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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

CEO Larry Klane’s Double Mission

Since Larry Klane was appointed to CEO last March, he has successfully performed the double missions of improving the bank’s profitability as well as burnishing its public image. Both missions are important to raise the value of the company, which will be in turn interpreted to high sale price when Lone Star sells its shares. So far, his efforts have paid off well. The bank has seen a steady growth in the net profit since the first quarter of 2009, even after deducting one-time profits from sale of shares at Hyundai Engineering & Construction and tax refund from 2004 merger with KEB Credit Service. Klane can also claim a success in the bank’s PR campaigns. Koreans are patriotic people with high pride in its history, so in terms of corporate image, it was wise to have pictures of him tasting Kimchi published on newspapers, and praising the nutritious, fermented vegetable salad as a product of “the wisdom of Koreans’ ancestors.” Recognitions followed. Last November, he won a medal of honor from the government for providing easy banking services for expats in Korea. And

Mar 2, 2010

Synergy Creation Is Top Objective

By Yoon Ja-young Staff Reporter Shinhan has some strength that analysts highly evaluate. First of all, the bank knows how to provide customized services. It is organized into special business models and provides differentiated products and services to six customer groups ― retail, corporate, investment, SME and institutional banking, and wealth management. It allows Shinhan to maximize customer value and enjoy a synergy effect from a well-diversified business platform unparalleled in the local banking industry. In the domestic market, the bank has focused on strategic relocation to most effectively cover the widest possible customer base. By achieving a stronger presence in large cities, it has successfully targeted middle and upper class retail customers. By penetrating small cities nationwide, meanwhile, it has covered a mass retail base. Globally, Shinhan boasts of 48 networks in 14 nations worldwide. The bank is particularly focused on emerging markets such as Cambodia, Vietnam, Kazakhstan and China, while continuing expansion into advanced markets. It succes

Mar 2, 2010

The Group Boasts of Solid Business Portfolio

By Yoon Ja-young Staff Reporter Analysts pick Shinhan as the firm with the best business portfolio among Korean financial giants, with its strong bank as well as insurance, securities, credit card and asset management subsidiaries. Despite the global financial crisis, Shinhan Financial Group posted solid performance for the third quarter of 2009, thanks to its business portfolio. It marked 491.3 billion won worth of net profit for the quarter, up 11.7 percent from the previous quarter. It was mostly thanks to the recovery in net interest margin and decreasing cost of loan loss provisioning. The group's net interest margin soared to above 3 percent, and Shinhan Bank had the margin rise by 28 basis points. The net profit for the whole of 2009 totaled 1.3 trillion won, including the 256.2 billion won net profit for the fourth quarter. It had the biggest net income among local financial groups. The group's non-bank subsidiaries played a huge role amid the global financial crisis. The non-bank subsidiaries contributed to 61.7 percent of the group's net profit for the third

Mar 2, 2010

Shinhan Pursues Servant Leadership

By Yoon Ja-young Staff Reporter Shinhan Financial Group CEO Shin Sang-hoon's key phrase for Shinhan employees is ``Just like beginning.'' He tells Shinhan workers that they shouldn't forget the resolution they had in the beginning, and that they should always be modest even when they move up to higher positions and take more responsibilities. A spirit of challenge and achievement should be maintained. Shin, who has been leading Shinhan with warm charisma and a strategic mindset, has dedicated his 42 year career to banking since he joined Korea Development Bank in 1967. He joined Shinhan Bank when it was launched in 1982, and took key posts at the bank and its holding company. He has been CEO since 2003. When inaugurated as CEO of Shinhan Financial Group in March 2009, he suggested the 'ABCD Principle,' which stands for Acceleration, Back to Basics, Creation, and Deceleration. He is calling for many changes, upon the determination that businesses can only survive by adapting to endless changes and innovations. The CEO has stressed that a financial business needs trust

Mar 2, 2010

Shinhan Way Focuses on Sustainable Future

By Yoon Ja-young Staff Reporter The financial industry is facing a new round of competition this year amid strengthened regulations and the integration of financial businesses. Shinhan Financial Group, which set up "Trust 2010, Sustainable Future, Reliable Shinhan" as its strategic objective this year, is focusing on maximizing mid-to long term corporate value rather than seeking growth in bulk. The group aims at breaking into the global top 50 and Asia's top 10 firms by 2012. It successfully set a stable income basis through balanced portfolios comprising of banks as well as non-banks. It includes setting up sustainable, customer-oriented businesses, and seeks differentiated growth and the enhancement of synergetic effects. More concretely, Shinhan is seeking to establish a strong corporate culture, establishing what it calls the "Shinhan Way." This will include defining the group's value chain, as well as setting up a new HR and business system. It is also seeking more synergetic effects between subsidiaries. For example, Shinhan plans to meet customer needs by

Mar 2, 2010

Korea Is Core Market for Citi

Stephen Bird is the Asia-Pacific chief executive of Citigroup. He is also a non-executive director of Citibank Korea. He acknowledges that the Korean operation needs further growth. “Korea is the core of our Asia growth strategy. Our commitment to the development of our Asia franchise is stronger today than at any other time in our 42-year history in Korea,” he told The Korea Times in an e-mail interview.

Mar 2, 2010

Citibank Aims to Be Most Innovative Bank

By Cho Jin-seo Staff Reporter When it comes to consistency, no bank in South Korea can beat Citibank Korea. Without making risky acquisitions, the bank has made gains every year. Despite the global crisis, Citibank has remained one of the most profitable and financially-sound institutions here on the back of its preemptive risk management. The Korean arm of the American bank has been profitable since its incorporation in 2004, even during the recent financial crisis. And it boasts of the most reliable loan structure among major banks. For Citibank, the year 2010 will serve as a milestone as the lender aims to achieve two major tasks ― a successful transformation into a holding company and differentiating itself from its competitors through innovation. Citibank Korea CEO Ha Yung-ku has a clear vision to transform itself into the top bank in Korea both in profitability and asset soundness. "Citibank Korea has the strongest capital structure with BIS ratio 16.46 percent among Korean lenders and we have a very sound and well balanced business portfolio," Ha said in an ema

Mar 2, 2010
  • Korea Is Core Market for Citi

Hana Bank Wants Takeoff Through M&A

By Kim Jae-won Staff Reporter Hana Bank went through a tough time last year. The lender marked 305 billion won in net loss in the first quarter of 2009 due to loan losses associated with troubled exporters, including Taesan LCD, which went bankrupt on the weakening Korean won. However, entering the second half of the year, the lender rebounded at a fast pace due to its cost reduction efforts. It recorded a net profit of 273.9 billion won in 2009. It was down 42 percent from the previous year but a sharp turnaround from the first half's poor performance. Now, the lender hopes to keep up the pace in 2010. Hana aims to join the club of 1 trillion won net income banks this year, with the ambitious vision of becoming a global bank through strategic M&A. Business Strategy The bank's net interest margin (NIM), a lender's barometer of profitability, has increased for eight consecutive months since April 2009 when it fell to 1.38 percent. The NIM jumped by 87 basis points to 2.25 percent in December, the fastest rebound among local lenders. The bank has also reduced its n

Mar 2, 2010
  • Man of Ideas Leads Hana With Humble Leadership

Man of Ideas Leads Hana With Humble Leadership

By Kim Jae-won Staff Reporter Employees of Hana call its chief executive, Kim Jung-tae, a man of ideas. The 58-year-old Busan native has suggested many creative schemes for the lender to become an innovative force. Based on his convictions, the bank has launched study groups, specialized branches and Saturday meetings. The study groups were designed to help employees learn from their colleagues, while special branches maximized their strong points to attract customers. On Saturdays, staff members have meetings to discuss market issues on a regular basis. "Those gatherings have become an idea bank for us. The unofficial meetings have helped us better cope with challenges and weather financial crises as a new-born bank," the lender said. Servant Leadership Kim is well-known for his servant leadership. He is not like a typical boss, who gives orders without acting. "I want to be a leader, not a boss. A boss orders with a whip, but a true leader goes first, and then asks employees to follow," he said. When Kim took office at Hana Daetoo Securities in November

Mar 2, 2010

Woori Bank Seeks Privatization This Year

By Kim Jae-won Staff Reporter Woori Bank is facing a big change as the government plans to privatize the state-run lender this year. Still, the bank is eager to continue its 111-year history under the leadership of chief executive Lee Chong-hwi. Woori surprised investors, customers, and even employees of the lender with incredible gains last year. It marked a net profit of 953.8 billion won in 2009, more than three times that of the previous year, when it reached 234.0 billion won. The strong performance was due to improvement both in profitability and financial soundness. Its Return on Assets (ROA) ration, a barometer of a bank's profitability, reached 0.41 percent, up 0.3 percent from the previous year. Woori hopes to maintain this trend with its 2010 motto, "Jump With Strong Growth." It set its target growth rate at 7 percent. The lender also hopes to make sustainable growth with balanced development not only in banking, but also in its other business areas, such as credit cards, pension and foreign exchange. But certainly, the biggest change awaiting the state

Mar 2, 2010
  • CEO Gets Wisdom From Customers
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