By Na Jeong-ju
Staff Reporter
Kookmin Bank President Kang Chung-won said Thursday he will stake his three-year term on putting the bank in the ranks of top Asian lenders by expanding its presence in emerging markets with localization strategies.
In a speech marking Kookmin's six-year anniversary, he said the bank will set up operations in South Asia, China and Central Asia and introduce more effective systems that can direct its global expansion.
``My duty is to consolidate Kookmin's status as the No.1 Korean lender and lay the groundwork for it to keep its supremacy for at least the next 10 years,'' Kang said. ``It is also important to develop global markets. My vision is to make Kookmin a trendsetter in the Asian financial market, and the next three years will be a very crucial period in realizing that goal.''
Kang, 57, became the CEO of the country's largest lender in 2004 and secured another three-year term last month. The bank officially appointed him as its new president at a shareholders' meeting on Oct. 31.
Kang came up with five key missions: Turning Kookmin into a financial group providing comprehensive services; expanding the Asian business network; renovation of business systems; sustainable asset growth; and nurturing financial experts.
He said the bank intends to make inroads into the subprime loan market for those who are not accepted at banks due to poor credit records.
``Based on our strength in retail banking and risk management capabilities, we will come closer to potential customers who have had difficulty in getting bank loans,'' Kang said.
Analysts forecast Kookmin will seek aggressive expansion in securities, insurance and other non-banking areas, where it has fallen behind key South Korean rivals, such as Shinhan Financial Group and Woori Financial Group.
``With barriers between financial markets being pulled down, Kookmin is expected to increase its non-banking shares to diversify income sources,'' said Baik Dong-ho, an analyst at Woori Investment & Securities.
Lee Jun-jae, an analyst at Korea Investment & Securities, said Kookmin may move to find merger targets in both local and overseas markets.
``Kookmin has seen rapid earnings growth, but now badly needs new growth engines to take a leap forward amid growing challenges from non-banking firms and worsening profitability,'' Lee said. ``In order to become a global bank, Kookmin may pursue aggressive asset growth through mergers and acquisitions.''
The lender said last month it will set up a brokerage unit this year, and has expressed intention of acquiring an insurance firm.
Overseas, it will open an office in the Vietnamese capital of Ho Chi Minh City on Nov. 13. with the goal of providing retail and corporate banking services. It also plans to set up branches in Harbin in northern China and Kiev, Ukraine, this year, becoming the first Korean lender to offer banking services in the cities.
Kookmin's third-quarter earnings rose 14.3 percent from a year earlier to 775 billion won ($852.3 million).