Journalist

MOONKI CHANG
  • IBK Industrial Bank union ends CEO work blockade after deal on unpaid compensation
    IBK Industrial Bank union ends CEO work blockade after deal on unpaid compensation IBK Industrial Bank of Korea and its union have agreed to pay previously unpaid allowances, ending a 22-day effort to block new CEO Jang Min-young from reporting to work. The union said Feb. 13 it reached a final agreement with management on the 2025 wage negotiations and related issues, and called off the blockade. The deal includes normalizing the handling of overdue compensatory leave, increasing the employee stock ownership plan, expanding practical compensation, improving management evaluations, and reducing workloads. Union Chairman Ryu Jang-hee said, “Thanks to CEO Jang’s efforts and a decision by the Financial Services Commission, we were able to reach a good settlement on the key issue and union demand of normalizing the overdue compensatory leave problem,” adding that the union welcomed the commission’s “responsible decision.” The dispute began after employees said they could not use leave accrued from overtime and demanded it be paid out as allowances. IBK, which operates under a total wage cap system, had granted compensatory leave instead of overtime pay, but the leave accumulated to the point that workers could not use it freely. With labor and management agreeing in principle to pay allowances, the two sides are expected to discuss the payment amount and timing after the Lunar New Year holiday. A union official said details are being reviewed with the Financial Services Commission.* This article has been translated by AI. 2026-02-13 19:00:00
  • South Korea’s Digital Asset Framework Bill Stalls Over Stablecoin, Exchange Rules
    South Korea’s Digital Asset Framework Bill Stalls Over Stablecoin, Exchange Rules The government and the ruling party are struggling to draft a second-phase virtual asset bill, with delays in submitting a government proposal. The Democratic Party of Korea has moved to prepare its own version, but has yet to produce a draft as disagreements persist over licensing conditions for won-denominated stablecoin issuers and limits on ownership stakes in virtual asset exchanges. Draft framework takes shape as parties discuss creating a virtual asset council The Democratic Party of Korea’s digital asset task force held its second closed-door meeting Tuesday at the National Assembly Members’ Office Building in Seoul to work on the second-phase legislation. Members said they reached agreement on the law’s name and how to classify business categories, but remained divided on key issues. The bill’s stated purpose would be to promote the digital asset industry and protect investors. The working title was tentatively set as the “Digital Asset Framework Act.” The act would define eight categories of digital asset businesses. Of those, two to three categories seen as high-risk or requiring strong public trust would need authorization from financial regulators, while the rest could operate through registration. The draft would also create an interagency consultative body tentatively called the “Virtual Asset Council.” The Financial Services Commission chair would lead it, with members including a deputy governor of the Bank of Korea, a vice minister from the Ministry of Economy and Finance, and a vice minister from the Ministry of Science and ICT. The council would be expected to handle matters such as licensing won stablecoin issuance and responding to infrastructure problems. The Bank of Korea had sought a committee that would require unanimous votes to approve agenda items, but that approach was not accepted. After the meeting, task force chair Lee Jeong-moon told reporters, “Since the Financial Services Commission consults with the Bank of Korea in the policy decision process, most lawmakers agreed it would be better to proceed with a consensus-based approach rather than a unanimity rule.” Key disputes remain; agreement reached only on minimum capital No agreement was reached Tuesday on requirements for issuing won-denominated stablecoins, a central issue. The Bank of Korea argues issuance should be allowed only for consortia in which banks hold a majority stake, saying banks should lead the market to support financial stability. The Financial Services Commission and the ruling party counter that such a rule could block technology companies from entering the market, leaving the sides sharply split. However, they agreed to set the minimum paid-in capital for won stablecoin issuers at 5 billion won. The level appears to be based on regulatory standards for electronic money businesses. The task force said it will prepare compromise proposals on unresolved items and continue talks. Task force member Rep. Lee Kang-il said, “There are sharp differences between the National Assembly and the government over bank-majority consortia, and a mediation proposal has been delivered to both sides.” He added, “We will make decisions in a direction that helps the overall national interest and encourages public participation.” The task force is also expected to keep discussing whether to limit the ownership stake of major shareholders in virtual asset exchanges. The issue had appeared likely to be excluded to speed legislation, but the task force has shifted to a more cautious stance. Members broadly agree with the intent of limiting major shareholders’ stakes, but differ on whether to include it in the initial bill or pass the law first and revise it later. The task force said it will consult the party’s policy committee before deciding. The task force plans to spend about one to two weeks coordinating around mediation proposals, aiming to finalize and introduce the bill before the Lunar New Year holiday. Even if the ruling party reaches agreement with the government, the bill would still need discussions with the opposition People Power Party at the National Assembly’s Political Affairs Committee, suggesting the process could remain difficult for some time.* This article has been translated by AI. 2026-01-29 07:03:00
  • South Korea rejects Lotte Insurance turnaround plan, moves toward stricter corrective action
    South Korea rejects Lotte Insurance turnaround plan, moves toward stricter corrective action South Korea’s financial regulators plan to step up prompt corrective action against Lotte Insurance to a management improvement demand after rejecting the insurer’s turnaround plan. The Financial Services Commission said it disapproved Lotte Insurance’s management improvement plan, submitted on Jan. 2, at a regular meeting on Tuesday. The FSC said the plan lacked specificity, feasibility and supporting grounds. After a prior-notice process, the company’s current management improvement recommendation is expected to be upgraded to a management improvement demand. Prompt corrective action has three levels: recommendation, demand and order. If a management improvement demand is imposed, regulators can require steps such as replacing executives, partially suspending insurance business, reducing staff and organization, limiting or disposing of risky assets, and restructuring subsidiaries. They can also restrict branch closures, mergers or openings, or require the company to draw up a sale plan. Measures that were previously only recommended — including raising capital, cutting business expenses, disposing of bad assets, restructuring staff and organization, limiting dividends — can also be required. After receiving a management improvement demand, Lotte Insurance must submit a revised plan within two months. If regulators also reject that plan, the action could be escalated to a management improvement order, the highest level. Industry observers said the rejected plan likely did not sufficiently address a capital increase sought by regulators. Lotte Insurance has said its ability to raise capital on its own is limited because any capital increase is decided by its largest shareholder, JKL Partners. If the corrective action is upgraded, Lotte Insurance may again pursue legal action. When it received a management improvement recommendation in November last year, it filed a lawsuit seeking to overturn the measure and also sought an injunction at the Seoul Administrative Court. The injunction request was denied. A financial regulator said authorities will “review necessary follow-up measures in accordance with laws and principles.”* This article has been translated by AI. 2026-01-28 16:12:43
  • Coupang financial units come under scrutiny as Seoul widens probe
    Coupang financial units come under scrutiny as Seoul widens probe SEOUL, January 11 (AJP) -South Korean regulators are moving to investigate Coupang’s financial units as part of pan-government scrutiny following the country’s largest-ever data leak, amid criticism over what is seen as a lack of response from the company’s U.S.-based headquarters as its customer base remains largely intact. The Financial Supervisory Service (FSS) will begin parallel formal inspections of Coupang affiliates that handle financial services . Officials said the regulator decided to upgrade a six-week on-site review of Coupang Pay into a formal inspection starting Monday. Once an on-site review is converted into a formal inspection, regulators are empowered to impose penalties, including fines, if the inspected company obstructs the process. Through the inspection, the FSS is expected to examine whether any payment information was exposed at Coupang Pay in connection with the broader Coupang data leak. Industry sources said Coupang Pay has not yet submitted relevant materials, leaving regulators unable to confirm whether payment data were compromised. The inspection will also review whether information sharing among Coupang affiliates violated laws such as the Credit Information Act and the Electronic Financial Transactions Act. The FSS appears to be seeking faster cooperation, viewing document submissions from Coupang as excessively delayed, according to industry officials. On the same day, the FSS will also convert its on-site review of Coupang Financial into a formal inspection. Regulators plan to examine the appropriateness of interest-rate calculations and potential violations of the Financial Consumer Protection Act related to the “Seller Growth Loan,” a lending product offered to merchants operating on Coupang’s platform. Its loans are said to be charging excessively high interest rates, averaging 14.1 percent annually and reaching as high as 18.9 percent. By comparison, the highest average rate among merchant-dedicated loans offered by another major platform company through financial institutions last year stood at 12.4 percent. According to FSS materials submitted to the office of Rep. Kang Min-kuk of the People Power Party, a member of the National Assembly’s Political Affairs Committee, Coupang Financial issued 18.174 billion won ($13.5 million) in Seller Growth Loans over roughly five months. As of the end of last year, the outstanding balance totaled 13.414 billion won. Since the product’s launch in July, Coupang Financial’s interest income from the loans is estimated to amount to several billion won. Regulators are expected to scrutinize whether Coupang’s market power as a dominant platform enabled it to charge excessively high rates, and whether a product structured with settlement payments as collateral was marketed in a manner similar to an unsecured credit loan. An FSS official said the agency plans to review “the appropriateness of loan-rate calculations and whether relevant laws, including the Financial Consumer Protection Act, were followed throughout the loan process.” Despite the fallout from the data leak, indicators suggest Coupang’s user base has remained resilient. According to MobileIndex data from IGAWorks, the number of new installations of the Coupang app totaled 526,834 in December, the highest monthly figure last year. The total was more than 120,000 higher than in November and marked the first time monthly installations exceeded 500,000 since March 2024. The figures run counter to expectations of a mass user departure following the data leak, which surfaced in late November. Industry analysts point to year-end shopping demand, intensified marketing and entrenched consumer habits as factors supporting continued app usage. Coupang’s dawn-delivery service and membership-based “lock-in” structure are also seen as reinforcing customer retention, even as scrutiny of the company’s data governance and regulatory compliance intensifies across government agencies. 2026-01-11 17:36:56
  • FX volatility spurs interest in dollar-denominated insurance in Korea
    FX volatility spurs interest in dollar-denominated insurance in Korea SEOUL, December 27 (AJP) -The dollar-won exchange rate has retreated sharply following strong verbal warnings by authorities against excessive volatility, combined with year-end dollar-selling demand and a broader weakening of the U.S. currency. Still, growing belief that the exchange rate may settle into a new “mid-1,400 won” range has renewed interest in foreign-currency–linked financial products, including dollar-denominated insurance. Sales of dollar insurance at South Korea’s five major lenders — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — totaled 1.5526 trillion won from January through November this year, according to industry data. That compares with 225.4 billion won in 2022, 568.5 billion won in 2023, and 964.1 billion won last year, underscoring a rapid expansion in demand. The increase is widely seen as reflecting expectations of further dollar strength, as well as a desire among corporations to diversify portfolios amid prolonged weakness in the won. Because premiums and benefits under these products are denominated in U.S. dollars, exchange-rate movements directly affect their cost and payout value. A higher exchange rate raises the won cost of paying premiums, while a lower rate at the time of payout can reduce the won value of benefits. Some analysts note that if the exchange rate is expected to decline, delaying enrollment could help lower premium burdens. Conversely, if the dollar is expected to strengthen further, policyholders may benefit from locking in exposure earlier. Others caution, however, that foreign-currency insurance products are typically long-term contracts — often spanning five to 10 years — making short-term exchange-rate fluctuations less decisive. Over time, currency movements may average out, reducing the impact of near-term volatility. During periods of elevated exchange rates, consumers may also consider products that include mechanisms designed to mitigate exchange-rate risk. “Foreign-currency insurance is not designed as a vehicle for currency speculation,” an industry official said. “If exchange rates or overseas bond yields move unfavorably, premiums can rise or benefits may fall, and additional costs such as foreign-exchange fees can apply. Careful consideration is essential.” 2025-12-27 10:13:49
  • South Koreas biggest lenders move to curb home purchase loans
    South Korea's biggest lenders move to curb home purchase loans SEOUL, November 21 (AJP) - KB Kookmin Bank and Hana Bank, two of South Korea’s largest lenders, said they will suspend new home purchase loans through the end of the year, a move that is expected to be followed by other major banks and could create a year-end “loan cliff” for prospective buyers. According to industry officials, KB Kookmin Bank will stop accepting new mortgage applications for home purchases beginning Nov. 22 on its online platforms and Nov. 24 at branches. The bank will also halt refinancing products from other lenders and suspend online credit loans starting Nov. 22. Hana Bank had already announced plans to curb new applications for mortgages and lease loans beginning Nov. 25, citing the need to control lending volumes amid heightened regulatory scrutiny. A KB Kookmin Bank spokesperson said the measures were intended to “maintain the soundness of our year-end household loan portfolio,” emphasizing that loans for living expenses — including home equity and lease loans — will continue to be available through December. The restrictions come as the government is making an all-out effort to rein in home prices in Seoul and surrounding areas. Banks also face pressure to manage rapidly expanding household debt, long considered one of the most persistent risks to South Korea’s financial stability. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 13:30:00