Financial groups to focus on risk management

The Korea Times

The Korea Times

Finance

Sat, September 30, 2023 | 05:32

Companies

Financial groups to focus on risk management

Posted : 2023-01-02 16:27

Updated : 2023-05-11 16:43

From left, KB Financial Group Chairman Yoon Jong-kyoo, Shinhan Financial Group Chairman Cho Yong-byoung, Hana Financial Group Chairman Ham Young-joo, Woori Financial Group Chairman Son Tae-seung and NongHyup Financial Group Chairman Lee Suk-joon

Hana, Woori chiefs vows to strengthen non-banking businesses

By Anna J. Park

The heads of Korea's five major financial groups have a common focus in their New Year's messages: the importance of risk management and a sustainable growth strategy amid heightened economic risks.

KB Financial Group Chairman Yoon Jong-kyoo stressed stable growth in his New Year's message, as he forecast the economy will witness a decline in real purchasing power and weakened consumer sentiment this year, with continuing uncertainties on both the global and domestic economic fronts.

"Sustainable and stable growth summarizes KB Financial Group's key strategy for this year. What matters in the current phase, when a view for a step ahead is not visible, is to build fundamental strengths in preparation for a possible crisis," Yoon said.

On a similar note, Cho Yong-byoung, chairman of Shinhan Financial Group, urged employees to stick to principles for exhaustive risk management, while ordering the group to be equipped with world-class competitiveness.

"A harsher environment awaits us in this new year, with looming threats of a global crisis. Everyone in society is undergoing difficulties due to low growth from the high foreign exchange rate, inflation and interest rates. Customers' expectations and standards towards financial companies' social responsibility have also risen," Cho said. "The group should fully adhere to principles and the basics to manage risk factors."

The chairmen of both Hana Financial Group and Woori Financial emphasized the need to expand business portfolios by strengthening their respective groups' non-banking affiliates.

"We need to maximize our strengths, such as investment banking, foreign exchange, asset management, capital and trusteeship, while complementing weaknesses," Hana Financial Group Chairman Ham Young-joo said in his New Year message. "The group needs to expand its scope into new business areas through M&As in non-banking sectors, such as insurance, credit cards, asset management as well as active partnerships in mobility, healthcare and virtual assets."

Woori Financial Group Chairman Son Tae-seung also said one of the group's six key strategies for this year will be the expansion of its non-banking portfolio.

"Following complete privatization last year, the group aims to pursue more aggressive non-banking portfolio expansions, while leading non-banking affiliates' solid growth at the same time," Son highlighted. "The group will accelerate the speed to expand its non-banking business portfolio, including brokerage, insurance and venture capital firms."

Meanwhile, NongHyup Financial Group's new Chairman Lee Suk-joon, who started his post on the first day of this year, stressed that he will lead the group through difficulties.

"A lot of difficulties are expected this year. The group will navigate through the challenges with a spirited mindset," he told reporters on his way to work on Monday.

annajpark@koreatimes.co.kr