Suhyup to be Strong, Independent Bank When Launched as Separate Entity of NFFC
Æ®À§ÅÍ ÆäÀ̽ººÏ ¹ÌÅõµ¥ÀÌ
Global News Network
HOME      ABOUT US      NW ±âȹÁ¤º¸
ARCHIVE      GALLERY      LOGIN
Suhyup to be Strong, Independent Bank When Launched as Separate Entity of NFFC
The independent bank aims to have total assets of 35 tln won and net profit of 170 bln won in 2021 as it boosts other sectors of banking such as investment banking

05(Sun), Feb, 2017




President Lee Won-tae of Suhyub Bank delivers his speech at a ceremony to celebrate the bank¡¯s separation from NFFC to become an independent bank as of Jan. 1, 2017.(Photo: Suhyub Bank)



Suhyup Bank will be a fully competitive medium-scale bank in Korea boasting total assets of 35 trillion won by 2021 after it becomes an independent financial institution of the National Federation of Fisheries Cooperatives (NFFC) from Jan.1, 2017, President Lee Won-tae of the bank said on Dec. 22.

During an official launching ceremony for Suhyup Bank as an independent affiliate of the NFFC, CEO Lee said they would focus on financial services to be centered on customers, profitability and risk control to lead the bank in order for it to be a competitive medium-level bank in Korea.

By 2021, Lee said the bank will have total assets of 35 trillion won and generate some 170 billion won in annual profit, compared to 80 billion won projected this year and current assets of 28 trillion won. The bank will generate a net profit of 130 billion won next year, up 62.5 percent year-on-year, he added. The CEO said Suhyup Bank would strengthen its investment banking deals such as real estate development, leasing and other investment banking step-by-step as part of its overall plan designed to boost its earnings.

He said he would lead the bank to build a foundation to support growth for the next 100 years, with staff performance measured in accordance with the same productivity as leading banks in Korea. The bank got government fund totaling 1.15 trillion won twice, once in April and the other time in December, with both of them coming in the same year of 2001, to help bail-out the bank with excessive bad loans. The bank will pay back the government loan in 11 years from 2017.

The bank, representing the marine and fishery sectors, will continue to expand its role and function so that it would be able to repay all government loans on schedule.

The bank will measure the adequacy of its capital according to Basel III of the International Bank of Settlement (BIS) now that it will be an independent entity from NFFC after Jan. 1.

Moody's believes that Suhyup Bank will receive systemic support in times of stress, given the important role it plays in supporting the fisheries and maritime sectors. Although these industries are small when measured against Korea¡¯s gross domestic product and employment, Moody's believes that the Korean government deems them to be vital for the country's balanced economic development. Moreover, based on its working relationship with the Ministry of Maritime Affairs and Fisheries (MOMAF), Moody's views Suhyup Bank as essentially a ministry financing arm. Consequently, Moody's expects the bank to enjoy full government support. 

As evidence of how essential the government regards the fisheries and maritime industries, it launched a Maritime and Fisheries Development Plan called Ocean Korea 21. The plan called for 50 trillion won in investments by 2010, of which 6 trillion won came from private capital. Through this, the government aims to increase the fisheries and maritime sector's proportion to 11 percent of GDP by 2030 from 7 percent in 1998. In line with this initiative, Suhyup Bank underwent an organizational restructuring and established a Maritime Investment Finance Division in 2005. The bank intends to develop its industry expertise to expand its investments into the maritime industry. 


Government Support Not Explicit, but Implied in FCL 

The Fisheries Cooperative Law (FCL), which governs Suhyup Bank/National Federation of Fisheries Cooperatives (NFFC), does not contain language explicitly detailing any support when compared to the legislation governing Korea's three other policy banks Korea Development Bank, Industrial Bank of Korea and Export-Import Bank of Korea, according tor Moody¡¯s. Despite the weaker language in the Act, Moody¡¯ said it believes government support is strong due to Suhyup Bank's important economic role and past incidents of systemic support. Note that under the FCL, the government may guarantee the repayment of fisheries financing debentures. However, none of the outstanding debentures are guaranteed. 


   
Most Popular


±â»çÁ¦º¸      ±¤°í¹®ÀÇ      ±¸µ¶½Åû      ¹ø¿ªÀÇ·Ú      ¾÷¹«Á¦ÈÞ      PR´ëÇà      º¸µµÀÚ·á      ¸®¼Ò½º ¼¾ÅÍ      Previous Site
Copyright(c) 2013 NewsWorld, All right reserved. / 3f, 214, Dasan-ro, Jung-gu, Seoul, Korea 100-456 / http//www.newsworld.co.kr
If you have any question or suggestion, please cuntact us by email: news5028@hanmail.net or call 82-2-2235-6114 / Fax : 82-2-2235-8864
ȨÆäÀÌÁö¿Í ÄÜÅÙÆ® ÀúÀÛ±ÇÀº ´º½º¿ùµå¿¡ ÀÖ½À´Ï´Ù.