12/2 Savings Bank

DIALOG>> Some savings banks were suspended this year.

The Busan Savings Bank scandal seems to be quite serious.

Some insiders tipped acquaintances to withdraw funds before it went bankrupt.

16 savings banks were suspended this year.

The customers of those banks can't access their money?

Some people deposited their lifelong savings at those banks.


RESPONSE>> Talk about savings banks and their recent troubles.

Savings banks in Korea are like thrifts in the US.

They target low to middle-income people and companies that struggle to get loans from commercial banks.
* get loans: 대출받다
ex> Middle-income households have been suffering due to the financial crisis.

Savings banks offer relatively higher interest rates for people who deposit their money.
ex> I was relatively faster than my classmates.

Project financing (PF) investments are risky but lucrative.
* lucrative: 수익이 높은
ex> You have to be careful when you are making risky investments.
ex> The more risks you take, the more lucrative the investment can be.

They made a lot of money in the booming real-estate market until the mid 2000's

Many savings banks became complacent.
* complacent: 자기만족의
ex> Make sure you don't get complacent over your achievements.

They government suspended the operations of 16 savings banks in 2011.
* suspend operation: 영업을 중지시키다.
ex> The watchdog agency suspended the operations of troubled banks.

The troubled banks had BIS capital adequacy ratios of far lower than 8%, which is the recommended level.


@ She doesn't open up to me.  그녀는 나에게 마음을 열지 않아.

1. A large portion of people are low to middle-income people.
2. There are many lucrative business opportunities in emerging markets.
3. You should not become complacent.
4. The company suspended the operation of one of its affiliates.