[Summary of the Economic News #3] 250226

1. [단독]매각 준비 롯데카드, 대출 부실 악재 터졌다

📌 Summary

Lotte Card faces a 78.6 billion KRW factoring loan default. This could impact risk management in the financial industry and affect the ongoing sale process.

 

📌 Background

• A small rental company (Company A) took a factoring loan from Lotte Card, using accounts receivable as collateral.
• Due to the economic slowdown, Company A’s customers delayed rental payments, leading to loan default.
• Lotte Card started an internal audit, and the Financial Supervisory Service launched an inspection.
• As Lotte Card is in the process of being sold, this issue may affect its financial health and the sale outcome.

📌 Impact

✅ Industry

• Credit card and financial companies may tighten factoring loan approval standards and strengthen risk management.
• Small rental firms and borrowing companies may face stricter loan conditions, making funding harder.
• The risk of more loan defaults in the financial sector may rise, leading to stricter inspections for other lenders.

✅ Stock Market

• Investors may lose confidence in Lotte Card’s parent company, Lotte Group, and other financial stocks.
• Credit risk concerns in the financial sector may increase market volatility.
• Well-managed credit card companies (e.g., Shinhan, KB, Samsung Card) may gain trust from investors.

✅ Economy/Finance

• More loan defaults may force financial firms to set aside more reserves, reducing profitability.
• Stricter loan conditions may hurt small businesses and individuals, slowing down the economy.
• Rising interest rates, combined with financial instability, could lead to government regulations.

 

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2. "저성장·저금리·고환율 시기 보험사 자본운용 역량 키워야"

📌 Summary

The adoption of IFRS17 may turn low-risk insurance products from the past into loss-making contracts, increasing the need for market-driven restructuring.

 

📌 Background

• The IFRS17 accounting standard and K-ICS risk-based capital rules took effect in 2023. These immediately reflect insurance risks.
• Pension products sold during high-interest periods now face losses due to today’s low-interest, aging society.
• Insurers must improve capital management to handle these risks.

📌 Impact

✅ Industry

• Insurers must redesign products and change capital management strategies to fix loss-making contracts.
• New risk management tools, such as reinsurance, contract transfers, and restructuring platforms, will become more common.
• Authorities may introduce a "Trust Index" to measure insurance firms’ credibility.

✅ Stock Market

 

• Insurance stocks may become more volatile, as companies with many loss-making contracts could see lower investor confidence.
• Insurers with strong capital management could gain a competitive edge and defend their stock prices.
• Mergers and acquisitions may occur during restructuring, creating both investment risks and opportunities.

✅ Economy/Finance

 

 

• As IFRS17 takes hold, insurers will need more capital, increasing fundraising activity in financial markets.
• Insurance premiums may rise as companies adjust pricing, adding financial burdens on consumers.
• Strong insurance capital is needed, attracting global investors and financial firms to the sector.

 

*IFRS17 : A new international accounting standard that evaluates insurance liabilities based on market value and recognizes revenue over the contract period instead of upfront recognition.

 

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3. "내수 부진에도 해외여행은 간다"…카드 해외사용 또 '역대 최고'(종합)

📌 Summary

Korean residents’ overseas card spending hit an all-time high of 31 trillion KRW, driven by more travel and cross-border online shopping.

 

📌 Background

• Post-pandemic, international travel demand surged, with outbound travelers increasing by 26.3%.
• Online shopping from foreign platforms like AliExpress and Temu grew, boosting overseas spending.
• Even as domestic consumption remained weak, foreign spending continued to rise.

📌 Impact

✅ Industry

• More overseas travel may reduce demand for local tourism, hospitality, and transportation services.
• Growth in cross-border e-commerce may intensify competition for domestic retailers and SMEs.
• Fintech-driven international payment services (e.g., prepaid cards, debit cards) may expand faster than traditional credit cards.

✅ Stock Market

• Stocks related to travel (airlines, hotels, travel agencies) may benefit from increased demand.
• Domestic consumption-driven businesses (department stores, franchises, hotels) may see profit declines.
• The rise of foreign payments could push fintech and card companies to change their business models.

✅ Economy & Finance

• Weak domestic spending may hurt economic growth, negatively affecting service industries.
• Increased overseas spending may cause currency volatility due to more foreign exchange outflow.
• More cross-border shopping could worsen Korea’s trade balance and put pricing pressure on local retailers.