South Korea's third largest credit company, KEB Credit Service, suspended most of its short-term cash loans for a second day yesterday, fueling concerns over the country's shaky credit card industry.
KEB Credit Service, which is to be merged into its parent company, Korea Exchange Bank (KEB) on Feb. 28, stopped most of its cash advances, saying its cash reserves were running dry.
The suspension came after the KEB Credit Service's union launched a partial strike on Dec. 15, demanding the withdrawal of the merger plan, which it said will lead to massive lay-offs.
Korea Exchange Bank, the country's sixth-largest lender which was taken over by US investment fund Lone Star in October, said it was unable to come to the rescue of the credit card unit, citing regulations on financial ties with units.
Analysts said the suspension of the cash loan service indirectly puts pressure on the labor union over its strike action.
"It is hard to believe that KEB Credit Service suspended cash advances because of liquidity problems," said Kim Uk-Rae, an analyst with Sejong Securities Co said.
Kim and other analysts also said KEB could have easily secured official clearance to extend help to the credit card unit beyond the 10-percent limit as it is to take over KEB Credit Service.
KEB Credit Service provides an estimated 35 billion won (US$29 million) of cash advances every day.
"By cutting down on cash loans, KEB Credit Service is shifting the onus to other credit card firms," Kim said.
South Korea has 3.6 million credit card users who have defaulted on their card loans. With total assets at 5.8 trillion won (US$4.9 billion), KEB Credit Service has 7.5 million clients. Its net loss for the first nine months to September stood at 411 billion won (US$345 million).
The ratio of overdue payments at the card company rose from 8.1 percent in September to 8.8 percent in October, according to KEB Credit.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique