Value context and insight. lkm@koreatimes.co.kr
KB, NongHyup bank heads to spur global expansion in 2020
KB Kookmin Bank CEO Hur Yin
By Lee Kyung-min
By Lee Kyung-min
KB Kookmin Bank CEO Hur Yin and NongHyup Bank CEO Lee Dae-hoon are expected to put a top priority on globalization, an area in which the two have “underperformed” compared to their peers, industry officials said Tuesday.
Immediate and substantial improvements will be required amid high expectations on the two whose terms have been extended following outstanding performances during their previous terms.
KB's Hur seeks to adopt a two-track approach in overseas business expansion.
One is enhancing financing for micro-, small- and medium-sized enterprises (MSMEs) in developing countries.
The other is corporate and investment banking in developed countries seeing growing demand for more sophisticated financial services.
This will give a competitive edge to the bank's holding company KB Financial Group ― the second-largest industry player by assets in a neck-and-neck competition with Shinhan Financial which boasts a strong overseas presence ― 159 outlets in 20 countries.
KB Financial by contrast has a global network of 56 outlets in 13 countries.
Hur's first overseas visit was to bank branches in China, Hong Kong and Cambodia from Dec. 9 to 13. This was to reaffirm ties with business partners and to boost employee morale there.
Hur is also expected to focus on improving the business capabilities of the overseas outlets.
A case in point is Vietnam where KB was able to convert its liaison office in Hanoi to a branch, making it a strategic base connecting the group's card, non-life insurance and securities subsidiaries there.
Apart from the Southeast Asian countries, KB has investment banking desks in New York, Hong Kong and London.
“The overseas drive seeks to find an alternative sustainable future growth engine amid a low-growth domestic market that has nearly saturated,” a KB official said.
NongHyup Bank CEO Lee Dae-hoon
Lee of NongHyup will focus on increasing agriculture-oriented business partnerships, one of the bank's strong suits, with decades of experience in developing business models including financing the traditional industry as it faces rapid technological changes.
Lee met with Hong Kong Investment Promotion Director-General Stephen Phillips in October, to boost ties to help the Korean bank set up branches in Hong Kong and help Korean startups expand in the international financial hub.
A month earlier, Lee met with two senior trade and investment officials from Australia's Trade and Investment Commission (Austrade) in September.
They discussed ways to help enhance human resources exchanges as part of a long-term business strategy to expand knowledge-sharing in developing and financing the agricultural sector.
“We and our Australian counterparts are hopeful about the future cooperation especially in areas where we will help Australia with large-scale, state-run agricultural projects,” a NongHyup official said.
Hur and Lee's terms will end November and December 2020, respectively.