Chairman Kim Gwang-soo of NongHyup Financial Group. (Photo: NongHyup Financial Group)

Under the stewardship of Chairman Kim Gwang-soo, now in reelection term, NongHyup Financial Group is stepping on the gas to expand its business turf abroad, with the goal of posting 160 billion won in annual net profit in the overseas business segment by 2025.

The financial group, setting 2020 as the year as the milestone year on the global stage, plans to widen its overseas business network from 13 countries to 28 countries.

NongHyup Financial Group Chairman Kim convened a meeting of CEOs and executives of the group’s major subsidiaries on Feb. 11 to take stock of the financial group’s global business situation and unveil future strategies for the next decade.

At the meeting, Chairman Kim said, “NongHyup Financial Group will aim to realize 160 billion in annual net profit and 6 trillion won in assets in the overseas business sector by 2025.”

He said his financial group will build up its fundamentals by inheriting a leading global cooperative financial group’s vision rather than turning to a short-term merit strategy.

The financial group’s strategies may be construed as a bid to focus on stable growth rather than excessive outward expansion, since Korean financial institutions are scrambling to tap overseas markets, staging a fierce competition.

NongHyup Financial Group is a latecomer to enter overseas markets.

The financial group posted 1.356.5 trillion won in global assets and 28.9 billion won in annual net profit as of the end of last year.

The 160 billion won target in annual net profit, suggested by Chairman Kim, was reflected according to each subsidiary’s overseas business goals. Lately, NH Capital, a subsidiary of NongHyup Financial, established a joint venture with IFFCO-Kisan Finance, an affiliated company of the Indian Farmers Fertilizer Cooperative (IFFCO), the world’s largest fertilizer cooperative, to enter the Indian market.

NH Bank is seeking to obtain a green light to establish branches in Hong Kong, Beijing, New Delhi, Ho Chi Minh City, and Sydney. The financial group’s life insurance, non-life insurance and asset management subsidiaries are considering tapping overseas markets.

NongHyup Financial Group has a main strategy of expanding the group’s network with a focus on Asia with an active agricultural industry.

The financial group plans to secure differentiation by making the most of its strengths in the agricultural financing sector in the Asian financial market in which other Korean financial institutions have already entered and purse glocalization focusing inclusive localization.

NongHyup Financial Group plans to stress digital innovation in the paradigm shift of the financial ecosystem in the wake of the 4th Industrial Revolution, and social values such as agricultural financing’s public interests and social responsibility.

Of late, an increasing number of foreign financial institutions are scrambling to enter the Southeast Asian market, so each country’s regulatory authorities tend to stipulate more stringent guidelines on market entry.

NongHyup Financial Group plans to establish joint ventures with each country’s cooperatives and prominent companies to circumvent restrictions of foreign capital’s own market entry. In particular, the financial group plans to present business models to offer financial services of the agricultural financing sector.

Chmn. Kim’s Reelection Gets Nod from Shareholders’ Meeting

Chairman Kim of NongHyup Financial Group was reelected for another one-year term. The financial group held a general shareholders’ meeting on April 10 and approved Chairman Kim’s reelection. Earlier, The financial group’s committee for screening candidates of the next chairman nominated Kim as the sole candidate.

In an interview with a vernacular daily, Chairman Kim said NongHyup Financial Group’s current goal is to fulfill the financial institution’s roles in compliance with the government’s steps to overcome hardships, caused by the COVID-19 pandemic.

He suggested his financial group’s strategy, dubbed “digital transformation,” to survive in an era of super low interest rate. “COVID-19 propelled untact activities, so digital transformation is getting more important,” he said.

Chairman Kim’s nod for his reelection was owed by the financial group’s good business performance. NongHyup Financial Group posted the best-ever business performance last year since the establishment of the financial group’s holding company.

The financial group’s previous record dated to 2018 when it posted 1 trillion won in net profit.

NH Bank to Extend 2 Trillion Won in Loans to Help Small Businesses Overcome Hardships

NH Bank has agreed to provide financial support worth 2 trillion won to small business and mom-and-pop store owners by the end of this year.

Under an MOU, struck between NH Bank and the Ministry of SME and Startups (MSS) on April 7, the bank plans to extend loans worth 2 trillion won in the form of policy funds and special financial support for small tourist businesses and others.

MSS is ramping up collaboration with financial institutions to help small businesses overcome the economic fallout, caused by the spread of the novel coronavirus.