In Person: Let’s learn from Kookmin CEO

Always smiling, Min is a master of martial art and sales

By Oh Young-jin

Rarely has this column described, from the start, its subject person as an example to learn from, especially when he or she has been in their job just one year.

But it was shortly after the interview began that it was made apparent to our team that Min Byong-deok, CEO of Kookmin Bank, has a lot more to offer than what we had expected. The interview, which was conducted at his Yeouido office, only lasted 35 minutes, about half the time given by others.

We had agreed on a shorter time partly because we believed the interview with Min would be business as usual. CEOs of banks under the wing of the four top financial groups are subordinate to group chairmen and often regarded as chairmen’s CEOs. Secondly, reflecting their position in the chain of command, they rarely speak frankly.

The 58-year-old career banker fit this typeset image, eclipsed by the charismatic Chairman Euh Yoon-dae. As a matter of fact, Min was chosen for the job last July through Euh’s novel way of naming his top lieutenant — through a popularity survey asking its employees who would be best for the position among a shortlist of executives. Min won and was given the job.

Interestingly, Min didn’t know Euh in person before he was appointed. “Chairman Euh needed a sales expert and he handpicked me through due process,” he said. “I believe that Euh is a great communicator that has enabled our bank’s transition.”

Min, from Cheonan, South Chungcheong Province, sounded very respectful of his boss, a common characteristic among successful No. 2s.

He said that Euh brought order to the chaos left behind by his predecessor Kang Chung-won, improving risk management and boosting the bottom line. Kang stepped down after his attempt to become KB Financial chairman was botched. Privately, Kang, a workaholic and leader among the elite of Korea’s early-generation banking executives, admitted that he had mistook the government’s signal and proceeded to take the job. His resignation briefly triggered controversy of government intervention that quickly receded under Euh’s leadership.

Although it remains to be seen how it will be interpreted, Kang’s tenure is now seen as a lost opportunity that put Korea’s leading bank on a slippery path, giving its rival, Shinhan, a chance to close the gap.

Already, under Euh, Min has performed a pivotal task in streamlining the bank’s payroll last year.

According to some reports, he remembers the time to be one of the most trying in his banking career.

Over 3,244 employees took early retirement packages and left the bank, which laid the ground for KB Financial’s normalization. Min was quoted as saying, “I neither played golf nor traveled overseas.”

So what other characteristics make Min unique?

First and foremost is his smile that starts from his eyes, disarming his interlocutors and engaging them in conversation.

That was exactly what happened during our interview.

He never failed to stop smiling, fielding questions high and low, curved or straight. After all, it was something expected of a career banker who has also been a top salesperson.

But one thing not expected was how different he looks and one might wonder whether he would find the same level of success if he didn’t have that smile.

He could look quite menacing, with his tall and fit figure and without the extra pounds that are normal for others his age.

He is a master martial artist who would keep fighting until he won or his rival gave up. According to some reports, his fighting spirit was piqued when his elder brother, the pillar of his family, died from an injury he sustained in a brawl. It was as if he wanted to avenge his brother’s death.

Fortunately for Min and Kookmin, his “never-give-up” disposition has helped him in his line of work.

He was given difficult assignments but prevailed on most occasions, raising his branches to the top of the sales rankings and luring big customers.

When it comes to the future of the bank, Min firmly believes in globalization.

He said his bank will not give up on its overseas operations and investments, trying to look for other areas to invest.

Asked about the current size of his bank’s payroll after the first round of rationalization, he said the appropriate levels depend on a variety of factors, pointing out, for example, the rise in the use of Internet banking. He also was optimistic about the bank’s performance, adding that it has saved provisions and eliminated enough nonperforming loans to get back on an expansion track.