Sales experts leading banks

By Kang Seung-woo

The local banking industry is expected to face an uphill struggle in the retail segment, as sales-savvy Min Byong-duk, formerly vice president of the Kookmin Bank, took the helm of the nation’s largest lender Thursday.

His appointment is reflecting KB Financial Group chairman Euh Yoon-dae’s strong will to transform the group’s flagship into a more competitive, efficient organization. Despite the most extensive network of branches and the largest customer base, Kookmin has suffered a setback both in profitability and growth during the past year.

It has recently failed to stamp its authority on the industry in the wake of the global financial crisis. Its investment in Kazakhstan's Bank Center Credit (BCC) has incurred a huge loss and many loans extended for real estate projects are running a high risk of turning sour.

Currently, the top posts of local banks are mostly dominated by sales experts. Woori Bank’s Lee Chong-hwi, Hana Bank’s Kim Jung-tae and Shinhan Bank’s Lee Baek-soon all climbed the corporate ladder to become president thanks to their remarkable careers in sales.

The rise of sales experts has become a trend as more shareholders tend to believe that those showing strong capabilities in sales will be able to guide the organization in the right direction as such leaders are able to see the small trees, as well as the big forest, at the same time.

Shinhan Bank registered a net profit of 588.5 billion won in the first quarter, which was the best record in the sector. Its impressive performance was mainly attributed to its leadership from executives who have a background in sales.

Along with CEO Lee, Shinhan Financial Group CEO Shin Sang-hoon is also known to be a sales expert.

“There is no bank to match Shinhan in terms of sales because it stands out in the field thanks to its executives specialized in sales,” a bank official said.

Woori Bank CEO Lee Chong-hwi is also known for his sales-centered strategy.

Lee, 61, who reached the top position in June 2008 after working as the manager of three branch offices, put an emphasis on competitiveness in the banking business.

“In order to maximize on the competitiveness in terms of sales, each branch needs to soak up the atmosphere focusing on sales,” Lee said in a meeting for business strategy, Saturday.

As a matter of fact, Lee’s business-first strategy paid off as Woori posted a net profit of 953.8 billion won ($793 million) last year, up 719.8 billion won or 307.7 percent from the previous year, making it the best-performing bank.

Likewise, Hana’s Kim has continued to focus on sales since he took control of the nation’s fourth-largest lender in March 2008.

In addition, the 58-year-old recently told his employees to strengthen its online business in a bid to become the No. 1 bank in market share.

“Luring new customers and reinforcing smartphone banking will play a key role in becoming the best bank,” Kim said in his monthly address earlier this month.