Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Kookmin Bank chief urged to spur global expansion
KB Kookmin Bank CEO Hur Yin, third from right, takes part in a ribbon-cutting ceremony at the bank's Hanoi branch, Feb. 20. Courtesy of KB Kookmin Bank
By Lee Min-hyung
By Lee Min-hyung
KB Kookmin Bank CEO Hur Yin
KB Kookmin Bank CEO Hur Yin is expected to place a top priority on raising the bank's global profile in Southeast Asia during his second term next year.
Kookmin Bank maintained a strong foothold in the local market by posting the largest combined operating profit between January and September.
But with the traditional banking industry here reaching saturation, KB and its rivals are turning their eyes to other countries with huge growth potential particularly in the underdeveloped Asian region.
He exercised strong leadership during his first term by leading the bank's stable earnings growth over the past two years.
But he is expected to shift focus to laying the foundation for future growth in overseas markets during his second term.
“Global expansion, mostly in emerging countries in Asia, is standing at the center of the bank's major business next year,” an official from the bank said. “The overseas drive is part of our efforts to overcome limited growth potential in the local financial market and secure sustainable future growth engines.”
In the banking industry, KB Kookmin Bank is cited as a “latecomer” in terms of its global drive.
For instance, Shinhan Bank, the biggest local rival of KB, is considered the exemplary first mover in the global expansion strategy after establishing its first branch in Vietnam's commercial capital of Ho Chi Minh City in 1995.
Shinhan has since expanded the number of branches to 36 as of November 2019. Vietnam accounted for more than 30 percent of the bank's overseas profits from the first to third quarter this year.
KB runs two branches in Vietnam, but the bank is making rapid inroads into other Asian territories, such as Myanmar and Cambodia.
The bank operates 17 branches in Myanmar after it entered the market in 2017. The bank expects the country to become its next major overseas cash cow, as its financial market is still in its infancy.
As of the end of last year, KB Kookmin Bank operated businesses in 10 countries where it reported a 2018 annual net profit of 63.1 billion won ($54 million).
Aside from the global expansion, Hur's other crucial task is to generate meaningful outcomes in the bank's years-long “digital transformation” drive.
Hur, who took office in November 2017, has underlined the importance of embracing technologies in the financial sector.
He has since focused on incorporating emerging technologies, such as big data and artificial intelligence, into its banking services.
As the digital transformation is still underway and takes more time to reap tangible achievements, Hur will continue to realign the firm's business portfolio to speed up the digital-driven innovation during the second term, according to the bank.