Latest news with #HanaFinancial
Korea Herald
3 days ago
- Business
- Korea Herald
Major financial groups post record profits in H1 despite economic slowdown, rate cuts
Four major financial holding companies in South Korea posted record earnings in the first half of this year despite economic uncertainties and declining interest rates, data showed Sunday. The combined net profit of KB Financial, Shinhan Financial, Hana Financial and Woori Financial totaled 10.33 trillion won ($7.47 billion) during the first six months of 2025, marking a 10.5 percent increase from the same period a year earlier, according to their regulatory filings. KB, Shinhan and Hana each posted double-digit on-year growth in net profit, setting new records for first-half earnings. In detail, KB saw its profit surge 23.8 percent on-year in the first half to 3.44 trillion won. Shinhan came in a distant second, reporting 3.04 trillion won in net profit, up 10.6 percent on-year. Hana Financial's net profit advanced 11.2 percent to 2.3 trillion won during the cited period. But Woori posted a decline in the first-half reading, with net profit falling 11.6 percent to 1.55 trillion won. The stellar performance was attributable to an increase in both interest and non-interest income. The four financial groups earned a combined 21.09 trillion won in interest income in the January-June period, despite the Bank of Korea's monetary easing cycle that began late last year. Their non-interest income also rose 7.2 percent on-year to 7.21 trillion won. Officials said that declines in interest rates and the won-US dollar exchange rates led to an overall increase in gains from securities, foreign exchange and derivatives. Higher fees from bank retirement pensions, bancassurance sales commissions and securities brokerage commissions also helped increase theirF non-interest income. The outlook for the second half, however, is not optimistic, as financial authorities have instructed banks to halve their total household loan targets for the remainder of the year amid growing concerns over surging household debt. President Lee Jae Myung has also urged financial institutions to focus more on expanding investments, rather than "clinging to easy interest gains from mortgage loans." The holding companies have announced measures to boost shareholder value, including additional share buybacks. KB Financial said it will buy back and cancel 850 billion won worth of its own stocks, while Shinhan and Hana announced similar measures worth 800 billion won and 200 billion won, respectively. (Yonhap)
Korea Herald
27-03-2025
- Business
- Korea Herald
Hana Financial launches W10b project to support small merchants
Hana Financial Group, a leading Korean financial service provider, launched a project to help small business owners across the country, as part of the firm's environmental, social and governance drive, the group announced Thursday. Through its key lending affiliate Hana Bank, the firm is to put 10 billion won ($6.8 million) into roughly 3,500 small businesses to help them bring up efficiency in business management. For 1,000 businesses, the firm is to change outdated appliances such as air conditioners and refrigerators with high-efficiency products in April. It will also help another 2,000 merchants with repairs such as changing the signs, preventing leakage and changing interiors in June. In August, the firm will provide funding for 500 businesses to acquire new digital devices, such as barrier-free kiosks and artificial intelligence, closed-circuit televisions. Hana Financial will select small merchants based on the suitability of their business, and the validity and efficiency of the support. The firm will receive applications for a month for each drive and review them for two weeks. As part of the move, Hana Financial Group CEO Ham Young-joo visited a small business that was damaged by a fire at the end of last year, and pitched in to help with repairs. It was his first official event after securing his second term as the finance firm's chief. Ham also met with corporate clients and shared their difficulties with corporate management. 'As a partner that helps the growth of small business owners who are the base of the economy and the center of the local community, Hana Financial will continue to support small business owners who are experiencing difficulties with the economic slowdown,' Ham said. The firm teamed up with the governmental agency Small Enterprise and Market Service for the project. Under the Ministry of SMEs and Startups, SEMAS supports small businesses and traditional markets.
Korea Herald
25-03-2025
- Business
- Korea Herald
Hana Financial chief wins 2nd term
Ham Young-joo eyes non-banking growth, 50% shareholder return Hana Financial Group Chairman Ham Young-joo has secured his second term as the chief of the major financial firm. He is expected to focus on improving the firm's shareholder return and expanding the group's non-banking portfolio. Hana Financial announced Ham's reappointment following a shareholders' meeting held Tuesday at its headquarters in central Seoul. His renewed tenure will run until March 2028. "Ham has led the qualitative growth of the group as a CEO who prioritizes shareholder value and has the vision to boost corporate value, such as strengthening profitability from the non-banking sector,' the firm's executive candidate recommendation committee said. Like its peers, Hana Financial has been working to reduce reliance on its key lending affiliate, KEB Hana Bank. 'Considering the risk factors in the finance industry amid rising volatilities, (Hana Financial) desperately needs verified leadership that could lead the group,' the committee viewed. Under Ham's leadership, Hana Financial plans to double its non-banking profit from last year's 16 percent to 30 percent by 2027. It also plans to boost the shareholder return rate to 50 percent in 2027, leaping from 38 percent in 2024. Ham was the sole candidate running for the top position, though he was shortlisted for the position along with former Hana Bank CEO Lee Seung-lyul, Hana Securities CEO Kang Seong-muk and two non-Hana figures in December. The finance group made it possible for Ham to extend his term by revising its internal rule to allow directors to serve past the age of 70. Ham is currently 69. Ham joined Seoul Bank, a predecessor of Hana Bank, as a teller in 1980. He was appointed CEO of Hana Bank in 2015, following its merger with Korea Exchange Bank. In 2016, he took on double duty as vice chair of the bank's holding company, Hana Financial Group. He was named the chair of the holding entity in 2022. Yet Ham's legal risk persists, threatening his leadership at the firm. Ham is accused of meddling with the recruiting and hiring process at Hana Bank when he was the lender's chief in 2016. Though the lower court ruled Ham innocent, he was later found guilty at an appellate court in 2023. He was sentenced to six months in prison, a suspended sentence of two years and a fine of 3 million won ($2,040). If the Supreme Court finds him guilty, Ham has to step down from his post as stipulated by the Act on Corporate Governance of Financial Companies. Ham was also accused of internal control failure involving the misselling of derivatives-linked funds in 2019. He was cleared by the Supreme Court in 2024 after a four-year legal battle.
Korea Herald
25-03-2025
- Business
- Korea Herald
Hana Financial chief wins 2nd term
Ham Young-joo eyes non-banking growth, 50% shareholder return Hana Financial Group Chairman Ham Young-joo has secured his second term as the chief of the major financial firm. He is expected to focus on improving the firm's shareholder return and expanding the group's non-banking portfolio. Hana Financial announced Ham's reappointment following a shareholders' meeting held Tuesday at its headquarters in central Seoul. His renewed tenure will run until March 2028. "Ham has led the qualitative growth of the group as a CEO who prioritizes shareholder value and has the vision to boost corporate value, such as strengthening profitability from the non-banking sector,' the firm's executive candidate recommendation committee said. Like its peers, Hana Financial has been working to reduce reliance on its key lending affiliate, KEB Hana Bank. 'Considering the risk factors in the finance industry amid rising volatilities, (Hana Financial) desperately needs verified leadership that could lead the group,' the committee viewed. Under Ham's leadership, Hana Financial plans to double its non-banking profit from last year's 16 percent to 30 percent by 2027. It also plans to boost the shareholder return rate to 50 percent in 2027, leaping from 38 percent in 2024. Ham was the sole candidate running for the top position, though he was shortlisted for the position along with former Hana Bank CEO Lee Seung-lyul, Hana Securities CEO Kang Seong-muk and two non-Hana figures in December. The finance group made it possible for Ham to extend his term by revising its internal rule to allow directors to serve past the age of 70. Ham is currently 69. Ham joined Seoul Bank, a predecessor of Hana Bank, as a teller in 1980. He was appointed CEO of Hana Bank in 2015, following its merger with Korea Exchange Bank. In 2016, he took on double duty as vice chair of the bank's holding company, Hana Financial Group. He was named the chair of the holding entity in 2022. Yet Ham's legal risk persists, threatening his leadership at the firm. Ham is accused of meddling with the recruiting and hiring process at Hana Bank when he was the lender's chief in 2016. Though the lower court ruled Ham innocent, he was later found guilty at an appellate court in 2023. He was sentenced to six months in prison, a suspended sentence of two years and a fine of 3 million won ($2,040). If the Supreme Court finds him guilty, Ham has to step down from his post as stipulated by the Act on Corporate Governance of Financial Companies. Ham was also accused of internal control failure involving the misselling of derivatives-linked funds in 2019. He was cleared by the Supreme Court in 2024 after a four-year legal battle. silverstar@
