Chairman Hong Ky-ttack of the KDB Financial Group, raising his arm 

during his speech at the ceremony on April 1.

Chairman Hong Ky-ttack of KDB Financial Group, said on the occasion of Korea Development Bank’s 60th anniversary on April 1 that they should further develop the “techno” banking operation, expand investments in start-ups, and seek new overseas financial markets in the way of expressing the bank’s support of the Creative Economy drive pushed by the government.

He also stressed that KDB should do everything to prepare for the reunification of the divided Koreas as it should be the bank to play a key role in reorganizing North Korea’s industry and investments in infrastructure. KDB should study what Germany did following the unification of West and East Germany in the area of finance as well as analyze North Korea’s economy and industrial status to learn what it should do after reunification, the chairman said.

“The bank should analyze what the West German banks did after their reunification to be ready for the bonanza from the reunification of our fatherland,” Hong said.

KDB, in the meantime, announced its strategy to boost its capital to 250 trillion won in 2018 from 145 trillion won now and turn itself into a commercial and market-oriented financial institution with an annual average net profit of 1 trillion won. The bank will also expand its overseas revenue, which currently stands at 12 percent of its total annual revenue, to the 20 percent level in the near future.

Hong also said the group will finish the merger of KDB and Korea Finance Corp. so that KDB will be able to handle policy loans like those practiced in advanced nations.

He said he will do away with the paradigm that policy loans should not come with a profit motive and he will strengthen risk management due to the high risks inherent in policy loans. He also pledged to have KDB’s operation back on track after it finished 2013 with 1.447 trillion won in losses due to its heavy loans to the STX Group, which went belly-up last year. These were the bank’s first net losses in 13 years.

A scene from the 60th anniversary of the Korea Development Bank, 

a major affiliate of the KDB Financial Group held on April 1.

KDB announced its mid-to-long-term strategy on April 1 on the occasion of its 60th anniversary to turn itself around as a policy-loan bank in line with the August 8 Government Plan to Reestablish Policy Loan Financial Institutions.

The bank also has announced its new vision to be a financial engine for the development of the Republic of Korea and to become “Global KDB” as an advanced policy loan bank and market-friendly policy-loan financial loan institution.

In order to pursue these objectives, the bank’s five major mid-to-long term development strategies are to support the Creative Economy drive pushed by the government, lead the financial industry into becoming an advanced one, strengthen its role of safety pin for the financial market, strengthen the base to run sustainable policy loans, and prepare for the reunification of the divided Koreas.

At the start of each year, the bank will draw up its operational plan based on the mid-to-long-term development plan and check if the plan is being pursued continuously.

Vice President Lee Dae-hyun, in charge of the Planning and Management Sector, said, “With KDB taking on the role of a policy loan bank, we ought to reestablish our own identity and jointly hold the understanding for the bank’s new role and its directions among the officers and staff. We ought to establish our vision and core values by setting up mid-to-long-term strategies as a market-type policy financial organization representing Korea’s financial community.

Vice President Lee said KDB will be considering securing funds from the financial market such as by issuing bonds and publicly listing the bank on the stock market to obtain foreign funds, taking into account the weak government treasury conditions.