Financial

May 1 (UPI) — South Korea’s Financial Supervisory Service (FSS) reportedly decided Thursday to suspend the business operations of Lotte Card for 4 1/2 months over a data breach.

The financial watchdog is also reported to have finalized the disciplinary measure, including a $3.4 million penalty and a reprimand warning for its former CEO Cho Jwa-jin.

The FSS declined to confirm the reports, while Lotte Card acknowledged it.

“Imposing a business suspension over a hacking case would be an unprecedented level of sanction,” Lotte Card said in a statement.

“As follow-up procedures remain, including a resolution by the Financial Services Commission (FSC), we will fully explain our position regarding the severity of the punishment, as well as our post-incident response efforts,” it added.

Nearly 3 million Lotte Card customers had their personal information compromised last year. The state-run Personal Information Protection Commission has already imposed a $64 million fine on the firm over the incident.

Following the FSS decision, the FSC is expected to make the final call in the coming months.

In 2019, South Korea’s leading private equity company, MBK Partners, teamed up with Woori Bank to acquire a 79.8% stake in Lotte Card for about $1 billion. MBK took 59.8%, and Woori held the remaining 20%.

MBK Partners sought to sell its stake in Lotte Card in 2023 but failed to find a buyer, and a similar effort last year also yielded limited results.

Lotte Card is not publicly listed.

A former executive at Live Nation, the world’s largest live entertainment company, is suing the company, alleging that he was wrongfully terminated after he raised concerns about alleged financial misconduct and improper accounting practices.

Nicholas Rumanes alleges he was “fraudulently induced” in 2022 to leave a lucrative position as head of strategic development at a real estate investment trust to create a new role as executive vice president of development and business practice at Beverly Hills-based Live Nation.

In his new position, Rumanes said, he raised “serious and legitimate alarm” over the the company’s business practices.

As a result, he says, he was “unlawfully terminated,” according to the lawsuit filed Thursday in Los Angeles County Superior Court.

“Rumanes was, simply put, promised one job and forced to accept another. And then he was cut loose for insisting on doing that lesser job with integrity and honesty,” according to the lawsuit.

He is seeking $35 million in damages.

Representatives for Live Nation were not immediately available for comment.

The lawsuit comes a week after a federal jury in Manhattan found that Live Nation and its Ticketmaster subsidiary had operated a monopoly over major concert venues, controlling 86% of the concert market.

Rumanes’ lawsuit describes a “culture of deception” at Live Nation, saying its “basic business model was to misstate and exaggerate financial figures in efforts to solicit and secure business.”

Such practices “spanned a wide spectrum of projects in what appeared to be a company-wide pattern of financial misrepresentation and misleading disclosures,” the lawsuit states.

Rumanes says he received materials and documents that showed that the company inflated projected revenues across multiple venue development projects.

Additionally, Rumanes contends that the company violated a federal law that requires independent financial auditing and transparency and instead ran Live Nation “through a centralized, opaque structure” that enables it to “bypass oversight and internal checks and balances.”

In 2010, as a condition of the Live Nation-Ticketmaster merger, the newly formed company agreed to a consent decree with the government that prohibited the firm from threatening venues to use Ticketmaster. In 2019 the Justice Department found that the company had repeatedly breached the agreement, and it extended the decree.

Rumanes contends that he brought his concerns to the attention of the company’s management, but his warnings were “repeatedly ignored.”

April 22 (UPI) — Federal prosecutors Tuesday evening announced an 11-count indictment against the Southern Poverty Law Center, accusing the non-profit of defrauding donors by using their money to pay informants within hate groups they were monitoring.

Acting Attorney General Todd Blanche announced the indictment from a Montgomery, Ala., grand jury during a press conference, alleging that between 2014 and 2023, the SPLC paid more than $3 million to informants in hate groups the organization had vowed to dismantle.

“As the indictment described, the SPLC was not dismantling these groups, but it was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred,” he said, alongside FBI Director Kash Patel.

The indictment, which was returned by an Alabama grand jury just minutes before the press conference, details payments to informants in groups such as the neo-Nazi National Alliance and the Ku Klux Klan, but does not detail extensive evidence that the money was “used to fund the leaders and organizers of racist groups.”

Federal prosecutors allege that the SPLC obtained money via donations by making “‘materially false representations and omissions about” what the money would be used for and utilized bank accounts linked to “fictitious entities” to covertly pay their field sources.

One SPLC informant is described in the court document as a member of the online leadership chat group behind the 2017 Unite The Right protest in Charlottesville, Va., where one person was killed when a car rammed counterprotesters.

This informant was paid more than $270,000 between 2015 and 2023, according to the indictment, which alleges that they attended the Unite the Right event “at the direction of the SPLC,” made “racist postings under the supervision of the SPLC and helped coordinate transportation to the event for several attendees.

Another SPLC informant described by federal prosecutors as being affiliated with the neo-Nazi National Alliance organization stole 25 boxes of documents from the headquarters of a violent extremist group, copied the materials for the SPLC and returned the originals. The court document alleges that the SPLC paid the informant more than $1 million between 2014 and 2023.

Blanche told reporters during the press conference that the informants were paid via pre-paid cards with funds from donors that were moved from bank accounts that the SPLC created for five fictitious organizations in order to shield the source of the funds.

“They attempted to hide their criminal activity from our financial banking network,” Patel said.

“They set up shell companies and entities around America so that the financial system that we rely on as everyday Americans were deceived into believing that money is not coming from the Southern Poverty Law Center in the perpetration of this scheme and fraud but rather fictitious entities they stood up to perpetuate this ongoing fraud.”

The indictment charges the SPLC with six counts of wire fraud, four counts of bank fraud and one count of conspiracy to commit money laundering.

Ahead of the press conference, SPLC CEO Bryan Fair announced in a video statement that the organization and its employees were the target of a federal investigation focused on its use of informants, though they had yet to know all the details.

He defended the SPLC’s use of informants as necessary to protect themselves and the public after decades of being “engaged in unprecedented litigation to dismantle the Klan and other hate groups.”

Information the SPLC gained from the informants was frequently shared with local and federal law enforcement, including the FBI, he said, adding that they did not broadly share their use of informants to protect their identities.

“While we no longer work with paid informants, we continue to take their safety seriously. These individuals risked their lives to infiltrate and inform on the activities of our nation’s most radical and violent extremist groups,” he said, vowing to fight the allegations.

“We will not be intimidated into silence or contrition, and we will not abandon our mission or the communities we serve.”

The SPLC has long faced criticism from some Republicans and conservatives, who say the prominent anti-hate nonprofit has drifted from its mission of fighting extremism and White supremacy by labeling several right-wing organizations as hate groups.

In October, Patel announced that the FBI severed ties with the SPLC, accusing it of having “long abandoned civil rights work and turned into a partisan smear machine.”

Democrats, SPLC supporters and critics of the Trump administration lambasted the indictment as politically motivated, with the American Civil Liberties Union calling it “another example of the Trump administration’s extreme attempts to silence its critics.”

“Let’s be clear about what’s happening here. This administration is using the full weight of federal prosecution to target an organization whose mission is rooting out violent extremism,” Sen. Cory Booker, D-N.J., said online.

“This is part and parcel of Trump’s assault on free speech, on nonprofits and on anyone who dares to disagree with him.”

House Majority Leader Hakeem Jeffries, D-N.Y., called the indictment “baseless and illegitimate.”

“These partisan hacks who continue to weaponize the criminal justice system against perceived opponents will never intimidate us,” he said.

Norway is preparing to lift restrictions preventing its $2.2 trillion sovereign wealth fund from investing in government bonds issued by Syria.

The move follows the political transition after the ousting of Bashar al-Assad and the rise of Ahmed al-Sharaa, whose government has been seeking economic recovery and international reintegration after more than a decade of war and sanctions.

At the same time, Norway plans to newly restrict investments in bonds issued by Iran, aligning with ongoing international sanctions.

Policy Shift and Financial Context

The Norwegian sovereign wealth fund, the largest in the world, plays a major role in global financial markets. Its investment decisions often influence broader investor behaviour.

The updated policy removes Syria from the exclusion list for government bonds while adding Iran, reflecting changing geopolitical and sanctions dynamics.

Although the fund does not currently hold investments in Middle Eastern government bonds, the policy shift opens the door for future allocations and signals a reassessment of risk and legitimacy.

Geopolitical Significance

Norway’s decision represents a notable step toward Syria’s re-entry into the global financial system. It comes alongside other developments, including the restoration of Syria’s financial links with international institutions after years of isolation.

The move also highlights a divergence in how states are being treated: while Syria is gradually being reintegrated, Iran remains economically isolated due to continued tensions and sanctions.

As one of the world’s most influential sovereign investors, Norway’s stance could encourage other countries and institutions to reconsider their own restrictions on Syria.

Analysis

The decision reflects a broader recalibration of international economic engagement based on political change and shifting strategic priorities. By opening the possibility of investment in Syrian bonds, Norway is signalling cautious confidence in the new government’s direction and stability.

At the same time, the move remains largely symbolic in the short term. The wealth fund has no immediate exposure to Syrian debt, and actual investment will depend on risk assessments, market conditions, and institutional safeguards.

More importantly, the policy underscores how financial tools are increasingly used as instruments of foreign policy. Inclusion or exclusion from global capital markets can legitimise governments, incentivise reforms, or reinforce isolation.

In Syria’s case, gradual financial reintegration could support reconstruction and economic recovery, but it also raises questions about governance, transparency, and long-term stability after years of conflict.

With information from Reuters.

Relief for global markets comes after Trump says Iranian officials are keen on a deal.

Asia’s main stock markets have surged, and oil prices have declined amid renewed hopes for ceasefire talks between the United States and Iran.

The relief for global markets on Tuesday came after US President Donald Trump said overnight that Iranian officials had reached out to his administration and expressed their openness to a deal.

“We’ve been called by the other side, and they would like to make a deal very badly,” Trump said in remarks at the White House.

Japan’s benchmark Nikkei 225 rose as much as 2.5 percent on Tuesday, while South Korea’s KOSPI gained about 3.7 percent.

Singapore’s Straits Times Index climbed about 0.6 percent.

In Hong Kong, the Hang Seng Index was up about 0.4 percent in the early afternoon, while the SSE Composite Index in Shanghai was about 0.5 percent higher.

The rally in Asia followed gains on Wall Street, with the benchmark S&P 500 finishing up 1 percent overnight.

Brent crude, the benchmark for global oil prices, dipped nearly 1.5 percent, falling below $98 a barrel.

The positive turn for markets came despite the US following through on its threat to impose a naval blockade on Iranian ports, a move that analysts warn is likely to exacerbate the energy shortage that is roiling the global economy.

Brent had surged above $103 per barrel after Trump on Sunday threatened to impose a blockade on the Strait of Hormuz, a conduit for about one-fifth of global oil and natural gas supplies.

The US military later clarified that the blockade would only apply to vessels entering and exiting Iranian ports, in an apparent scaling back of Trump’s threat to fully close the waterway.

Iran has effectively halted shipping through the strait since the start of the war on February 28, throwing the global energy market into a tailspin.

Only 21 vessels transited the strait on Sunday, according to maritime intelligence provider Windward, compared with roughly 130 daily transits before the start of the conflict.

SEOUL, April 6 (UPI) — South Korea’s KB Financial Group said Monday that Jeremy Allaire, founding CEO of U.S. digital currency firm Circle, will visit early next week to meet with its senior executives.

The Seoul-based financial group noted that the meeting would focus on strengthening bilateral collaboration and discussing concrete action plans for innovations in next-generation financial infrastructure.

In the latter part of last year, KB Financial started proof-of-concept tests using Circle Mint, a platform that enables companies to issue and manage stablecoins, primarily Circle’s USD Coin, or USDC.

From the testing, KB Financial said it was able to gain knowledge and capabilities necessary to manage digital assets via such platforms as Circle Mint.

The two firms are exploring joint business opportunities in various areas, including the domestic use of USDC, cross-border transactions and potentially issuing a Korean currency-backed stablecoin.

“The upcoming meeting with Allaire will go beyond a simple one-off event. It will serve as a catalyst to elevate the partnership between the two companies, which have already completed in-depth technical verification,” KB Financial said in a statement.

“Based on the robust cooperation framework established with Circle, we will keep beefing up our leadership in the digital asset markets at home and abroad,” KB said.

Sogang University economics professor Yoon Suk-bin pointed out that competition will intensify sharply in the market, which combines traditional money and digital currency.

“It is a major industry trend for traditional financial institutions to partner with emerging digital asset firms to build integrated platforms,” he told UPI. “Circle CEO’s visit to Seoul can be understood in that context.”

Meanwhile, Dunamu also confirmed that Allaire would meet its executives next week. The digital powerhouse is an operator of South Korea’s leading cryptocurrency exchange, Upbit.

Democratic lawmakers are demanding scrutiny into Paramount Skydance’s financial backers amid rising concerns about potential foreign influence of U.S. media properties.

In a letter this week to Federal Communications Commission Chairman Brendan Carr, seven U.S. senators criticized Carr’s suggestion that Paramount’s $111-billion bid for Warner Bros. Discovery, backed by billionaire Larry Ellison and his family, was on a fast track to receive FCC approval with scant oversight.

Such complicated mergers typically receive an intense government review. The proposed merger would combine two legendary film studios, dozens of cable channels, HBO, CBS and two major news organizations, CNN and CBS News.

Ellison and his son, David, who chairs Paramount, are friendly with President Trump, who has long agitated for changes at CNN, which is slated to be absorbed by Paramount.

The company has said it expects to complete the deal by the end of September.

The Democrats expressed concerns that the fix may be in. Trump’s Justice Department has been reviewing whether the merger would violate U.S. antitrust laws, but a key deadline passed last month without comment from the department’s antitrust regulators.

Also at issue is the Middle Eastern money the Ellison family has been expecting to pull off Paramount’s leveraged buyout of its larger entertainment company rival. The acquisition would leave the combined company with nearly $80 billion in debt.

Late last year, Paramount disclosed that it had lined up $24 billion from wealth funds representing the royal families of Saudi Arabia, Qatar and Abu Dhabi, who would then become equity partners in the combined company.

Paramount has described the funds as largely passive investors, saying the royal families would not have input into corporate decision-making. They also would not control seats on the Paramount-Warner board.

Congressional Democrats previously have warned about potential national security concerns. The senators, led by Cory Booker (D-N.J.) and Chuck Schumer (D-N.Y.), remain concerned, particularly because the transaction will help shape the future of Hollywood production and the direction of key news outlets, including CNN, which maintains a strong presence around the world.

Members of the party have called on Carr to conduct “a full and independent” analysis of the foreign ownership interests before signing off on the merger. The FCC could play an important role, they said, because the tie-up includes Paramount-owned CBS, which holds FCC broadcast station licenses.

Paramount declined to comment. FCC officials did not respond to a request for comment.

Booker and Schumer pointed to Carr’s comments at an industry conference in Spain earlier this month. During an appearance at the Mobile World Congress, Carr suggested the Paramount-Warner deal could be swiftly approved because the foreign investment would warrant only a “very quick, almost pro forma review,” Carr reportedly said.

The FCC has a duty to examine foreign ownership, the lawmakers said, referencing the U.S. Communications Act, which forbids owners from outside the U.S. from holding more than 25% of the equity or voting interests in an entity that maintains an FCC license.

The lawmakers mentioned the FCC’s move earlier this year to tighten its foreign ownership framework to bolster transparency.

Paramount has not yet disclosed its final list of equity partners.

The company previously disclosed its proposed partners in Securities & Exchange Commission filings. However, last month, the composition of the Paramount-Warner deal changed when Larry Ellison agreed to fully guarantee the $45.7-billion in equity needed to finance the $31-a-share buyout of Warner investors.

Before Ellison stepped up, Warner board members had expressed concerns about Paramount’s financing. The tech billionaire’s increased involvement helped carry the Paramount deal over the finish line. Netflix bowed out Feb. 26, ceding the prize to Paramount.

Still, Paramount is expected to line up billions of dollars from outside investors.

It would be significant if Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co., contributed $24 billion to the deal, the Democrats wrote.

“This is not incidental capital, it represents roughly one-fifth of the total transaction value,” Booker and the others wrote. “And it is not clear that this will be the only foreign investment.”

Initially, Paramount included Chinese technology company Tencent Holdings as a minority investor, but Paramount later removed Tencent from the investor pool due to concerns about its problematic status — it has been blacklisted by the U.S. Department of Defense.

Bloomberg News reported earlier this month that Tencent might return to the fold.

“This constellation of foreign investment from China and from Gulf States, with complex and sometimes competing relationships with the United States, demands rigorous, not perfunctory review,” Booker and the others wrote.

The letter also was signed by Sens. Dick Durbin (D-Ill.), Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.), Sheldon Whitehouse (D-R.I.) and Mazie K. Hirono (D-Hawaii).

They keyed in on the role of Saudi Arabia’s sovereign wealth fund, saying it was controlled by Crown Prince Mohammed bin Salman “whom the U.S. intelligence community concluded ordered the murder of Washington Post journalist Jamal Khashoggi in 2018.”

The proposed $24-billion investment would give “these governments a significant financial stake in the future content, licensing, and strategic decisions of a combined entity that includes some of the most-watched news and entertainment networks in America.”

It is also unclear whether the current tensions in the Middle East over the Iran war will have an impact on Paramount’s investor syndicate.

Trump’s son-in-law Jared Kushner, a proposed Paramount investor, also withdrew late last year.

Paramount shares held steady at $9.17. The company’s stock is down 31% since Feb. 27, when the company prevailed in the Warner auction.

Black smoke could be seen in Dubai’s financial district where witnesses reported hearing explosions on Friday morning. Authorities there said a building was hit by debris from an intercepted missile.

The surge in oil prices triggered by the war in Iran is increasingly becoming a major concern for global central banks, which are closely monitoring the potential economic and financial consequences of the shock.

More than a week of conflict in the Middle East has disrupted energy supply routes and pushed crude prices sharply higher, raising fresh fears about inflation. For policymakers already grappling with fragile economic conditions, the oil spike presents a complex policy dilemma.

Historically, oil shocks have posed a difficult challenge for central banks. Rising energy prices can drive inflation higher while simultaneously weakening consumer spending and business activity by raising costs. In such circumstances, policymakers face an uncomfortable choice: tighten policy to control inflation or ease financial conditions to support economic growth and employment.

The current situation could potentially produce both outcomes at once, creating a scenario where inflation rises even as economic demand weakens a combination that complicates monetary policy decisions.

Inflation Versus Economic Growth

Central banks traditionally respond to inflationary pressures by raising interest rates or maintaining tighter monetary policy. Some policymakers argue that responding quickly to inflation triggered by an oil shock can prevent inflation expectations from becoming entrenched and reduce longer-term economic damage.

Others, however, advocate “looking through” temporary energy-driven price spikes, arguing that aggressive tightening could unnecessarily damage economic growth. This approach gained prominence after the pandemic, when many central banks initially viewed inflation as temporary a judgment widely criticised in hindsight.

The decision facing policymakers now depends on several uncertainties, including how long the conflict lasts, how severely energy supplies are disrupted, and whether governments intervene with subsidies or price caps to protect consumers.

Given these unknowns, many central banks may prefer to adopt a cautious approach, waiting to see how markets and economic conditions evolve before making significant policy adjustments.

Financial Stability Risks Enter the Picture

Beyond inflation and growth concerns, central banks must also consider a third responsibility that has gained prominence since the global financial crisis: financial stability.

Senior policymakers worry that the oil shock could expose vulnerabilities that have been building in global financial markets for years. A large macroeconomic disturbance involving energy prices, inflation, interest rates and currency volatility could trigger a broader financial stress event.

Much of the concern centres on the growing role of “shadow banking” institutions, financial intermediaries operating outside traditional banking regulation. These entities have become increasingly important providers of credit to companies and governments.

One major area of focus is the rapid expansion of private credit funds, which now manage more than $3 trillion globally. These funds allow asset managers to lend directly to businesses, often outside the scrutiny of public markets or traditional banking standards.

Regulators worry that during a major shock, investors could rapidly withdraw funds from these vehicles, potentially creating liquidity problems for borrowers and spillover risks for banks that help finance or manage the funds.

Pressure in Bond and Repo Markets

Another major source of concern lies in government bond markets, where highly leveraged hedge funds have become increasingly active. Many of these funds use repurchase agreements, or “repo” markets, to borrow money and finance large trades involving government bonds.

These strategies often rely on exploiting small price differences between cash bonds and futures contracts, but they involve substantial leverage. While such activity can help smooth government financing, it can also create systemic vulnerabilities during periods of market stress.

The Financial Stability Board, which monitors risks to the global financial system for the G20, warned earlier this year that sudden deleveraging in repo markets could disrupt sovereign bond markets.

More than $16 trillion in repo transactions backed by government bonds were outstanding last year, with about 60% concentrated in the United States. A sudden withdrawal of leveraged investors could therefore have significant ripple effects across global financial markets.

New Fragilities: Stablecoins and Technology Stocks

Regulators are also monitoring emerging risks linked to digital finance. Stablecoins cryptocurrencies pegged to traditional currencies such as the U.S. dollar have grown rapidly and are increasingly investing reserves in government bonds.

With the stablecoin market now worth roughly $300 billion and expanding, any loss of confidence in these assets could trigger large-scale sales of the bonds that back them. Such an event could add stress to already volatile financial markets.

At the same time, some investors remain concerned about high valuations and heavy market concentration in the rapidly growing artificial intelligence sector, which could amplify market volatility during periods of economic uncertainty.

Analysis: Oil Shock Could Trigger Wider Financial Stress

The Iran war oil shock illustrates how geopolitical crises can interact with financial vulnerabilities to create broader economic risks.

Higher energy prices directly increase inflation and strain household finances. At the same time, they can force central banks to reconsider interest-rate policies, potentially leading to higher borrowing costs and greater volatility in financial markets.

Such conditions could expose weaknesses in highly leveraged sectors of the financial system, particularly in shadow banking, hedge funds and digital financial markets.

Although previous shocks including the economic turmoil following Russia’s invasion of Ukraine did not ultimately trigger a major financial crisis, policymakers remain cautious. The brief turmoil in the U.S. regional banking sector in 2023 demonstrated how quickly financial stress can emerge when economic conditions shift.

If oil prices remain elevated and central banks are forced to respond aggressively, the resulting tightening of financial conditions could amplify existing vulnerabilities across markets.

For now, the disturbances appear manageable. But the combination of geopolitical conflict, energy market disruption and financial fragility ensures that central banks will continue to watch the situation with increasing concern.

With information from Reuters.