On Jan. 2, Korea Development Bank (KDB) held a business kick-off ceremony for 2023 in the auditorium of KDB Headquarters in the presence of executives and employees.
In his New Year’s message, Chairman Kang Seok-hoon emphasized that Korea’s economic growth rate in 2023 is expected to drop to the 1 percent range and the Korean economy may go through a major economic crisis.
Kang insisted that Korea Development Bank set up a hyper response system at the highest level to make every effort as a policy financial institution responsible for keeping the Korean economy strong and sound. He presented three goals for 2023 as follows.
The first goal is fostering future industries to secure new growth engines. KDB should draw a new map for a future economy and industries by transforming Korean industrial structure into future growth driver domains, securing a stable industrial supply chain, and supplying venture capital for cutting-edge technology development, Kang said.
Kang added that the company should lead national economic security and industrial policies as a supporter to foster new businesses, act as a watchman for industrial supply chains and be a partner in industrial transformations in Korea.
The next is regional growth for the sustainable development of the Korean economy.
“As a new organizational system is established to drive balanced regional development and local innovation, KDB has to transform manufacturing-oriented local industries into new industries and fully utilize venture investment platforms to inject new vitality into vulnerable local venture ecosystems,” Kang said.
Kang stressed that KDB must take the lead in making Korea a nation with balanced growth by making good use of the Seoul metropolitan area and the southeastern region as the two main axes of Korea’s growth and carefully examining other areas.
Then, Kang mentioned the importance of market stability and risk management in preparation for possible market volatility and economic uncertainties.
“Korea Development Bank must fulfill its roles as the last resort in preparation for market volatility risks,” Kang added. “We ought to make thorough preparations for risk management such as preparing for companies’ insolvencies in advance and devise various practical measures for a worst-case scenario in 2023.”
Kang proposed ‘3S’, which refers to Sustainability, Stability, and Software Upgrade internally.
He emphasized the sustainability of policy finance based on a sound financial structure and the stability of the organization that can enable KDB employees to concentrate on their work and a software upgrade to make KDB’s corporate culture and human resources management system friendly with global standards.
In the meantime, KDB, the Export-Import Bank of Korea, and Korea Trade Insurance Corporation signed a business agreement to give financial support to Korea’s export of nuclear power plants with KEPCO, Korea Hydro & Nuclear Power and six other Korean banks at the KDB Headquarters in Yeouido, Seoul on Dec. 23.
The six other banks were KB Kookmin Bank, the Industrial Bank of Korea (IBK), NH NongHyup Bank, Shinhan Bank, Woori Bank and Hana Bank.
This agreement ceremony was held for the purpose of establishing a cooperation system between state-run and private financial institutions to increase Korea’s nuclear power financing competitiveness with the attendance of KDB chairman Kang.
“The Korea Development Bank will play a role as a bridge between export credit agencies such as the Export-Import Bank of Korea, and Korea Trade Insurance Corporation and private financial institutions in the nuclear power plant project financing market,” Kang said.
“We will make efforts to promote an influx of private funds needed to vitalize finance for Korean nuclear power plants.”
“We will play a key role in helping Korean companies export nuclear power plants, not only by providing financing services for overseas nuclear power plant orders, but by supporting Korean equipment and materials companies’ entry into global supply chains,” Kang added.
KDB expects the deal to significantly help Team Korea make a breakthrough in securing financial competitiveness in the global nuclear power plant market.