Bank chiefs rush to embrace SMEs, startups
Woori Bank CEO Sohn Tae-seung
By Lee Kyung-min
CEOs of Korea's major banks are stepping up efforts to curry favor with promising startups and small and medium-sized enterprises (SMEs) by expanding investment and arranging more on-site meetings to listen to their voices.
The move comes as these lenders are being pressured to find new growth sources amid the sagging retail loan market following the government's tightening of household lending to curb real estate speculation.
Woori Bank CEO Sohn Tae-seung has led the lender's initiative to invest about 18 billion won ($1.5 million) in 19 new firms whose business models are based on “innovation-led” technology.
Firms receiving up to 1 billion won each in financing are mostly in the business of the Internet of Things (IoT), artificial intelligence, bio, and health technologies.
Starting this month, Sohn plans to begin a relay meeting with startups seeking investors that will buy the firms' shares.
Shinhan Bank CEO Jin Ok-dong, who took the helm in late March, is continuing with his visits to key cities in provincial areas, as part of his pledge to enhance communication with all customers.
With “valued” customers in Seoul and surrounding Gyeonggi Province, he had a similar breakfast meeting on April 2.
Upon inauguration, he vowed that years of loyalty from customers will be openly appreciated, a value he fully intends to prioritize for the remainder of his term.
Similarly, KB Kookmin Bank CEO Hur Yin has been visiting SMEs more frequently.
KB Kookmin Bank CEO Hur Yin
By listening to the concerns from the heads directly, the bank can offer more tailored, need-based financial services while gaining more experience with a broader perspective, a KB official said.
“Reading challenging business concerns from written reports can never compare to the effort put into actually coming and listening in person.”
Hur also attends "KB Good Job," an annual job fair for businesses including SMEs, and listen to their concerns including but not limited to job opportunities.
Industrial Bank of Korea CEO Kim Do-jin recently visited Level39, an office in London set up to foster fintechs in Europe. About 250 such entities from 48 countries are located there.
Industrial Bank of Korea CEO Kim Do-jin
Kim said the ongoing undertakings of the office, which offers consultation including landing business partners, business investment and management, can give broad references for examples for the state-run lender.
“We seek to be distinguished by more responsible, inclusive management of state funds by putting greater priority on helping startups and SMEs,” an IBK official said.