Chairman Kim Yong-hwan of NongHyup Financial Group has decided to make visits to the group’s affiliates to discuss pressing matters facing them, in particular the changes in business environment in the wake of North Korea’s nuclear tests and the real estate policies announced by the government on Aug. 2. The plan is to analyze any changes in the financial business environment by the two big incidents and strengthen management of the affiliates to achieve targeted profits. They will also check in on the reform plan that NH Financial set up in July.
The chairman’s trip to the affiliate offices occurred following discussions on the tasks included in the 2020 Management Reform and its detailed implementation plan, as well as comprehensive financial measures such as those related to household debt.
Chairman Kim asked that the operation of the Customer Asset Value Increase Council be truly effective and to develop financial products reformative and responsible to what customers want.
The chairman also asked for the creation of a special unit to scree joint investments for the CIB (corporate investment banking) Council to make faster decisions, which would make the support more effective.
He also called for making the digital financing by NH Financial competitive further so that the affiliates will focus more on the digital finance for their further growth and that of the NH Financial.
He called the introduction of Big Data and Fintech to spur the development of the digital finance with the entire affiliates working together to set up the Big Data platform of NH Bank scheduled for April next year, which is vital for the NH Financial to move up to next stages of its move to be a leading financial group in Asia.
Kim also noted the need for the segregated strategy for further overseas advancement of its affiliates with a cooperative type global finance business should be installed in Asia to spur their overseas advancement. Meanwhile, Nonghyup Finance emphasized the strengthening of the capabilities of the digital sector.
Especially, the government will critique it as a poor performer among four major financial holding companies and plans to improve its corporate investment financing by improving an aggressive management. In the second half, the group will launch the All One Bank Vietnam to go global with Fintech products, which will include products that connect the customers with public organizations. The customers will also use smartphones to get the tax payment notices.
They will be able to pay the bills with their smartphones.
The group will make the arrangement with Gyeonggi Province first, and then make deals with other provinces.
NongHyup Financial Group Chairman Kim Yong-hwan said the group will reach Asian markets by cooperating with regional players, seeking to find new revenue sources outside the country. Kim said the country's second-largest financial group by assets is exploring business opportunities in China, Vietnam, Myanmar, Indonesia and Cambodia, and is considering buying stakes in local financial firms and setting up joint ventures with them.
"Globalization is our new strategy. The local market is being saturated quickly, forcing us to reach out overseas," said Kim in a press conference at the Bankers' Club in downtown Seoul, celebrating the first anniversary of his inauguration as chairman.
"We are more interested in stake investments, joint ventures or project financing rather than establishing branches or liaison offices." His announcement came as the domestic financial market is losing its attractiveness because of low interest rates and sluggish economic growth. Net interest margin, a barometer of a bank's profitability, is also dropping sharply, burdening the group's performance. The bureaucrat-turned-banker said that the group set up a support center in Hong Kong which helps its business in Asia. NongHyup is in talks with a Chinese financial group to establish a joint banking arm in the country.
He also said that he will cooperate with state-run agencies, such as the Korea International Cooperation Agency (KOICA) and the Export-Import Bank of Korea (Eximbank), in reaching overseas markets by helping their activities in rural areas.
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