Banks are scrambling to get ready as a law designed to protect interest of financial consumers takes effect Thursday.
Penalties on bank executives and directors linked to private equity funds are concerning and could limit bank activities, according to Kim Kwang-soo, Chairman of the Korea Federation of Banks.
The net income of domestic banks declined 11.5 percent last year to 12.3 trillion won ($10.9 billion), according to preliminary earnings data of 19 banks, including internet-only banks, provided by the Financial Supervisory Service (FSS) on Monday.
Banks have agreed to the government proposal to extend the suspension of loans and interest payments for small and mid-size companies and small corner shops for another six months.
Regulators want banks to limit their payout ratios, and the banks are not at all happy about the recommendation.
Major financial groups vowed to strengthen their digital services in the new year as big tech companies like Naver and Kakao have emerged as competitors in the financial business and contactless services are crucial during the coronavirus pandemic.
The financial sector posted one of the best performances this year, and banks have begun full-scale job cuts offering massive severance pay for voluntary retirement in an attempt to slim down its workforce.
The Korea Federation of Banks released a list of seven candidates for its chairmanship Tuesday.
Internet-only banks are promising fat paychecks and a shorter-than-ever hiring process to bring in as many IT developers to get ahead in the digital transformation of finance.
Losing your debit card is normally a minor inconvenience, remedied by a quick trip to the bank. Losing your debit card in the middle of a pandemic, as a women in her late 30s surnamed Jung discovered, is a very different story.