The interest rate of commercial banks in Korea is expected to continue an upward trend as the U.S. benchmark interest rate is likely to be raised gradually until 2019.
According to industry sources on March 19, the banking industry is expected to benefit from the hike in U.S. interest rate. The banks' lending rate is picking up, while the deposit rate remains stagnant, leading to the increase in the spread between lending and deposit interest rates.
The banking industry's lending/deposit rate spread stood at 2.00 percentage point in January 2017, up 0.12 percentage point from a month ago. The improvement in the business environment is leading to a surge in stock prices of major banks.
Major financial groups such as Shinhan, KB and Hana enjoyed a sharp increase in net profits last year. Shinhan and KB Financial Group joined the 2 trillion won net profit club last year, while Hana Financial Group achieved record-high profits since the global financial crisis.
Korea Investment Corporation (KIC) will open its third overseas office in Singapore as early as August in its push for alternative investments in Asia, according to a local newspaper report. The opening of a foreign office will come six years&hellip
South Korea’s Hanwha Asset Management Co. Ltd. will launch three global funds for infrastructure, real estate and private equity investments, with $1 billion commitments from two insurance units of its parent group. Hanwha Life Insurance Co. Ltd. and Hanwha General&hellip
An investment firm of South Korea’s Samsung Life Insurance Co. Ltd is forming a blind-pool real estate fund worth around 500 billion won ($443 million) with commitments from other Samsung financial units to acquire a building of the Organisation for Economic Co-operation&hellip