[People人] Yoon Ho-young, the 'Icon of Innovation' Who Broke Common Sense... Opening a New Path for Banks

Yoon Ho-young, CEO of Kakao Bank
Banking Sector IPO in 27 Years Within Reach
New Market Pioneering... Threat to Financial Industry

[Asia Economy Reporter Kiho Sung] The first bank listing in 27 years since 1994. KakaoBank, which emerged announcing "not just another bank but a new beginning for banking," is set to make history. When KakaoBank launched in July 2017, it was perceived merely as a 'catfish' that would stir tension in the financial sector. Since it had to pioneer a completely new market amid the solid existing banks, no one could guarantee its success. However, four years later, everyone’s expectations were proven wrong, and KakaoBank has now risen to a position that threatens the traditional financial sector.

At the center of KakaoBank, which is creating a new way of playing in the financial industry, is CEO Yoon Ho-young. CEO Yoon symbolizes the beginning, present, and future of the new (신) finance represented by KakaoBank.

KakaoBank, started as a 'one-person TF'... the beginning, present, and future of new finance

CEO Yoon has a unique career blending finance and ICT. After graduating from university, he took his first step as a 'finance man' working at Daehan Fire & Marine Insurance (now Lotte Insurance). Later, as head of the management planning team at Daum Direct, he expanded into ICT by pushing for the establishment of Korea’s first online insurance company. He also served as head and director of management support at Daum Communications, gaining insight into management.

His strength in the fusion of finance and ICT played a decisive role in the birth of KakaoBank. In 2014, CEO Yoon formed a 'one-person task force (TF)' to establish KakaoBank. However, the process of creating an internet-only bank was not easy. Looking at the current scale of internet banks surpassing commercial banks, it is hard to imagine, but at the time when CEO Yoon advocated for this new change, it was seen as a reckless challenge.

The reason KakaoBank started as a 'one-person TF' rather than a 'team' was due to the negative views around it. At that time, the parent company Kakao internally predicted that success in internet banking would not be easy. The financial industry is essentially a license business based on 'regulation,' making it difficult to break free from the dense regulatory net and create new innovative services.

CEO Yoon overcame each critical moment with his unique 'innovative spirit.' A symbolic example is his title. Unlike the usual use of 'bank president' in the banking sector, he insists on the title 'CEO.' From the title itself, he chose a completely different path from commercial banks. CEO Yoon’s philosophy and innovation regarding ICT are fully embedded in KakaoBank. Unlike other banks, KakaoBank has a Chief Technology Officer (CTO). A significant number of executives are ICT professionals. This is a completely different approach from the traditional banking sector, which regarded ICT as a cost and outsourced it.

Overcoming the limits of a 'regulated' industry through innovation and horizontal communication

Another management philosophy of CEO Yoon is 'horizontal communication.' Like Kakao, KakaoBank internally uses English names for all employees. CEO Yoon is known as 'Daniel.' He works at the same space and desk size as employees and manages his own schedule.

Horizontal communication has led to active internal discussions. This is because CEO Yoon believes collective intelligence is more efficient in creating 'easy finance.' A representative example is that KakaoBank implemented only mobile application (app) services, excluding PC banking. Inside the company, the prevailing opinion was that PC banking, which was the general trend in the financial sector at the time, should also be supported. However, after two weeks of intense internal debate, it was decided to implement only the mobile service app, which became a key factor in KakaoBank’s success.

In late January last year, former CEO Lee Yong-woo announced his resignation, and in March of the same year, KakaoBank transitioned to a single-CEO system with CEO Yoon alone. Inside KakaoBank, concerns about CEO Yoon’s management ability were dispelled as he had stabilized KakaoBank within about two years. At that time, the KakaoBank Executive Candidate Recommendation Committee stated, "CEO Yoon is the best CEO who understands KakaoBank’s innovation and strategic direction," explaining the reason for the single-CEO system. In March this year, CEO Yoon was reappointed for another two-year term.

After transitioning to the single-CEO system, CEO Yoon immediately announced KakaoBank app version 2.0 and focused on innovating the mobile application by completely revamping it. This was the first major change since customer service began, rearranging the home screen to enhance user convenience. He also continued product development with the launch of a credit card, a savings product in partnership with E-Mart, and KakaoBank Mini, maintaining a streak of success.

His management skills are also recognized overseas. In September last year, the U.S. economic media Business Insider selected CEO Yoon as one of the 'Top 100 Asian Innovative CEOs.' He was the only Korean in the financial sector.

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