Latest news with #ShinhanBank
Korea Herald
2 days ago
- Business
- Korea Herald
‘Golden time to invest': Shinhan FDI unit targets global investors
From distressed assets to supply chain shifts, Korea gains appeal amid global uncertainty While South Korea faces headwinds from heightened uncertainty in the trade environment, Shinhan FDI partners, a specialized unit dedicated to providing support for foreign direct investment here, sees opportunities in challenges that lie ahead. 'Now is the golden time to invest in Korea,' said Jenny Hong, one member of the global investment support team of Shinhan FDI partners. Distinct from other forms of cross-border investment ― such as purchasing stocks and bonds ― foreign direct investment involves active asset management, including acquiring physical assets like factories or gaining management control of a company. 'The sluggish Korean economy is a favorable factor. With the local won weakening against the dollar, Korean assets are currently undervalued,' Hong explained. Foreign investors are also eyeing opportunities in distressed assets. For instance, overseas hedge funds are weighing to invest in the logistics sector through nonperforming loans, as the industry struggles with the fallout from collapsed project financing deals. Similar to its peers, Shinhan Bank plays a key role in facilitating inbound investment, as foreign investors have to report their investments to the Korea Trade-Investment Promotion Agency or foreign exchange banks under the Foreign Exchange Transactions Act. Previously, the specialized workforce supporting investments was scattered across various departments within the bank. The lender launched a centralized unit last month to streamline its services. 'With the rising complexity of deals, there was a clear need for a more coordinated approach. These days, we are seeing increasingly intricate stakeholder dynamics,' Hong said. 'Multiple parties are involved, ranging from private equity firms to joint ventures and other entities. Coordinating among all these stakeholders requires a more integrated approach." With the US, Japan and China being the three largest players in foreign direct investment for Korea, the team has regional experts dedicated to handling each market. Hong specializes in English-speaking firms, while Yang Zou and Ayako Yamoto focus on Chinese and Japanese firms, respectively. According to Yang, a growing number of Chinese companies are turning their attention to Korea as a potential detour around trade restrictions imposed by the US. 'With the Inflation Reduction Act of 2022 and the introduction of 'reciprocal' tariffs, Chinese investors are looking to mitigate risks by importing raw materials from China and manufacturing in Korea. This trend is driving increased investment in factory construction here,' Yang said. Yamoto has been working with an increasing number of consumer-oriented Japanese firms, as consumer preferences between Japan and Korea continue to align. 'While earlier investments primarily targeted business-to-business transactions, recent trends indicate a shift toward business-to-consumer models. An increasing number of consumer-oriented Japanese firms ― particularly those in the food and entertainment sectors ― are now eyeing the Korean market,' she said. The three "foreign corporate client relationship managers" highlighted that navigating offshore investors through the differing trade environment is the key mission for Shinhan FDI partners. 'There is a difference in investment practices across countries. For instance, some countries do not use seal imprints, whereas in Korea, corporate transactions require an official seal,' Hong said. Account opening procedures vary by country as well. 'When establishing a company in China, the process typically involves setting up the company first and then making the capital contribution afterward. In contrast, in Korea, the capital must be deposited first before the company is officially put on paper,' Yang said. 'From a Chinese investor's perspective, Korea's approach can be unsettling since the funds have to be secured before a company is established. It is my job to explain the process sufficiently.' While Korea has experienced a dip in the amount of pledged foreign direct investments this year, largely due to political uncertainty from the end of last year, the team projects the pace to pick up with increased clarity following the recent presidential election. In the first half of this year, foreign direct investment pledges to Korea totaled $13.1 billion, a decrease of 14.6 percent compared to the same period last year, according to the Trade Ministry. While actual FDI arrivals increased by 2.7 percent to $7.3 billion, the drop in pledged investments is still significant because it may signal reduced investor confidence and could impact future capital inflows. 'With the political uncertainty resolved, we anticipate increased interest from foreign investors. We are already receiving inquiries from potential investors,' Hong said. 'More foreign direct investment in Korea means more seed money for the country's economic growth. From a macroeconomic perspective, we find meaning in our work by financially supporting the nation's development. From another standpoint, we work to safeguard our clients by ensuring protection of their investments."
Korea Herald
2 days ago
- Business
- Korea Herald
‘Golden time to invest': Shinhan targets global investors with support unit
From distressed assets to supply chain shifts, Korea gains appeal amid global uncertainty While South Korea faces headwinds from heightened uncertainty in the trade environment, Shinhan FDI partners, a specialized unit dedicated to providing support for foreign direct investment here, sees opportunities in challenges that lie ahead. 'Now is the golden time to invest in Korea,' said Jenny Hong, one member of the global investment support team of Shinhan FDI partners. Distinct from other forms of cross-border investment ― such as purchasing stocks and bonds ― foreign direct investment involves active asset management, including acquiring physical assets like factories or gaining management control of a company. 'The sluggish Korean economy is a favorable factor. With the local won weakening against the dollar, Korean assets are currently undervalued,' Hong explained. Foreign investors are also eyeing opportunities in distressed assets. For instance, overseas hedge funds are weighing to invest in the logistics sector through nonperforming loans, as the industry struggles with the fallout from collapsed project financing deals. Similar to its peers, Shinhan Bank plays a key role in facilitating inbound investment, as foreign investors have to report their investments to the Korea Trade-Investment Promotion Agency or foreign exchange banks under the Foreign Exchange Transactions Act. Previously, the specialized workforce supporting investments was scattered across various departments within the bank. The lender launched a centralized unit last month to streamline its services. 'With the rising complexity of deals, there was a clear need for a more coordinated approach. These days, we are seeing increasingly intricate stakeholder dynamics,' Hong said. 'Multiple parties are involved, ranging from private equity firms to joint ventures and other entities. Coordinating among all these stakeholders requires a more integrated approach." With the US, Japan and China being the three largest players in foreign direct investment for Korea, the team has regional experts dedicated to handling each market. Hong specializes in English-speaking firms, while Yang Zou and Ayako Yamoto focus on Chinese and Japanese firms, respectively. According to Yang, a growing number of Chinese companies are turning their attention to Korea as a potential detour around trade restrictions imposed by the US. 'With the Inflation Reduction Act of 2022 and the introduction of 'reciprocal' tariffs, Chinese investors are looking to mitigate risks by importing raw materials from China and manufacturing in Korea. This trend is driving increased investment in factory construction here,' Yang said. Yamoto has been working with an increasing number of consumer-oriented Japanese firms, as consumer preferences between Japan and Korea continue to align. 'While earlier investments primarily targeted business-to-business transactions, recent trends indicate a shift toward business-to-consumer models. An increasing number of consumer-oriented Japanese firms ― particularly those in the food and entertainment sectors ― are now eyeing the Korean market,' she said. The three "foreign corporate client relationship managers" highlighted that navigating offshore investors through the differing trade environment is the key mission for Shinhan FDI partners. 'There is a difference in investment practices across countries. For instance, some countries do not use seal imprints, whereas in Korea, corporate transactions require an official seal,' Hong said. Account opening procedures vary by country as well. 'When establishing a company in China, the process typically involves setting up the company first and then making the capital contribution afterward. In contrast, in Korea, the capital must be deposited first before the company is officially put on paper,' Yang said. 'From a Chinese investor's perspective, Korea's approach can be unsettling since the funds have to be secured before a company is established. It is my job to explain the process sufficiently.' While Korea has experienced a dip in the amount of pledged foreign direct investments this year, largely due to political uncertainty from the end of last year, the team projects the pace to pick up with increased clarity following the recent presidential election. In the first half of this year, foreign direct investment pledges to Korea totaled $13.1 billion, a decrease of 14.6 percent compared to the same period last year, according to the Trade Ministry. While actual FDI arrivals increased by 2.7 percent to $7.3 billion, the drop in pledged investments is still significant because it may signal reduced investor confidence and could impact future capital inflows. 'With the political uncertainty resolved, we anticipate increased interest from foreign investors. We are already receiving inquiries from potential investors,' Hong said. 'More foreign direct investment in Korea means more seed money for the country's economic growth. From a macroeconomic perspective, we find meaning in our work by financially supporting the nation's development. From another standpoint, we work to safeguard our clients by ensuring protection of their investments." silverstar@
Forbes
3 days ago
- Business
- Forbes
Economists Are The Only Barrier To A Return To The Gold Standard
SEOUL, REPUBLIC OF KOREA: Gold bars are displayed at Shinhan Bank in Seoul on 09 January 2004. Gold ... More prices hit 544.60 dollars per ounce on January 09, 2006, the highest level since January 1981, owing to geopolitical tensions in the Middle East and reports that China may increase its reserves of the metal. "Geopolitical tensions continue to provide reasons to be positive on gold, with deteriorating situations in both Iran and Iraq, while the possibility of Israels Prime Minister Ariel Sharon not returning to office causes concerns over the Middle East peace progress," said Barclays Capital analyst Yingxi Yu. AFP PHOTO/JUNG YEON-JE (Photo credit should read JUNG YEON-JE/AFP via Getty Images) AFP via Getty Images At least 66 countries peg their currencies to the dollar. The previous number undercounts the actual number. Figure that the growth of cryptocurrencies is largely a dollar peg story (think stablecoins), which means even more of the world is pegged to the U.S. dollar. Which is the point. As Nathan Lewis has long observed, the 'yes, but' arguments against a gold standard are completely bogus. To see why, contemplate the dollar once again. From 1944 to 1971, the dollar was pegged to gold at 1/35th of a gold ounce and the world's currencies were largely pegged to the dollar. Assuming Treasury secretary Scott Bessent were to announce a plan for substantial currency-price stability by tying the dollar's value to a fixed amount of the constant that is gold, it's no reach to speculate that much of the world would follow such a move by pegging their currencies to gold through their existing dollar pegs. This rates mention in the aftermath of a recent Monetarium event put on by Confusion Capital in Washington, D.C. The event was titled 'The Debt, the Dollar, and Our Options From Here.' Participants included a few former senators, a billionaire, CEOs, think tank types, etc. While conversation centered around what to do if and when the national debt leads to a dollar crack-up (my upcoming book, The Deficit Delusion , argues that the crisis narrative is backwards, that the real problem is way too much tax revenue now and in the future), the gold standard only rated mention (with some frequency) insofar as it was described as the one fix that would never happen. This didn't, nor does it ring true. Economists in particular dismiss the gold notion for obvious, easy-to-discredit reasons. For one, they claim a dollar tied to gold would limit so-called 'money supply.' No, not true. The only limit to money in circulation is production. Money is an effect of production (that's why there's so much in Palo Alto, CA, and so relatively little in El Monte, CA), and it's always where production is. This would be even truer with a dollar pegged to gold. If anything, dollars circulating would skyrocket to reflect the happy fact that savers would no longer need to hedge their currency exposure in wealth that already exists (think hard assets like land, rare art, housing, and – yes – gold), and would instead feel freer to invest in equities representing wealth that doesn't yet exist . Under such a scenario, production would rapidly increase as would dollars facilitating same. Markets at work. Still others claim all the debt would make a gold standard a non-starter, that the debt itself has only been possible without a gold standard. Quite the opposite. The national debt is just income streams in dollars months, years and decades in the future. If the dollar were more credible thanks to a gold definition, interest in Treasury income streams would be much greater. Which brings us to economists. They don't want a gold standard precisely because money with a strict definition via gold would render their raison d'etre anything but. Even allegedly 'free market' economists (see the laughable 'market monetarist' religion within the PhD crowd) see a center planner when they look in the mirror, thus the alleged 'impossibility' of a gold standard. Call the presumed impossibility of a gold standard a full employment act for economists. The world is pegged to the dollar either implicitly or explicitly. This would only become more viable and growth-oriented if the dollar had a more trusted definition. The barrier to a gold standard is economists rendered even more irrelevant by one, nothing else.
Korea Herald
22-06-2025
- Business
- Korea Herald
Household loans by major banks rise at fastest pace in 10 months in June
Household loans extended by five major banks in South Korea rose at the fastest pace in 10 months, industry data showed Sunday, amid signs of overheating in the housing market and a recent rally in the local stock market. Outstanding household loans extended by the five major commercials banks here, including KB Kookmin Bank and Shinhan Bank, stood at 752.1 trillion won ($547.6 billion) as of Thursday, up 3.99 trillion won from the end of May, according to the data. This translates to a daily increase of 210.2 billion won over the 19-day period in June, the fastest pace since last August, when loans grew by a daily 310.5 billion won. If this trend continues through the end of the month, household loans are expected to increase by 6.3 trillion won in June, marking the largest monthly gain since August last year, when they jumped 9.63 trillion won. By category, outstanding home-backed loans reached 596.6 trillion won as of Thursday, up 2.99 trillion won from the end of May. Unsecured loans also climbed to 104.4 trillion won, increasing by 1.09 trillion won over the same period. Market watchers attributed the recent rise in household loans to strong demand for investment in both the real estate and financial markets. Recent data showed that Seoul's apartment market has been on an upward trajectory for 20 consecutive weeks since turning positive in early February, with the pace of gains accelerating in recent weeks. Apartment prices in the capital city climbed by an average 0.36 percent as of Monday, the biggest weekly increase since the second week of September 2018, when prices rose 0.45 percent. Meanwhile, the local stock market has also been rallying since the new Lee Jae Myung government took office earlier this month. The benchmark Korea Composite Stock Price Index (KOSPI) finished at 3,021.84 points Friday, surpassing the 3,000-point threshold for the first time since Dec. 28, 2021. (Yonhap)
Miami Herald
13-06-2025
- Automotive
- Miami Herald
Korean financial groups offer unconventional services
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. Copyright 2025 UPI News Corporation. All Rights Reserved.
