Gwangju Bank Holds 7th Regular Shareholders' Meeting... CEO Song Jong-wook Reappointed

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Bank (President Song Jong-wook) held the 7th regular general shareholders' meeting at its headquarters on the 30th and announced the reappointment of the current President Song Jong-wook.

Appointed as the 13th president of Gwangju Bank in September 2017, Song Jong-wook, the first president from a local bank, promoted customer-centered on-site management during a short period of one year and six months, quickly stabilizing the organization and extending his term once in March 2019.

Since then, his reappointment was finalized through the screening by the Gwangju Bank Executive Candidate Recommendation Committee in January, and he was officially appointed at this 7th regular general shareholders' meeting, leading Gwangju Bank until the end of next year.

President Song Jong-wook demonstrated outstanding management ability and leadership by achieving record-high net profits every year, with 153.5 billion KRW in 2018 and 173.3 billion KRW in 2019.

Last year, excluding 22 billion KRW set aside for year-end retirement costs and provisions for preemptive COVID-19 risk management, the bank achieved a net profit of 160.2 billion KRW, showing solid fundamentals despite the economic recession caused by the COVID-19 pandemic and the era of three lows (low interest rates, low growth, and low inflation).

Moreover, through proactive soundness management, the bank maintained a non-performing loan ratio of 0.43% and a delinquency ratio of 0.39%, sustaining the highest level of asset soundness among domestic banks. The BIS capital adequacy ratio stood at 17.60%, and the common equity tier 1 capital ratio was 15.47%, indicating sound capital adequacy. These results clearly reflect the qualitative growth achieved through community-based management and customer-centered on-site management.

Despite the long and dark tunnel of COVID-19 last year, Gwangju Bank achieved remarkable results.

Among them, the bank was awarded first place for four consecutive years in the regional bank category of the Korea Industry Brand Power announced on the 25th, contributed to the revitalization of local currency such as the Win-Win Card, made full efforts to support local small business owners affected by COVID-19, and expanded its regional market share by securing local government treasury accounts, thereby solidifying its status as the representative bank of Gwangju and Jeonnam.

This is interpreted as the result of President Song Jong-wook’s management philosophy, which pursues values beyond profit, such as "co-prosperity with the region and companionship with local residents," influencing various parts of the regional economy and society.

Based on his management ideology, Gwangju Bank’s community-based management led to the retention of treasury accounts for Gwangju Metropolitan City and Jeonnam Province, as well as the new acquisition of treasury accounts for Gwangsan District, Mokpo City, and Suncheon City, engraving the title of the representative bank of Gwangju and Jeonnam in various fields.

In particular, Gwangju Bank received high praise for contributing to local job creation by investing 26 billion KRW as the third-largest shareholder in the Gwangju-type job project, playing a solid role as a guardian of the local economy.

Despite lukewarm responses from commercial banks and companies in the early stages of the Gwangju-type job project, Gwangju Bank supported the project’s stabilization by adding 16 billion KRW to the initial 10 billion KRW investment.

Additionally, the bank took the lead in financial support and social contribution activities for regional development and local residents, faithfully fulfilling its role as the representative bank of Gwangju and Jeonnam by donating about 740 million KRW in emergency relief funds and 30,000 masks to Gwangju Metropolitan City and Jeonnam Province to overcome the COVID-19 crisis, and providing financial support to self-employed and small business owners affected by COVID-19.

Timely and swift financial support was also provided to local self-employed and small business owners when needed.

Since last year, the bank has contributed 2.75 billion KRW to the Gwangju Credit Guarantee Foundation, 2 billion KRW to the Jeonnam Credit Guarantee Foundation, 1.5 billion KRW to the Korea Technology Finance Corporation, and 1 billion KRW to the Korea Credit Guarantee Fund, practicing win-win management with local small business owners. It also implemented special funds support totaling 400 billion KRW with a limit of 500 million KRW per company for local small and medium-sized enterprises and individual business owners engaged in travel, accommodation, and food service industries.

As a result, as of the end of February 2021, Gwangju Bank’s financial support to self-employed and small business owners affected by COVID-19 reached 23,209 cases and 987 billion KRW.

Furthermore, through the Gwangju Bank Inclusive Finance Center, established with the goal of providing practical help to local small business owners and inducing a virtuous cycle in the regional economy, the bank offers financial counseling, marketing, and management consulting to local small business owners, supporting those who had to turn to loan sharks to transact with first-tier financial institutions.

In January, the ‘Prime Plus Loan,’ a non-face-to-face mid-interest loan launched in line with the digital financial market, was recognized as a financial product embracing mid- to low-credit borrowers who could not overcome the high loan barriers of banks. It recorded sales of 100 billion KRW within about two months of launch, receiving enthusiastic attention from customers and local residents.

President Song Jong-wook said, “This year, amid various crises such as the prolonged COVID-19 pandemic and the entry of fintech and big tech companies into the financial industry, we must find breakthroughs and demonstrate the resilience to turn any crisis into an opportunity,” and presented strategies including ▲ focusing on inclusive finance and productive finance based on ESG management philosophy ▲ establishing a foundation for responsible management through profitability and cost efficiency ▲ providing clear directions for innovation ▲ proactive asset soundness management ▲ and building a vibrant corporate culture.

He especially emphasized the social responsibility of a regional representative bank that empathizes with the local community and works together to solve problems, stressing to employees that such efforts are ultimately the path to designing a sustainable 100-year Gwangju Bank.

At the 7th regular general shareholders' meeting, President Song Jong-wook said, “I thank the local residents and customers who entrusted me with this important responsibility. I will devote my passion to growth as a 100-year bank with even firmer confidence in future management strategies. Although prolonged economic recession due to the COVID-19 pandemic and fierce competition from fintech and big tech companies entering the financial industry are expected, we will arm ourselves with change and innovation to achieve solid qualitative growth and leap forward as a leading bank with the highest profitability and soundness among regional banks.”

He added, “We will do our best to fulfill the social responsibility of the representative bank of Gwangju and Jeonnam by coexisting with the region and accompanying local residents through financial support for local small and medium-sized enterprises and middle-income earners, as well as social contribution activities for the socially marginalized.”

Meanwhile, President Song Jong-wook was born in 1962, graduated from Suncheon High School, Chonnam National University, and its graduate school, and joined Gwangju Bank in 1991. He served as branch manager of Kumho-dong and Seoul branches, head of the metropolitan area sales department, and executive vice president in charge of sales strategy.

Recognized for his outstanding sales performance and management ability, he was appointed as the 13th president of Gwangju Bank in September 2017, the first from a local bank.

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