gckwon's Financial and IT Blog

In a shocking development, 109 individuals have filed a lawsuit against Korean Financial Planning (KFP) for allegedly encouraging investments in Gallery K, In a shocking development, 109 individuals have filed a lawsuit against Korean Financial Planning (KFP) for allegedly encouraging investments in Gallery K, a company now facing Ponzi scheme accusations. This article explores the details of the lawsuit, the relationship between KFP and Gallery K, and the broader implications for investors. Recently, Korean Financial Planning, a corporate insurance agency claiming to provide legitimate financial planning, found itself under legal scrutiny from 109 individuals, including its own agents and clients. These plaintiffs allege that KFP encouraged them to invest in Gallery K, which is now embroiled in serious allegations of running a Ponzi scheme, a type of multi-level financial fraud. Gallery K has reportedly partnered with KFP, urging its agents to actively sell artwork to clients. However...

As temperatures drop, many people crave hot foods. However, a tragic case in the UK highlights the potential dangers of consuming extremely hot items. As temperatures drop, many people crave hot foods. However, a tragic case in the UK highlights the potential dangers of consuming extremely hot items. A 51-year-old man died from laryngeal edema after eating hot fish cake, raising awareness about the risks of burns and heat injuries. In a shocking incident reported by the NHS Foundation Trust of Lancashire, a 51-year-old man experienced severe throat burns after consuming a hot fish cake. This patient had previously suffered a stroke and had ongoing issues with speech and swallowing. However, when he visited the hospital, he showed no significant symptoms other than a minor issue with his speech and no complaints of dysphagia or difficulty breathing.  After being assessed, he was advised to return if his symptoms worsened. Unfortunately, two hours later, he developed severe throat pa...

Despite a recent reduction in market interest rates due to the Federal Reserve's significant rate cut, major insurance companies in South Korea have increased their mortgage rates over the past month.  Despite a recent reduction in market interest rates due to the Federal Reserve's significant rate cut, major insurance companies in South Korea have increased their mortgage rates over the past month. This shift has raised concerns about the impact on borrowers, particularly as many are moving from bank loans to non-bank financial institutions. According to the Life and Non-Life Insurance Association, the mortgage rates for housing loans from twelve major insurance companies have risen this month. Notably, Samsung Life Insurance and Samsung Fire & Marine Insurance now offer the lowest fixed mortgage rates, which are 3.79–5.24% and 3.9–5.74%, respectively. These rates reflect an increase of approximately 0.2 percentage points from last month. For variable-rate mortgages, Samsu...

Recent revelations highlight a critical issue affecting over 670,000 seniors in South Korea, who, while eligible for basic pensions,  Recent revelations highlight a critical issue affecting over 670,000 seniors in South Korea, who, while eligible for basic pensions, find themselves unable to benefit from these funds due to reductions in their living allowances. This blog explores the complexities of the current pension system and the urgent need for reform. According to data obtained from the Ministry of Health and Welfare by Rep. Kim Seon-min (Justice Innovation Party), more than 670,000 elderly individuals are receiving basic pensions as part of the national basic livelihood protection program. However, an alarming 99.9% of these pension recipients—67,4639 seniors—have had their living allowances reduced as a direct consequence of receiving these pensions. The average monthly reduction in these living allowances is approximately 324,993 won, nearly equivalent to 97.1% of the maxi...

As South Korea's real estate market faces challenges with tightening loan regulations, homeowners are left contemplating their next steps.  As South Korea's real estate market faces challenges with tightening loan regulations, homeowners are left contemplating their next steps. The article highlights a significant drop in apartment transactions in Seoul, particularly in the affluent Seocho district, as rising prices deter potential buyers. In September 2024, the volume of apartment transactions in Seoul is projected to be significantly lower than in previous months, with estimates suggesting around 2,000 transactions compared to over 5,800 in August. The decline is attributed to the government's stricter housing loan regulations and a market that has seen rapid price increases, causing potential buyers to hesitate. As of now, only 857 transactions have been recorded, and with the transaction reporting deadline still over a month away, the final count is expected to settle a...

As residents across Seoul face unprecedented spikes in their electric bills, particularly in September, many are grappling with the financial repercussions of prolonged heat waves and changes in billing policies. As residents across Seoul face unprecedented spikes in their electric bills, particularly in September, many are grappling with the financial repercussions of prolonged heat waves and changes in billing policies. This article delves into the causes behind the soaring electricity costs and the implications for consumers. In recent weeks, many residents in Seoul have been taken aback by their electric bills. For instance, one resident living in a studio apartment in Gangnam reported a staggering bill of 180,000 KRW ($140) for September, which was 20,000 KRW more than in August. The increase comes as households have been forced to use their air conditioning more frequently due to the prolonged heat wave, with temperatures soaring above 30 degrees Celsius.  The situation is ex...

As the U.S. begins its rate cuts, the prices of precious metals like gold, silver, and copper are witnessing significant increases. As the U.S. begins its rate cuts, the prices of precious metals like gold, silver, and copper are witnessing significant increases. This blog explores the current trends in metal prices following the Federal Reserve's recent actions, the potential implications for industries reliant on these metals, and the broader economic factors influencing this upward trajectory. The recent decision by the U.S. Federal Reserve to initiate substantial interest rate cuts has led to a notable rise in the prices of precious metals. As of September 23, 2024, the price of gold futures for December delivery closed at $2,652.50 per ounce, marking an all-time high. This surge is attributed to the Fed's 'big cut' of 0.5 percentage points, which has set off a wave of investor interest in precious metals. The rise in gold prices is just the beginning. Silver and co...

Following the recent significant interest rate cut by the U.S. Federal Reserve, investors are questioning whether to hold their stocks or cash out.  Following the recent significant interest rate cut by the U.S. Federal Reserve, investors are questioning whether to hold their stocks or cash out. This post will explore historical trends of U.S. stock market performance following major interest rate cuts and the potential outcomes if the economy avoids a recession. On September 18, 2024, the Federal Reserve implemented a "big cut," reducing interest rates by 0.5 percentage points. This decision has sparked curiosity among investors, who are unsure whether they should maintain their stock holdings or sell off to hedge potential risks. Historically, significant rate cuts have been associated with economic recessions, but Federal Reserve Chairman Jerome Powell has indicated that the U.S. economy is still strong, fueling optimism about a potential "soft landing." Data sho...

As South Korea grapples with a significant shortfall in tax revenue, the government faces increasing pressure to respond to ongoing economic challenges. As South Korea grapples with a significant shortfall in tax revenue, the government faces increasing pressure to respond to ongoing economic challenges. Despite previous optimistic forecasts, the persistent decline in domestic consumption and export growth raises questions about the effectiveness of current fiscal policies and the sustainability of tax cuts. The South Korean government is now facing a stark warning sign regarding its economic policies, as tax revenue falls short for the second consecutive year. With domestic consumption continuing to stagnate, the government’s ability to respond to economic conditions through fiscal measures is projected to weaken further. The recent report from the Ministry of Finance highlighted a staggering tax revenue shortfall of 30 trillion won, largely attributed to a decline in corporate taxes,...

As South Korea rapidly approaches a super-aged society, insurance companies are intensifying their efforts to enter the elderly care industry.  As South Korea rapidly approaches a super-aged society, insurance companies are intensifying their efforts to enter the elderly care industry. With the percentage of the population aged 65 and older expected to exceed 20% by 2025, life insurance firms are increasingly identifying senior housing and nursing facilities as new growth opportunities. Recent reports indicate that the number of registered residents aged 65 and older in South Korea surpassed 10 million in July 2024, accounting for 19.5% of the total population of over 51 million. If the current trend continues, South Korea will officially transition into a super-aged society next year, just seven years after entering an aged society. As the elderly population grows, there is a rising demand for age-friendly housing and support services, including nursing care. A survey conducted by...

Toss Insurance, a subsidiary of Viva Republica, has achieved a significant milestone by surpassing 2,000 agents in just two and a half years since its establishment.  Toss Insurance, a subsidiary of Viva Republica, has achieved a significant milestone by surpassing 2,000 agents in just two and a half years since its establishment. Starting with only two agents in February 2022, the company has grown rapidly without any mergers or acquisitions. This blog post will explore the factors behind Toss Insurance's impressive growth, financial success, and future ambitions. On September 26, 2024, Toss Insurance announced that its number of agents had crossed the 2,000 mark. The company began its operations in February 2022 with just two agents and has grown organically, achieving this milestone without any mergers or acquisitions. The first 500 agents were recruited in just over a year. Following that, the number reached 1,000 in November 2023 and 1,500 in April 2024, now hitting 2,000 in S...

Shinan Financial Plus, a subsidiary of Shinan Life's GA (General Agency), has significantly increased its revenue by expanding life insurance commission income. Shinan Financial Plus, a subsidiary of Shinan Life's GA (General Agency), has significantly increased its revenue by expanding life insurance commission income. Despite taking on increased deficits, the company has grown sales volume by leveraging its parent company's product line. This strategy highlights the importance of Shinan Financial Plus's role as a subsidiary GA. Shinan Financial Plus recorded sales of 127.3 billion KRW and a net loss of 3 billion KRW in the first half of 2024. Although the deficit increased by 2.3 billion KRW from the previous year, sales surged by 23.2%. Since launching its GA business in July 2020, the company has continued to grow, showing another round of external growth this year. One of the primary challenges leading to profit loss has been the rising cost of sales commissions du...

Recently, several corporate insurance agencies (GA) under the umbrella of major life insurance companies have come under scrutiny for offering illegal rebates during the sale of insurance policies. Recently, several corporate insurance agencies (GA) under the umbrella of major life insurance companies have come under scrutiny for offering illegal rebates during the sale of insurance policies. The National Tax Service (NTS) has initiated a tax investigation into 14 GA firms, some of which are subsidiaries of large life insurers like Hanwha, Shinhan, and MetLife. This situation raises concerns about the need for stricter oversight of GA operations to restore trust in the insurance industry. The Korean insurance industry is facing a significant issue as corporate insurance agencies (GA) are embroiled in a rebate scandal. According to the National Tax Service (NTS), 14 GA firms, including subsidiaries of major life insurance companies like Hanwha Life, Shinhan Life, and MetLife, are under ...

The Korean National Tax Service (NTS) has initiated a high-intensity tax audit targeting major corporate insurance agencies (GAs) that allegedly provided illegal rebates related to CEO insurance policies. The Korean National Tax Service (NTS) has initiated a high-intensity tax audit targeting major corporate insurance agencies (GAs) that allegedly provided illegal rebates related to CEO insurance policies. This audit involves 47 companies across various sectors, including construction, pharmaceuticals, and insurance brokerage. On September 25, the NTS announced its extensive tax audit involving 17 construction firms, 16 pharmaceutical companies, and 14 insurance brokerage firms, marking a significant initiative since the appointment of NTS Commissioner Kang Min-soo in July. All targeted industries are prohibited by law from offering or receiving rebates. The controversy centers around "CEO insurance," a product that has seen a rise in rebate transactions. CEO insurance is des...

Recent data reveals that in 2023, the South Korean government allocated 67.4 billion won to YouTube for advertising, Recent data reveals that in 2023, the South Korean government allocated 67.4 billion won to YouTube for advertising, despite growing concerns over Google's alleged tax evasion in the country. The issue has sparked debate over whether it is appropriate for the government to spend taxpayer money on platforms that fail to meet their social responsibilities. According to the Korea Press Foundation, Google and YouTube received the largest share of government advertising funds in 2023, surpassing major domestic media outlets. The 67.4 billion won spent on YouTube was significantly higher than the funds allocated to other platforms such as Naver and Daum. The surge in government spending on YouTube is attributed to the platform’s wide reach and cost efficiency, making it an attractive option for government agencies aiming to maximize the impact of their limited budgets. How...

Starting November 1, 2024, the recognized monthly contribution limit for housing subscription savings will increase from 100,000 won to 250,000 won. Starting November 1, 2024, the recognized monthly contribution limit for housing subscription savings will increase from 100,000 won to 250,000 won. This change benefits those applying for public housing, allowing them to save faster. However, not everyone needs to raise their monthly contributions. In this post, we will explore the details of the change and whether increasing the monthly contribution is beneficial for everyone. From November 1, 2024, the recognized contribution limit for housing subscription savings will rise from 100,000 won to 250,000 won. This adjustment allows applicants for public housing to meet eligibility requirements faster, with the possibility of saving 1.5 million won in just five years. While this change is advantageous, it doesn’t mean that all applicants need to increase their monthly savings to 250,000 won...

On September 23, 2024, the National Tax Service (NTS) initiated urgent tax investigations into two major corporate insurance agencies (GA) in South Korea. On September 23, 2024, the National Tax Service (NTS) initiated urgent tax investigations into two major corporate insurance agencies (GA) in South Korea. The investigations are reportedly driven by allegations of tax evasion, with significant personnel from the NTS’s Investigation Bureau 4 involved. This sudden action has created a tense atmosphere within the GA industry, raising concerns over internal whistleblowing and compliance issues. On the afternoon of September 23, the National Tax Service (NTS) dispatched approximately 20 investigators to two prominent corporate insurance agencies, referred to as Company A and Company B. The involvement of the Investigation Bureau 4 indicates that serious tax evasion allegations are under scrutiny, causing considerable unease in the GA sector. According to reports from the insurance and GA ...

The financial authorities in Korea are tightening their grip on large General Agencies (GA) in the insurance industry to protect consumers from potential harm The financial authorities in Korea are tightening their grip on large General Agencies (GA) in the insurance industry to protect consumers from potential harm. As GAs continue to engage in intense competition, authorities are focusing on preventing "4 major violations" and enhancing inspection processes to maintain market order and minimize consumer risks. Recently, the Financial Supervisory Service (FSS) and other financial authorities have been paying close attention to the large-scale competition occurring within the insurance industry, specifically targeting General Agencies (GA). Despite efforts to curb aggressive sales tactics and protect consumers, violations still persist, particularly among the larger agencies. The FSS has introduced stricter measures to address what they refer to as the "4 major violation...