Chmn. Kim to Expand Global Operation of NH Financial Group
Ready to sign MOU with Amundi of France to diversify the group’s operation, including setting up joint venture with foreign partner and push digitalization of operation
Chairman Kim Gwang-soo looks back at the initial year of his achievements at a media briefing session on May 8. (Photo: NHFG)
Chairman Kim Gwang-soo of NH Financial Group said he will lead the group to find an international partner to come up with a new joint venture model before the year is out. He made the remarks during a special talk show at a radio station in Seoul to commemorate his initial year on the job as the top manager of the financial group.
Kim replaced former group Chairman Kim Yong-hwan in April last year, and will lead the group through the end of April 2020. “The primary goal of NH NongHyup Financial Group is to have a secure and stable business model, which is profitable and sustainable, as the group represents the interests of members of the National Agriculture Cooperative Federation (NACF).” Kim said.
He said he will move fast on the digitalization of the group’s operations, including its major affiliates such as NH Bank, NH Investment and Securities and NH Capital, to name just a few. He said by September, the group will have its master plan ready for digitalization and go about its completion in three years. He said in the new age of the 4th Industrial Revolution, not only systems, but also the so called “phonosapiens,” the new generation of the people, also have to be trained so that they can continue to grow in the Millennial Age.
The global operation and digitalization plans are a big part of the group’s future growth base, he said , adding “we have to plan fast and work thoroughly on the plan.”
The radio talk show lasted about 20 minutes in the form of Chairman Kim answering questions asked by the employees.
The chairman pointed out his management style in the days ahead, including the reform of the operational structure of the group, boosting values of farm produce, and training talented employees. Kim said the group will continue to expand its presence in China and Southeast Asia to gain more profits from overseas operations.
“Other than that, to cut costs and differentiate ourselves from others, we will apply advanced farming technology into finance. We will use a wider selection of connected tools supporting artificial intelligence, big data and the internet of things.” he said.
He said the group will sign an MOU with Amundi, a French asset management firm, to push diversification of the group’s operation, calling on the employees to work for the changes as if planting trees for future.
While NH Financial has over 200 trillion won in assets, the new chairman said its profit curve was showing cyclical and volatile patterns, hurting its financial soundness.
“What I’ve observed is that operational processes are rigidly controlled with best-practices methodology and close supervision. But it is not that good. NH has a more balanced asset management portfolio than its competitors. However, the key issue is how investors interact with our products, and how we can get them to invest more.” he told employees.
Kim said he will have more open communication channels for employees and NACF members to build trust among all interested parties. “No more communication just for communication.” he added.
NongHyup Financial Group Inc. provides financial products and services in South Korea. Its services include financing, mortgages, personal lines of credit, corporate finance, real estate finance, and new technology finance. 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 engages in agricultural cooperative banking, investment and securities, and asset management businesses.
The company is based in Seoul, South Korea. NongHyup Financial Group Inc. is a subsidiary of National Agricultural Cooperative Federation.