Journalist

Kwon Ga-rim
  • 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
  • NH NongHyup Financial Expands Senior Products, Weighs Elder Care Infrastructure
    NH NongHyup Financial Expands Senior Products, Weighs Elder Care Infrastructure NH NongHyup Financial Group is moving to aggressively expand senior-focused products and offline service spaces this year, aiming to convert community hub branches into senior-oriented locations and win market share with higher-value offerings tied to health management. A key variable is whether it can ease internal friction over potential overlap with local cooperatives. According to the financial industry on Monday, NH NongHyup Financial will step up its push into the so-called silver market under its senior brand, “NH All Wonderful,” launched in November. The group has positioned this year as the starting point for expanding the brand and plans to introduce specialized products such as savings and loans linked to health management. The strategy is to turn its comparatively strong base of older customers — reinforced by aging in rural areas — into a profit model and a competitive edge. NH NongHyup Financial has about 12 million customers age 50 and older, accounting for 55% of its total. By affiliate, customers 50 and older make up 54.6% at NH NongHyup Bank, 71.3% at NH NongHyup Life Insurance and 66.2% at NH NongHyup Property & Casualty Insurance. NH NongHyup Financial plans to roll out a total of 22 senior-only products in stages this year, focusing on health care-linked finance. It is considering products that offer preferential interest rates when customers can document improvements in certain health indicators. The group also plans to strengthen both online and offline touchpoints by designating and operating “senior-specialized branches and lounges” in the first half of the year and improving a senior-only space in its app in the second half. Building elder care facilities and senior housing remains an unresolved task. The broader NongHyup network includes many local agricultural cooperatives, and some already operate nursing homes. A move by the holding company or its life insurance unit into elder care could trigger internal pushback over perceived encroachment on existing business rights. Local NongHyup cooperative branches total 4,894 — more than four times the 1,065 locations operated by NH NongHyup Bank — making friction with local cooperative leaders difficult to avoid, from site selection onward. Some observers warn that because NH All Wonderful launched later than rival programs, further delays in entering elder care could mean missing a critical window. KB Financial Group has KB Golden Life Care, a specialized elder care subsidiary, and operates care facilities including Wirye, Seocho and Eunpyeong Villages; Pyeongchang County; and day care centers in Gangdong, Wirye and Eunpyeong. Shinhan Financial Group is expanding senior care services centered on Shinhan Life, and Hana Financial Group has been opening senior-specialized branches. “NH NongHyup Financial’s senior customer assets are a powerful weapon, but housing and care infrastructure will ultimately be needed to support it,” a financial industry official said. “It is important to quickly develop a model of coexistence with local cooperatives.” 2026-03-31 15:45:28
  • K Bank Shrinks Board to Seven Members; CEO Choi Woo-hyung Reappointed
    K Bank Shrinks Board to Seven Members; CEO Choi Woo-hyung Reappointed K Bank has streamlined its board structure to speed decision-making and sharpen oversight. Shareholders also approved another term for CEO Choi Woo-hyung, citing performance that included a successful IPO.  K Bank said it held its 10th annual general meeting of shareholders on Monday and approved a package of agenda items, including Choi’s reappointment; the reappointment of two outside directors; the appointment of three outside directors who will serve on the audit committee; deletion of a clause excluding cumulative voting; and the creation of a Consumer Protection Committee. Shareholders approved a broad reshaping of the board. The board will be reduced to seven members from 11. Under the new structure, it will consist of one inside director, five outside directors and one other non-executive director, down from one inside director, eight outside directors and two other non-executive directors.  Lee Hyun-ae, who previously led NH Futures, was appointed as a new audit committee member. Digital specialists also joined, including Jung Jin-ho, who previously served as a deputy head of KB Kookmin Bank’s Digital Transformation (DT) division, and Kim Nam-jun, who previously served as a vice president at Shinhan Card. Existing directors Lee Kyung-sik, a Seoul National University professor, and Choi Jong-oh, a professional committee member with a background at the Financial Supervisory Service, were reappointed. K Bank also approved the establishment and operation of its Consumer Protection Committee. It said it is the first internet-only bank in South Korea to set up a consumer protection committee as an independent subcommittee within the board. The bank said it created the committee to elevate consumer protection from complaint handling or compliance checks to a core management issue directly overseen by the board.  The committee’s main review items include basic policies for building and operating internal controls for financial consumer protection; major changes to consumer protection systems; enactment and revision of consumer protection standards and internal control standards; and overall key policies and management frameworks related to consumer protection.  Shareholders also approved Choi’s reappointment. The bank said he was credited with stable management after posting net profit of 128.1 billion won in 2024 and 112.6 billion won in 2025.* This article has been translated by AI. 2026-03-31 14:27:00
  • Hana Bank, Knight Frank Korea to Expand Advisory Services for Ultra-High-Net-Worth Clients
    Hana Bank, Knight Frank Korea to Expand Advisory Services for Ultra-High-Net-Worth Clients Hana Bank said Tuesday it signed a business agreement with global real estate consultancy Knight Frank Korea to expand financial advisory services for family office clients. Knight Frank is a real estate consulting firm with more than 125 years of experience and publishes an annual “Wealth Report” analyzing investment trends among wealthy individuals. At a signing ceremony at Knight Frank Korea’s headquarters in Seoul’s Euljiro area, the two sides agreed to provide an integrated wealth management solution spanning real estate, finance, legal and tax services, and investment banking, as demand from ultra-high-net-worth clients becomes more complex. The partners said they will cooperate on financial care through Hana Bank’s specialized branches, including Club1; family office services such as inheritance and gifting, real estate investment advice and business succession; and nonfinancial offerings tied to culture, art and health. They also plan to develop differentiated wealth management services with other Hana Financial Group affiliates, including investment strategy lectures led by analysts at Hana Securities and issuance of premium membership cards linked with Hana Card. “Through cooperation with Knight Frank, an authoritative name in the global real estate market, we will be able to provide higher-level financial consulting, including real estate investment advice,” Kim Mi-sook, executive vice president of Hana Bank’s Central Sales Group, said. She added that the bank will continue expanding specialized financial and nonfinancial services to “maximize customer value.”* This article has been translated by AI. 2026-03-25 14:27:00
  • Woori Bank Launches AI System to Detect Suspicious Transactions
    Woori Bank Launches AI System to Detect Suspicious Transactions Woori Bank said on the 25th it has launched an artificial intelligence-based fraud detection system (FDS) inspection platform to help prevent financial incidents and automate work. The system is designed to let AI learn transaction patterns on its own and flag new types of financial wrongdoing. Using the bank’s full set of financial transaction data, it screens for unusual signs and uses AI to automatically generate inspection data and preliminary scenarios. After the scenarios are checked for accuracy, they are applied to actual inspections, which the bank said can strengthen prevention through daily monitoring. The platform also analyzes unstructured data such as scanned images and applies retrieval-augmented generation (RAG) to make large volumes of inspection materials easier to use, improving the efficiency of internal controls. RAG is an AI method that automatically finds and organizes needed information, reducing the time staff spend reviewing documents and enabling faster checks. A Woori Bank official said the upgraded AI-based FDS inspection system will expand the scope of daily monitoring and allow the bank to respond proactively to hard-to-predict financial incidents. The official said the bank will actively introduce AI into internal controls as part of its shift to an AI transformation-based management system to help prevent financial incidents.* This article has been translated by AI. 2026-03-25 14:15:00
  • Hana Financial to Move Headquarters to Incheon’s Cheongna in September; Hanwha Life Extends Outside Director Terms
    Hana Financial to Move Headquarters to Incheon’s Cheongna in September; Hanwha Life Extends Outside Director Terms Hana Financial Group said it will relocate its group headquarters to Cheongna, Incheon, in September and secured funding for tax-free dividends, a move expected to strengthen shareholder returns. Hanwha Life Insurance, meanwhile, extended the term of outside directors from two years to three to bolster board expertise. Hana Financial on Monday approved at its annual shareholders meeting a proposal to reduce its capital reserve by 7.4 trillion won to enable tax-free dividends. The decision allows the company to transfer 7.4 trillion won from the capital reserve to retained earnings and use it as dividend funding. If dividends are paid from this source, individual shareholders can receive payouts without paying dividend income tax. Hana Financial said it plans to begin tax-free dividends starting with its dividend for this year’s fourth-quarter results. Shareholders also approved an amendment to the articles of incorporation to move the group headquarters to the Cheongna International City area of Incheon. The plan advances the long-discussed “Hana Financial Town” concept, envisioned after Kim Seung-yu, a former chairman of Hana Financial, visited Banco Santander’s Santander City near Madrid in 2007. The Cheongna Hana Financial Town is planned to cover 128,474 square meters and is expected to serve as a future financial hub. Hana Financial said it plans to begin the headquarters relocation on Sept. 30. The board lineup was partly reshaped. Shareholders considered proposals to appoint Vice Chairmen Lee Seung-yeol and Kang Seong-muk as inside directors. Choi Hyun-ja, a consumer rights specialist and professor in Seoul National University’s Department of Consumer Science, joined as a new outside director. Hana Financial also approved a charter change to reorganize its board-level Consumer Risk Management Committee into a Consumer Protection Committee, underscoring a groupwide push for consumer-focused management. The meeting also established a basis to introduce electronic shareholders meetings in line with the Commercial Act revision set to take effect in January next year. Park Dong-moon, chairman of Hana Financial’s board, said in a letter to shareholders, “We will closely check the faithful implementation of the corporate value enhancement plan and strengthen overall governance, including internal controls and consumer protection.” He added, “Even in a rapidly changing financial environment, we will pursue long-term shareholder value through responsible decision-making and sustainable management.” Hanwha Life Insurance expanded the term of outside directors from two years to three years. Shareholders also approved the reappointment of outside directors Park Soon-cheol and Jung Soon-seop and the new appointment of Yoo Chang-min, head of the investment division, as an inside director. Hanwha Life CEO Kwon Hyuk-woong said, “We aim to secure the industry’s top AI competitiveness by fully applying artificial intelligence technology across our business.” He added, “Based on the results and foundation we have built, we will continue stable growth and responsible management and do our best to meet expectations.” 2026-03-24 15:20:38