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- Samsung Surges: ‘Do-or-Die’ Vow Ignites Foreign Frenzy, Memory Boom Ahead?
- As a series of favorable developments converge for Samsung Electronics, investor sentiment toward the company’s stock is showing signs of revival for the first time in a while.
Even foreign investors, who had kept their distance, are now actively purchasing Samsung shares in response to these developments.
According to the Korea Exchange on the 20th, Samsung Electronics' stock closed at 60,200 KRW, up 2.91% for the day.
This marks the first time in about five months—since October 15 last year—that the company’s closing price has recovered to the 60,000 KRW range.
The stock has now entered a rebound phase, with gains on March 17 (5.30%) and March 19 (1.56%) and staying flat on March 18.
The recovery in foreign investor sentiment is especially notable.
Foreign investors have been net buyers of Samsung Electronics for four consecutive trading days as of this date, purchasing nearly 1.5 trillion KRW worth of shares.
Since the beginning of the year up to March 14, foreign investors had net sold approximately 2.6 trillion KRW of Samsung shares. Remarkably, more than half of that amount has been bought back in just four days.
Ever since the AI industry emerged as a key focus, Samsung Electronics has faced criticism for falling behind rivals like SK Hynix in terms of technological prowess, leading to its stock being overlooked.
Persistent concerns over a lack of innovation had weighed down the stock, but Samsung now appears to be renewing its commitment with determination.
Last week, Samsung strengthened its board with technical experts at the annual shareholders' meeting. This move shifts the focus back to technology, addressing previous criticism that the company had been dominated by financial or crisis management experts.
In addition, Samsung Electronics Chairman Lee Jae-yong emphasized a "do-or-die" mindset, sharing a sense of urgency.
There is also growing optimism around a potential recovery in the traditional (legacy) memory semiconductor market.
Legacy semiconductors had suffered from oversupply and falling prices, but with production facilities increasingly being allocated to AI-related semiconductors, supply of legacy chips has been declining.
Particularly in China, demand for mid-to-low-end smartphones—key recipients of government subsidies under the new "replace the old with the new" (以旧换新, yiguhuanxin) policy—has been rising. However, local Chinese companies have been unable to meet the demand for legacy chips used in these phones.
Amid this backdrop, global brokerage Morgan Stanley upgraded its investment rating for Samsung Electronics to “Overweight” on March 18. This is significant, as Morgan Stanley had previously issued harsh assessments of Korea’s semiconductor industry, contributing to a market downturn.
Morgan Stanley also projected that Samsung would not only benefit from a rebound in legacy semiconductors, but also begin to gain competitiveness in AI-related chips, specifically high bandwidth memory (HBM), a key component.
They predicted that Samsung will begin mass production of fifth-generation HBM3E and sixth-generation HBM4 chips in the second half of this year, catching up to SK Hynix.
Despite global stock markets being weighed down by declining U.S. tech stocks and disappointment surrounding Nvidia’s GTC (GPU Technology Conference), Samsung is showing solid stock performance thanks to these positive catalysts.
Analysts in the domestic securities industry are also starting to view Samsung as having entered a rebound trajectory.
Lee Soo-rim, an analyst at DS Investment & Securities, wrote in a report that “Samsung Electronics is our top pick in the semiconductor sector through April.”
He added, “There’s growing anticipation for price hikes across the memory segment. In particular, the recovery in profits driven by increased sales of mid-to-low-end smartphones in China is expected to be even stronger for Samsung.”
Cha Yong-do, an analyst at LS Securities, also commented that “The memory industry is currently in a phase where expectations for a legacy semiconductor rebound are taking shape.”
He went on to say, “With limited downside risk at the current price, if optimism around the leverage effect from a legacy rebound builds further, the stock could potentially rebound to as high as 80,000 KRW.”
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- Daewoo E&C Focuses on Cash Reserves and Board Stability in CEO Kim Bo-hyun’s First Year
- Daewoo Engineering & Construction(E&C) is focusing on improving its financial structure in its first year under full-fledged owner management.
Kim Bo-hyun, CEO of Daewoo E&C, is expected to focus on accumulating cash while minimizing changes to the board of directors to stabilize the owner-management system by mitigating the impact of the real estate downturn and economic recession.
According to Daewoo E&C’s 2024 business report released on March 20, the company’s current ratio stood at 211% at the end of last year, up about 50 percentage points from 159.4% at the end of 2023.
Compared to September 2023 (185.5%), the ratio increased by about 30 percentage points. It has nearly doubled since the end of 2020 (121%), before Jungheung Group acquired Daewoo E&C.
The current ratio, which is calculated by dividing current assets by current liabilities, is considered one of the most crucial financial indicators for assessing a company’s creditworthiness.
Daewoo E&C’s efforts to enhance its financial structure are seen as a response to the downturn in the construction industry.
The company's debt ratio stood at 192% at the end of last year, slightly higher than the 176.8% at the end of 2023 but about four percentage points lower than the 196% recorded in September 2023. Its cash and cash equivalents amounted to KRW 1.1617 trillion (US$ 837.5 million) at the end of last year, consistently increasing since June of the same year and surpassing KRW 1 trillion (US$ 721.2 million) again.
The company's contingent liabilities related to real estate project financing (PF), which is considered a key risk factor in the construction industry crisis, also showed a declining trend.
As of the end of last year, Daewoo E&C had provided credit enhancements amounting to KRW 1.685 trillion (US$ 1.215 billion) for PF-related projects. This figure decreased from KRW 1.7304 trillion (US$ 1.247 billion) at the end of 2023, continuing the downward trend from 2022, when it exceeded KRW 2 trillion (US$ 1.442 billion).
The guarantee amount for bridge loans, which are considered riskier as they are borrowed in the early stages of a project before main PF funding, also decreased by approximately 33% from the previous year to KRW 460.1 billion (US$ 331.8 million) at the end of last year.
Daewoo E&C has been maintaining a conservative management approach, and this trend is also reflected in its board composition.
Since Jungheung Group’s acquisition of Daewoo E&C in 2022, two internal executives—former CEO Baek Jeong-wan and CEO Kim Bo-hyun (formerly an executive vice president)—have been serving as inside directors on the board since 2023.
Kim Bo-hyun is the son-in-law of Jungheung Group’s founder, Chung Chang-sun, and led the acquisition team for Daewoo E&C. Chung’s son, Chung Won-joo, serves as chairman of Daewoo E&C and vice chairman of Jungheung Group, participating in Daewoo E&C’s management as a non-registered executive.
In December last year, Daewoo E&C officially transitioned to an owner-management system by appointing Kim Bo-hyun as CEO, while Baek Jeong-wan stepped down from his CEO position.
However, at the shareholders' meeting on March 28, Daewoo E&C will only address the agenda of appointing Kim Bo-hyun as an inside director.
With Baek’s departure, the company is leaving the vacant inside director position unfilled. Since all outside directors are being reappointed, the move is seen as an effort to ensure board stability.
A key factor behind this decision is Daewoo E&C’s declining performance due to the industry downturn.
Last year, Daewoo E&C recorded consolidated revenue of KRW 10.5036 trillion (US$ 7.573 billion) and an operating profit of KRW 403.1 billion (US$ 290.7 million). Revenue fell by 9.8%, while operating profit dropped by 39.2% compared to 2023. Cash flow from operating activities also worsened, recording negative KRW 1.2835 trillion (US$ 925.6 million) in 2023, down from negative KRW 832.8 billion (US$ 600.4 million) the previous year.
Kim Bo-hyun appears to be reinforcing a conservative management strategy to stabilize the company.
This trend is evident in Daewoo E&C’s housing construction sector, which accounts for a significant portion of its revenue. In 2023, 65.1% of Daewoo E&C’s total revenue came from the housing construction sector.
In 2022, Daewoo E&C surpassed KRW 5 trillion (US$ 3.611 billion) in orders for urban redevelopment projects for the first time in its history, ranking third in the industry.
However, with the market downturn caused by the economic recession and high interest rates, the company shifted to a selective bidding strategy, which resulted in urban redevelopment orders totaling KRW 1.6858 trillion (US$ 1.216 billion) in 2023, lowering its ranking to fifth place.
Last year, orders recovered to KRW 2.9823 trillion (US$ 2.151 billion), but the company maintained its fifth-place industry ranking. As of this year, Daewoo E&C has not yet secured any urban redevelopment contracts.
In his New Year's address to employees, Kim Bo-hyun stated, “This year is expected to be the most challenging of the next three years, and we must focus on solid management with safety as our top priority.” He emphasized, “We need to consolidate our company-wide capabilities to eliminate risk factors and ensure financial stability through thorough project execution management.”
#DaewooE&C #construction #realestate #financialstability #JungheungGroup #CEO #urbanredevelopment #SouthKorea #PFloans #businessstrategy
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- Hansae Nurtures Global Fashion Talent, Vice Chairman Kim Ik-whan’s Grand Vision in Action
- “Next Design Lab is not just an educational space. It will be an innovation platform where creative ideas become reality and academia connects with industry. Here, students will learn the latest trends, gain practical experience, and collaborate with companies to become leaders in the global fashion industry.”
At the opening event of "Next Design Lab" held at Hongik University in Seoul, Kim Ik-whan, Vice Chairman and CEO of Hansae Co., Ltd., expressed his strong commitment to nurturing future talent in the fashion industry during his welcome speech.
On March 20, a press conference was held at the Art & Design Valley of Hongik University in Seoul to commemorate the establishment of Next Design Lab. Next Design School is a research and educational institution jointly created by Hansae Co., Ltd. and Hongik University to cultivate talent.
The event was attended by Kim Dong-nyung, Chairman of Hansae Yes24 Holdings, Kim Ik-whan, Vice Chairman of Hansae Co., Ltd., Park Sang-joo, President of Hongik University, Professor Lim Chae-jin of Hongik University, and Na Hoon-young, CEO of Project Design Group.
Next Design Lab is a space dedicated to training students at Hongik University in everything from lifestyle design to AI-powered design, preparing them for global careers. The program is conducted with collaboration between industry experts and Hongik University faculty.
Next Design Lab is not just a classroom. Spanning two floors—one underground and one above ground—it has been designed as a space where academia and industry converge.
The first floor serves as an "idea exchange hub" where students can freely gather for discussions and small workshops. Meanwhile, the basement floor is utilized as a practical education space that can accommodate up to 60 students.
Here, a 15-week intensive course covers everything from A to Z in the fashion industry. Hansae executives, including Vice Chairman Kim Ik-whan, take on the role of instructors, offering firsthand insights into the entire fashion business process, from product development to operations and management.
Outstanding students are awarded scholarships and opportunities for overseas training. Additionally, they receive a special benefit: a fast-track pass for the document screening stage when applying to Hansae’s open recruitment. The goal is to establish Next Design Lab as a "fashion talent academy" where students can learn, gain experience, and seize career opportunities.
A representative from Hansae Co., Ltd. stated, “We will actively provide internship opportunities to help Hongik University students smoothly transition into the workforce,” adding, “The staff room on the first floor will also be used as a space where students and Hansae employees can naturally interact.”
Hansae Co., Ltd. is one of South Korea’s leading Original Design Manufacturer (ODM) companies in the apparel sector. Initially growing through the Original Equipment Manufacturer (OEM) model, the company later expanded its capabilities in design and product development, fully establishing itself as an ODM enterprise.
Now, Vice Chairman Kim Ik-whan is preparing for the next step. His goal is clear: to transition from "K-ODM" to "G-ODM" (Global ODM) and lead the global market.
However, survival in the highly competitive fashion ODM industry requires more than just production capabilities and in-house design skills. The key differentiator in the global market is unique and competitive design capabilities.
This is why Kim Ik-whan is fully committed to cultivating designers. Rather than simply providing support, he is directly engaging in hands-on education. After leading the establishment of Next Design Lab, he even took on the role of an adjunct professor himself.
He is demonstrating a hands-on approach to nurturing the next generation of global designers.
The establishment of Next Design Lab marks the first step. Many see this as the beginning of Vice Chairman Kim’s master plan for shaping the future of the fashion industry.
On April 4, Kim Ik-whan led the first lecture at Next Design Lab, repeatedly emphasizing the importance of practical, hands-on education.
He stated, “Even graduates from prestigious universities often struggle in the field due to an education system focused solely on theory, requiring them to relearn everything on the job,” adding, “To bridge this gap, we have designed a curriculum centered on practical, job-ready education.”
Hansae Co., Ltd. currently operates design offices in New York and Barcelona. These offices help the company stay ahead of rapidly changing fashion trends in key markets and proactively propose new designs to clients.
However, these offices are still relatively small in scale. There is a strong possibility that, in the future, Hansae will consistently recruit talented designers and assign them directly to its overseas offices—both local hires and designers trained in-house.
Designers are not only needed at overseas design offices. At the heart of Hansae, the Research & Development (R&D) headquarters, specialized design teams play a crucial role in leading the company's fashion innovation.
The Product Development Design Team is responsible for directly designing products for global brands such as Gap and American Eagle. The Technical Design Team oversees the entire process from conceptual design to final product, ensuring seamless execution. Meanwhile, the Virtual Design Team utilizes 3D virtual sampling technology to replicate real fabric textures, streamlining the design process.
These various R&D teams demonstrate that design professionals play a central role throughout the company. Securing the next generation of designers is no longer an option—it is a necessity. This is why Next Design Lab is viewed not just as an educational program but as a key investment in Hansae’s future competitiveness.
In fact, Chairman Kim Dong-nyung is said to be envisioning the creation of "Hansae’s own brand." While Hansae has traditionally focused on ODM production—manufacturing apparel for clients using in-house designs—the company may no longer be content with being just a manufacturing partner. The need to secure promising young designers is more urgent than ever.
Vice Chairman Kim Ik-whan stated, “Our employees—who specialize in design, sales, fitting, and sustainability—are providing hands-on training that can be directly applied in the global market,” adding, “Through Next Design Lab, we will help South Korea’s top students grow into the world’s top fashion talents.”
#Hansae #NextDesignLab #fashion #design #ODM #KimIkWhan #HongikUniversity #globalbusiness #fashionindustry #education
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- Lee Jay-hyun’s Confidence in CJ’s "Global Cultural Empire" – K-Beauty Joins K-Food and K-Content
- "Now it's all about culture. That's our future. We're going to be the Hollywood of Asia."
This is what CJ Group Chairman Lee Jay-hyun said to his sister, Vice Chairwoman Lee Mi-kyung, in 1995. And in November 2024, during the CJ Group CEO Management Meeting, Chairman Lee once again emphasized "culture." But this time, his words were slightly different.
"K-food, K-content, and K-pop—global cultural trends are expanding into a broader interest in Korea."
A "dream" that was envisioned 30 years ago had now become a "reality." CJ Group is on the verge of completing its vision of becoming a "global cultural empire."
And there is a third puzzle piece that CJ Group is aiming to fit into this vision—K-beauty.
Chairman Lee Jay-hyun has set 2025 as the starting point for making K-beauty a new growth engine for CJ Group, with a full-scale strategy to enter the U.S. market.
◆ The World’s Largest Beauty Market: Can K-Beauty Break Through?
The United States is the largest beauty market in the world. It accounts for more than 20% of global cosmetics and beauty product consumption, with a market size reaching US$ 100 billion (KRW 140 trillion) as of 2024.
American consumers have a strong interest in trendy brands, particularly in clean beauty and eco-friendly products. Leveraging these trends, K-beauty brands have already established a foothold in the U.S. market.
However, breaking into the U.S. beauty industry is no easy task.
Major retailers such as Sephora and Ulta dominate distribution channels, making it difficult for new or lesser-known brands with weak distribution networks to enter the market.
◆ CJ’s Weapons to Conquer the U.S. Market: Success in Content and Food
Despite these challenges, CJ Group believes K-beauty can achieve success in the U.S. market.
CJ Group sees CJ ENM’s content capabilities as a major advantage in penetrating the U.S. beauty sector.
The beauty industry is inseparable from content. After all, beauty is an industry that "sells aesthetics."
To sell beauty, brands must consistently expose consumers to it—and the most effective tool for this is content.
According to a report by the Korea Cosmetic Industry Institute analyzing the competitiveness of K-beauty in the U.S. and Mexican markets, "K-beauty has now firmly established itself as part of the mainstream culture in the U.S. The key factors behind K-beauty’s success include the global spread of Korea’s high-quality content, strong support from the millennial generation, diverse and segmented skincare product lines, and competitive pricing."
CJ Group also plans to leverage its expertise in utilizing social media and digital platforms, an advantage gained through its successful expansion of content and food businesses in the U.S.
In fact, the key driver behind the tremendous success of CJ CheilJedang’s "Bibigo" dumplings in the U.S. market was short-form video content on platforms like TikTok.
The Korea Cosmetic Association’s report, "Key Success Factors of K-Beauty in the U.S.," stated, "Social media platforms like Facebook and popular beauty blogs are highly effective promotional tools for millennials, who make up the core consumer base for cosmetics."
◆ CJ Olive Young: Leading Lee Jay-hyun’s "K-Beauty Invasion"
CJ Group’s push into the U.S. K-beauty market will be led by CJ Olive Young.
As Korea’s No.1 health and beauty (H&B) store, CJ Olive Young serves as a key platform for K-beauty trends. Starting in 2025, CJ Group plans to expand Olive Young’s distribution network in the U.S. market.
To achieve this, CJ Olive Young has established a U.S. subsidiary in Los Angeles, California, and is localizing its product sourcing, marketing, and logistics systems to quickly adapt to the market.
It is also preparing to open offline stores. According to CJ Olive Young, the company is currently reviewing potential locations to open its first U.S. store in a multi-brand boutique format.
Additionally, CJ Olive Young is working in collaboration with other CJ subsidiaries, including CJ Logistics and CJ ENM.
◆ K-Food, K-Content, and Now K-Beauty: CJ’s Cultural Empire Takes Shape
CJ Group has already achieved global success in K-food and K-content.
CJ CheilJedang’s Bibigo brand generates annual sales exceeding US$ 1 billion (KRW 1.4 trillion) in the U.S., making it one of the most successful K-food brands in the country.
CJ ENM has proven the global competitiveness of Korean content through the success of "Parasite" and "Snowpiercer." It is also expanding its reach through OTT platforms like TVING.
Looking at CJ Group’s trajectory and Chairman Lee Jay-hyun’s vision, CJ Olive Young’s U.S. subsidiary launch and offline store expansion signal more than just a distribution network expansion. They mark the beginning of CJ Group’s ambition to become a global beauty platform.
Thirty years ago, Chairman Lee dreamed of making CJ the "Hollywood of Asia." Now, the final piece of that puzzle is falling into place.
#CJGroup #LeeJayhyun #CJOliveYoung #KBeauty #KFood #KContent #beautyindustry #globalexpansion #Koreanbrands #businessstrategy
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- "0% Equity Successor" Lee Kyu-ho Builds War Chest, Urgently Needs Kolon's Turnaround
- Lee Kyu-ho, Vice Chairman of Kolon, is accelerating efforts to secure financial resources for the group's leadership succession.
However, as Kolon Group's performance declined last year after he took a more prominent role in management, proving his leadership capabilities through tangible results has become even more crucial.
According to Kolon Group’s business report, Lee Kyu-ho received a total compensation of KRW 676.87 million (US$ 488,000) last year.
This marks the first time Lee's salary at Kolon has exceeded the public disclosure threshold of KRW 500 million (US$ 360,600).
This increase in pay follows his promotion from CEO of Kolon Mobility to Vice Chairman and CEO of Kolon’s Strategic Division in the year-end executive reshuffle of 2023.
Even across the entire Kolon Group, Lee's executive compensation was first disclosed last year when he received KRW 503 million (US$ 363,000) from Kolon Mobility Group.
Until now, Lee Kyu-ho's compensation had been relatively low compared to other heirs of South Korea’s major conglomerates.
What stands out is that Lee's salary has now surpassed the KRW 500 million mark despite being a "0% equity successor."
As of now, Lee does not hold any shares in Kolon or its major affiliates. The only companies known to be under his ownership are two management consulting firms established in Singapore.
This is in stark contrast to his father, Lee Woong-yeul, Honorary Chairman of Kolon, who began acquiring Kolon shares while still in high school. Now over 40 years old, born in 1984, Lee Kyu-ho has yet to own a single share of Kolon, making his succession process noticeably slow.
Given that the South Korean business landscape is seeing an increasing number of young leaders, such as LG Group Chairman Koo Kwang-mo and Hanwha Vice Chairman Kim Dong-kwan, who are actively managing their respective groups while holding significant stakes, Kolon’s delayed succession process appears even more distinct.
Lee Kyu-ho's succession efforts have visibly gained momentum since his promotion to vice chairman last year.
With his new role, he now serves as an internal director at four companies: Kolon, Kolon Industries, Kolon Global, and Kolon Mobility Group.
According to Kolon’s 2024 business report, Lee did not receive over KRW 500 million in salary from Kolon Industries or Kolon Global last year.
However, he earned KRW 501 million (US$ 361,000) from Kolon Mobility Group, bringing his publicly disclosed total compensation for the year to over KRW 1 billion (US$ 721,200).
Kolon's relaxed approach to leadership succession is largely due to Honorary Chairman Lee Woong-yeul’s substantial stake in the company.
Since he owns 49.74% of Kolon’s shares, the group’s leadership transfer can proceed smoothly without major restructuring. Even if Lee Kyu-ho inherits or is gifted shares and later sells some to cover inheritance and gift taxes, Kolon’s management control is unlikely to be affected.
While Lee had not previously received large dividends or salaries, considering that his father was born in 1956, there is still ample time for Kolon to gradually increase Lee’s compensation in preparation for the transition.
When stepping down from management in 2018, Honorary Chairman Lee Woong-yeul publicly stated, “Management capabilities must be proven. If my successor fails to demonstrate leadership skills, I will not pass down a single share.”
This puts Lee Kyu-ho in a position where he must deliver tangible management results to justify his succession.
So far, however, he has struggled to prove his management capabilities.
Despite his promotion to vice chairman and taking a more active role in group management, Kolon’s core affiliates underperformed last year, leading to an operating loss of KRW 89.5 billion (US$ 64.6 million). This marked a sharp downturn from the KRW 99.3 billion (US$ 71.6 million) operating profit recorded in 2023.
Given the ongoing downturn in Kolon Industries’ petrochemical sector and Kolon Global’s construction business, a swift recovery in 2024 appears unlikely.
Rather than focusing on Kolon’s traditional core businesses, Lee is prioritizing new growth engines such as biotechnology and advanced materials to drive the group's financial recovery.
As part of a corporate restructuring effort, he established Kolon Space Works last year to focus on high-tech composite materials. In 2024, he further strengthened Kolon’s biotechnology business by recruiting Jeon Seung-ho, former CEO of Daewoong Pharmaceutical, as the new CEO of Kolon TissueGene.
Lee’s commitment to expanding new business areas was also evident in Kolon Group’s 2024 New Year’s business message.
Since 2022, Kolon has replaced traditional New Year's speeches with company-wide management keywords and messages, presented not by top executives but by the previous year’s One & Only Award winners.
In this year’s announcement, Kim Hyung-ji, a senior executive in Kolon Industries' manufacturing division, introduced the 2024 management theme: "YNOT (Yes! New Opportunities Together)."
He stated, "We must embrace a ‘Why not?’ mindset with confidence and strong execution to drive change and innovation."
#LeeKyuho #KolonGroup #succession #businessleadership #finance #biotechnology #advancedmaterials #corporategovernance #SouthKorea #management
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- Oh Se-hoon's Misstep? Seoul Reinstates Land Permits in Gangnam's Three Districts
- "I sincerely apologize for causing concern,"
said Seoul Mayor Oh Se-hoon, bowing his head during a housing market stabilization briefing held at the Seoul Government Complex in Jongno District on the 19th.
Just a month after lifting land transaction permit requirements in Seoul's key districts—Gangnam, Seocho, and Songpa—the city government has reversed its decision in response to growing volatility in the real estate market.
Seoul Mayor Oh Se-hoon admitted the misjudgment, saying, “We humbly accept the concerns raised about increased market volatility, particularly in Gangnam, following the deregulation on February 12.”
After holding a joint meeting with the Ministry of Land, Infrastructure and Transport, Ministry of Economy and Finance, Financial Services Commission, Bank of Korea, and the Financial Supervisory Service, the city announced a new housing market stabilization plan. The key measure is to re-designate all apartments in not only the three Gangnam districts but also in Yongsan District as land transaction permit zones.
Mayor Oh now faces criticism for failing to anticipate the impact of the policy reversal, which affects high-profile neighborhoods like Jamsil, Samseong-dong, Cheongdam-dong, and Daechi-dong. The re-designation comes only a month after deregulation, raising questions about the administration’s foresight.
In a written briefing, Democratic Party spokesperson Hwang Jung-ah criticized the move: “Mayor Oh triggered a surge in Seoul housing prices by lifting land permit rules, forcing the central government to step in. Is Seoul's real estate market a playground?”
Lee So-young, a lawmaker on the National Assembly's Land and Transport Committee, added on Facebook, “Flipping Seoul’s housing policy like a street vendor flipping pancakes—this is nothing short of comedy.”
Initially, Mayor Oh maintained a cautious stance, suggesting it was necessary to observe market trends after lifting regulations. However, as signs of overheating intensified—especially in Gangnam—he reversed course and expanded the regulated zones after discussions with central government officials.
“The areas where we lifted the permit requirement had been restricted for five years. As a result, demand overflowed into nearby areas, causing a so-called 'balloon effect' and a sharp rise in prices in places like Banpo,” Mayor Oh explained. “We responded to calls to ease restrictions based on those factors.”
He continued, “Since then, we’ve seen a spike in property transaction reports in Gangnam, along with a rise in suspected speculative investments, such as gap investing. Rather than just returning to the previous state, we are turning this into an opportunity to expand regulation.”
Nevertheless, high-ranking government officials present at the announcement indicated that the city had not fully considered broader economic variables such as increased money supply and potential interest rate cuts when it initially lifted the land transaction restrictions.
Real estate market observers have called Mayor Oh’s move hasty. The mayor himself admitted that the initial decision was made after consulting only the Ministry of Land, saying, “Before lifting the permit zone in February, I discussed it solely with the Land Ministry.”
Still, he emphasized that effective policies require coordination with financial institutions: “I believe that only by employing financial tools such as loan regulations alongside land policy can we truly suppress volatility. That’s why I was in constant contact with the Ministry of Land, Financial Services Commission, and others to come up with a swift response.”
Land Minister Park Sang-woo also commented on the re-expansion of the permit zones, noting that speculative "gap investments"—where properties are purchased with tenants still occupying them—have risen sharply. “Given the current macroeconomic outlook, we cannot rule out the possibility of interest rate cuts, which may further drive up transactions,” he said.
“While non-Seoul regions are suffering from unsold inventory, popular areas in Seoul are seeing prices remain high or even increase. The imbalance is worsening,” Park added. “We took preemptive action and will expand it if necessary. The government cannot stand by while only select areas experience soaring prices.”
Despite the reversal, Mayor Oh reiterated his belief in free-market principles. “I believe the housing market should operate under free-market rules. Anti-market measures like land transaction permits should only be used as a last resort in unavoidable situations,” he stated.
However, given the central government’s firm stance on stabilizing the real estate market, it appears unlikely that Seoul will ease housing regulations again in the near future.
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- Hana Financial’s “Long-Serving DNA” – Ham Young-joo Eyes Reappointment with Humble Leadership
- A business leader in the financial sector who demonstrates the importance of humility better than anyone else is Ham Young-joo, Chairman of Hana Financial Group.
Chairman Ham is known for his humility, even referring to himself as a "lucky country bumpkin" who somehow became a bank president during drinking sessions with reporters when he was serving as the president of Hana Bank.
Even when he took charge of the massive bank formed by the merger of Korea Exchange Bank and Hana Bank, Chairman Ham prioritized maintaining a humble attitude. He is now on the verge of completing a historic "high school graduate success story" by securing a second term as the chairman of one of the four major financial holding companies.
Hana Financial Group is known for having a "long-serving chairman DNA." Will this DNA work in Chairman Ham's favor?
◆ The Servant Leadership of a "Country Bumpkin"
It happened on September 1, 2015, at the headquarters of KEB Hana Bank in Euljiro, Jung-gu, Seoul, during a ceremony celebrating the launch of the merged bank and the inauguration of the new bank president.
Just before the inaugural address of the newly appointed president of the merged bank, Kim Geun-yong, chairman of the Korea Exchange Bank labor union, and Kim Chang-geun, chairman of the Hana Bank labor union, came on stage with bouquets of flowers to congratulate him. At that moment, Ham Young-joo, who was the bank president at the time, spread his arms wide and hugged them tightly.
The two union leaders appeared momentarily surprised by the sudden embrace but soon responded by hugging him back warmly. The embrace was not brief, symbolizing the resolution of the conflicts that had arisen during the merger of Hana Bank and Korea Exchange Bank.
Chairman Ham's strong display of physical connection underscored his commitment to the merger, which he successfully completed. Now, he is set to secure another term as the chairman of Hana Financial Group.
Before the merger, the financial sector was skeptical about the chemical integration of Korea Exchange Bank and Hana Bank. While the two banks had merged in structure, many unresolved issues between them caused lingering tensions.
The biggest issue was Hana Financial Group's failure to uphold its promise to the Korea Exchange Bank labor union. Initially, Hana Financial Group had agreed in a 2012 labor-management agreement to guarantee independent management for five years, but they pushed for an early merger just two years later.
The Korea Exchange Bank labor union strongly opposed this move by Hana Financial Group.
When the early merger plan passed the Korea Exchange Bank board of directors in July 2014, the union immediately issued a statement criticizing the decision, saying, "The board’s approval of the merger proposal without correcting management’s breach of agreement and abandonment of bank management constitutes a failure to fulfill the board's role of monitoring management." In January 2015, the union even filed an injunction with the Seoul Central District Court to suspend the merger process.
Amid the escalating conflict between Hana Financial Group and the Korea Exchange Bank labor union over the early merger, Ham was appointed as bank president, beating out strong candidates such as Kim Byeong-ho, then-president of Hana Bank, and Kim Han-jo, then-president of Korea Exchange Bank.
Ham was highly regarded for his humble and inclusive leadership.
Chairman Ham earned deep trust within Hana Bank, not only from customers but also from employees, through his servant leadership style, which involved bowing even to his subordinates. His self-effacing attitude, referring to himself as a "country bumpkin," reinforced this humility.
Immediately after his appointment as bank president, Ham’s first order of business was to meet with the Korea Exchange Bank labor union and begin addressing their concerns. Even after the merger, he worked to ease their worries by appointing Kim Ji-seong, former chairman of the Korea Exchange Bank labor union, as his chief secretary.
Regarding this decision, Ham said at a press conference following the KEB Hana Bank launch ceremony, "I am also from Seoul Bank, which was the absorbed bank. After thinking about how to achieve a swift chemical integration, I decided to partner with Kim Ji-seong, who was a former Korea Exchange Bank union leader and a key figure in labor negotiations."
Intellectuals have emphasized the close relationship between humility and confidence, even though the two words may seem contradictory.
Jules Renard, the French author known for the novel 'Poil de Carotte', highlighted the importance of humility, saying, "Be humble. It is the type of confidence that is least offensive to others."
Likewise, Matthias Nölke, a renowned German journalist, wrote in his book 'About a Wise Attitude That Doesn't Exhaust Me' that humility is the most effective and considerate way to show confidence.
◆ Proven Performance Under Humble Leadership: Record-Breaking Results for Hana Financial Group
During his time as head of the Daejeon regional headquarters of Hana Bank, Ham often used the train when visiting other branches.
It wasn't because he lacked access to a company car—it was because there was no room for him. He would send hundreds of breads from the famous bakery Sung Sim Dang in Daejeon to his junior employees by car, leaving him to take the train.
Chairman Ham’s humble leadership has delivered outstanding results through his strong rapport with others.
As the first president of KEB Hana Bank (formed by the merger of Korea Exchange Bank and Hana Bank), Ham successfully completed the integration process far earlier than expected, despite the significant differences between the two banks.
After taking office as bank president, Ham promoted personnel exchanges between employees of the two banks. As a result, by June 2016, the IT systems of Korea Exchange Bank and Hana Bank were integrated.
In January 2017, a unified labor union was established, and by January 2019, employees from both banks were subject to the same personnel, salary, and benefits system.
The unified personnel, salary, and benefits system of KEB Hana Bank adopted the superior aspects of the existing systems from both banks. Salaries were adjusted to prevent any reduction in compensation for employees.
Under Ham's humble leadership, KEB Hana Bank’s integration led to remarkable financial results.
When Ham took over as the merged bank president in 2015, the combined net profit of Hana Bank and the former Korea Exchange Bank was KRW 969.9 billion (US$ 699 million), making it the only one of the four major banks to fall short of KRW 1 trillion.
However, this figure increased to KRW 1.37 trillion (US$ 988 million) in 2016 and further to KRW 2.10 trillion (US$ 1.51 billion) in 2017, more than doubling in two years.
Since becoming chairman of Hana Financial Group, Ham has continued delivering strong results. In his first year as chairman in 2022, Hana Financial Group posted a record net profit of KRW 3.57 trillion (US$ 2.57 billion).
In 2024, this record was broken again. Hana Financial Group posted a net profit of KRW 3.73 trillion (US$ 2.69 billion) in 2024, a 9.3% increase from 2023 and the highest in the company’s history.
Hana Bank’s position as the leading bank in net profit for two consecutive years (2022 and 2023) is also credited to Chairman Ham’s leadership.
Thanks to this strong performance, Ham has essentially secured his reappointment.
On January 27, 2025, Hana Financial Group's Board Nomination Committee unanimously recommended Ham Young-joo as the sole final candidate for the next chairman.
If confirmed at the general shareholders' meeting and board meeting in March 2025, Ham will be officially appointed as chairman of Hana Financial Group with a three-year term.
◆ Ham Young-joo’s Achilles Heel: Recruitment Scandal and Legal Risks
The recruitment scandal allegations remain an Achilles heel for Chairman Ham Young-joo.
On November 23, 2023, the first division of the Criminal Appeals Department of the Seoul Western District Court sentenced Chairman Ham to six months in prison, suspended for two years, and imposed a fine of KRW 3 million (US$ 2,163) on charges of obstruction of business and violating the Gender Equality Employment Act.
Chairman Ham is accused of instructing the personnel department to give preferential treatment to a candidate recommended by a senior official from Kookmin Bank during the 2015 KEB Hana Bank recruitment process when he was serving as bank president.
He was also indicted on charges of directing the personnel department to set a 4-to-1 male-to-female hiring ratio during the 2015–2016 recruitment season to hire more men.
Chairman Ham has appealed the case, and the Supreme Court's ruling on the obstruction of business charge related to employee recruitment is pending. The latest procedural update indicates that the case was under "comprehensive review of legal issues and arguments" as of December 16, 2024.
It is currently unclear when the Supreme Court will issue its ruling. However, since the case was filed in 2023, there is a possibility that a verdict could be reached during Ham’s term as chairman.
If the Supreme Court upholds the second-instance verdict, Ham would be required to immediately step down from his position as chairman. According to the Act on the Governance of Financial Companies, anyone sentenced to imprisonment or higher cannot serve as an executive of a financial company.
◆ The “Long-Serving Chairman DNA” of Hana Financial Group
Hana Financial Group’s CEOs have a reputation for long tenures.
Former Chairman Kim Seung-yu served as the top executive of Hana Financial Group for 16 years, including his time as the president of Hana Bank.
Kim Jung-tae, another former chairman of Hana Financial Group, also served for 10 years as chairman.
When Kim attempted to extend his tenure for a third term, there were rumors that the age limit of 70 might be removed due to legal risks involving his successor. However, once Ham Young-joo’s legal risks were temporarily resolved, Kim stepped down upon reaching the age of 70.
The financial industry has debated the age limit for chairpersons, as the 70-year age limit for directors of financial holding companies can be adjusted if the board of directors of the financial holding company amends its articles of incorporation.
However, few expect Chairman Ham to amend the articles of incorporation of Hana Financial Group.
Ham remains exposed to legal risks. If the Supreme Court upholds the second-instance verdict, Ham would have to resign regardless of any amendment to the articles of incorporation.
Although the rule requiring chairpersons to step down at 70 was amended amid political turmoil during the impeachment crisis, eliminating the age limit altogether would be politically sensitive.
Financial authorities and politicians have not shown support for long-term rule by financial holding company chairpersons.
Under the Moon Jae-in administration, the Financial Services Commission and the Financial Supervisory Service made efforts to curb the long-term rule of chairpersons at the four major financial holding companies.
They imposed direct sanctions, citing allegations of involvement in the 2016 political scandal, recruitment-related legal risks, and mismanagement of private equity fund sales.
In January 2022, Park Yong-jin, a former member of the Democratic Party of Korea, introduced a bill to amend the Act on the Governance of Financial Companies, which would limit the term of a financial holding company chairperson to a maximum of six years.
However, the bill failed to pass the National Policy Committee and was discarded when the 21st National Assembly session ended on May 29, 2024.
#HamYoungjoo #HanaFinancialGroup #recruitmentscandal #legalrisk #KookminBank #financialsector #bankingindustry #leadership #servantleadership #corporategovernance
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- All 10 Shinhan Bank Overseas Units Profitable, Jung Sang-hyuk Expands Localization with Equity Investments
- All 10 of Shinhan Bank’s overseas subsidiaries turned a profit last year. This strong performance is attributed to the bank’s localization strategy, which has been driving steady growth.
Shinhan Bank President Jung Sang-hyuk is further solidifying the bank’s status as a "global powerhouse" by generating profits from overseas equity investments for the first time last year. He has also set a goal of maintaining a competitive edge in global business this year.
According to Shinhan Bank’s audit report released on the 18th, its 10 overseas subsidiaries recorded a combined net profit of KRW 572.06 billion (US$ 412.5 million) in 2024, marking a 21.1% increase from 2023.
America Shinhan Bank (U.S. subsidiary), which had posted losses in 2023, turned a profit, while Shinhan Kazakhstan Bank (Kazakhstan subsidiary) saw its net profit surge by approximately 50% year-over-year, significantly boosting overall performance.
SBJ Bank (Japan subsidiary) and Shinhan Vietnam Bank (Vietnam subsidiary), which have the largest assets among Shinhan Bank’s overseas operations, also contributed to the strong results, increasing their net profits by 17.0% and 13.4%, respectively.
What stands out in Shinhan Bank’s 2024 overseas subsidiary performance is not just the growth but also the absence of any losses. Every single overseas subsidiary ended the year in the black.
In contrast, KB Kookmin Bank, which also released its audit report, reported a combined net loss of approximately KRW 200 billion (US$ 144.3 million) from its overseas subsidiaries last year. Woori Bank had three out of its 11 overseas subsidiaries in deficit.
Shinhan Bank is widely regarded as having strong competitiveness in global business among Korea’s four major banks (KB, Shinhan, Hana, and Woori), a fact clearly reflected in last year’s performance.
Not only banks but also other Korean financial companies are expanding their operations overseas. This is an effort to overcome limitations in the domestic market, where growth is slowing due to low birth rates and an aging population.
However, success in global expansion is not guaranteed for financial firms. Stringent regulations in local financial markets and cultural differences can create challenges.
Despite these difficulties, Shinhan Bank’s strong overseas performance is largely attributed to its "localization strategy."
Shinhan Bank has been actively localizing its operations in key markets like Vietnam and Japan, where Shinhan Financial Group has been focusing its resources. The bank hires local employees, serves local customers, and manages assets locally.
At Shinhan Financial Group’s 2024 earnings conference call, CFO Chun Sang-young commented on the global results, stating, "The combination of favorable exchange rates and long-standing localization efforts in Vietnam and Japan, along with ongoing improvements in internal management, has led to sustainable performance."
Jung Sang-hyuk’s newly introduced global equity investment strategy has also played a key role in strengthening Shinhan Bank’s global competitiveness.
Last year, Shinhan Bank recognized an equity-method gain of KRW 4.02 billion (US$ 2.9 million) from Credilla, an Indian student loan company.
Credilla is Shinhan Bank’s first overseas equity investment case. In April 2024, Shinhan Bank acquired approximately a 10% stake in Credilla.
This move is seen as further solidifying Shinhan Bank’s competitive advantage in the global market through diversification.
Upon signing the agreement with Credilla, Jung Sang-hyuk stated, "India’s market has never been more important due to global supply chain restructuring, geopolitical stability, and the growth potential of its 1.4 billion population," adding, "We will strengthen our competitiveness through collaboration with various local companies and further establish ourselves as a ‘global top-tier bank.’"
Jung plans to continue focusing on solidifying Shinhan Bank’s competitive edge in global business this year.
For 2025, Shinhan Bank has identified "challenging the future to gain a competitive advantage" as one of its three key strategic directions. Strengthening leadership in the global market is a core part of this initiative.
#ShinhanBank #JungSanghyuk #globalbanking #localizationstrategy #ShinhanVietnam #ShinhanJapan #Credilla #financialgrowth #bankingexpansion #globalbusiness
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- KB Kookmin Bank’s Lee Hwan-ju Redefines Banking, Builds ‘KB Fan Club’ with Samsung & Starbucks
- “The landscape of business is changing, and we now live in a world where ‘expanding our way of thinking’ is essential.”
This statement was made by Lee Hwan-ju, President of KB Kookmin Bank, during his inaugural speech in January.
Lee emphasized that in an era where customers can switch financial service providers with a single tap, KB Kookmin Bank must look outward and explore new services and business models to stay competitive.
He also stressed the importance of building strong customer relationships—similar to a “KB Fan Club”—to ensure customer retention and engagement.
KB Kookmin Bank’s recent moves align perfectly with this vision.
The bank is drawing market attention by partnering with leading non-financial companies such as Samsung Group and Starbucks, engaging in extensive online and offline collaborations in products and services.
Since his appointment, Lee has been aggressively pushing a management strategy focused on expansion, innovation, and execution.
According to KB Kookmin Bank, two new deposit products will launch in April: the “Starbucks Account,” developed in collaboration with Starbucks Korea, and the “Monimo KB Daily Interest Account,” created with Samsung Financial Networks.
The KB Kookmin Bank Starbucks Account will offer an annual interest rate of approximately 2%, higher than standard demand deposit accounts. Customers using this account can make direct payments through the Starbucks app, and each payment will automatically earn them Starbucks membership rewards, known as “Stars.”
Currently, the Starbucks app only supports payments via Starbucks cards and credit card transactions; it does not yet offer direct bank account payments.
This partnership marks the first collaboration between Starbucks Korea and a domestic bank.
Starbucks Korea is the country’s top coffee chain, generating KRW 3.1 trillion (US$ 2.24 billion) in revenue in 2024. The brand is known for its highly loyal customer base.
According to WiseApp, a market research firm, as of December 2024, the Starbucks app had 7.73 million users, a 13% increase from 2023. The gap between Starbucks and the second-ranking food and beverage brand app, Burger King (2.67 million users), was substantial, making Starbucks the undisputed leader in the segment.
Additionally, prepaid Starbucks card balances are estimated to be in the mid-KRW 300 billion (US$ 216 million) range.
Through the Starbucks Account, KB Kookmin Bank aims to integrate its services into customers’ daily lives, secure more low-cost deposits, and attract Starbucks’ loyal customer base.
In the latter half of 2024, the bank will further expand its partnership by converting underutilized bank branches into Starbucks stores.
The first collaboration is expected as early as August, with a Starbucks store opening inside the KB Kookmin Bank branch near Ssangmun Station in Dobong-gu, Seoul. Given that Starbucks Korea has an aggressive expansion plan to open over 100 new stores this year, analysts speculate that the number of “Starbucks KB Bank” locations could increase further.
Starbucks is also expanding its special store formats, which could further extend the scope of finance-retail business collaborations.
Meanwhile, KB Kookmin Bank’s partnership with Samsung Financial Networks on the “Monimo KB Daily Interest Account” is already generating buzz even before its launch.
The Monimo KB Account offers an interest rate of up to 4% on deposits up to KRW 2 million (US$ 1,443). Before its April launch, nearly 400,000 customers signed up for early reservations in just ten days—double the initial target of 200,000.
Samsung Financial Networks is known for its strong brand loyalty and credibility among Korean consumers.
Brand image plays a crucial role in banking, and through partnerships with Starbucks and Samsung, KB Kookmin Bank is not only securing deposits and customers but also strengthening its brand as the “top” bank.
This aligns with Lee’s vision of building a “KB Fan Club.”
Beyond these initiatives, KB Kookmin Bank is also expanding into new markets. In 2024, it partnered with Bithumb, a cryptocurrency exchange, breaking traditional financial boundaries to attract new customers and explore new opportunities.
Since becoming president, Lee has repeatedly emphasized the need to “redefine business.”
During his inaugural speech, he stated, “We must redefine and redesign the purpose and methods of each business sector, including retail banking, corporate finance, wealth management, capital markets, and digital banking. We need to view things from the customer’s perspective and drive urgent innovation through bold ‘refresh’ strategies.”
Lee was the first president of KB Kookmin Bank to come from a non-banking subsidiary within the KB Group. His leadership in driving change has been highly regarded. His extensive experience spans frontline banking operations, business planning, group financial management, and even serving as the CEO of an insurance subsidiary.
A KB Kookmin Bank representative stated, “KB Kookmin Bank is continuously expanding partnerships to provide financial products and services through non-financial platforms, embracing ‘embedded finance.’ By sequentially launching products and services tailored to the needs of customers from major partners like Samsung Financial Networks and Starbucks, we will continue to strengthen our customer base.”
#KBKookminBank #LeeHwanju #StarbucksAccount #SamsungFinancialNetworks #Monimo #bankinginnovation #embeddedfinance #fintech #retailpartnership #financialgrowth
