Chairman Kim Yong-hwan of the NH Financial Group.

Chairman Kim Yong-hwan of NH Financial Group said recently that he will increase the ratio of NH Bank’s outlets in and around Seoul to 50 percent of its outlets around the country from the current 40 percent.

The financial group has been in the process of creating a fund amounting to 100 billion won to be loaned to farmers with technologies. It has the tentative name Agricultural Venture Fund. The financial group is also ready to expand its global capacity by strengthening its overseas operation. A task force has been established to take charge of the task. The financial group’s measures already launched or in the stages of preparation for its management strategies have aroused speculation that it is on the verge of going on the offensive in its operation strategies.

A reporter who met Chairman Kim recently said he has dried up lips, which suggests he has been working too hard. Since he took over management of the group, Kim toured virtually every operational outlet around the country.

As a result of the tour, he got the idea that the group should increase the number of business outlets in the capital area to around half of all outlets around the country. Major banks have around 70 percent of their financial outlets in and around Seoul, where a major portion of wealthy people and large business firms are located. Kim is also determined to set up NH Bank branches in new cities around the country.

He wants to strategize with the NACF’s regional branches around the country to avoid duplication, however.

NH Bank, at the same time, has decided to either merge branches or close down 30 of its branches that are not profitable enough to sustain themselves.

The expansion of NH Bank’s branches in the capital area is to make more profit in the financial sector, while the Agricultural Venture Fund for farmers with technologies is a macro-economic project with the National Agriculture Cooperatives Federation. It was born out of the desire to help farmers. Therefore, it should help farmers with R&D activities and at the same time find sales channels for them to sell their produce or products.

He plans to have the Ministry of Agriculture, Food and Rural Affairs, Investment Banking, NH-CA asset management and NH Investment and Securities kick in their shares to set up the 100 billion won in fund to have farmers with technologies get themselves going. The chairman intends to start operating the fund from September.

Another task that the chairman should tackle is to make the financial sector of the NACF stronger, which is centered on reducing defaults. He let the group share the strategies with rival financial groups that examine the financial statements of their borrowers to protect assets.

The portion of credit analysis in determining loans to borrowers will take up as much as 50 percent of the decision — up from 40 percent now.

Chairman Kim is with the officers and staff of NH Bank recently to celebrate the issue of a new credit card by the bank named, “ NH All One Card.” (Photos:NH Financial Group)