Banks Launch Efforts to Attract 'IB Injae' Talent

As Part of Expanding Non-Interest Income Segment

[Asia Economy Reporter Song Hwajeong] Banks are actively working to secure personnel related to corporate finance (IB). As banks seek to reduce the excessively high proportion of interest income and expand non-interest income, the demand for IB personnel is expected to steadily increase.

According to the financial sector on the 13th, KB Kookmin Bank recently recruited IB interns through the 'Global IB Apprentice' program. KB Kookmin Bank has been implementing this program since last year to secure excellent talent suitable for IB roles. Through the design, operation, and objective evaluation of a program specialized in global IB, the bank plans to pre-verify candidates suitable for IB roles ahead of the IB new employee recruitment scheduled for the second half of the year. As a result of a comprehensive evaluation, the top 30% of outstanding participants in the program will be exempted from document screening and written tests during this year's IB recruitment.

Other banks are also steadily conducting IB-related recruitment this year. Hana Bank recruited talent in the first half of this year in areas such as overseas infrastructure and global real estate finance within the Global IB Finance Section, and plans to hire and assign personnel in double-digit numbers. A Hana Bank official said, "The IB division is a core growth area for Hana Bank. In the first half of this year, we recruited responsible-level professionals in overseas infrastructure project financing (PF), global real estate, ship finance, and foreign currency syndication, and this trend will continue in the second half."

Shinhan Bank recruited experienced professionals in the Global Investment Banking (GIB) division last May. The recruitment fields included PF areas such as infrastructure finance, energy finance, real estate finance, and investment banking. A Shinhan Bank official explained, "As the IB division, including IPOs, acquisition finance, and real estate finance, grows as a key growth engine for the group, the demand for personnel is steadily increasing."

As banks focus on reducing dependence on interest income and expanding non-interest income sectors, the demand for IB-related personnel is expected to continue growing. According to the Korea Institute of Finance, as of the end of last year, the proportion of interest income among total profits for seven bank groups including KB Kookmin, Shinhan, Hana, Woori, BNK, DGB, and JB was 80.9%, while non-interest income accounted for only 19.1%. Growth based solely on interest income inevitably has limitations, and recently, complaints about banks' excessive interest-based business have increased, making the expansion of non-interest income even more important. Accordingly, banks are focusing on strengthening asset management (WM) and IB divisions. An industry insider said, "Since growth through interest income has limitations, banks have been promoting the strengthening of non-interest income and the expansion of non-banking businesses. Moreover, as criticism that banks' strong performance is due to interest-based business continues, the trend toward strengthening non-interest income will accelerate."

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