. After investing 3 billion won in the musical ‘Wicked’ last year, it invested 1 billion won in the musical ‘Life of Pi,’ which drew attention as a Korean premiere. It also plans to participate in an investment for the musical ‘Lempicka,’ set to open in March. A financial industry official said IBK’s cultural-content investing is positive because it shows a policy lender can go beyond loans and serve as a catalyst for industry growth. The official added that the bank appears to be maintaining strong results by selecting content that combines broad appeal with quality. 2026-02-23 14:54:00
  • Shinhan, KB Back Snow and Ice Athletes as Korea Wins at Milan-Cortina Olympics
    Shinhan, KB Back Snow and Ice Athletes as Korea Wins at Milan-Cortina Olympics Behind South Korea’s anthems on snow and ice was more than a decade of steady, low-profile support from the financial sector, with long-term backing of lesser-known sports paying off, analysts said. At the Milan-Cortina Winter Olympics, which ended early Sunday in South Korea, the Korean team posted notable results across both snow and ice events. Choi Ga-on’s gold in the women’s snowboard halfpipe was especially symbolic as the country’s first Winter Olympic gold medal in a snow event. Choi is cited as a standout success of Shinhan Financial Group’s “Rookie Sponsorship.” Shinhan has run the program since 2011 to identify and support promising athletes in less popular sports who have international potential but limited training conditions. In snowboarding, Shinhan-backed Kim Sang-gyeom won silver and Yoo Seung-eun took bronze, broadening South Korea’s medal haul beyond its traditional strength on ice. Shinhan also sponsors Lee Chae-woon, who unveiled a world-first technique in the snowboard halfpipe at these Olympics, and Lee Seung-hoon, the first Korean athlete to reach the freestyle ski halfpipe final. KB Financial Group is known for broad support of ice sports over 20 years, starting in 2006 with “figure queen” Kim Yuna. Figure skater Cha Jun-hwan, who finished fourth in the men’s singles, has been backed by KB since 2015. In the women’s short track 3,000-meter relay, the national team that included KB-sponsored Kim Gil-li and Choi Min-jeong delivered South Korea’s second gold medal of the Olympics. In the women’s 1,500 meters, Kim and Choi won gold and silver, respectively. Kim added bronze in the women’s 1,000 meters, giving her three medals at the Games. Hana Financial Group has supported luge for 14 years. At these Olympics, Jung Hye-seon finished 24th in the women’s singles, a result the company said helped raise South Korea’s competitiveness in the sport. Woori Financial Group is sponsoring athletes through an official partnership agreement with the Korea Sport & Olympic Committee. Starting with this Winter Olympics, it plans continued support for national teams competing at major events including the 2026 Aichi-Nagoya Asian Games and the 2028 Los Angeles Olympics.* This article has been translated by AI. 2026-02-23 06:03:00
  • South Koreas KakaoBank posts record profit in 2025, eyes overseas expansion
    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
    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
    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