Journalist

Kwon Ga-lim
  • Financial Services Commission chief says IBK wins Vietnam banking license after 9 years
    Financial Services Commission chief says IBK wins Vietnam banking license after 9 years Financial Services Commission Chairman Lee Eok-won, who accompanied President Lee Jae-myung on a state visit to Vietnam, said IBK Industrial Bank of Korea’s Vietnam unit has obtained a full local banking license after nine years. In a post on X on the 23rd, Lee said the president’s Vietnam trip “expanded the territory of K-finance,” and outlined financial outcomes reached in Vietnam. He highlighted IBK’s license as the most notable result, saying Vietnam’s central bank had not issued a new license to any bank, domestic or foreign, in nine years. Lee also noted that in January, the Hanoi branch of Korea Development Bank received local approval for the first time in seven years. He said three South Korean banks now operate in Vietnam, making South Korea tied with Malaysia for the most bank establishments in the country. Lee said cooperation on payment infrastructure is also accelerating, citing a “QR payment linkage agreement” between the Korea Financial Telecommunications & Clearings Institute and Vietnam’s NAPAS. He said Vietnam is the second most-visited travel destination for South Koreans and that, as in the earlier case of India, the linkage adds fee savings of about 2 percentage points per transaction, calling it a practical benefit that makes travel “lighter and more convenient.” He said the Korea-Vietnam Financial Cooperation Forum also shared examples of cooperation across insurance, capital markets, nonperforming loans and QR payments. Lee said he would work to further broaden bilateral financial cooperation, adding that the commission would serve as a “running mate” as K-finance expands globally.* This article has been translated by AI. 2026-04-24 13:57:27
  • KB Kookmin Bank Revamps Mobile Retirement Pension Trading Service
    KB Kookmin Bank Revamps Mobile Retirement Pension Trading Service KB Kookmin Bank said on the 24th it has revamped its non-face-to-face retirement pension product trading service within KB Star Banking. The update focuses on a customer-centered design, allowing users to view their holdings at a glance from the retirement pension home screen in the app. Through a link with KG Zeroin, a fund evaluation and consulting firm, the bank also added real-time ETF quote lookups to support investment decisions based on market information. The step-by-step transaction guide was improved as well, showing each stage of the buy-and-sell process so customers can track progress. The bank said it plans a second update in the first half of the year to strengthen personalized asset management features. A bank official said the overhaul will make it easier and more intuitive for customers to manage pension assets, adding that the bank will continue expanding convenient and reliable services as a trusted partner in asset management.* This article has been translated by AI. 2026-04-24 10:52:51
  • IBK Industrial Bank, Korea Credit Guarantee Fund to Provide 500 Billion Won for Startup Financing
    IBK Industrial Bank, Korea Credit Guarantee Fund to Provide 500 Billion Won for Startup Financing IBK Industrial Bank of Korea said Thursday it signed a business agreement with the Korea Credit Guarantee Fund to provide 500 billion won in financial support aimed at helping innovative startups grow and expanding productive finance. The program targets early-stage startups that have strong technology but struggle to raise funds. Under the agreement, IBK said companies that receive KODIT guarantee certificates will be eligible for benefits including interest-rate cuts of up to 1.5 percentage points and a 0.5-point discount on guarantee fees. An IBK official said the support was designed for innovative companies facing financing difficulties despite solid technology, adding the bank will continue to back small and midsize companies through each stage of growth and work to invigorate the startup ecosystem.* This article has been translated by AI. 2026-04-24 10:52:08
  • NH NongHyup Bank, Vietnam’s Agribank sign MOU on digital agricultural finance
    NH NongHyup Bank, Vietnam’s Agribank sign MOU on digital agricultural finance NH NongHyup Bank said Thursday it signed a memorandum of understanding with Vietnam’s Agribank in Hanoi on a “strategic partnership for digital agricultural finance.” Agribank is Vietnam’s top agricultural commercial bank. NH NongHyup Bank said the agreement deepens existing cooperation in areas including digital finance and investment. The MOU calls for cooperation on building an integrated farming and finance platform, launching a card-based overseas remittance service, developing card products tied to K-content, and working together on Agribank’s privatization. NH NongHyup Bank said it will support Agribank’s agricultural finance platform using its experience with the NH All One Bank platform. It also cited NH Oneul Nongsa, an agriculture-focused platform launched by the National Agricultural Cooperative Federation in 2021, which offers rural labor matching, real-time local food sales and settlement inquiries, and real-time wholesale crop price checks. The two banks, which the lender described as leading agricultural finance institutions in South Korea and Vietnam, have expanded cooperation in areas such as staff exchanges since signing their first MOU in 2013. “This has strong symbolic meaning as cooperation between the leading agricultural finance institutions representing our two countries,” Kang said. “We will expand overseas the agricultural and digital finance achievements built in Korea and, through cooperation with Agribank, strengthen our global competitiveness by contributing to the development of agriculture and rural communities.”* This article has been translated by AI. 2026-04-24 10:51:19
  • NH NongHyup Financial Targets Seniors With 21 New Products and 100 Service Hubs
    NH NongHyup Financial Targets Seniors With 21 New Products and 100 Service Hubs NH NongHyup Financial Group is stepping up a companywide push to win senior customers, who account for more than half of its client base. The group plans to roll out 21 senior-focused products in stages and build about 100 regional senior hubs by using what it calls the country’s largest offline branch network. As major banks shrink their branch footprints, NongHyup Financial aims to use its nationwide network—reaching from city centers to remote mountain areas—to better serve seniors in underserved financial areas. According to the financial industry on the 23rd, NongHyup Financial plans to sequentially launch 21 senior-only products this year built around three themes: “health,” “assets” and “daily life.” The expansion builds on “NH All One Wonderful,” a senior-focused brand introduced in November. The group said it is tailoring solutions to issues it sees among customers preparing for a second chapter of life, including money, health and loneliness. In the second quarter, it plans to release three protection-type products, including the nonlife “Proper Treatment and 365 Caregiver Insurance” and the life “Long-Term Care Peace-of-Mind Caregiver Insurance.” NH NongHyup Bank plans to introduce “Youth Loan,” while NongHyup Capital will offer a “Senior Small Loan.” The group said it is also developing products and services to support stable cash flow after retirement. It is reviewing a reverse mortgage product and plans to add a senior re-employment linkage service to the “NH All One Bank” app. The strategy reflects the group’s customer mix. NongHyup Financial has about 12 million senior customers, more than 55% of its total. It believes its nationwide network—spanning financial affiliates as well as nonfinancial units such as supermarkets, gas stations and parcel delivery—can broaden access for seniors in smaller cities and rural and fishing communities. Local NongHyup cooperatives operate 4,894 main and branch offices, more than KB Kookmin Bank (771), Shinhan Bank (650), Hana Bank (608) and Woori Bank (656). The group views its branch count as a competitive advantage for attracting seniors and improving satisfaction, and said it could also support the government’s push for balanced regional development. NongHyup Financial is also overhauling its sales channels. In June, NH NongHyup Bank plans to set up “NH All One Wonderful Retirement Planning Consultation Desks” at 100 wealth management-focused branches nationwide. The bank plans to create senior-friendly spaces by region that combine financial counseling with links to farm experiences and cultural classes. A premium consultation area for high-net-worth senior clients will also be created inside the bank’s Royal Chamber. Nonbank affiliates are moving to expand in-person touchpoints as well. NongHyup Life Insurance and NongHyup Savings Bank plan to introduce senior-only counters in the second and third quarters, respectively, to improve offline access. A NongHyup Financial official said the group is pursuing 22 strategic tasks under seven pillars for its senior business strategy—covering customers, products and services, channels, organization, innovation, partnerships and brand. “We will go beyond simply selling financial products and present a new service model that combines finance and care,” the official said. 2026-04-23 10:16:15
  • Korean Banks Expand Corporate Lending Despite Rising Delinquencies Under ‘Productive Finance’ Push
    Korean Banks Expand Corporate Lending Despite Rising Delinquencies Under ‘Productive Finance’ Push Korean banks are accelerating corporate lending despite the risk of rising delinquency rates, stepping up funding after the government’s push for so-called productive finance. Banks have even overhauled key performance indicators, or KPIs, to drive lending. Critics warn that aggressive expansion, combined with weak regional economies, could undermine asset quality in coming years. As of the end of last month, corporate loans at the five major commercial banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — totaled 859.7737 trillion won, up 15.0483 trillion won from the end of last year, according to the financial sector on Saturday. Loans to large companies rose 8.7127 trillion won to 179.0119 trillion won over the same period. Lending to small and midsize companies increased 6.3356 trillion won to 680.7618 trillion won. Behind the faster pace of lending is the government’s productive-finance agenda. Financial authorities have laid out a plan to invest a combined 1,240 trillion won in productive finance over the next five years, including private and policy financing. The banking sector is expected to provide 614 trillion won, with the remainder backed by policy finance. The Financial Services Commission has also specified that, of this year’s total 240 trillion won in corporate financing, 106 trillion won should be concentrated outside the Seoul metropolitan area. Meeting those volume targets is pushing banks toward more aggressive lending from this year. Banks have responded by launching new products and rewriting KPIs. KB Kookmin Bank reclassified about 1,000 industries as “productive finance” sectors and lowered lending hurdles for companies with weaker collateral. Shinhan Bank newly assigned 25 points to productive-finance items. Hana Bank said it will apply a 1.2-times weighting to lending performance in core advanced industries, meaning a 1 billion won loan would be counted as 1.2 billion won in performance terms. Industrial Bank of Korea, a state-run lender, also added 10 productive-finance products to its KPIs, including loans to foster advanced-technology companies, a special support program for regional advanced-innovation industries, IBK Hope DREAM loans for small merchants, IBK Value Growth loans for small merchants, loans to support companies hit by tariff damage, and loans to support industrial safety activation. As banks raced to expand supply, the four major commercial banks — KB, Shinhan, Woori and Hana — posted 31.7 trillion won in productive-finance lending in the first quarter. That equals 47.2% of their annual target, reaching nearly half the goal in three months. Concerns are also growing. With the economic slowdown dragging on and more so-called zombie companies emerging, some warn that added financial support for sectors such as construction, petrochemicals and steel — amid Middle East-related risks — could later return as a wave of bad loans. The financial sector typically recalculates corporate credit ratings each April and May based on companies’ 2025 financial statements, and expects more downgrades in areas such as petrochemicals. A downgrade can trigger demands for repayment or higher interest rates. But banks, under the productive-finance drive, may face pressure to offer support such as rate cuts or maturity extensions even to firms whose ratings have fallen. “Even before productive finance gets going, companies look like they’re dying because of Middle East-related risks,” a financial industry official said. “Concentrating funding on large companies and having them distribute work to their subcontractors is a way to minimize bad loans.”* This article has been translated by AI. 2026-04-19 17:06:00
  • Korea’s Mortgage Curbs Hit Policy Loans as Didimdol, Bogeumjari Lending Slumps
    Korea’s Mortgage Curbs Hit Policy Loans as Didimdol, Bogeumjari Lending Slumps The government’s continued tightening of mortgage lending has sharply reduced the volume of policy loans such as Didimdol and Bogeumjari, with lending down by about half. With authorities capping this year’s growth in household lending — including policy loans — at 1.5%, the lending squeeze is expected to deepen.  According to the financial sector on Monday, 4,567 first-time homebuyer Didimdol loans were issued from November through February. That was down 57.9% from 10,844 in the same period a year earlier. The total amount also fell 67.8%, to 651.8 billion won from 2.0212 trillion won.  The drop is widely attributed to tighter eligibility rules introduced last year under the government’s household lending cap. Under the June 27 measures, the loan-to-value ratio for first-time home purchase mortgages in the Seoul metropolitan area and other regulated zones was lowered to 70% from 80%, and the change was applied to policy loans as well. The maximum Didimdol loan limit for first-time buyers was also cut to 240 million won from 300 million won.  Didimdol loans for general households and newlyweds have also weakened. Applications for general-household Didimdol loans averaged 1,424 a month in 2023 during the Yoon Suk Yeol administration, but fell to a monthly average of 528 in the second half of last year after President Lee Jae-myung took office. Newlywed Didimdol applications were 2,493 in 2023 and 3,798 in 2024, then dropped to 2,067 in the second half of last year. The loan amount rose from 588 billion won in 2023 to 960.5 billion won in 2024, before sliding to 382.8 billion won in the second half of last year.  Analysts say funding options for end users are narrowing as borrowing hurdles rise under the current government, including a cut in the loan limit for newlywed Bogeumjari loans to 150 million won from 200 million won and a reduction in the guarantee ratio for jeonse loans in the Seoul metropolitan area and other regulated zones to 80% from 90%.  Bogeumjari loans have also declined. Last year, applications — including special programs for newborns — totaled 135,043 cases, down 46% from a year earlier. The loan amount, which was 12.3288 trillion won in 2022, surged to 26 trillion won in 2023 but fell to 13.5043 trillion won last year.  A financial industry official said the lower guarantee ratio reduced loan limits, contributing to the decline in policy lending. The official added that while standards such as home price and floor area remain unchanged, faster home price increases have also played a role.  Policy lending is likely to shrink further this year. The Financial Services Commission has limited annual growth in household lending, including policy loans, to 1.5%, leaving banks little choice but to scale back policy-finance products. 2026-04-07 15:27:00
  • Hana Financial to Move Into Incheon Cheongna HQ, Pushing Digital and Global Strategy
    Hana Financial to Move Into Incheon Cheongna HQ, Pushing Digital and Global Strategy Hana Financial Group is expanding its footprint in Incheon’s Cheongna International City, betting on its data infrastructure to accelerate work on artificial intelligence and stablecoins and to broaden ties with global companies. According to the financial industry on the 6th, the group will begin moving into its Cheongna group headquarters in earnest in the second half of this year. The shift is being viewed as more than a change of address, repositioning the organization for digital transformation and a push overseas. As part of the move, about 2,800 employees from six to eight affiliates, including Hana Bank, will be based in Cheongna. Combined with 1,800 IT staff already located at the group’s data center, the group expects closer coordination across affiliates. Chairman Ham Young-joo plans to step up on-site management by traveling between Seoul and Cheongna after the headquarters relocation is completed. The group is emphasizing digital synergy among affiliates. Hana Financial said the Cheongna complex was designed from the outset around a “customer-centered, data-driven information company” concept, underscoring its focus on digital transformation. With the data center and strategy units in one place, the group expects to respond more flexibly to new technologies such as AI and digital assets. Hana Financial has been focusing on initiatives including stablecoins, an AI-based wealth management platform and central bank digital currency, all of which require advanced digital infrastructure. The Cheongna headquarters is also expected to serve as a hub linking domestic and overseas operations. Hana Financial has 204 networks across 26 regions worldwide and has been increasing engagement to expand its global business. The group recently met with Britain’s Standard Chartered Group and said it will pursue domestic payments marketing with Circle, the issuer of the USDC stablecoin. It is expected to pool capabilities across affiliates to pursue global investment opportunities and step up efforts to attract foreign capital. Hana Financial’s move to Cheongna also aligns with the government’s “5 hubs, 3 special zones” strategy. While rivals KB Financial and Shinhan Financial are moving to build infrastructure in the Jeonbuk region, Hana Financial is expected to focus on job creation tied to local universities and companies in Incheon, potentially presenting a model for balanced regional growth. If additional companies move in and industrial linkages deepen, the impact on the local economy is expected to grow. * This article has been translated by AI. 2026-04-06 15:33:00
  • Plan to Cut Fintech Fees on Savings Bank Loan Referrals Stalls Amid Dispute
    Plan to Cut Fintech Fees on Savings Bank Loan Referrals Stalls Amid Dispute The government’s push to lower referral fees that fintech platforms charge savings banks for arranging loans is running into resistance. The plan is aimed at easing borrowers’ interest burdens, but fintech firms say higher fee caps are unavoidable given the risk profile of their customers, many of whom have credit scores of 700 or below. As of April 5, the financial sector said the Financial Services Commission had planned to pursue fee cuts in the first half of this year, but has slowed its pace after pushback from the fintech industry. With platforms and savings banks still far apart, the commission plans to gather additional views from both sides. The two sides have clashed since last year over fees for refinancing loans at so-called second-tier financial institutions. Fintech platforms currently charge 0.8% to 1.3% to broker refinancing loans at nonbank lenders, up to about 10 times the 0.08% to 0.18% charged for commercial bank loans. Savings banks argue the fees should be lowered to commercial bank levels. Their annual payments to major loan-comparison platforms are estimated at 220 billion to 230 billion won. The industry has told the commission it would use any savings from lower platform fees entirely to cut loan interest rates. Fintech firms counter that treating the fees as a simple cost is unfair and could shrink inclusive finance. They say borrowers using smaller fintech platforms tend to have lower credit scores, making the customer base riskier than that of commercial banks and pushing up the upper end of fees. Fintech executives also warn that fee caps could threaten the survival of smaller platforms. One industry official said savings banks earn fee income whenever they collect loan interest, while fintech platforms receive a fee only once, when a loan is executed. “The user base is fundamentally different, so it makes no sense to demand a blanket cut to commercial bank levels,” the official said. Another fintech official said bank loan agents take fees as high as 3%, while fintech platforms receive about half that, adding that fairness should be considered because the change could reduce borrowing opportunities for mid- to low-credit customers. As a compromise, officials are discussing first cutting referral fees for policy-backed loans for low-income borrowers, such as Haetsal Loan. The idea is to lower fees on policy products first and test whether borrowers see a meaningful reduction in interest rates. 2026-04-05 16:06:23
  • Korea’s National Growth Fund faces criticism over bank sales channel selection
    Korea’s National Growth Fund faces criticism over bank sales channel selection The Financial Services Commission’s retail-focused National Growth Fund is drawing criticism over how its sales channels were chosen. Although the policy fund is designed to combine public money with household investment to foster advanced strategic industries, some banks were left out as distributors, raising questions about fairness. At the same time, because policy funds typically depend on fast fundraising and efficient sales early on, asset managers may have prioritized channels with stronger distribution capacity. According to the financial industry on Wednesday, iM Bank, Jeonbuk Bank, Suhyup Bank and Jeju Bank were not included among banks set to sell the fund starting in May. The five major commercial banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — secured sales rights, along with Busan Bank, Kyongnam Bank and Gwangju Bank. The retail National Growth Fund will total 600 billion won, with 120 billion won in government fiscal funds structured to absorb losses first. The goal is to share investment gains from advanced strategic industries with the public. Three managers — Mirae Asset Global Investments, Samsung Asset Management and KB Asset Management — were selected and will determine sales channels. Critics say excluding some regional and specialty banks could create blind spots in policy finance. While iM Bank has converted into a commercial bank, it still has more branches outside major cities. The fund is being promoted as part of balanced national development, but residents in rural and mountainous areas could be left out of policy benefits. Others note that expanding non-face-to-face sales may limit the impact on access. Some in the industry also say managers screened sales channels using criteria tied to their own performance — such as the share of their funds sold and overall fund sales volume — rather than the capabilities of the banks themselves. “They allocated channels while looking at the sales-share rankings,” an asset management industry official said. Still, analysts say it is common for policy funds to favor financial firms with broad sales networks and strong investor reach to build early momentum and raise money quickly. Another official said the three managers coordinated “so their sales outlets would not overlap,” adding that they could add more selling banks later. Some banks excluded from the sales list have expressed disappointment. The fund is seen as likely to sell well because it offers tax benefits, including an income deduction of up to 18 million won and a dividend income tax rate of about 9.9%. With the added symbolism of participating in a government-backed initiative, many financial firms are said to have wanted to join. Meanwhile, even banks selected as sellers are uneasy that the sales schedule is moving ahead before the product structure and tax requirements are finalized. Concerns have also been raised about transparency in the selection process and the need for prior consultation. Kim Dae-jong, a professor at Sejong University, said the fund must emphasize stability and verification given the risk of mis-selling, and called for clear guidelines on selection standards and internal control requirements. 2026-04-02 16:18:00