Two of South Korea’s leading banks, Shinhan and Hana, have indirectly provided loans and investments to firms with links to Myanmar’s military, data exclusively obtained by The Korea Herald showed Thursday. In September 2019, Shinhan Bank’s branch in Yangon, Myanmar’s largest city, issued loans worth 847 million won ($750,000) to Myanmar Posco C&C. The coated steel company was jointly established by Posco Group’s steel sheet-making arm Posco C&C and Myanm

Market March 25, 2021

Shinhan Financial Group said Tuesday it became the first Asian financial holding firm to join the nonprofit Value Balancing Alliance in Frankfurt, Germany, a cross-industry organization developing a valuation standard for monetizing impacts of ESG management.  ESG refers to the policies of factoring in environmental, social and governance-related issues in business operations. Founded in June 2019, the VBA is comprised of 18 multinational corporations, including South Korea’s thir

Market March 23, 2021

South Korea’s household income surplus increased sharply last year as people tightened their belts to weather the protracted economic slowdown triggered by the COVID-19 pandemic, data showed Monday. The nation’s household income surplus rate posted 32.9 percent, 32.3 percent, 30.9 percent and 30.4 percent, respectively, in the first through fourth quarters of 2020, according to a report from Statistics Korea. The figure has surpassed 30 percent only five times since 2003, when the

Economy March 22, 2021

New dividend payout programs are set to take center stage at shareholders meetings next week as banking giants seek to appease shareholders amid growing discontent over new regulations that limit the size of earnings distribution.  Earlier in January, the policymaking Financial Services Commission advised banks and their holding companies to keep their dividend payouts below 20 percent of net income during the first half of this year to secure enough capital needed to counter impacts of

Market March 19, 2021

It is unlikely that global oil prices will rise further, South Korea’s first vice minister of finance said Friday, citing the supply capacity of major oil producers as well as the recent surge in US Treasury bond yields. “Prices of the country’s benchmark Dubai crude, which stood at $42 per barrel last year, surged to more than $60 per barrel this month,” said Vice Finance Minister Kim Yong-beom during an economic meeting. “Oil prices, however, are less likely

Economy March 19, 2021

Finance ministers of South Korea and the US have shared their views on efforts to continue expansionary fiscal policies in reviving virus-battered local economies and supporting underprivileged groups, the ministry said on Wednesday. During a phone call between South Korean Finance Minister Hong Nam-ki and his US counterpart Jane Yellen, the two also agreed to strengthen bilateral economic cooperation in tackling the COVID-19 pandemic and the climate change crisis, officials added. The top e

Economy March 17, 2021

The intensifying scandal involving employees of the state housing developer Korea Land and Housing Corp. is likely to put banks under renewed pressure, as the nation’s financial authorities are mulling strengthening control over non-mortgage lending activities in all banking sectors. The scandal centers on LH officials who allegedly took out huge land-secured loans for speculative property purchases, sparking public criticism over the integrity of the state-run institution that contradi

Economy March 16, 2021

Despite the prolonged economic fallout from the COVID-19 pandemic, South Korea is forecast to have reentered the list of the world’s 10 largest economies by nominal gross domestic product in 2020, data showed Monday.  Asia’s fourth-largest economy’s nominal GDP for last year was estimated at $1.624 trillion, which marked the ninth highest among 14 major countries, up two notches from the previous year, according to data from the Organization for Economic Cooperation and

Economy March 15, 2021

Hana Financial Group on Wednesday unveiled its vision to go carbon neutral by 2050 to support the nation’s transition toward a sustainable economy. Under the goal of achieving “coal-free finance,” the banking giant will launch an internal committee in charge of halting financial support -- including project financing and underwriting of bonds -- for businesses that have adverse environmental and social impacts, as early as during the first half of this year, officials said.

Market March 10, 2021

South Korea’s financial regulator said Tuesday it has decided to further ease local lenders’ obligations to pile up liquid assets until September, in a move to encourage them to prop up the real economy reeling from the prolonged COVID-19 pandemic.  The liquid coverage ratio, or LCR, is the proportion of necessary assets held by financial institutions, which serves as a key indicator for a bank’s financial soundness.  Under the current LCR regulation designed to c

Market March 9, 2021

South Korea’s food prices increased at the fourth-highest rate among members of the Organization for Economic Cooperation and Development in January, largely due to a supply shortage brought on by bird flu, according to data and market experts Monday. January’s prices for groceries and nonalcoholic beverages soared by 6.5 percent on-year, more than twice the OECD average of 3.1 percent, data compiled by the OECD and Statistics Korea showed. Among the 37 OECD member states, steepe

Economy March 8, 2021

South Korea’s vice finance minister on Friday warned of possible drivers of inflation, including rising oil prices and farm products, vowing efforts to closely monitor a potential surge in consumer prices.  “The consumer price index has continued an upward trend from 0.6 percent in January to 1.1 percent last month, largely due to gains in global oil prices and farm products,” said Vice Finance Minister Kim Yong-beom during an economic meeting.  “There seems

Economy March 5, 2021

Financial Supervisory Service Gov. Yoon Suk-heun, whose three-year term ends in two months, is facing intense backlash from the related labor union, which holds him responsible for the watchdog‘s alleged failure in personnel management.　 Last month, the market watchdog reportedly promoted two officials who had received heavy sanctions due to their involvement in hiring irregularities, immediately prompting fierce criticism from union members. “The FSS’ latest decision to pr

Market March 4, 2021

South Korea’s financial regulator said Tuesday it has extended the grace period for loan repayments until September as part of policy effort to support individuals and businesses reeling from the resurgence of the COVID-19 pandemic.  “In response to small-and medium-sized enterprises and merchants’ economic difficulties wrought by the prolonged social distancing rules amid the virus resurgence, the Financial Services Commission and financial circles have decided to exte

Market March 2, 2021

The Bank of Korea said Monday it has agreed with Switzerland’s central bank to extend their bilateral currency swap arrangements for another five years, as part of a move to further bolster financial cooperation. The currency swap deal totaling at 11.2 trillion won ($10.1 billion), which was set to end on Monday, will last until March 2026, according to the BOK. “The extension of the currency swap deal aims to enhance bilateral relations in the area of finance and to strengthen f

Economy March 1, 2021