5 Major Financial CEOs' New Year Keywords: 'Coexistence, Innovation, Risk Management'

Announcement of New Year's Addresses by CEOs of the Five Major Financial Holding Companies

The CEOs of the five major domestic financial holding companies (KB, Shinhan, Hana, Woori, NH Nonghyup) cited coexistence, risk management, and innovation as their key management themes for the new year. This comes amid ongoing uncertainties in the business environment due to prolonged high interest rates leading to economic recession and the deterioration of real estate project financing (PF).

According to the financial sector on the 2nd, the CEOs of the five major domestic financial holding companies repeatedly emphasized the necessity of 'coexistence' in their New Year's addresses announced that day. Yang Jong-hee, Chairman of KB Financial Group, stressed a paradigm shift from 'competition and survival' to 'coexistence and mutual prosperity' during the opening ceremony.

To this end, KB Financial recently reorganized its structure by expanding and reorganizing the existing ESG headquarters of the holding company and bank into the 'ESG Coexistence Headquarters,' while also establishing the 'Customer Product Sales Philosophy and Principles Task Force Team (TFT)' and the 'Investment Product Management Department (under the bank).' Chairman Yang stated, "We need to redefine customers by expanding the scope to 'the people and society as a whole,'" adding, "We must completely redefine the principles of product and service sales based on a philosophy of serving customers in all business areas. We will take the lead in a joint coexistence strategy where KB, customers, and society grow together."

Jin Ok-dong, Chairman of Shinhan Financial Group, cited classical sayings such as 'Damdaesimso (膽大心小: having a broad and large mind but always carefully examining even the smallest details)' and 'Itaeksangju (麗澤相注: two adjacent ponds mutually supplying water and coexisting together)' in his New Year's address, calling for innovation and coexistence.

As part of this, Shinhan Bank unveiled a 306.7 billion KRW livelihood finance support plan targeting self-employed and small business owners on the same day. This plan involves promptly implementing the personal business loan interest cashback jointly announced by the banking sector at the end of last year, selecting recipients within this month, and swiftly providing support by March.

Ham Young-joo, Chairman of Hana Financial Group, cited the example of 'Travelog,' which eliminated overseas payment fees and consequently expanded market share, emphasizing, "It is time to shift our awareness of growth strategies and change our working methods to build systems and improve processes that effectively convey our sincerity to all stakeholders."

Amid ongoing uncertain management environments such as the triple high (high interest rates, high exchange rates, high oil prices) crisis and real estate PF deterioration, many CEOs also called for strong risk management. Lee Seok-jun, Chairman of NH Nonghyup Financial Group, said, "This is a time when proactive, systematic, and meticulous net-like risk management is required," adding, "We must establish systems to prepare for various potential risks beyond existing forecast ranges and continue risk management to minimize impact regardless of the crisis."

Lim Jong-ryong, Chairman of Woori Financial Group, stated, "Uncertainties surrounding the economy remain due to US-China conflicts, geopolitical risks, and concerns over real estate project financing (PF) deterioration," urging, "We must enhance crisis response capabilities by focusing on monitoring risk factors and global risk management, and carefully prepare for sudden risks through precise situational awareness."

Chairman Ham also mentioned the Redwood tree species, saying, "The most basic and important thing when constructing a building is the foundation work. We must secure the essential core competencies required by each sector to firmly establish the foundation of our main business and steadily move toward the right and accurate path, even if it takes time," emphasizing, "The secret to how structurally vulnerable redwoods endure for many years and form dense forests is collaboration. For us, collaboration is not an option but a necessity."

The CEOs also repeatedly urged innovation for future growth engines. Chairman Jin presented this year's management slogan as 'Customer-Centric First-Class Shinhan, Innovation and Challenge Breaking the Mold,' urging, "Please strive with the mindset that Shinhan will set new standards in all areas including ESG, digital, and global."

Lim, who set this year's management goal as 'Leap to a Leading Financial Group, Focused Capabilities, Synergy, and Communication,' emphasized restoring the reputation of corporate finance and expanding portfolios. In his New Year's address, he said, "Corporate finance is the field we proudly represent as the best. This year, we must expand market dominance centered on high-quality assets, equip ourselves with innovative capabilities demanded by the market along with proactive risk management, and restore the prestige of corporate finance. We must also strengthen the group's own capabilities in preparation for entry into the securities business and simultaneously expand the non-bank portfolio to enhance overall competitiveness."

Chairman Lee also identified artificial intelligence (AI) and ESG as future tasks, stating, "Nonghyup Financial must begin preparations this year to implement generative AI across all business and service areas," and added, "We consider this year as the inaugural year to practically integrate ESG into management and business and plan to pursue this with sincerity."

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