'Big boss' shuts out KEB Hana chief
Kim Jung-tai Hana Financial Chairman
By Choi Kyong-ae
KEB Hana Bank President and Chief Executive Ham Young-joo is likely to have limited leeway in key management decisions as its parent Hana Financial Group’s chief fully controls the largest bank by assets.
At Tuesday’s launching press event for the merger of Hana Bank and Korea Exchange Bank, it was Hana Financial Chairman and CEO Kim Jung-tai who delivered the merged bank’s core growth plans.
“KEB Hana will focus on expanding overseas operations and non-banking businesses to ride out deteriorating the business environment in the domestic market,” Kim said ahead of Ham’s inaugural speech.
The chairman, not the president, made the comments on the new bank’s strategy on the first day of its operation. He said he did not bring his business cards with him as the “swollen holder may prevent my suit from looking slimmer.”
When asked for his name cards by scores of reporters, Kim asked his secretary to bring his name card holder from his office “as soon as possible” so they could be distributed to reporters during the press conference.
Minutes after Ham began his speech, the name cards arrived.
To most reporters’ surprise, Kim, 64, went around each table while reporters were typing in Ham’s announcement of the bank’s post-merger integration plans to shake hands with them and give them his business card. And then he left while Ham, 60, was still delivering his speech.
To the eyes of most, Kim’s attitude toward Ham and his confident comments on the merged bank’s business strategy clearly indicated that he will hold sway over KEB Hana Bank. Many of them expect Ham will just play the role of the bank’s president under the guidelines of Kim.
When asked questions during the press conference, Ham looked like he was reading the same statement as he reiterated nearly the same answers to some questions. He put strengthening the banks’ sales networks before anything else.
Even when he said there will be no massive job cuts and the computer system will be integrated by June, the sales veteran didn’t elaborate on related questions. As deputy president of Hana Bank, he was fully responsible for sales in Chungcheong Province from 2012 through August. He helped Chungcheong’s sales operation team beat its rival teams in Seoul and other major cities.
Given that, chances are high that Kim will make major management decisions and Ham will play an important but subsidiary role at the bank.
Asked after the press event if he could elaborate on the bank’s growth plans in terms of overseas expansion and non-banking businesses, Ham was unable to provide any specifics.
“Vice Chairman Kim Han-jo will be well aware of the fields,” he said.
Former KEB CEO Kim Han-jo and former Hana Bank CEO Kim Byoung-ho are now in charge of KEB Hana’s overseas and domestic businesses, respectively, as Hana Financial’s vice chairmen. They also vied for the merged bank’s CEO position, but Ham beat them out. Industry people believe Ham’s expertise in sales earned him the post.
Chairman Kim has led the integration efforts since 2012 when he took the top job. It was he who persuaded the union to accept the earlier-than-planned merger with the guarantee of job security.