Journalist

Kwon Ga-rim
  • KB Financial to Launch Consumer Protection Quality Index to Flag Investment, Fraud Risks
    KB Financial to Launch Consumer Protection Quality Index to Flag Investment, Fraud Risks KB Financial Group is launching a Consumer Protection Quality Index, or CPQI, to spot risks early, including mismatches between customers’ investment profiles and product risk, as well as financial fraud. The group said the move is aimed at strengthening trust in its financial services.  KB Financial said on 24 it is pushing the consumer-rights measures to mark the fifth anniversary of the Financial Consumer Protection Act.  Major affiliates, including KB Kookmin Bank and KB Life Insurance, will set up consumer protection committees within their boards. The group will also introduce CPQI to respond quickly to warning signs such as sales concentration in certain products or a sudden rise in customer complaints.  The CPQI consolidates consumer-protection check indicators that had been spread across departments involved in risk management, compliance and product operations, covering the full process from product planning and sales to post-sale management. If indicators fall outside the standard, an early-warning system will be triggered. CPQI is divided into four categories: before sales, during sales, after sales and other management indicators. Risk levels will be shown in a three-tier system — normal, watch and high-risk — to support early action and decision-making.  Before-sales indicators include the appropriateness of matching product risk to customers’ investment profiles, the suitability of product mix by risk grade, and monitoring concentration risk in specific funds. During- and after-sales indicators track investor profit-and-loss status and complaint intake.  A KB Financial official said the group aims to build a practical consumer-protection system that customers can feel, rather than a formal one, marking five years since the law took effect. The official said KB Financial will do its best to create a trustworthy financial environment through the new CPQI. * This article has been translated by AI. 2026-03-24 14:03:00
  • KB Financial to Launch 20 Trillion Won Productive Finance Plan, Create Corporate Investment Fund
    KB Financial to Launch 20 Trillion Won Productive Finance Plan, Create Corporate Investment Fund KB Financial Group will push a 20 trillion won "KB Kookmin Happiness Growth Project" in 2026 to foster advanced strategic industries and support small business owners. KB Financial said on the 24th it held its third group productive finance council meeting at KB Kookmin Bank's new building in Seoul's Yeouido district and finalized a detailed execution plan. The project will run on two pillars: "growth" to back companies and industries, and "hope" to expand inclusive finance. The 20 trillion won plan for this year consists of 2 trillion won for the Kookmin Growth Fund, 3 trillion won in group in-house investment, 12 trillion won in corporate loans and 3 trillion won in inclusive finance. To expand venture investment and support promising companies, the group plans to create a corporate investment master fund of 200 billion won a year and invest a total of 1 trillion won over five years in advanced industries and other areas. The fund is a mid- to long-term project financed solely with capital from affiliates including KB Kookmin Bank, KB Securities and KB Insurance. KB Financial said it will invest in a matching-fund structure linked to policy funds, aiming for a multiplier effect that could supply up to 10 trillion won in investment resources to the market over the next five years. It added that links to policy finance have been strengthened after KB Asset Management was selected as a manager for the government's "public participation fund." KB Financial also said it will reorganize and refine evaluation systems to improve execution. It created dedicated working groups for investment banking and corporate lending. KB Kookmin Bank introduced a separate productive finance indicator into its 2026 key performance indicators, and said it will reflect preferential standards across branch profitability and growth assessments to speed a shift toward corporate finance. To strengthen screening capabilities, the group set up an "advanced strategic industry screening unit" and hired outside specialists, including patent attorneys. Working with related institutions such as the Korea SMEs and Startups Agency, KB Financial said it plans to build a comprehensive financial support system spanning the discovery of promising small and venture firms through the development of unicorn companies. Kim Seong-hyeon, head of KB Financial's corporate and investment banking market division, said shifting to productive finance is "an essential task for the group's sustainable growth" beyond its social role, and said all affiliates must embed it into routine financial activities. * This article has been translated by AI. 2026-03-24 10:12:52
  • KDB Names Lee Bong-hee Senior Executive Vice President
    KDB Names Lee Bong-hee Senior Executive Vice President Korea Development Bank said Monday it has appointed Lee Bong-hee, head of its corporate finance division, as executive director and senior executive vice president. Lee joined the bank in 1993 and has handled key functions for about 30 years, including strategy and planning, organizational management, corporate finance, restructuring, international finance and dealing, the bank said. Since being named head of corporate finance in 2024, he has strengthened KDB’s role as a core policy lender by providing tailored support to semiconductors and other advanced strategic industries aimed at securing future growth engines. KDB said Lee also led major restructuring issues, including final approval of the Korean Air-Asiana Airlines business combination, efforts to boost HMM’s corporate value, and a preemptive workout for Taeyoung Construction. Separately, KDB appointed Vice President Yoon Tae-jung to lead its innovation growth division. Yoon has served in the human resources department since 2016 and later worked in the indirect investment finance office, as head of the Jongno branch and as head of the New York branch, the bank said. Vice President Kim Chun-ho was appointed to lead the corporate finance division. Born in 1971, he is regarded as an expert in corporate restructuring and corporate finance, KDB said. * This article has been translated by AI. 2026-03-23 18:27:00
  • South Korea to Expand Loan Curbs on Multi-Homeowners; Installment Mortgages Also in Scope
    South Korea to Expand Loan Curbs on Multi-Homeowners; Installment Mortgages Also in Scope The Financial Services Commission is expected to announce steps as early as the end of this month to tighten lending rules not only for rental business operators but also for individual multi-homeowners. Beyond denying extensions, regulators are weighing measures such as blocking refinancing and encouraging higher borrowing costs, signaling a broad push to rein in multi-homeowner lending.  According to data provided by the office of Rep. Kim Hyun-jung of the Democratic Party, a member of the National Assembly’s Political Affairs Committee, mortgages held by individual multi-homeowners at the four major banks — KB Kookmin, Shinhan, Hana and Woori — totaled 63.7 trillion won as of the end of January. The amount represents a meaningful share of household lending, making market impact likely if new restrictions take effect. By repayment type, installment loans accounted for 96% (61 trillion won), while interest-only, lump-sum repayment at maturity made up 4% (2.5 trillion won). Shinhan Bank and Hana Bank reported no such lump-sum loans. KB Kookmin Bank and Woori Bank had only a small share, about 5% to 10%. That breakdown is drawing attention to whether the FSC will also target installment mortgages held by individual multi-homeowners. Even if regulators stop short of the toughest measures for individuals immediately, they could broaden the scope to manage multi-homeowner lending more comprehensively. Analysts say expanding rules beyond rental business operators to individual multi-homeowners would raise the overall policy intensity. One option under discussion would curb a strategy used by some borrowers who keep 30-year loans but switch to lower-rate products after three years, when prepayment fees are waived, to reduce interest costs. Regulators could also consider steps that encourage banks to raise add-on rates, increasing borrowing costs for multi-homeowners more broadly. For lump-sum repayment loans, regulators are expected to consider denying maturity extensions. An FSC official said, “The main axis of this regulation is rental business operators, but it will also include rules for individual multi-homeowners.”  The FSC is also expected to announce additional measures for rental business operators. As of January, their outstanding bank loan balance totaled 258.5 trillion won. Unlike individual multi-homeowners, rental business operators had a much higher share of lump-sum repayment loans, at 88%, exceeding installment loans. The FSC is reviewing whether to apply a 0% loan-to-value rule — previously limited to new loans — at the time of maturity extensions as well. If the FSC rolls out multi-homeowner lending curbs alongside overall household lending caps by the end of the month, pressure on financial firms is expected to increase. Blocking maturity extensions could raise borrowers’ repayment burdens and fuel concerns about higher delinquency rates. At the same time, tighter household lending limits could reduce capacity for new loans. A financial industry official said, “With concerns growing about a domestic slowdown as Middle East risks drag on, strong regulations could quickly expand delinquency rates,” adding, “The president has also mentioned tax adjustments as a last-resort regulatory tool, making changes to lending strategy unavoidable.”  2026-03-23 15:51:00
  • Korean Banks Brace for Asset Quality Strain as Middle East Tensions Lift Rates, Oil
    Korean Banks Brace for Asset Quality Strain as Middle East Tensions Lift Rates, Oil Rising global oil prices and bond yields tied to turmoil in the Middle East are heightening concerns over asset quality at South Korea’s banks. Vulnerable borrowers such as the self-employed and small businesses have struggled with debt service since the COVID-19 pandemic, and higher costs from a spike in oil prices are seen further weakening companies’ ability to repay. As of the end of February, the overall delinquency rate on won-denominated loans at the five major banks — KB, Shinhan, Hana, Woori and NH NongHyup — stood at 0.46%, according to the financial sector on Saturday. That was up 0.1 percentage point from 0.36% at the end of December, rising over two months. By borrower type, delinquency rates were 0.35% for households, 0.11% for large companies, 0.67% for small and midsize enterprises, and 0.56% for all corporate borrowers. Compared with the end of last year, the rates rose 0.05 percentage point for households, 0.08 point for large companies, 0.17 point for SMEs and 0.15 point for all corporate borrowers. The ratio of nonperforming loans on won-denominated lending at the five banks also increased to 0.40% at the end of February from 0.34% at the end of last year. The rise was largest for SMEs, up 0.12 percentage point, compared with 0.08 point for large companies and 0.04 point for households. Analysts warn the indicators could deteriorate further if the oil surge and Middle East risks persist. A prolonged period of uncertainty could squeeze corporate profitability and hit financially fragile SMEs hardest. The four major banks held 29.0567 trillion won in outstanding loans to petrochemical, airline and shipping companies as of the end of the fourth quarter of last year, the financial sector said. Within nine days of the Iran situation, the price of naphtha — a key feedstock those industries largely source from the Middle East — rose 28%, raising expectations of significant damage. Even so, corporate lending has continued to grow since the end of last year, adding to banks’ risk exposure. As of the end of last month, corporate loans at the five major banks totaled 854.3288 trillion won, up 6.9759 trillion won from the previous month. Looking ahead, if oil prices keep rising and supply-chain instability persists, the policy rate could shift back toward increases to curb inflation. Yields on one-year and five-year bank bonds climbed from 2.900% and 3.572% on Feb. 27, just before the Iran situation, to 3.033% and 3.907% as of March 20 — jumps of 0.133 percentage point and 0.335 point in three weeks. Banks have responded by building reserves. Major lenders are keeping loan-loss reserve coverage ratios between 160% and as high as 220%, and are monitoring lending in real time, including by adopting a risk-adjusted return on risk-weighted assets (RoRWA) metric to manage capital adequacy. “After the Middle East war, the uptrend in market rates and lending rates has strengthened,” a financial industry official said. “As shocks to the real economy accumulate, bad loans could visibly swell in a few years.” * This article has been translated by AI. 2026-03-22 15:03:00
  • Woori Bank Caps New Personal Credit Loan Rates at 7% Annually
    Woori Bank Caps New Personal Credit Loan Rates at 7% Annually Woori Bank said March 22 it will expand its interest-rate cap to cover new personal credit loans, limiting rates to no more than 7% a year starting March 23. The bank also announced a new product, the “Woori WON Dream Living Expense Loan,” aimed at easing financial burdens for mid- and low-credit borrowers. Woori said the measures are part of Woori Financial Group’s “Future Shared Growth Project” to broaden inclusive finance, as economic slowing and rising living costs have increased pressure on vulnerable households. Until now, Woori has applied the 7% cap to customers extending or renewing personal credit loans. The change expands the cap to new loans. Under the program, consumers who have maintained accounts with Woori for at least one year — including deposits and savings, credit cards and subscription savings — will have the rate on a new personal credit loan capped at 7% a year for up to one year, for up to one time. Woori expects more than 10,000 loans to receive the capped-rate benefit. The Woori WON Dream Living Expense Loan targets wage earners, nonwage workers and homemakers with annual income of 25 million won or less. The bank said it will use alternative credit scoring based on a range of data — including financial, telecom and small-payment information — to expand eligibility to credit bureau grade 8 and improve access to financing. The product is designed to allow applications from customers with limited documented income. Borrowers can take out up to 10 million won. Rates start in the high 4% range annually, with the maximum capped at 7% a year. Woori said it adopted an installment repayment structure of up to 10 years, including a three-year grace period, to reduce repayment burdens. Preferential rates will be offered to groups covered by inclusive finance programs, including young people, older adults, people with disabilities and recipients of basic living assistance. “This expansion of the interest-rate cap and the launch of the living-expense loan are inclusive finance policies to improve access to financial services for vulnerable groups and ease interest burdens,” said Lee Jeong-ho, deputy head of Woori Bank’s retail loan product team. “Through Woori Financial Group’s ‘Future Shared Growth Project,’ we will expand support so finance can serve as a social safety net,” he said. * This article has been translated by AI. 2026-03-22 10:15:52
  • Woori Bank to Offer 200 Billion Won in Online Credit Lines for Seoul Small Businesses
    Woori Bank to Offer 200 Billion Won in Online Credit Lines for Seoul Small Businesses Woori Bank said on March 19 it signed an agreement with the Seoul Metropolitan Government and the Seoul Credit Guarantee Foundation to support 200 billion won in guaranteed overdraft loans under the “Seoul-style Small Business Relief Account No. 3” program. The program is part of Seoul’s “Small Business Support Project.” It aims to quickly provide online overdraft credit lines of up to 10 million won to small business owners facing heavier operating burdens amid high interest rates and a slowing economy. The bank said it expects the program to ease funding pressure, support business stability and expand help for very small firms with limited access to finance. Eligible applicants are Seoul-based small business owners who have operated for more than one year, whose representative has a NICE credit score of at least 600, and who posted either at least 2 million won in combined sales over the past three months or at least 10 million won in reported sales over the past year. Loans are structured as one-year, lump-sum repayment products, with extensions of up to five years available after review. For the first five days after launch, applications will be accepted under a five-day rotation based on the last digit of an applicant’s birth year. From March 26, applications will be accepted without restrictions. During the rotation period, guarantee application dates by last digit are: March 19 (1,6), March 20 (2,7), March 23 (3,8), March 24 (4,9) and March 25 (5,0). To reduce financing costs, Woori Bank will cover 50% of the first-year guarantee fee and waive fees for unused overdraft limits. “This Seoul-style Relief Account No. 3 program is designed to ease small business owners’ financial burden and support a real recovery in operations,” said Park Jun-seok, head of Woori Bank’s SOHO Business Department. He said the bank will continue working with Seoul and related agencies to strengthen inclusive finance and expand practical financial support and on-site consulting.* This article has been translated by AI. 2026-03-19 15:51:57
  • Shinhan Leads Overseas Profit as KB Improves; Woori, Hana Slide
    Shinhan Leads Overseas Profit as KB Improves; Woori, Hana Slide Shinhan Bank and KB Kookmin Bank posted solid results across most overseas units, while Hana Bank and Woori Bank saw weaker performance as losses widened at key subsidiaries, the financial industry said. Results diverged sharply by market — including China, Europe and Southeast Asia — shaping winners and losers among the major lenders. According to the financial sector on the 19th, Shinhan’s 10 overseas subsidiaries posted a combined net profit of 586.9 billion won last year, the highest among the four major banks. That was up 2.59% from a year earlier. Canada Shinhan Bank swung to a loss, but most other units improved. Two core overseas operations — Japan’s SBJ Bank and Shinhan Vietnam Bank — delivered results in the 100 billion won and 200 billion won ranges, respectively, on locally tailored strategies. Shinhan Bank China’s net profit jumped fourfold from a year earlier on higher gains tied to securities. Shinhan Bank America and Shinhan Bank Indonesia expanded lending to strong local companies, with net profit rising 278.65% and 34.7%, respectively. KB Kookmin sharply reduced losses at its overseas units. The bank operates five overseas subsidiaries, including Cambodia’s Prasac and Indonesia’s Bukopin. Its overseas result improved from a 2024 net loss of 202.9 billion won to 81.7 billion won last year, turning profitable. The improvement was driven largely by Bukopin, which narrowed its net loss to 102.8 billion won after posting a 360.6 billion won net loss a year earlier. Growth of 28% in low-cost deposits and 10% in settlement-related loans helped lift performance. The Myanmar unit returned to profit on expanded local business, and KB Prasac Bank earned 152 billion won as it increased low-rate deposits. Hana Bank’s global business declined. Net profit at its overseas subsidiaries fell 33% from a year earlier to 86.8 billion won last year. Hana Bank China swung to a 39.2 billion won net loss as it set aside provisions amid a prolonged downturn in China’s real estate market. Net profit at Germany’s KEB Hana Bank also plunged 66% amid factors including falling eurozone interest rates. Hana Bancorp, a U.S. bank holding company targeting Korean-American networks, posted a 253% surge. Woori Bank’s overseas slump deepened after it had ranked second globally in overseas net profit. Net profit at its 11 overseas subsidiaries fell 79% from a year earlier to 44.9 billion won last year. A major drag was Indonesia’s Woori Sodara Bank, which swung from more than 56 billion won in net profit to a 74.1 billion won loss. Woori Bank China also posted a 52.7 billion won net loss. This year, the banks plan to focus on strengthening fundamentals at overseas units as the global operating environment grows more uncertain due to the U.S.-Iran war and rising oil prices. KB Kookmin and Shinhan said they aim to expand with high-quality assets and reinforce core earnings for sustained growth. Hana said it will boost business synergies among four branches, including two opened in India in December, and seek to improve results at its German unit by attracting financing demand tied to South Korea’s defense industry exports. 2026-03-19 15:27:00
  • Woori Bank Expands AI Banker, Turns Unstructured Data Into Usable Assets
    Woori Bank Expands AI Banker, Turns Unstructured Data Into Usable Assets Woori Financial Group is accelerating its push to embed artificial intelligence across management and operations as part of its AI transformation, known as AX. Woori Bank said it is the first in South Korea’s financial sector to pursue “assetization” of unstructured data. The bank holds large volumes of unstructured information — including financial product materials, work rules, official notices and reports — that has been difficult to use systematically. By collecting, refining and structuring that data into formats AI can learn from, employees can now search for and use needed information more quickly. Building on that data, Woori Financial developed a generative AI customer service tool called “AI Banker.” The group is applying generative AI to tasks such as knowledge search, checking internal rules, drafting corporate analysis reports and supporting customer consultations to improve efficiency. The group has also introduced a “deep research” function that automatically generates reports using internal data. It has advanced to the point of gathering and analyzing relevant data on an employee-requested topic and delivering it in report form. Woori Financial is also upgrading customer-facing services, expanding generative AI consultations from deposit and savings products to loans, subscriptions and other financial products. For loan consultations, it said the service has evolved to support the broader decision-making process by building a consultation flow that reflects a customer’s goals and conditions. * This article has been translated by AI. 2026-03-18 18:05:25
  • Hana Bank Automates Marketing and FX Reviews to Boost Efficiency
    Hana Bank Automates Marketing and FX Reviews to Boost Efficiency Hana Bank said it is expanding the use of artificial intelligence across operations, from branch sales to customer service. To raise marketing productivity for branch staff, the bank introduced an AutoML (Auto Machine Learning)-based service that recommends marketing targets. It goes beyond product suggestions by analyzing each customer’s preferences and financial usage patterns to propose the most effective marketing approach. The bank is also applying AI to foreign exchange work. It said it can automatically draft initial opinions for spot FX limit applications, aiming to improve both processing speed and accuracy. An AI asset-diagnosis service linked to its MyData platform is designed to help branch employees provide more precise wealth-management consulting. Customer-facing AI services are also being upgraded. The bank’s AI service that predicts overseas remittance processing times is intended to reduce uncertainty over how long transfers will take by calculating multiple variables and providing an estimated time in advance. With foreigners accounting for more than 5% of South Korea’s population, Hana Bank said it is strengthening related services. One example is a real-time multilingual chat counseling service within the HanaEZ app, which uses multilingual AI to help foreign customers receive financial consultations and improve satisfaction among new users.* This article has been translated by AI. 2026-03-18 18:04:57