Journalist
Candice Kim· Ryu Yuna
candicekim1121@ajupress.com
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KB Financial pivots to artificial intelligence to lead Asian banking Editor's Note: This article is the 36th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, September 18 (AJP) - South Korea’s largest financial group is making a high-stakes wager on artificial intelligence, betting that the technology will reshape the future of banking in Asia and cement its dominance in the region’s fast-changing financial industry. “People should say that if you want to do financial AI, you have to go to KB,” Yang Jong-hee, chairman of KB Financial Group, told employees at a workshop early this year. The remark has since become a kind of rallying cry for a company determined to lead what it sees as a digital revolution in finance. KB reported a net profit of 3.44 trillion won, or about $2.5 billion, in the first half of 2025, a 23.8 percent jump from the year before. The results, executives say, underscore the strength of its new AI-first strategy, which they believe will transform how customers across Asia use financial services — from loans and insurance to wealth management and payments. Founded in 2008 when Kookmin Bank reorganized into a holding company, KB has grown into a sprawling financial conglomerate with 13 subsidiaries in banking, securities, insurance, credit cards and asset management. Its origins stretch back to the 1960s, when South Korea created state-backed lenders like Housing & Commercial Bank to fuel industrial growth. A merger in 2001 gave rise to modern Kookmin Bank, the core of today’s KB Financial. Expansion has long been central to KB’s strategy. Over the past decade, it has spent billions acquiring rivals and pushing into Southeast Asia. It bought LIG Insurance in 2015, Hyundai Securities a year later, and Prudential Life Insurance Korea in 2020 for 2.3 trillion won. In 2021, it acquired Indonesia’s Bank Bukopin, now KB Bukopin, which returned to profitability this year. Banking remains KB’s bread and butter, but fee-based services are becoming increasingly important. In 2025, non-interest income topped 1 trillion won in a single quarter for the first time. The company’s KB Star Banking app, which combines more than 70 services ranging from mortgages to credit cards, has helped cement its reputation as one of South Korea’s most digitally advanced lenders. Last year, regulators designated eight KB subsidiaries as “innovative financial services” for their use of generative AI — the most of any financial group. “Through the designation, KB will be able to stay one step ahead in the AI-centered financial innovation race,” a company spokesman said. Even as it invests heavily in digital technology, KB has maintained a focus on rewarding shareholders. This year it announced 850 billion won in stock buybacks and a cash dividend of 920 won per share, moves that will bring total shareholder returns to 3.01 trillion won — the highest in its history, according to chief financial officer Na Sang-rok. The group has retained strong credit ratings — A1 from Moody’s and A from both S&P and Fitch — and has been listed on the Dow Jones Sustainability Index World for seven consecutive years, signaling to investors that it sees environmental and governance concerns as inseparable from financial performance. With operations spanning South Korea, the United States, China, Britain and Southeast Asia, KB now wants to leverage its AI edge in pursuit of a larger goal: transforming itself from a national banking champion into a regional powerhouse. 2025-09-18 17:12:54 -
School violence cases hit record high in South Korea SEOUL, September 17 (AJP) - Bullying and violence in South Korean schools have worsened despite tougher discipline and prevention efforts, with reported cases now affecting 5 percent of elementary school students, a government survey showed. Of the 3.26 million students from fourth grade through high school, 2.5 percent said they experienced school violence this year, up 0.4 percentage points from last year, according to the Education Ministry. The figure has steadily risen from 1.1 percent in 2021 to 1.7 percent in 2022, 1.9 percent in 2023, and 2.1 percent in 2025. The problem is most acute in elementary schools, where 5 percent reported violence — the highest since the survey began in 2013 — compared with 2.1 percent in middle schools and 0.7 percent in high schools. “My child woke up at night for several days,” said Park, the father of a 9-year-old boy assaulted by peers. “Teachers need more authority to intervene early and impose meaningful consequences,” he said, requesting anonymity. Despite years of anti-bullying campaigns and zero-tolerance policies, the rise of cyberbullying has made oversight harder. Lee Soo-jung, a criminal psychology professor at Kyonggi University, said online harassment has “explosively increased” as students weaponize social media and videos to intimidate classmates. “The nature of school violence has changed — whereas physical abuse was more common before, online bullying is now much more prevalent,” she said. Education officials are reviewing prevention strategies as they struggle to tackle violence in one of the world’s most academically demanding school systems. 2025-09-17 18:31:42 -
Korean firms explore stakes in $45 billion Alaska LNG project SEOUL, September 15 (AJP) - South Korean companies are emerging as early partners in a multibillion-dollar plan to export natural gas from Alaska, signaling growing alignment between Seoul’s energy ambitions and Washington’s push to expand liquefied natural gas (LNG) exports. Posco International last week became the first Korean firm to formally engage with Glenfarne Alaska LNG, the project’s developer, signing a preliminary agreement that covers potential LNG imports and steel pipe supply. If finalized, the nonbinding deal could lead to a 20-year contract for one million tons of LNG annually, while positioning Korea’s steelmakers to help construct the 807-mile pipeline linking Prudhoe Bay to the Nikiski port near Anchorage. Other Korean steel producers — including SeAH Steel, HUSTEEL and Nexsteel — are closely monitoring opportunities to provide the 42-inch-diameter pipes required for the line. Conglomerates such as SK, Hanwha and GS are also examining possible participation in energy-related aspects of the development. The $45 billion project, which aims to begin operations around 2030, is approaching a final investment decision by year’s end, according to Glenfarne and industry officials. Korea Gas Corporation, the state-run importer, is considering redirecting some of its LNG contracts from Middle Eastern suppliers to U.S. producers, part of a strategy to diversify energy sources and narrow the trade imbalance with America. 2025-09-15 17:43:41 -
K-beauty leaders sell assets, seek growth abroad as competition with indie brands intensifies SEOUL, September 15 (AJP) - South Korea’s top cosmetics companies are accelerating restructuring efforts, selling assets and seeking new growth channels as they confront intensifying competition from a rising wave of independent K-beauty labels. Industry officials said Monday Aekyung Industrial, best known for its dual portfolio of cosmetics and household goods, is preparing for a transfer of ownership to Taekwang Group. Cosmetics account for 40 percent of its revenue and generated 29.1 billion won ($21 million) in operating profit last year, outpacing the household goods unit. In July, Taekwang amended its articles of incorporation to include cosmetics manufacturing and sales, signaling a push to expand in beauty. Analysts expect the new ownership to reduce Aekyung’s heavy reliance on China, which makes up 70 percent of its export revenue, and to diversify into new markets. LG Household & Health Care, another pillar of South Korea’s beauty sector, is exploring the sale of its beverage arm, which reported 1.82 trillion won ($1.4 billion) in revenue last year. The company has tapped Samjong KPMG as its lead restructuring adviser. The beverage unit’s profitability has slipped in recent years, prompting LG to double down on its core beauty business. The company has also moved into beauty devices, acquiring LG Electronics’ Pra.L brand in June and partnering with the biotech firm Mimetics to develop needle-free delivery technology for home use. New products using the system are expected early next year. Amorepacific, South Korea’s largest cosmetics maker, is concentrating on overseas growth. The company aims to raise the share of global revenue to 70 percent by 2035, up from about half today. The firm's 2023 acquisition of the skincare brand CosRX strengthened its foothold overseas, and its “Pentagon 5” strategy lays out expansion across five regions: Korea, North America, Europe, India and the Middle East, China, and the broader Asia-Pacific. 2025-09-15 15:52:44 -
Heavy autumn rain brings relief to drought-stricken South Korea SEOUL, September 13 (AJP) - Heavy autumn rain fell across South Korea overnight Friday into Saturday, bringing the first significant precipitation in two months to drought-stricken areas including Gangneung, where extreme water shortages had prompted disaster declarations, officials said Saturday. Rainfall totals from Friday noon to Saturday afternoon reached 173 millimeters in Dangjin, South Chungcheong Province, and over 100 millimeters in Gangneung, which had declared a drought disaster. The precipitation caused localized flooding in several areas, with flood advisories issued for rivers in the region. The Obong Reservoir in Gangneung, a key water source for the city, saw its water level rise from 11.5 percent to 13.9 percent by Saturday afternoon - the first increase in 53 days. Local residents called it "golden rain" after enduring severe water restrictions that limited daily supply to six hours for apartment complexes. President Lee Jae-myung acknowledged on Facebook that while the rainfall would not fully resolve the drought that began July 6, it would provide some comfort to Gangneung residents who had been unable to do laundry or shower freely due to water restrictions. 2025-09-13 17:41:36 -
Korean beauty company Leferi signs distribution deal with Philippine partner SEOUL, September 13 (AJP) - South Korean beauty creator management company Leferi signed a strategic partnership agreement with Philippine distributor Biocostech Philippines Corporation on September 5 to jointly develop K-beauty content and cosmetics distribution models, the company announced Friday. Under the memorandum of understanding, the companies will establish "K-Beauty Selection Zones" in Philippine online and offline retail channels. Leferi will provide its proprietary big data system called "Leferi Selects Index" and creator intellectual property-based selection services to support Korean beauty brands entering the Philippine market. Biocostech, which has operated K-beauty brands in the Philippines for over 20 years, will handle distribution and marketing through its retail network of more than 8,818 stores including Watsons, 7-Eleven and SM Department Store, as well as online platforms like Lazada and Shopee. The company sells millions of products annually in the Philippine market. Leferi manages approximately 400 beauty and lifestyle influencers and has conducted four "Select Store" events in major Seoul retail areas including Seongsu-dong and Yeouido through July. The company plans to expand internationally with a Tokyo location scheduled for April 2026. The partnership represents Leferi's first overseas application of its data-driven selection system as Korean beauty companies seek to expand beyond traditional export models into localized distribution approaches in Southeast Asian markets. 2025-09-13 14:51:30 -
Korean and US trade ministers meet in New York amid stalled tariff negotiations SEOUL, September 13 (AJP) - South Korean Industry Minister Kim Jung-kwan met with US Commerce Secretary Howard Lutnick in New York on Saturday to discuss follow-up negotiations on the Korea-US tariff agreement reached in July, according to multiple diplomatic sources. The ministerial talks come as working-level discussions between the two countries have reportedly reached a deadlock over detailed implementation of the trade deal. Under the July 30 agreement, the US reduced planned reciprocal tariffs on South Korea from 25 percent to 15 percent in exchange for Korean commitments to invest $350 billion in the United States. Kim traveled to the US on Thursday to personally lead the negotiations after technical talks between Korean and US officials on September 8 failed to make progress. The main sticking points involve the detailed structure of Korea's investment commitments and potential impacts on foreign exchange markets. Lutnick increased pressure on South Korea on Wednesday, citing Japan's acceptance of similar terms and stating there is no flexibility in the US position. He outlined how Japan agreed to a 50-50 revenue split until recovering its $550 billion investment, after which the US would take 90 percent of profits. President Lee Jae-myung emphasized during his 100-day press conference on Wednesday that Korea would not accept any agreement that harms national interests or lacks fairness and rationality. The presidential office maintained this stance despite Lutnick's pressure, saying the government will prioritize national interests in negotiations. 2025-09-13 11:19:44 -
KOSPI extends 9-day rally to fresh high, up 50% from April low SEOUL, September 12 (AJP) - Kospi shares continued to slope upward, finishing the week at new heights, riding on the global liquidity-powered rally. Extending a nine-session winning streak, the Kospi ended Friday 1.5 percent higher at 3,395.54 — up 7 percent from Sept. 2 and 48.6 percent above the annual low in April. Foreign and institutional investors were the main buyers, while retail investors, cautious of a potential fizzle in the summer rally, took profits. The U.S. dollar slipped 3.6 won to 1,388.2 on robust foreign demand for Korean equities. Across Asia, shares tracked Wall Street’s strength on expectations of a U.S. rate cut this month. Foreign investors snapped their net-selling streak in May and turned steady buyers, purchasing a net 2 trillion won that month, 3.08 trillion won in June, and 3.4 trillion won in July. But momentum cooled in August, with net purchases shrinking to just 5.7 billion won after the government proposed lowering the capital gains tax threshold for large shareholders. President Lee Jae-myung’s stock-friendly remarks buoyed sentiment. At a televised press conference Thursday marking his 100th day in office, Lee signaled he was open to leaving the current tax threshold unchanged. “The stock market moves on sentiment,” he said. “The government shouldn’t necessarily push with the tax revision if it proves detrimental to the rally." The government had planned to lower the taxable threshold for large shareholders’ capital gains to 1 billion won from the current 5 billion won. Analysts said removing uncertainty over the plan has further bolstered investor confidence, helping to sustain the bullish run till the end of the year. “The fundamental environment surrounding global markets is not that bad, so upward momentum should continue until year-end,” said Lee Jung-hoon, analyst at Eugene Investment & Securities. 2025-09-12 16:55:22 -
S. Korea sees surge in complaints over social media livestream shopping SEOUL, September 12 (AJP) - South Korea’s consumer protection agency on Friday warned of a surge in complaints from shoppers who purchased fashion items through livestreaming on social media platforms. The Korea Consumer Agency said it had received 444 complaints related to clothing and textile products sold through livestream commerce on platforms such as YouTube, Instagram, TikTok, Naver Band and Facebook from 2022 through June 2025. The number of grievances has grown each year, jumping from 54 in 2022 to 185 last year. In the first half of 2025 alone, consumers filed 139 complaints. Nearly half of the cases involved sellers refusing to process cancellations. Other problems included poor product quality and contract violations, the agency said. Clothing items, particularly jackets and coats, accounted for the majority of disputes, followed by handbags and shoes. Some of the cases cited by the agency were striking: one buyer paid 4.51 million won, or about $3,300, for three mink coats but was unable to reach the seller to request returns; another made 32 purchases worth 2.68 million won, or about $1,950, but never received any of the items. The agency said livestream commerce on social media poses more risks than traditional online shopping, because it is often difficult to verify seller information or review return policies. It urged shoppers to confirm business registration numbers and to use secure payment methods rather than direct bank transfers before making purchases. 2025-09-12 14:18:38 -
Hyundai says immigration crackdown will delay Georgia battery plant by 2-3 months SEOUL, September 12 (AJP) - Hyundai Motor’s top U.S. executive said Friday that construction of its $7.6 billion battery plant in Georgia will be pushed back by at least two to three months. Jose Munoz, Hyundai Motor’s global president and chief operating officer, said raids at the construction site created staffing shortages as some workers returned to South Korea following mass detentions. “For the construction phase of the plants, you need to get specialized people. There are a lot of skills and equipment that you cannot find in the United States,” Munoz told reporters in Detroit. The facility, a joint venture with LG Energy Solution, is central to Hyundai’s electric vehicle expansion in North America. To limit disruption, Hyundai said it would source batteries from other plants, including a separate Georgia facility run with SK On. The company stressed that its long-term U.S. strategy remains unchanged despite the delay. Hyundai Motor Group’s Chairman, Chung Eui-sun, also commented publicly on the incident, expressing relief that detained workers had returned home and urging closer coordination between Seoul and Washington on visa rules for specialized labor. 2025-09-12 11:29:17