Published : Jan. 2, 2015 - 21:33
Leaders of financial groups pledged to make a fresh start this year through mergers or reforms after going through hard times last year.
The banking sector was hit hard by a series of scandals involving customer information leaks, loan fraud and leadership feuds in 2014.
The most ambitious New Year’s statement was that of Hong Ky-ttack, chairman of the new integrated Korea Development Bank Group.
“Being the state’s representative policy organization, the new integrated KDB will actively perform its role as a risk-taker, in sectors where private banking may not easily step in,” Hong said on Friday.
The state-run bank took over the Korea Finance Corp. and formed a comprehensive state financing body for the first time in five years. KoFC was formerly affiliated with KDB, until it was separated in 2009.
“The re-merger is not a return to the past but a prompt response to the needs of the times,” he said.
“We will further contribute to the creative economy by investing in small and medium-sized firms and developing technology financing.”
Integrated financing, too, will continue to be a leading vision for KDB, the chairman added.
Another financial company which faces major restructuring is Hana Financial Group, which is seeking to merge its two flagship banks ― Hana Bank and Korea Exchange Bank.
The earlier-than-expected merger of the banks, which is slated for 2017, has triggered a backlash from the KEB labor union but the leadership has reiterated that the integration is indispensable for the banking group’s survival.
“The integration is just a process to maximize the synergy of the group,” chairman Kim Jung-tae said in his New Year’s speech.
“What matters more is to create collaboration and convergence (through integration) and to develop our true capacities.”
KB Financial Group chairman Yoon Jong-kyoo, who replaced his feud-ridden predecessor Lim Young-rok in November, said that the group was now ready for a fresh start.
“(For the past few months) we have focused on setting a new goal and reforming our work processes, and it is now time to put our plans into practice, without fearing the consequences,” he said.
The financial group was a thorn in the side of financial authorities all of last year.
Not only did it start off the year with a massive customer information leak, but it also went through a monthslong leadership dispute between its former group chairman Lim and bank president Lee Kun-ho.
Both ended up facing heavy penalties, after which Lee stepped down and Lim was dismissed by the board of directors.
New Woori Bank CEO Lee Kwang-goo and NH Financial Group chairman Yim Jong-yong also issued their New Year statements.
In line with the financial companies’ ambition to create new momentum, financial authorities promised to maximize the market’s autonomy.
“We will switch our supervisory stance so as to respect the autonomy, creativeness and free competition of financial companies,” said Zhin Woong-seob, governor of the Financial Supervisory Service.
“In this way, we hope to activate the dynamics of the financial market.”
By Bae Hyun-jung (tellme@heraldcorp.com)