Value context and insight. lkm@koreatimes.co.kr
KB chief vows to push for aggressive M&As
KB Financial Group Chairman Yoon Jong-kyoo
By Lee Kyung-min
Shinhan head eyes Asia's leading financial group
By Lee Kyung-min
KB Financial Group Chairman Yoon Jong-kyoo said Wednesday that the group will push for mergers and acquisition (M&A) in a move to secure new sources of future growth.
“Despite the overall adverse business circumstances, the group will seek to enhance close integration among affiliates and boost their competitiveness,” he said at a shareholder meeting at the group headquarters on Yeouido, Seoul.
Heightened macroeconomic uncertainties compounded by strengthened government regulations on lending rules, are among the factors posing “headwinds” to business, he added.
He also said that an aggressive overseas expansion will be pursued in countries including Myanmar and India.
The initiative is in line with the “New Southern Policy,” a major diplomatic initiative spearheaded by President Moon Jae-in seeking to diversify trading partners mostly by reducing the heavy reliance on China, and the U.S.
Yoon recognized that the group's life insurance arm in particular requires measures among other subsidiaries.
“The non-banking sectors including card and non-life insurance and subsidiaries will continue to strive to become leading players in the respective industries ― not to mention the banking business ― to help the group become the leader in the industry,” he said.
KB was overtaken by its rival Shinhan Financial Group in 2018 in terms of net profits and total assets.
Shinhan Financial posted a combined net profit of 3.16 trillion won ($2.8billion) in fiscal 2018, up 8.2 percent from the year earlier and regained the top spot after just a year of trailing KB. KB Financial had 3.07 trillion won in net income in 2018.
He also apologized for the 35 percent plunge in the group's stock price over the past year.
On March 13, KB Financial's stock price fell to 41,800 won, hitting a 52-week low. The drop was considered highly “disappointing” given other financial shares saw a 3.6 percent increase on average over the past three months.
Shinhan Financial Group Cho Yong-byoung speaks at the group shareholders' meeting at the group headquarters in Seoul, Wednesday. Courtesy of Shinhan Financial Group
Shinhan Financial Group Cho Yong-byoung said the group will not remain complacent despite the recent “feat” of regaining the industry leader's status.
“In terms of asset, market capitalization and stock price, we are the industry leader. We, instead of remaining idle, will continue to contribute to the development of the country's financial industry,” he said at the shareholders' meeting at the group headquarters in Seoul.
“Last year, the group successfully inked important M&As involving the group's card subsidiary and Orange Life, as well as Asia Trust specializing in real estate investment trust (REIT) business. We will continue to expand our business to help the group achieve sustainable growth,” he added.
Cho vowed to continue efforts to pursue “Vision 2020,” under which Shinhan seeks to become a leading financial group in Asia.
The vision also includes plans to earn 20 percent of its profit from overseas operations, an attainable goal given the 14.5 percent profit garnered in the first half of 2018.