Chairman Kim Yong-hwan of NH Financial Group.

NH Financial Group will boost its profit by expanding overseas and catching up with rival financial groups, said Chairman Kim Yong-hwan in an interview with media at the National Agriculture Cooperatives Federation (NACF) Head Office in Seoul recently.

The chairman said he will aim to increase profit at the same rate as sales revenue. The group’s assets now total 393 trillion won with the takeover of Woori Investment and Securities, Woori Aviva Life Insurance and Woori Financial Savings Bank last year make the merged entity the third largest in terms of assets in the country. The chairman also emphasized strengthening soundness of the group’s assets by thoroughly checking credit analyses processes of the group’s financial affiliates.

Kim remarked that the group’s affiliates will look to increase their operations in the retirement fund market, expressing confidence that they have the largest number of branches and outlets in the country, which gives them a competitive edge in the securities and asset management sectors. Therefore, NH Financial Group has a great possibility to do well in the retirement fund market.

NH Bank, a major affiliate of the group, already caused a storm in the retirement fund market with its outstanding balance in retirement funds coming to 5.612 trillion won, up 4.6 percent from the end of last year, or 246.5 billion won, much more than the average increase in funds among major commercial banks in the country.

At the same time, Kim cautioned that he would also lead the financial affiliates to manage risk factors in the area of investment finance, taking preventive measures to keep the financial defaults in check.

The new chairman is very much in favor of expanding the group’s overseas operations, with the domestic financial market reaching a saturation point. He wants to put a special focus on Southeast Asia and the Middle East. The strategies for advancement into these regions call for the NACF’s distribution sector joining the financial group to create synergy from the joint operation.

Kim said he would see that the group and the retail sector work closely together on cooperation. Under the Agricultural Law, the financial group has to get approval for its major policies from the NACF head office as it is affiliated with the NACF, although it is an independent unit, but still part of the NACF.

He said the group should not be shaken by the supervision and control over its operation by the NACF’s head office, but do its job based on systems and organizational setup with confidence. Kim, however, is determined to deal with unnecessary outside interference on the group’s operations, and will always get approval from the NACF for major policies to get maximum results.

The new chairman is also serious about the group’s performance evaluation and remuneration system on the officers and staff, adding that the evaluation will be strictly on job performance and providing proper remuneration, which is based on performance evaluations under a new system if needed to improve the group’s operational effectiveness.

NongHyup Financial Group Inc. provides financial products and services in South Korea. Its range of services includes financing, mortgages, personal lines of credit, corporate finances, real estate finances, and new technology finances. The company also provides life, property, and casualty insurance products. 

In addition, it accepts various deposits products, such as time and periodical deposits; and offers loan products, as well as engaging in agricultural cooperative banking, investment and securities, and asset management businesses. The company is based in Seoul, South Korea. NongHyup Financial Group Inc. operates as a subsidiary of National Agricultural Cooperative Federation.

A view of NACF building in Seoul where many of NACF affiliates including NH Financial Group have offices (Photos:NH Financial Group)