Euh takes helm of KB Financial Group

By Kim Jae-won

Staff reporter

Euh Yoon-dae, a former president of Korea University and chief of the blue-ribbon committee to improve the national image, took office as chairman of KB Financial Group, the country's leading financial services provider, Tuesday.

Euh's inauguration is expected to trigger a significant change in the nation's leading financial services provider and bring changes to the landscape of the industry through mergers and acquisitions. He is launching a team to find a new president for Kookmin Bank, the group's flagship, with the appointee expected to come from inside the financial group.

In his inaugural speech, Euh took General Motors as an example not to follow, vowing to cut costs and enhance efficiency in order to increase his group's profitability.

"General Motors enjoyed a prestigious status in the American auto business for the past 100 years, but it collapsed last year. The automaker failed to reform its high-cost management structure," said Euh. "KB should face reality and not follow in its footsteps."

Euh said that he plans to add new revenue sources through existing businesses, while remaining flexible on acquisition opportunities.

He said the group plans to spin off the credit card business from the banking unit and will seek to further strengthen its securities operations through takeovers.

Regarding his much-touted preference for a megabank, Euh said he wasn't planning on doing anything anytime soon, adding that it could take a couple of years. He has faced some barracking from union members, who said that they would object to any takeover because it will entail a payroll cut. Additionally, some shareholders have raised issue over his qualifications, for being a confidant of President Lee.

In an emergency shareholders' meeting at KB headquarters in Yeouido, Seoul, Euh's nomination was approved. He was nominated for the job last month.

Euh took office 10 months after Hwang Young-key resigned on Sept. 29 under government pressure to take responsibility for investment losses at his former employer, Woori Finance Holdings.

Meanwhile, Kang Chung-won, chief executive of Kookmin Bank, stepped down Tuesday after about six years at the helm of Korea's top lender.

어윤대 KB금융지주회장 취임

전 고려대 총장 어윤대씨는 화요일 한국의 대표적인 금융기관인 KB금융지주의 회장직에 취임했다.

어 회장의 취임은 KB금융은 물론이고 기업인수합병을 통해 금융계 전반에 걸쳐 중대한 변화를 일으킬 것으로 예상된다. 어 회장은 KB그룹의 대표 격인 KB은행의 사장직을 물색하고 있다. 사장내정자는 그룹 내부에서 발탁할 것으로 예상된다.

취임사에서 어 회장은 GM의 실패 사례를 들며 예산을 줄이고 KB그룹의 수익성을 높이기 위해 효율적 측면을 강화하겠다고 공언했다.

어 회장은 "GM은 100년 동안 미국 자동차 산업에서 특권을 누려왔지만 작년에 무너졌다. 이는 고비용의 관리구조를 뜯어고치는데 실패했기 때문"이라며 "KB는 현실을 직시하고 GM과 같은 길을 걸어가면 안 된다"고 강조했다.

어 회장은 이명박 대통령과의 친분 문제로 노조원들 및 주주들의 반대에 부딪히기도 했다.

KB지주의 회장 취임은 황영기 전 회장이 정부의 압력으로 작년 9월 29일 사임한 후 10개월 만이다.