gckwon's Financial and IT Blog

Recent trends in Seoul's housing market reveal a significant increase in high-end apartment transactions Recent trends in Seoul's housing market reveal a significant increase in high-end apartment transactions, with properties exceeding 15 billion KRW making up over 20% of all sales—a record high. Additionally, overall transaction volumes have surged, highlighting notable changes in the city's real estate dynamics. This article explores the recent surge in housing transactions and what the future might hold. In June, Seoul's housing transaction volume reached 10,784 cases, surpassing the 10,000 mark for the first time since August 2021. Notably, apartment transactions alone amounted to 7,362, marking the highest volume since December 2020, when transactions peaked at 7,745. Key trading areas include Songpa-gu, which led with 731 transactions, followed by Gangdong-gu (700 transactions) and Gangseo-gu (661 transactions). Gangnam-gu (595 transactions) and Seocho-gu (562 t...

Recently, the South Korean economy has experienced negative growth for the first time in 18 months Recently, the South Korean economy has experienced negative growth for the first time in 18 months, and recovery in domestic demand remains elusive. Although both the Bank of Korea and the government are showing optimism, a tangible recovery in the economy is challenging. With monetary policy impacting the economy with a time lag, there is increasing discussion about the need for preemptive interest rate cuts. This blog will comprehensively analyze the factors influencing interest rate decisions, including inflation, economic growth, exchange rates, and household debt, and discuss future prospects. South Korea's economy recorded negative growth in the second quarter, marking the first decline in 18 months. Notably, the persistence of weak consumer spending and investment has raised concerns. Consequently, there is a growing call for interest rate cuts as a means to stimulate the econo...

Chairman Lim Jong-ryong of Woori Financial Group is focusing on mergers and acquisitions (M&A) of non-bank subsidiaries to reduce the group's dependence on its banking sector ( The person in the photo is not related to the content of the article.) Chairman Lim Jong-ryong of Woori Financial Group is focusing on mergers and acquisitions (M&A) of non-bank subsidiaries to reduce the group's dependence on its banking sector. Following the successful launch of Woori Investment & Securities, Lim is now looking to strengthen the group’s comprehensive financial portfolio through the acquisition of insurance companies. This article examines the current status of Woori’s acquisition of Tongyang Life and ABL Life, as well as future strategies. Woori Financial Group's strategy to enhance its non-bank subsidiaries is progressing rapidly under the leadership of Chairman Lim Jong-ryong. Recently, the group achieved a significant milestone by obtaining approval from the Financia...

Shinhan Life has solidified its position as the top life insurer within the financial holding group Shinhan Life has solidified its position as the top life insurer within the financial holding group, significantly driving the non-banking sector profits of Shinhan Financial Group. With outstanding performance in net profit and insurance contract margin (CSM) compared to its competitor KB Life, and a substantial increase in annual premium equivalent (APE), Shinhan Life presents a promising outlook for future growth. Remarkable Achievements of Shinhan Life In the first half of 2024, Shinhan Life achieved a net profit of 312.9 billion KRW, surpassing KB Life Insurance's 202.3 billion KRW by over 100 billion KRW. While Shinhan Life saw a 0.4% increase compared to the previous year, KB Life experienced an 8.2% decline. This highlights Shinhan Life's superior growth amidst fierce competition among financial holding companies. Excelling in Insurance Contract Margin (CSM) Shinhan Life...

  The business performance of the top five financial holding companies for the first half of this year has been disclosed The business performance of the top five financial holding companies (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) for the first half of this year has been disclosed, showing positive results. Notably, KB Financial Group has reclaimed its position as the leading financial company, with significant contributions from its insurance subsidiaries. This post will provide a detailed analysis of the financial results, the contributions of the insurance subsidiaries, and the future outlook. 1. Q2 Performance of the Top 5 Financial Holding Companies In Q2 2024, the combined net profit of the top five financial holding companies reached 6.2266 trillion KRW, a 23.5% increase compared to the same period last year. This improvement is attributed to the subsiding impact of the Hong Kong Equity-Linked Securities (ELS) crisis. The total net profit for the first half of t...

Seoul's apartment prices have been on a continuous rise for 18 weeks Seoul's apartment prices have been on a continuous rise for 18 weeks, fueling concerns of a housing market overheating. While the government has pledged to implement various policies to stabilize prices, experts suggest that achieving short-term relief may be challenging. This blog explores the causes behind the surge in Seoul's apartment prices, the government's response, and future outlook. Recently, the Seoul apartment market has been experiencing an extended upward trend, with prices rising for 18 consecutive weeks. According to the Korea Real Estate Board, the average apartment sales price in Seoul increased by 0.3% compared to the previous week, marking the highest growth since September 2018. Additionally, rental prices have risen for 62 weeks in a row, reflecting the market's overheating conditions. One key factor driving this price surge is the government's economic stimulus measures....

Korea Real Estate Agency’s Cheongyak Home website experienced a temporary crash On July 29th, Korea Real Estate Agency’s Cheongyak Home website experienced a temporary crash due to an unprecedented surge in applications for highly anticipated "lotto" housing lotteries. The website faced severe overload when a massive number of users attempted to apply simultaneously for lotteries at high-value properties such as 'Raemian One Pentas' in Seocho-gu, Seoul, and 'Dongtan Station Lotte Castle' in Hwaseong, Gyeonggi Province. As a result, Korea Real Estate Agency made an unprecedented decision to extend the application deadline. Here’s a detailed look into the background of this event and its impact. A Surge of Millions of Applicants July 29th marked the start of the lottery application period for highly coveted properties, often referred to as "lotto" lotteries. Major properties such as 'Raemian One Pentas' in Seocho-gu, Seoul, and 'Dongtan St...

South Korea's total population has increased for the first time in three years Recent statistics reveal that South Korea's total population has increased for the first time in three years, despite concerns over low birth rates and an aging population. This blog post explores the reasons behind this demographic shift, the contributing factors, and the potential future trends of South Korea's population. 1. Background of Population Increase South Korea's population, which had been on a decline due to low birth rates and an aging demographic, has seen an increase for the first time in three years. According to the '2023 Population and Housing Census Results (registered census method)' released by Statistics Korea, the total population last year was 51.775 million, an increase of 82,000 (0.2%) compared to the previous year. This marks a reversal after two consecutive years of decline since 2021. 2. Contribution of Foreign Residents The primary driver of this popula...

Bancassurance Premium Revenue Plummets Recently, bancassurance premium revenues have significantly decreased in the insurance industry. The introduction of the new accounting standard IFRS17, which focuses on health insurance and other protection-oriented products, is a major factor behind this shift. This change has greatly impacted the sales channels and revenue structures of insurance companies. In this article, we will explore the reasons behind the decline in bancassurance premium revenues and the responses of insurance companies to this trend. The proportion of bancassurance among insurance companies' major sales channels has been significantly declining. Major life insurers such as Samsung Life, Hanwha Life, Kyobo Life, Shinhan Life, Tongyang Life, and Mirae Asset Life saw their bancassurance premium revenues for the first quarter of this year drop by 27.5% compared to the same period last year, amounting to 3.645 trillion won. For non-life insurers, the decline was even mo...

  Improper Use of Databases in Insurance Sales Can Lead to Severe Penalties The importance of databases (DB) in insurance sales is growing, but indiscriminate use can lead to severe legal penalties. With the implementation of the Financial Consumer Protection Act (FCPA) in 2021 and the amendment of the Personal Information Protection Act in 2023, regulations on DB collection and use have been strengthened. This article highlights key legal aspects that insurance agents and general agencies (GAs) must be aware of to use DBs correctly. In the insurance industry, DBs (personal information) have long been a critical sales tool. Insurance agents and GAs prefer high-quality DBs as they can significantly increase productivity, leading to high efficiency and income. By receiving new DBs daily and conducting phone consultations and face-to-face (TA) sales, agents can achieve remarkable results. However, using DBs with unclear sources or beyond the agreed consent can lead to serious legal i...

home prices in Seoul have surged Recently, home prices in Seoul have surged, leading to a significant increase in the balance of mortgage loans from major banks. Despite efforts by banks to tighten mortgage loan conditions, the demand for loans remains high due to expectations of continued home price increases. This month, the balance of mortgage loans from major banks has increased by over 5 trillion won, driven by the ongoing rise in home prices in Seoul. According to data released on the 28th, the balance of household loans from the top five banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) reached 713.3072 trillion won as of the 25th, up by 4.7349 trillion won from the end of June, when the balance was 708.5723 trillion won. The increase this month exceeds 5 trillion won, marking the largest monthly rise since July 2021. In particular, the balance of mortgage loans, which was 552.1526 trillion won at the end of June, has increased by 5.2589 trillion won by the 25th of this...

ranking lowest in birth rates and average sleep duration Recent OECD statistics reveal that Korea ranks highest in negative indicators such as suicide rates and elderly poverty rates, while also ranking lowest in birth rates and average sleep duration. These statistics have sparked significant discussion on social media platform X (formerly Twitter), highlighting various issues within Korean society. On the 26th, a post on social media platform X featured a chart titled "Korea According to OECD Statistics." This chart consolidates indicators where Korea ranks either at the top or the bottom among OECD member countries. - Total Fertility Rate: Korea’s total fertility rate is 0.78 children per woman, the lowest among OECD countries. This rate is less than half the OECD average of 1.51, and Korea is the only country with a rate below 1. - Suicide Rate: Korea has the highest suicide rate among OECD member countries, with 24.1 suicides per 100,000 people. This is more than twice ...

the benchmark interest rate The Bank of Korea's Monetary Policy Committee is scheduled to meet on August 22 to decide on the benchmark interest rate. While the market anticipates the 13th consecutive rate freeze, considering the U.S.'s potential rate cut and domestic economic conditions, there is a growing argument for the necessity of a rate cut. This blog will explore the background and prospects of the Bank of Korea's interest rate decision. The Bank of Korea's Monetary Policy Committee will convene on August 22 to decide on the benchmark interest rate. Currently, the market expects the Bank of Korea to maintain the rate at the current 3.5%. If another freeze is decided, it will mark the 13th consecutive rate freeze, setting a record for the longest duration. Last month, the consumer price index (CPI) rose by 2.4% year-on-year, showing a downward trend, and the expected inflation rate also fell to the 2% range for the first time in two years and four months. This ca...

global monetary policy may be at a turning point As major central banks, including those of the U.S., Japan, and the UK, hold key interest rate decision meetings this week, global monetary policy may be at a turning point. With all eyes on the Federal Reserve's upcoming decisions and Chairman Jerome Powell's statements, markets are on edge, anticipating potential rate cuts. This blog delves into the current economic indicators and the significant decisions expected from central banks worldwide. This week, the spotlight is on the Federal Reserve as it prepares for a crucial meeting on July 31st, where Chairman Jerome Powell's press conference is expected to be pivotal. Market speculation is rife, with many betting on a rate cut in September, but Powell's signals will be crucial in determining market movements. Japan's central bank is also set to discuss interest rate hikes on the same day, while the Bank of England will hold its monetary policy meeting on August 1st...

While private equity firms previously dominated as major investors in the GA industry Recently, the landscape of GA (General Agency) M&A and investment has been shifting. While private equity firms previously dominated as major investors in the GA industry, it appears that insurers and financial holding companies are now taking over this role. This article explores the background and future outlook of this transition. In the past, GA M&A and investments were primarily driven by private equity firms outside the insurance industry. Two notable publicly listed GAs are A+ Asset and Incar Financial Services, both of which achieved successful IPOs thanks to external investments. A+ Asset received investment from Skylake Investment in 2017 and went public in 2020, while Incar Financial Services secured funding from Hanwha Investment and Neoplux, leading to its listing. Additionally, Goodrich received investment from JC Partners, and People Life, which was sold to Hanwha Life Financia...

The amount of deposits continues to surge Recently, domestic banks in South Korea have been lowering their deposit interest rates, yet the amount of deposits continues to surge. This paradox occurs as depositors flock to secure higher interest rates, even though banks have essentially halted their competition for funds. However, this trend presents challenges for banks in balancing deposits and loans, and could eventually lead to unfavorable conditions for financial consumers. This year, domestic banks have continuously lowered their deposit interest rates, which are now barely at 3.5%. This rate is nearly the same as the Bank of Korea’s base rate, making it difficult for depositors to expect substantial returns on their investments. The lowering of rates indicates that banks have temporarily stepped back from the competition to attract funds. Nevertheless, despite these low rates, the total deposits in the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) have incr...

This decline has been particularly pronounced since the launch of Ethereum spot ETFs in the United States Recently, the price of Ethereum has experienced a significant drop, drawing considerable attention from investors. This decline has been particularly pronounced since the launch of Ethereum spot ETFs in the United States. In this blog post, we will explore the background of the Ethereum spot ETF launch, the resulting price volatility, and the future outlook. Ethereum Spot ETF Launch and Initial Reactions The launch of Ethereum spot exchange-traded funds (ETFs) in the United States has created a significant impact on the market. Following the commencement of trading on major exchanges like the New York Stock Exchange on the 23rd, Ethereum's price, which was nearing the $3,500 mark, dropped by over 10% to $3,136. This marks the lowest level since the 12th. Background of the Price Drop Several factors have contributed to the sharp decline in Ethereum's price. A primary reason...

the brokerage industry continues to face significant challenges Despite recent signs of recovery in the real estate market, the brokerage industry continues to face significant challenges. In June 2023, the number of newly established real estate brokerage offices was 744, the lowest since 2015. Meanwhile, the number of closed or suspended offices reached 1,137. This article delves into the current state of the real estate brokerage industry and explores the reasons behind these difficulties. Although there has been an increase in apartment transactions, particularly in the metropolitan area, the real estate brokerage industry remains in a slump. According to data from the Korea Association of Realtors, the number of newly established real estate brokerage offices nationwide in June totaled 744, a 16.3% decrease from the previous month. This is the lowest monthly figure since the association began collecting data in 2015. Compared to the same month last year, the number of new opening...