'First Day at Work' Kim Kwangsoo, Chairman of the Bank Federation, "Must Evolve with Digital and Eco-Friendly to Survive"

Banking Sector Situation... 'Much to Do, But a Long Way to Go'
"We Will Communicate Openly and Lead by Example"

Kim Kwang-soo, the newly appointed chairman of the Korea Federation of Banks, is arriving for his first day at the Bankers' Hall in Jung-gu, Seoul, on the 1st. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Park Sun-mi] On the 1st, Kim Kwang-soo, the newly appointed 14th Chairman of the Korea Federation of Banks, officially took office and described the situation faced by the banking sector as 'Imjungdowon (任重道遠)' in his inaugural speech, presenting five operational directions including digital and ESG (Environmental, Social, and Governance) management.

In his speech, Chairman Kim said, "The old saying 'Imjungdowon,' meaning 'many tasks to do but a long way to go,' seems to well express the urgent situation faced by banks." He added, "Currently, our banking industry is burdened with complex latent risks such as excess liquidity, increased debt of economic agents, asset bubbles, zero interest rates, and low growth under deglobalization and uncertain international conditions. Strengthening financial consumer protection systems and supervision also poses significant management challenges."

He continued, "If the immediate responsibilities as traditional banks are the 'Imjung (任重),' then the journey toward future-oriented banks can be called the 'Dowon (道遠).' To respond to these era changes and demands, there are tasks that the Korea Federation of Banks and banks must move forward with one heart and one direction," he explained.

Chairman Kim presented four operational directions with the keywords 'Trust,' 'Stability,' 'Transition,' and 'Evolution.'

First, trust in customers must be the top priority. He said, "We need to narrow the gap in perspectives and values between customers and banks. A robust consumer protection and internal control system is fundamental," adding, "Let us innovate channels, infrastructure, products, systems, and organizational culture centered on enhancing customer value and personalized, customized services."

Second, he emphasized the need to firmly establish the stability of banks. He stated that only healthy banks can invigorate the national economy, saying, "Going forward, banks should exert management efforts focusing on loss absorption capacity, management efficiency, and revenue sources with the wisdom of 'Gyotosamgul (狡免三窟).' The Korea Federation of Banks will devote all efforts to creating a balanced and fair institutional competitive environment and building a solid foundation for future growth."

Third, he stressed the need to accelerate the transition to digital banks. He said, "Although South Korea ranks 8th globally in digital competitiveness, domestic banks are evaluated as slow in digital transformation," adding, "We must focus budgets and resources on expanding and accelerating capabilities, technologies, and ecosystems for digital transformation, and actively work to improve unreasonable systems that hinder digital transition."

Fourth, he expressed hope that ESG finance by domestic banks will lead to active management activities, sustainable growth, and new business opportunities, and pledged support for this. Lastly, he added that the global expansion strategies and business models of banks should be reestablished and promoted consistently with digital and ESG strategic directions.

Chairman Kim said, "In addressing the challenges faced by banks and the Federation one by one, I will communicate openly with you and lead by example," adding, "I will closely cooperate with the National Assembly, financial authorities, banks, and other associations and raise necessary voices."

Chairman Kim will serve as the head of the Korea Federation of Banks for three years starting today. The inauguration ceremony was not held due to the spread of the novel coronavirus (COVID-19), and he greeted the staff through his inaugural speech instead.

This content was produced with the assistance of AI translation services.