AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Kwon Ga-rim
  • Kakao Pay Launches Parents Day Campaign, Gives Carnations and Message Cards
    Kakao Pay Launches Parents Day Campaign, Gives Carnations and Message Cards Kakao Pay is rolling out a special campaign and promotions for May, widely observed in South Korea as Family Month. A survey published Monday by Pay Attention, Kakao Pay’s official finance journal, found that 89% of 27,095 respondents chose cash as their preferred Parents Day gift. Kakao Pay said its user data showed a similar pattern. The busiest day for Kakao Pay remittances in May last year was Parents Day, when more than 3.03 million transfers were made in a single day, the highest daily total of the year. Reflecting that demand while encouraging in-person family connections, the company is hosting a series of events. For Parents Day, Kakao Pay is running a campaign titled, “Don’t use Kakao Pay. Go see them now,” urging users to visit their parents rather than relying only on convenient money transfers. Kakao Pay said that when the campaign debuted last year, it delivered its message to about 400,000 people. Kakao Pay, which has promoted a “conversation-like” remittance culture, said the campaign is meant to encourage people to share their gratitude face to face, especially around Parents Day. The company has also held various remittance-related events around holidays such as Lunar New Year. Kakao Pay also took the campaign offline with a “Heart Truck.” The truck toured major Seoul areas including Gangnam, Jamsil and Seongsu from May 2 to 3 to share the campaign message. From May 4 to 5, Kakao Pay is holding an on-site event at the intersection near Ttukseom Station in Seongsu-dong, using the “Heart Truck” concept. The company plans to give the first about 1,000 visitors message cards featuring family-themed phrases by author Lee Seul-a, along with carnations and “heart envelopes,” to help them share their feelings directly with family members. A Kakao Pay official said, “We hope that through the online and offline events Kakao Pay has prepared for Family Month, people will have time to meet face to face and share deeper warmth.” * This article has been translated by AI. 2026-05-04 20:18:18
  • KB, Shinhan and Woori Tell SEC Inclusive Finance Push Could Strain Asset Quality
    KB, Shinhan and Woori Tell SEC Inclusive Finance Push Could Strain Asset Quality South Korea’s major financial holding companies have warned that the government’s expanding “shared growth” and inclusive finance policies could weigh on asset quality. According to the financial sector on the 4th, KB Financial Group and Shinhan and Woori Financial Group recently filed earnings-related reports with the U.S. Securities and Exchange Commission. Korean financial holding companies regularly submit reports to the SEC as they diversify funding channels. The filings shared a common concern about soundness. KB said that aligning with the government’s “productive finance” policy could lead to losses, adding that increased exposure to small and midsize enterprises this year could push delinquency rates higher. Shinhan also said delinquency rates are likely to rise as it advances programs such as the Sae Do-yak Fund. Woori said measures such as adjusting interest rates for middle- and low-income borrowers could add pressure to its net interest margin, and it may need to take steps to reduce SME exposure. Delinquency indicators have already worsened as banks expand lending to SMEs under the productive finance drive. The average corporate delinquency rate at the five major banks — KB, Shinhan, Hana, Woori and NH NongHyup — rose to 0.46% in the first quarter from 0.37% the previous quarter. The SME delinquency rate increased to 0.57% from 0.49%. Delinquencies in real estate-related industries have hit the highest level in 13 years as the Middle East war has delayed a recovery in the property market. The burden from estimated losses and other asset-quality pressures is likely to grow, as high inflation and an economic slowdown further weaken conditions for SMEs. The Ministry of SMEs and Startups said the Small Business Health Index (SBHI) for May fell 3.2 points from the previous month to 77.6. A reading below 100 means more firms expect conditions to worsen than to improve.* This article has been translated by AI. 2026-05-04 18:42:18
  • Bitcoin Nears $80,000 as Middle East Tensions Ease
    Bitcoin Nears $80,000 as Middle East Tensions Ease Bitcoin was closing in on $80,000 on expectations that geopolitical risks in the Middle East may ease. Bitcoin was trading at $79,201 as of 8 a.m. on the 4th, up 0.44% from a day earlier, according to CoinMarketCap. The cryptocurrency had fallen as low as the $66,000 range amid a war between the United States and Iran, but has moved within a roughly $78,000 band over the past week. The latest gains appeared to reflect rising hopes for reduced tensions. Iran recently delivered a new ceasefire proposal to the United States through mediator Pakistan. The United States was reported to have sent its response via Pakistan. Some in the market expect the current trend to continue for now, while noting that because April’s rise was driven largely by futures trading, a price correction could emerge over the coming months. Major altcoins also edged higher. Ethereum, the No. 2 token by market value, rose 0.88% to $2,344. Ripple (XRP), ranked third, gained 0.29% to $1.39. Solana added 0.43% to $84. In South Korea, bitcoin was trading at 117.17 million won (about $79,334) on the won-based exchange Bithumb at the same time, up 0.47% from a day earlier. The so-called “kimchi premium,” in which domestic prices trade above overseas levels, stood at about 0.49%.* This article has been translated by AI. 2026-05-04 08:33:14
  • Big 4 Korean Financial Groups’ Uncollectible Loans Near 3 Trillion Won as SMEs Struggle
    Big 4 Korean Financial Groups’ Uncollectible Loans Near 3 Trillion Won as SMEs Struggle High interest rates and a prolonged economic slowdown have made it harder for banks to recover loans, pushing the Big Four financial groups’ estimated losses to nearly 3 trillion won by the end of the first quarter. Fact books released on May 3 by KB, Shinhan, Hana and Woori showed estimated losses totaling 2.9963 trillion won in the first quarter. That was up 5.8% from a year earlier and 16.8% from the previous quarter, the highest on record. Banks classify loan quality into five categories based largely on delinquency: normal, precautionary, substandard, doubtful and estimated loss. “Estimated loss” refers to loans delinquent for more than 12 months and considered effectively unrecoverable. By group, Hana Financial Group posted the fastest increase, with estimated losses rising 30.3% from a year earlier to 503 billion won. KB Financial Group’s estimated losses climbed 27.2% to 807.2 billion won from 634.6 billion won a year earlier. Woori Financial Group’s rose 12.4% to 826 billion won from 735 billion won. Shinhan Financial Group was the only one to report a decline, down 20.1% to 860.1 billion won, as it managed troubled assets through write-offs and other measures. The surge in write-offs indicates weakening repayment capacity among borrowers. The average corporate delinquency rate at the five largest banks — KB, Shinhan, Hana, Woori and NH NongHyup — rose to 0.46% in the first quarter from 0.37% the previous quarter. The small- and medium-sized business delinquency rate increased to 0.57% from 0.49%. Delinquencies in industries tied to real estate have hit a 13-year high as a Middle East war has delayed a recovery in the property market. Nonperforming loans, a broader asset-quality measure that includes substandard and doubtful loans in addition to estimated losses, also jumped. NPLs at KB Kookmin, Shinhan, Hana and Woori banks totaled 5.0773 trillion won at the end of the first quarter, up 12% from the end of last year. Asset-quality pressure could intensify. The Ministry of SMEs and Startups said small businesses’ May outlook index, the Small Business Health Index, fell 3.2 points from the previous month to 77.6. A reading below 100 means more firms expect conditions to worsen than to improve. Banks said they plan to manage risk through steps including selling bad loans. A financial industry official said lenders are applying measures such as early credit assessments for vulnerable borrowers, screening high-risk borrowers and quickly restructuring loans to troubled companies. The official added that banks are also building real-time monitoring systems through overseas offices and setting aside additional reserves to prepare for possible further losses from overseas real estate investments. * This article has been translated by AI. 2026-05-03 16:04:52
  • South Korea approves five National Growth Fund projects, bringing total to 8.4 trillion won
    South Korea approves five National Growth Fund projects, bringing total to 8.4 trillion won The Financial Services Commission is moving to step up investment through the National Growth Fund. The FSC said Saturday it approved funding support for five projects at a meeting of the fund’s investment review committee. With the latest approvals, the fund has approved 11 projects totaling 8.4 trillion won in cumulative financing. A key agenda item was a 100 billion won direct investment in Upstage, a South Korean AI venture that develops AI solutions for businesses and government and builds large language models. The FSC said the investment will be used to develop next-generation AI models and build infrastructure to operate large language models, as part of a planned 560 billion won fundraising effort. The committee also approved a project to build a national AI computing center. The FSC said the approval confirms 400 billion won in capital fundraising, with plans to pursue additional loans of up to more than 2 trillion won. A proposal tied to building an advanced industrial belt in Saemangeum was also approved. The National Growth Fund decided to provide Future Graph with a total of 250 billion won in low-interest loans, including 200 billion won from an advanced strategic industries fund. The FSC said the factory project, with 400 billion won to be invested, is expected to establish an annual production base of 37,000 tons of spherical graphite at the Saemangeum National Industrial Complex. Other approved items included an expansion of STGen Bio’s contract manufacturing plant for biopharmaceuticals and low-interest loans for a midsize semiconductor materials company. The FSC said it is accelerating investment planning after creating the 150 trillion won National Growth Fund to foster advanced strategic industries and support an economic rebound. It said it will regularly announce large-scale projects with broad industrial spillover effects while responding on an ongoing basis to diverse funding needs across the advanced-industry ecosystem.* This article has been translated by AI. 2026-05-03 12:05:10
  • KB Financial Discusses Digital Asset Cooperation With Pantera Capital
    KB Financial Discusses Digital Asset Cooperation With Pantera Capital KB Financial Group said Saturday it discussed ways to cooperate in blockchain with Pantera Capital, a U.S. blockchain-focused venture capital firm and hedge fund. Founded in 2003, Pantera Capital launched the first U.S. bitcoin fund in 2013 and specializes in blockchain investments. It currently manages about $5.2 billion in assets. The two sides shared the latest trends in the global blockchain industry and looked for areas that align with KB Financial’s digital asset agenda, the company said. They also discussed benchmarking investment approaches and cooperation models that have been proven in global markets, and ways to strengthen collaboration going forward. A KB Financial official said the group will “secure future financial competitiveness based on blockchain and accelerate efforts to identify promising new global businesses” by building close ties with leading global funds. Separately, KB Financial has been moving to strengthen cooperation with Tether and Circle, the top two global stablecoin operators, as it seeks an edge in the digital asset market. It has also signed a business agreement for the second phase of “Project Hangang,” led by the Bank of Korea. * This article has been translated by AI. 2026-05-03 11:30:14
  • With Won Near 1,500 per Dollar, Expert Urges Stronger Foreign-Exchange Defenses
    With Won Near 1,500 per Dollar, Expert Urges Stronger Foreign-Exchange Defenses Bank of Korea Gov. Shin Hyun-song took office April 20. The central bank’s most important tasks are price stability and defending the exchange rate, the author wrote. The won has trended weaker over decades, from the 200-won range in the 1970s to about 2,000 won during the IMF foreign-exchange crisis and 1,600 won during the global financial crisis.  South Korea depends on trade, with a trade-to-GDP ratio of about 75%, the world’s second-highest, the author said. That makes exchange-rate swings from external shocks more than a market indicator, he wrote, calling on the government to build a stronger foreign-exchange “breakwater” on three fronts. First, the author urged building foreign-exchange reserves toward $1 trillion. South Korea’s reserves stand at $420 billion, which he said is insufficient in a crisis and equals about 23% of gross domestic product. He compared that with Taiwan, Hong Kong and Switzerland, which he said hold reserves equal to 80% to 130% of GDP.  He cited Taiwan’s experience in the 1997 Asian financial crisis, saying its stockpiled reserves helped it remain stable. South Korea should expand reserves to $1 trillion, or about 50% of GDP, to provide psychological stability to markets, he wrote, arguing that readily deployable cash is the most practical shield against speculative attacks on the won.  Second, he called for restoring and expanding currency swap lines with the United States and Japan on a standing basis. If reserves are a country’s own capital, he wrote, swap lines are a second line of defense, like an overdraft. The $60 billion Korea-U.S. swap line has ended, and the Korea-Japan swap line has shrunk to about $10 billion from a previous $70 billion, he wrote. Swap lines with reserve-currency countries, he added, can convince markets that “Korea will not run short of dollars,” helping curb sharp exchange-rate spikes. Third, he urged stricter debt management and stronger fiscal discipline. The IMF has warned about 2030, when South Korea’s government debt ratio is expected to reach 60%, he wrote. Including contingent liabilities such as civil servant and military pensions, he said broader public debt has already reached 181%. If fiscal weakness erodes external confidence, he warned, the won’s long-term weakening could accelerate. The author also called for attracting more foreign investment by cutting South Korea’s corporate tax rate from 26% to the global average of 21% and easing regulations tied to the fourth industrial revolution. He wrote that new industries such as Uber, Airbnb and Tada have all been banned in South Korea, adding that the exchange rate is “the price of national credibility.”  He argued the government must also avoid injecting excessive liquidity. The government has finalized a 26 trillion won supplementary budget. Last year, South Korea posted 1% economic growth and 2% inflation, and he wrote that an appropriate money-supply increase would be about 3%. But he said the minimum wage was raised 2.9%, the annual budget was increased 8.1%, and including the 26 trillion won “war” supplementary budget would push the total above 9%. More won liquidity would fuel demand, lift prices and lead to a weaker currency, he wrote. South Korea’s ratio of money supplied relative to GDP is 154%, he said, compared with 71% for the United States.  Only preemptive action can prevent a “second IMF,” he wrote. Companies and individuals have accumulated more than $1 trillion in dollars, he said, but low-income households holding assets only in won would face greater hardship in an exchange-rate crisis. With war and global supply-chain restructuring, he added, exchange-rate stability is no longer solely the Bank of Korea’s task.  He urged an all-of-government push to build reserves, expand swap lines and strengthen fiscal discipline. The government, he wrote, should not miss the “golden time” to protect the economy and break what he described as an 86% probability that the exchange rate will keep rising. He called for a responsible choice between repeating a foreign-exchange crisis and protecting livelihoods through early action.* This article has been translated by AI. 2026-04-29 17:07:58
  • Regional Korean Banks Post Higher Profit as Delinquency Rates Surge
    Regional Korean Banks Post Higher Profit as Delinquency Rates Surge Regional financial holding companies posted improved first-quarter results, but warning signs are flashing on asset quality as delinquency rates climbed to as much as four times the level at major commercial banks. According to the financial industry on April 29, BNK Financial Group is expected to report first-quarter net profit of 224.6 billion won, up 30.7% from a year earlier. JB Financial Group posted 166.1 billion won, up 2.1%, and iM Financial Group reported 154.5 billion won, up 0.1%. All three improved results on the back of noninterest businesses, but they are also facing rising delinquencies. JB Financial’s first-quarter delinquency rate rose to 1.63%, up 0.50 percentage points from the end of last year. iM Financial’s rate also increased to 0.86%. By bank, Jeonbuk Bank’s delinquency rate reached 1.65% and Gwangju Bank’s rose to 1.27%. BNK Financial has also been on an upward trend, posting a 1.14% delinquency rate in the fourth quarter of last year. That compares with an average 0.40% for five major commercial banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — meaning regional groups are running as high as four times that level. The strain is building in both household and corporate lending. At Jeonbuk Bank, the household-loan delinquency rate rose to 1.74%, while corporate-loan delinquencies jumped to 1.67%. Gwangju Bank’s corporate-loan delinquency rate climbed to 1.27%. Analysts link the trend to structural features of regional banks. Their small- and midsize-business lending accounts for about half of total loans, and their operations are concentrated outside the Seoul metropolitan area, making them more sensitive to local economic conditions. With weakness in real estate project financing and a manufacturing slowdown overlapping, the recovery in regional economies has been delayed, feeding into higher delinquencies. Rather than a new risk, the rise in delinquencies is being seen as a clearer expression of existing vulnerabilities during a regional slowdown. Delinquency rates have topped 1% across major industries including real estate and leasing, manufacturing and construction, with some sectors exceeding 2%. Financial industry officials expect conditions could worsen in the near term. If the slowdown persists and regional recoveries lag, delinquency rates may continue to rise. “Rising delinquency rates are unavoidable for the time being,” a financial industry official said. “There is a need to increase provisions to prepare for additional bad loans.”* This article has been translated by AI. 2026-04-29 15:56:12
  • South Korea to Revamp Fintech Support, Add Incentives and One-Stop Help Desk
    South Korea to Revamp Fintech Support, Add Incentives and One-Stop Help Desk The Financial Services Commission said it will overhaul its fintech support programs, naming the sector a key growth priority as the financial industry undergoes major change. The FSC said it held an event titled “Fintech, a Place for Connection” on Tuesday, chaired by FSC Chairman Lee Eok-won. The gathering brought together fintech firms and aspiring founders, financial companies, investors and policy finance institutions to share examples of successful cooperation. “Over the past decade, fintech companies have brought innovation to our financial industry,” Lee said. He added that advances in artificial intelligence are not only accelerating change but also “fundamentally reshaping how finance works,” putting the industry at another turning point. To spur growth, the FSC said it will revamp its support projects and designate regional and youth entrepreneurship, along with AI transformation (AX), as priority areas. It plans to offer incentives such as extra points in selecting recipients, dedicated budget allocations and additional support for companies with strong results. The FSC also said it will form public-private consultative groups by region, centered on existing local financial infrastructure such as financial firms, local governments and startup support organizations. The goal is to develop fintech models linked to key local industries and to back the launch and growth of differentiated fintech startups. In addition, the FSC said it will set up a fintech support help desk. It is expected to connect FSC programs, partner searches through financial firms’ fintech labs, funding support from policy finance institutions and startup assistance offered by local governments. “Innovation often begins by connecting different ideas and people,” Lee said, pledging continued support so financial companies and investors can help sustain fintech firms’ ongoing challenges. * This article has been translated by AI. 2026-04-29 09:56:19
  • Corporate Credit Downgrades Accelerate, Testing Banks’ Bad-Loan Risk
    Corporate Credit Downgrades Accelerate, Testing Banks’ Bad-Loan Risk Banks have begun regular corporate credit-rating reviews as Middle East-driven geopolitical risks and tougher U.S. tariff barriers add downward pressure on manufacturers’ credit profiles. Corporate delinquencies have jumped nearly fourfold in just three months, but banks, constrained by regulators’ “productive finance” policy stance, have been reluctant to raise rates or pull credit from borrowers facing downgrades. According to the financial industry on Monday, major banks started this month’s periodic reviews using companies’ 2025 year-end financial statements. The reviews cover all firms with lending relationships at each bank. Ratings are determined by factors including sales, operating profit, cash holdings, interest coverage and technology capabilities. Because the results influence future loan limits and interest rates, the process is a core task for banks’ corporate-finance units. This year’s reviews are expected to be stricter than usual, as volatility in raw-material prices tied to Middle East risks and stronger U.S. protectionism hit export-dependent manufacturers at the same time. Signs of weakening credit are already emerging across major industries. In steel, global rating agency S&P cut POSCO’s rating to BBB+ from A-. Korea Ratings lowered LG Chem’s outlook this month to negative from stable. NICE Investors Service assigned EcoPro an A- rating on its senior unsecured bonds, below its previous A level. In solar, Hanwha Solutions is under downgrade pressure with net debt of about 12 trillion won. In construction, Daewoo Engineering & Construction and others facing reduced housing move-in volumes received negative outlooks. The problem, bankers say, is that downgrades are not translating into higher financing costs as they typically would. Normally, weaker ratings lead to higher interest rates or reduced lending. But with authorities emphasizing “productive finance” to cushion the economy, banks are being pushed to maintain or extend loans even as they recognize rising credit risk. That dynamic is weighing on bank soundness. If banks cannot fully price the added risk, they struggle to secure returns commensurate with exposure. As delinquencies rise, some warn that potential bad loans could accumulate without being immediately reflected on balance sheets. Delinquency indicators are climbing quickly. At the five largest banks — KB, Shinhan, Hana, Woori and NH NongHyup — the delinquency rate for large corporations rose to 0.13% in the first quarter from 0.03% at the end of last year. The rate for small and midsize companies increased to 0.57% from 0.49%. Real estate delinquencies hit the highest levels across major banks, and the delinquency rate for sole proprietors also reached a record high of 0.56%. The outlook remains uncertain. If the recovery is delayed, some expect “delayed restructuring,” with problems at companies reliant on support surfacing later. If policy constraints ease, others warn that rate hikes and credit tightening could come at once, sharply increasing corporate burdens. A financial industry official said, “This year we have no choice but to be conservative in assigning ratings, but in reality more companies are getting their loans extended,” adding, “The gap between policy and market logic is widening.”* This article has been translated by AI. 2026-04-28 17:03:28