KB Financial Group Chairman Yoon Jong-kyoo speaks during a press conference at KB headquarters in Seoul, Monday. Yonhap
KB Financial Group Chairman Yoon Jong-kyoo reflected on his nine-year tenure during a press conference at KB headquarters in Seoul, Monday.
"Returning to a leading position has been immensely rewarding," he said. "However, while we are a top financial group domestically, we only rank in the top 60 on a global scale. This remains my biggest regret."
Yoon plans to step down this November, passing the reins to Yang Jong-hee, the group's vice chairman.
"I took the helm as chairman during a time when our governance was under pressure, and we were seemingly losing our 'top-tier DNA.' Concerns outweighed the congratulations. But, thanks to the unwavering support from our customers and staff, we have risen to become a premier financial group, and for that, I am deeply relieved," Yoon said with pride.
Despite the accomplishments, Yoon expressed his dissatisfaction with the bank's standing globally.
"In 2002, I believe I was the first to use the term 'the Samsung of Finance.' Reflecting on the past 20 years, there's a tinge of melancholy when pondering our actual progress," Yoon said. "To break into the global top 20, our capital would have needed to grow 2.5 times. We must deliberate whether such growth is feasible at the individual company level and think about our future direction."
"I trust Yang will take proactive measures regarding this matter," Yoon added.
KB Financial Group Chairman Yoon Jong-kyoo speaks during a press conference at KB headquarters in Seoul, Monday. Yonhap
Yoon began his leadership in November 2014 amid internal disruptions. He was subsequently re-elected three times, serving a total of nine years. His consistent choice of a yellow necktie, a color symbolizing KB, became emblematic of his tenure, so much so that his friends jokingly questioned if he "bleeds yellow." Notably, he was the first in KB's history to achieve back-to-back terms and a total of three consecutive stints. Still, he chose not to compete for a fourth term, handing over the reins instead.
In response to the widespread criticisms concerning the governance of financial holding groups and the frequent reappointment of their respective chairmen, Yoon opined that there is "no ultimate answer."
"There's an attempt to standardize governance as if there is a definitive answer. However, each group should innovate and cultivate its own governance structure, taking into account their unique circumstances, traits and cultural differences," Yoon said. "KB will remain unwavering in its endeavors to shape its governance in the most optimal way."
Citing a 2018 Harvard Business Review article, Yoon pointed out that the average tenure of CEOs at S&P 500 companies is 10.2 years. "Given this context, if Korean financial companies are striving for a global presence, one has to wonder: Can they truly engage in and benefit from long-term investments if there's a CEO change every 3 to 6 years?"
However, he also expressed optimism about the future trajectory of KB Financial Group.
Yoon believes that Bank KB Bukopin, KB's subsidiary in Indonesia, will outperform local banks by providing comprehensive solutions in tandem with other KB subsidiaries that have penetrated the Indonesian market. "While the resolution of non-performing loans might require a prolonged effort, we are hopeful that the reinvestment in its IT infrastructure will be completed by next June."
Yoon extended words of encouragement to Yang. "I have confidence that Yang will steer KB Financial Group towards sustainable progress and substantial leaps forward. I will diligently engage in the transition process during the remaining period to ensure that the designated successor can start on a confident footing."
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