Kim Tae-o, Chairman of DGB Financial, "Daegu Bank to Become a Commercial Bank Within the Year... Headquarters to Remain in Daegu"

"Favorable Funding... Apply as Soon as Possible"
Emphasizing the Original Role of Regional Banks

Kim Tae-o, Chairman of DGB Financial Group, is attending a meeting between financial authorities and bank holding company chairmen held at the Bankers' Hall in Jung-gu, Seoul on the 5th. Photo by Yoon Dong-joo doso7@

Kim Tae-oh, Chairman of DGB Financial Group, officially announced on the 5th the intention to convert Daegu Bank into a commercial bank.

On the same day, after a meeting with bank holding company chairmen at the Bank Federation building in Jung-gu, Seoul, Chairman Kim told reporters, "We are considering and planning to convert Daegu Bank into a commercial bank within this year." Regarding the background of the conversion, he explained, "Interest rates are more favorable when raising funds," and added, "There is a differentiated customer perception between central (commercial banks) and regional (banks) when operating in Seoul and other metropolitan areas, but if we compete on equal footing with commercial banks, we can be more advantageous in the digital era." He also added, "Although the number of customers is small, if we cooperate with fintech platform companies as partners rather than competitors, we can provide better services."

He also emphasized the original role as a regional bank. Chairman Kim stated, "Even if we become a commercial bank, the head office will still be located in Daegu," and stressed, "As a commercial bank headquartered in Daegu and a representative regional bank, we will fulfill the original role of a regional bank more faithfully than now." He added, "We will reinvest profits and capital from nationwide operations into the regional economy to contribute to balanced national development and regional economic revitalization." He also expressed his ambition to grow together with small and medium-sized enterprises (SMEs) in a wider area based on his SME business know-how.

Practical work for the conversion to a commercial bank is also expected to accelerate. Chairman Kim said, "We will form a task force team (TFT) at the group level with a consulting firm and apply for the commercial bank conversion as soon as possible," and added, "Rather than opening branches in the metropolitan area, we are considering various other options, and we will share the materials as soon as they come out after the TFT is formed."

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