The Key Management Strategy Keywords of KB Financial This Year Are 'R.E.N.E.W'

Financial Holding Companies' Management Strategies This Year ⑴ KB Financial
Yoon Jong-kyu "Number One Financial Platform... Top Priority is Customers"

Despite challenging conditions last year, including the private equity fund scandal and the spread of the novel coronavirus disease (COVID-19), the top five domestic financial holding companies delivered relatively strong performance compared to other industries. However, prolonged low interest rates and low growth trends, the spread of COVID-19, and intensified competition due to the emergence of innovative players such as big tech companies remain significant hurdles for the financial industry this year. In response to rapidly changing internal and external conditions, the top five financial holding companies have prepared new management strategies for 2021 focused on expanding stable profitability, digitalization, platform finance, and globalization to ensure survival and sustainable growth. Starting with KB Financial Group, we hear from the chairpersons of the top five financial holding companies?Shinhan, Hana, Woori, and NongHyup?about their 2021 management strategies.

[Asia Economy Reporter Sunmi Park] "Let's build together the 'No.1 financial platform company' that is most loved by customers."

Yoon Jong-kyu, Chairman of KB Financial Group, envisions the 'No.1 financial platform company' as KB Financial’s future this year. In his New Year's address on the 4th, he presented this vision. He emphasized, "In an era of accelerated change and the 'Big Blur'?where industry boundaries are disappearing?we must recognize that this era of great transformation is actually an opportunity. Based on KB Financial’s unique core competencies, let us work together to become the 'No.1 financial platform company' most loved by our customers."

◆This Year’s Management Strategy Keyword: 'R.E.N.E.W' = To build the No.1 financial platform company, KB Financial’s 2021 management strategy keyword is 'R.E.N.E.W.' It encompasses five directions: ▲Strengthening core competitiveness (R) ▲Expanding global and new growth engines (E) ▲Innovating financial platforms (N) ▲Leading sustainable management through environment, social, and governance (ESG) (E) ▲Fostering talent and realizing an open and creative organization (W).

First, KB Financial plans to strengthen core competitiveness by enhancing the market position of its affiliates and establishing efficient business models for its business units. The bank aims to maintain a firm No.1 position, and major affiliates have clear goals to secure top-tier competitiveness within their sectors. To proactively respond to big tech companies’ entry into finance, KB Financial will accelerate the shift from product sales to comprehensive asset management and establish a big tech-based personalized customer management system.

The group also plans to expand its global business areas and strengthen non-financial businesses to secure new growth engines. The global business will adopt a two-track strategy targeting Southeast Asia and advanced markets. In Southeast Asia, KB Financial will actively explore business areas with high growth potential and seek additional merger and acquisition (M&A) opportunities. In advanced markets, it will expand partnerships focusing on corporate investment banking (CIB) and asset management. By fostering growth in non-financial platforms such as automotive, real estate, healthcare, and telecommunications, the group will strengthen its non-financial business. It will also explore new capital market opportunities in preparation for AI-based investment expansion.

KB Financial will concentrate its capabilities on customer-centric financial platform innovation. Financial applications like Star Banking will implement digital innovation centered on customers to realize specialized comprehensive financial platforms tailored to each platform’s role. Through the spread and internalization of ESG management, the group will establish a sustainable management system. By proactively joining RE100 (100% renewable energy), KB Financial aims to achieve carbon neutrality by 2050. It plans to lead green finance by expanding the scale of eco-friendly products, investments, and loans, thereby strengthening 'green leadership' within the financial industry. The group will also enhance risk management systems for core portfolios to secure competitiveness and establish risk management frameworks aligned with environmental changes, including strengthening new types of risk management in response to changes in the financial paradigm. Additionally, KB Financial will foster top talent and realize an open, creative organizational culture.

◆Chairman Yoon Jong-kyu: "KB Financial’s Top Priority is Customer-Centricity"= Chairman Yoon’s New Year’s address reflects deep concerns about the challenging realities facing the financial industry this year. He views this year as a crucial time to seize the future of finance amid great transformation.

He stated, "As low growth becomes entrenched and the ultra-low interest rate era continues, the financial environment paradigm is continuously changing, with capital moving from deposits to investments and from domestic to global markets. Furthermore, amid digitalization of finance and government deregulation, the full-scale entry of big tech into finance has blurred industry boundaries, ushering in the Big Blur era and exposing us to new threats." Due to the normalization of non-face-to-face interactions amid COVID-19, the future of Korean finance is changing even faster. According to Chairman Yoon, success or failure will depend on who responds most swiftly to this era of great transformation.

Chairman Yoon urged employees to faithfully implement the 2021 management strategy keyword 'R.E.N.E.W' while keeping in mind that KB’s top priority this year is customer-centricity. He emphasized, "We must prioritize customers over immediate profits and continuously create customer value by addressing their needs and inconveniences. KB Financial’s top priority is always 'customer-centricity.'"

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