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Financial group heads emphasize strengthened risk management in 2024

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Financial group heads emphasize strengthened risk management in 2024

Financial group leaders pose at a meeting with financial authorities at Korea Federation of Banks in Seoul, Nov. 20. They include KB Financial Group Chairman Yang Jong-hee, second from left, Hana Financial Group Chairman Ham Young-joo, third from left, Woori Financial Group Chairman Yim Jong-yong, fourth from left, Nonghyup Financial Group Chairman Lee Suk-joon, seventh from left and Shinhan Financial Group Chairman Jin Ok-dong, eight from left. Yonhap

By Lee Kyung-min

The heads of Korea’s leading financial groups – KB, Shinhan, Woori, Hana and NH NongHyup – each announced their New Year message emphasizing risk management as the top priority to navigate uncertainties this year,Tuesday.

Woori Financial Group Chairman Yim Jong-yong said economic and financial uncertainties from within the country and around the world will persist, including the U.S.-China feud, geopolitical risks and real estate project financing exposure risks.

The challenging market tightening can be surmounted through a reinforced monitoring of risk factors and a prompt evaluation of global risks, Yim said. Comprehensive contingency plans will be closely outlined to address unforeseen risks effectively, he added.

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“We will fortify employee capabilities, synergy and communication, a set of goals that will restore our reputation as a corporate financial leader,” he said in his New Year message.

“We have consistently outperformed our industry peers in corporate financing for years. The year 2024 marks a significant turning point for Woori’s renewed expansion to solidify our market dominance, coupled with proactive risk management measures. Strengthening our non-bank group affiliates is a priority, as buttressed by our strategic entry into the securities industry,” Yim added.

Hana Financial Group Chairman Ham Young-joo said 2024 will be remembered as the year of the group cementing its standing on the global stage.

“Our commitment to sustainable growth will be advanced by the reinforcement of cross-affiliate cooperation and collaboration as well as stricter internal controls and enhanced risk management measures,” he said in his New Year message.

It is all about the basics, according to Ham. Whether it be the construction of a building, or growing a plant, the principle remains the same.

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“Ultimately, our success will be measured not by the speed at which we attain our goals, but by the accuracy of our judgments and the integrity of our decisions.”

Shinhan Financial Group Chairman Jin Ok-dong said the group will prioritize the ethics of the industry in the context of fostering innovation and overcoming challenges.

“We are dedicated to providing a customer-centered, best-in-industry service provider, driven by the enhancement of internal control and risk management mechanisms.,” he said in his New Year’s message.

KB Financial Group Chairman Yang Jong-hee reiterated a commitment to promoting “mutual growth” with socially vulnerable groups, in line with the group’s dedication to enhancing social responsibility amid the country’s extreme polarization.

He said the group will overhaul the growth strategies of each subsidiary to elevate its non-bank affiliates as leaders in their field.

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Nonghyup Financial Group Chairman Lee Suk-joon said preemptive and tighter risk management should help identify and neutralize any risks.

“We are committed to identifying various risks beyond our current understanding and anticipation, before they can pose a significant threat. We sill fortify risk management efforts to counter risks of any magnitude,” he said in his New Year message.

Also among Lee’s growth strategies is the effective implementation of generative artificial intelligence (AI) in all areas of group businesses and financial services.

“We will create a solid foundation for the group to transform into a lifelong partner and financial service provider, as mediated by fast, satisfaction-oriented digital services,” he said.

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Finance

Austin council member Paige Ellis may have violated campaign finance rules again

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Austin council member Paige Ellis may have violated campaign finance rules again

Austin City Council Member Paige Ellis listens to public testimony on Wednesday, Aug. 16, 2023 at City Hall. The District 8 representative, who is running for re-election this year, has previously faced scrutiny for campaign finance practices.

Mikala Compton/Austin American-Statesman

Austin City Council member Paige Ellis has again accepted campaign contributions that appear to exceed city limits, according to recent campaign finance reports, raising questions about compliance with local election law as she seeks a third term representing Southwest Austin.

Under current city rules, candidates for City Council or mayor may not accept more than $450 per contributor per election. The limit applies to individual donors, with exceptions only for the candidate and small-donor political committees.

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Campaign finance reports filed in July 2025 and January 2026 show Ellis accepted nearly $2,500 in contributions that exceeded the $450 individual cap. At least 12 donors gave more than the legal limit, either through single donations above $450 or through multiple contributions across the reporting period that cumulatively exceeded the cap.

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In some cases, donors made two or more contributions during the reporting period that, when combined, pushed their total giving beyond the limit. In other instances, donors appeared to list themselves both individually and jointly with a spouse or partner in ways that resulted in total contributions exceeding what is allowed.

Ellis’ campaign manager, Mykle Tomlinson, said he was aware of the $450 cap for individual contributors. Ellis and Tomlinson both said they believed married couples could contribute up to $900 combined, based on each spouse being allowed to give $450.

“As long as the couple hasn’t given over $900, it’s within the limits,” Ellis said. She added that this interpretation applies even when one spouse gives jointly and then later gives individually, calling it a “working definition” that campaigns have followed for years.

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Read More: Austin City Council members push to ease spending rules before vote

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Ellis said she personally knows the donors and is aware of which contributors are married, even if both spouses’ names are not listed on campaign finance forms.

However, official guidance from both the Texas Ethics Commission and the City of Austin requires contributors to list their full name on campaign finance reports.

“If a finance report listed an amount above $450 with only one name, that would be an issue for the city’s Ethics Review Commission to review,” city spokesperson Jenny LaCoste-Caputo said in a statement Wednesday.

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Central Texas-based ethics attorney Andrew Cates called it “common sense” to list contributions under two names from a married couple to clarify that those donations come from both people, adding that the whole reporting system is in place so there is no confusion about where the money is coming from.

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“If it’s combined, then say it’s combined,” he said. “It’s not that hard.”

City rules state that the candidate is responsible for filing required reports.

Campaign finance violations are reviewed by the city’s Ethics Review Commission. Ellis’ husband, Edward Espinoza, served on the commission from July 2023 through March 2025. He also previously served as Ellis’ campaign treasurer.

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Asked whether Espinoza’s service on the commission posed a conflict of interest, Tomlinson said Ellis recused herself during Espinoza’s appointment by the mayor. He added that the commission often struggled to achieve a quorum during that period and that other council members supported Espinoza’s appointment.

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“It doesn’t seem like anyone thought it was a conflict of interest,” Tomlinson said.

Read More: Austin’s proposed tax hike follows behind-the-scenes budget maneuvering

This is not the first time Ellis has faced scrutiny over campaign finance practices. In 2022, the Ethics Review Commission considered a complaint alleging 56 violations related to her campaign, including accepting contributions above city limits and failing to provide required donor employment information.

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Commissioners dismissed the allegations related to donor information but found that Ellis had accepted excessive contributions. Ellis acknowledged the violations and was sanctioned with a letter of notification. She later issued refunds for the amounts in question.

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In a written statement, Tomlinson said the commission “dismissed the lion’s share of complaints” and found that seven transactions — totaling about $20 — exceeded contribution limits by small amounts. Those funds were refunded and reflected in a subsequent campaign finance report, he said.

Ellis is running for re-election to a third term representing District 8. Because city rules generally limit members to two terms, she will have to collect signatures from at least 5% of eligible voters in her district to appear on the ballot. 

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So far, Ellis has drawn one challenger: Selena Xie, a former Austin EMS Association president, EMS commander and ICU nurse, who announced her candidacy in July. 

Voters will decide the District 8 race in the Nov. 3 election. Council districts 1, 3, 5 and 9 will also be on the ballot this November.

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Finance

Fake ‘ghost students’ stealing identities and financial aid money

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Fake ‘ghost students’ stealing identities and financial aid money

NEW YORK (WABC) — They’re called “ghost students” and they’re draining the resources of community colleges and stealing tax payer financial aid funds.

“You’re stealing from people who really have the least already,” said Dr. David Stout, President of Brookdale Community College in New Jersey. “It’s infuriating.”

Scammers are stealing people’s identities, often through data breaches, to apply for online college classes. Once they apply for financial aid and get the money, they disappear.

It’s a sophisticated scheme and community colleges are often targeted because of their open enrollment policies.

At Brookdale Community College, they’ve been receiving about 1,000 ghost student applications each year for the past three years.

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“Knowing that there are individuals out there that are trying to steal from our community college students and individuals who are trying to steal from our community and from our taxpayers is infuriating,” said Dr. Stout.

Since the pandemic started, it wasn’t rare to have students across the country sign up for his college’s online courses. But three years ago, when one of his financial aid workers noticed a bump in enrollment, the president’s team investigated.

“So she dug a little bit deeper and found that there were seven students that all shared somewhat common credentials and it was at that point that we realized that we were the victims of ghost students,” said Dr. Stout.

“Of course I’m furious that we may have individuals who try to take advantage of the open door policies that community colleges have,” said Dr. Stout.

He said there’s no evidence that any of the fake students who applied at Brookdale received financial funds, they were discovered first. Since then, the college says it has put mechanisms in place to root out fake applicants.

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Eyewitness News reached out to other colleges in the area who say they’ve also put new screening practices in place.

At the City University of New York, a spokesperson said ghost applicants make up less than 1% of its applications. In a statement, a college spokesperson said: “Thanks to our careful screening process none were accepted or provided financial aid, but we continue to strengthen our policies to reduce the number of these applications. For example, the University recently introduced CAPTCHA to screen out bots and fake applicants.”

Nassau Community College has also taken precautions.

A spokesperson said. “while we cannot disclose specific security measures, the college’s IT, financial aid, and admissions departments have been working together to protect the integrity of our admissions and financial aid processes and mitigate the risk this type of fraud poses to our institution.”

Eyewitness News partnered with ABC News to show how this is a growing problem across the country.

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The Inspector General’s Office with the U.S. Department of Education says they have 200 open investigations nationwide.

“We see in some of these fraud schemes where people are enrolled in two or three different schools at the same time receiving aid at all of them,” said Jason Williams, the U.S. Dept of Education Assistant Inspector General for Investigation.

Some schools are now using special software to screen applicants.

“It takes a tremendous amount of administrative work to go through and verify that they’re fraudulent,” said Dr. Stout.

The Brookdale Community College President says they’re in contact with other colleges in the area on a continuous basis to share information and ways to prevent ghost applicants from getting enrolled.

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Graham Price, Senior Consultant, Financial Restructuring

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Graham Price, Senior Consultant, Financial Restructuring

Graham is a senior consultant in the global special situations & private credit practice, based in the Hong Kong office. Dually qualified in England & Wales and Hong Kong, Graham focuses on both finance and restructuring matters across the Asia-Pacific region. He represents private credit funds, private equity sponsors, major institutional lenders and asset managers on a wide range of finance transactions, including cross-border leveraged financings, restructurings, special situations, direct lending, margin loans, real estate finance and corporate facilities.

Prior to joining Akin, Graham worked at leading international law firms in Hong Kong and London where he also undertook a secondment to Barclays Capital. 

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