By Na Jeong-ju
Staff Reporter
The Industrial Bank of Korea's new president Yun Yong-ro said the most urgent task facing the bank is the establishment of its identity. The bank has sought to sell the remaining government stake in the bank but the privatization process has been slow.
Mindful of the slow privatization process, Yun called for the government to press ahead with the privatization plan.
``The IBK is in the midpoint between a state-owned and a private bank and this spells a lot of trouble for businesses,'' Yun said at a press conference after an inauguration ceremony. ``To strengthen our competitive edge, privatization is urgent.''
After divesting of the government stake, Yun wants to turn the bank into a financial group that provides comprehensive banking services from financing for small firms to investment banking.
``I will seek to transform the bank into a financial group specialized in providing diverse services for small -to medium-sized companies, including financing, consultation, IPO and other comprehensive financial services,'' Yun said. ``To that extent, we will establish a new brokerage house and engage in the insurance business.''
Yun said that the bank will make sure that its businesses will remain oriented to the satisfaction of customer needs.
He said that banks, which have recently expanded loans to smaller firms, are expected to cut their loans to them next year, possibly worsening funding for the firms.
``We cannot rule out the possibility of a credit crunch for small firms. Therefore, we are going to expand loans to these small- to mid-size firms next year.'' But he made it clear that the bank will also strengthen credit analysis of corporate borrowers to keep the loans from going sour.
Yun, the former vice chairman of the Financial Supervisory Commission, was designated as president of IBK last Thursday. He will get shareholder approval for the post at a meeting tomorrow. He filled the post that has been vacant since former IBK President Kang Kwon-seok passed away late last month.
Yun is a long-time veteran in finance, who began his career at the Ministry of Finance and Economy after passing the state-run exam in the 1970s. Yun became the FSC vice chairman in February this year.