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UPI
13-06-2025
- Automotive
- UPI
Korean financial groups offer unconventional services
Shinhan Financial Group (L) and KB Financial Group compete to devise unconventional services in South Korea. Photo courtesy of Shinhan, KB SEOUL, June 13 (UPI) -- South Korean financial groups are increasingly venturing beyond traditional banking, offering services like food delivery and used car platforms, which blur the boundary between finance and daily life. Shinhan Bank, one of the country's leading lenders, has announced that its food delivery app surpassed 5 million users, four years after its debut in 2022. Initially, the service was available in just four cities, including Seoul, which prompted critics to question whether it would be able to stay alive in competition with established players. However, Shinhan expanded the service across the country in 2023 and recorded rapid growth. Now, it runs 24/7 through both a dedicated delivery app and Shinhan's banking app. "Our delivery app is aimed at supporting small business owners. Hence, we operate on a significantly reduced commission rate of just 2%,compared to the market average of around 10%," a Shinhan spokesman told UPI. "Such an approach appears to have worked, as more than 30 regional governments have partnered with us. Going forward, we will continue to focus on helping small businesses boost their sales and profits," he said. The experiment by Shinhan Bank, a representative unit of Shinhan Financial Group, is not an isolated case. Other Korean financial firms also have begun to offer lifestyle services unrelated to conventional financial sectors. In particular, Shinhan's nemesis KB Financial Group was faster in tapping into the non-finance business. Its subsidiary, KB Capital, created an all-in-one used car platform in 2016 to introduce a one-stop service for buying, selling and financing used cars. It has grown into one of the country's top three players with more than 3 million subscribers. Unlike existing rivals, most listings of the KB platform come from actual car owners rather than dealers. The peer-to-peer model not only reduces middleman costs, but also aligns with consumer demand for transparency and price fairness, according to the company. "In 2016, the used car transactions business in Korea was widely regarded as a 'lemon market.' Consumers were concerned that they couldn't be sure of a vehicle's true condition or history. We attempted to deal with that," a KB Capital representative said. "By focusing on real-owner listings, integrating financing options,and providing vehicle warranties, we've helped reshape the used car market into one that consumers can finally trust," he said. Market observers believe that this expansion into the lifestyle realm is only beginning although there are regulatory challenges. "The financial market here is overcrowded, leading to hyper-competition. Hence, financial groups are searching for new cash cows," Seoul-based consultancy Leaders Index CEO Park Ju-gun said in a phone interview. "But legal restrictions on non-finance business remain a major hurdle. The new administration may ease such regulations, but it seems the possibility is not so high," he said. President Lee Jae-myung from the Democratic Party was elected this month to become the country's 21st state head. He has taken issue with the high profitability of financial companies, especially banks. Suh Yong-gu, an economics professor from Sookmyung Women's University in Seoul, agreed. "We are entering the 'Era of Big Blur,' where the industry boundaries collapse. Our financial outfits are desperate to grapple with the big trend," Suh said. "However, Korean financial institutions face strict legal prohibitions in advancing into non-finance sectors. There are questions about whether all the regulations are still necessary in the Era of Big Blur. Regulatory reform will ultimately determine how far they can go," he said. Professor Lee Eun-hee from Inha University stressed the need to prioritize consumers. "While certain regulations on financial institutions are essential, the government should reevaluate them when easing those rules clearly enhances consumer convenience," she said. Beyond their expansion into non-financial sectors, Shinhan and KB have also actively supported professional athletes and sports teams. KB sponsors Park In-bee, the 2016 Olympic gold medalist in golf, while Shinhan signed a sponsorship deal with Lim Jin-hee, who placed second in the LPGA Rookie of the Year standings in 2024. Both financial groups also operate teams in the Women's Korean Basketball League, a six-team league they helped establish as founding members in 1998.
CNBC
04-06-2025
- Business
- CNBC
Foreign investors likely to see South Korea's new leader as pro-business: Expert
Peter Kim of KB Financial Group talks about what new South Korean president Lee Jae-Myung's labor policies could look like, and why they are critical for the country's productivity.
Korea Herald
01-06-2025
- Business
- Korea Herald
Shinhan board chair leads overseas investor meetings in Asia
Shinhan Financial Group is stepping up efforts to strengthen ties with global investors, dispatching its board chair to lead overseas investor relations meetings across Asia. The South Korean banking group said Sunday that board chair and independent director Yoon Jae-won led a three-day investor relations roadshow in Hong Kong and Singapore last week, from Tuesday to Thursday. It marked the first time a board chair from a listed Korean company independently led such an overseas event. During the sessions, Yoon outlined Shinhan's strategies to enhance corporate value and addressed key risks facing both the group and the broader Korean financial market. She also detailed the board's initiatives to improve governance and foster diversity. Shinhan's top brass have been ramping up efforts to engage foreign investors as the group seeks to attract more overseas capital. In May, CEO and Chairman Jin Ok-dong led a weeklong European roadshow with stops in London, Frankfurt and Warsaw. As of Friday, foreign ownership in Shinhan stood at 58.5 percent, trailing behind local rivals KB Financial Group at 75.4 percent and Hana Financial Group at 66.6 percent. In Hong Kong, Yoon also met with members of the Asian Corporate Governance Association, sharing best practices in governance reform from various countries and discussing the board's role in enhancing corporate trust and advancing sustainable management. 'We believe the board's efforts to enhance governance will serve as the foundation for improving Shinhan's transparency and efficiency, ultimately raising corporate value,' Yoon said. 'I will work to ensure our board meets global standards and earns market confidence.'
![[Photo News] KB Financial tops value-up push](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F05%2F28%2Fnews-p.v1.20250528.2c8da65743134aa5908c945570d49064_T1.jpg&w=3840&q=100)
Korea Herald
28-05-2025
- Business
- Korea Herald
[Photo News] KB Financial tops value-up push
KB Financial Group Chair Yang Jong-hee (right) poses for a photo with acting Finance Minister Kim Beom-suk during a ceremony marking the first anniversary of the Corporate Value-up Program, held at the Korea Exchange in Yeouido, western Seoul, Tuesday. At the event, 10 best practice companies were recognized for their efforts to enhance market valuation. KB Financial received the top honor, the Deputy Prime Minister's Award. (KB Financial Group)
Korea Herald
28-05-2025
- Business
- Korea Herald
KB Bank taps first non-Korean chief in Indonesia
KB Bank Indonesia has appointed Kunardy Darma Lie, corporate banking director at DBS Bank Indonesia, as its new leader, as the South Korean lender steps up efforts to expand its local presence. Parent company KB Financial Group, Korea's largest financial group, said Tuesday that the board of its Indonesian banking unit approved Kunardy's appointment following the end of former President Director Lee Woo-yeol's term. Kunrady is the first non-Korean to lead KB Bank since the Korean financial group gained control over the lender in 2018. Kunardy brings over two decades of experience at global financial institutions operating in Indonesia, with a deep understanding of the local banking sector and expertise in corporate finance, according to KB. He began his career at Citibank Indonesia, where he held senior positions including managing director and head of corporate and investment banking. He went on to join Deutsche Bank Indonesia in 2014 as managing director and chief country officer, before moving to DBS Indonesia in 2020 as corporate banking director. Starting his tenure, Kunardy laid out strategic priorities including stabilizing operations and building a sustainable profit base, strengthening cost and risk controls, enhancing governance, deepening ties with government and investors and reinforcing brand trust. 'With the new leader's appointment, KB Bank Indonesia aims to reinforce its localized management approach and accelerate its push to become a sustainable and competitive player in Indonesia's financial sector,' the bank said. KB Financial Group has designated Indonesia as its 'second home market,' positioning it as a strategic base for future growth and overseas expansion. The group currently operates seven local subsidiaries across banking, securities, insurance and asset management, ultimately aiming to build a comprehensive financial platform by leveraging groupwide synergies.
