Industrial Bank Introduces Senior Executive Vice President Position... 'Korean New Deal' Organizational Restructuring (Comprehensive)

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[Asia Economy Reporter Kangwook Cho] Korea Development Bank (KDB) announced the approval of its 2021 management plan and organizational restructuring to actively promote green finance and the Korean New Deal.

Additionally, KDB made executive vice president appointments, naming Choi Dae-hyun, the current head of the Corporate Finance Division, as the newly established Senior Executive Vice President. Park Sun-kyung, the current Compliance Officer, was appointed as the new Executive Vice President.

Considering the increased workload in new policy finance areas such as the Korean New Deal, green finance, and support for new industries and innovative companies, KDB decided to introduce the 'Senior Executive Vice President' system to enhance organizational efficiency through appropriate task distribution among executives. Unlike other Executive Vice Presidents who oversee one division each, the Senior Executive Vice President will oversee four divisions out of KDB’s total nine: Corporate Finance, Global Business, Capital Markets, and Credit Evaluation.

Furthermore, Park Sun-kyung, the new Executive Vice President, will take on the role of head of the Management Division, while the Corporate Finance Division, previously managed by Senior Executive Vice President Choi Dae-hyun, will be temporarily led by Ahn Young-gyu, the current head of the Industry and Finance Cooperation Center.

KDB selected leading the transition to a low-carbon economy through the Korean New Deal as a key priority for 2021.

KDB has actively identified green projects such as renewable energy, environmental and waste treatment, and secondary batteries, supporting green finance through various methods including direct investment and loans, project financing (PF), fund formation, issuance and underwriting of green bonds, and carbon emission trading market creation. In particular, KDB plans to expand the proportion of green finance funding to around 30% by 2025.

To this end, KDB expanded and reorganized its existing Policy Planning Division into the ‘Policy and Green Planning Division’ and established the ‘ESG and New Deal Planning Department’ under this division. This department will serve as the control tower for green finance, the Korean New Deal, and sustainable management initiatives within the bank.

Additionally, each division will develop and operate green finance programs, including the newly established ‘Green Industry Cooperation Team’ (Corporate Finance Division), the ‘Policy Fund Management Team’ responsible for New Deal fund formation (Innovation Growth Finance Division), and the ‘Regional Finance Support Team’ (SME and Mid-sized Enterprise Finance Division) to discover regional financial demands linked with branches. KDB also plans to establish dedicated green finance teams within subsidiaries such as KDB Infrastructure Asset Management and KDB Capital, building a group-wide promotion organization.

In this restructuring, to further strengthen support for fostering new industries and discovering innovative companies, the previously department-level ‘New Industry Finance Team’ and ‘New Industry Credit Evaluation Team’ have been elevated to division-level entities named ‘New Industry Finance Office’ and ‘New Industry Credit Evaluation Department,’ respectively.

Kim Bok-gyu, head of KDB’s Policy and Green Planning Division, stated, "Through the 2021 management plan and organizational restructuring, we will strengthen our capabilities to promote green finance and the Korean New Deal, actively carrying out leading economic transition support tasks to prepare for the future."

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