[People 人] Kim Kwangsoo, Bank Federation Chairman, to Lead Industry Leveraging 'Public-Private' Experience

Leveraging Experience Across Public and Private Sectors
Finding a Breakthrough Toward a Digital and Eco-Friendly Bank
What Are Chairman Kim Kwang-su's Strengths?

[Asia Economy Reporter Park Sun-mi] "I will closely cooperate with the National Assembly, financial authorities, banks, and other associations and raise necessary voices. Drawing on 35 years of experience in the field, I will dedicate my passion and capabilities to steadfastly fulfill various roles as a helmsman, a bridge, and a balancing weight."

This is the determination and promise expressed by Kim Kwang-soo, who officially took office as the new chairman of the Korea Federation of Banks on the 1st of this month. Having stepped down from his position as chairman of NH NongHyup Financial Group to take on the 14th chairman role of the Federation for a three-year term, Kim’s shoulders are heavier than ever due to the complex and challenging realities facing the banking industry. His use of the classical idiom "Imjungdoywon (任重道遠)," meaning "a heavy burden and a long road ahead," in his inaugural speech reflects his deep concern about the current urgent situation.

He diagnosed the banking industry's reality as facing multiple latent risks such as excess liquidity, increased debt among economic agents, asset bubbles, zero interest rates, and low growth under deglobalization and uncertain international conditions. Additionally, the strengthening of financial consumer protection systems and supervision is putting pressure on the industry. The spread of the non-face-to-face digital economy triggered by the Fourth Industrial Revolution and COVID-19, as well as climate change, pose significant challenges for the transition to digital banks and evolution into eco-friendly banks.

Kim’s appointment as the helmsman of the banking industry amid unprecedented domestic and international uncertainties is supported by the insights, passion, and capabilities he has accumulated through 35 years of experience in both public and private financial sectors. Starting his career as a civil servant after passing the 27th Administrative Examination, he held key positions such as Director of Financial Policy at the Ministry of Strategy and Finance, Senior Administrative Officer for Economic Policy at the Presidential Secretariat, Director of Financial Services at the Financial Services Commission, and Director of the Financial Intelligence Unit. Since 2018, as chairman of NongHyup Financial Group, he achieved both record-breaking performance and structural improvements.

Chairman Kim Kwang-soo’s Proven Achievements at NongHyup Financial Group
Strength in Clear Strategy and Direction

NongHyup Financial Group recorded its highest-ever net profit of 1.2189 trillion KRW in 2018, Kim’s first year as chairman, and broke its performance record again last year with a 46% surge to 1.7796 trillion KRW. This was a moment when Kim’s leadership and management skills demonstrated effectiveness even in a private financial company.

He also achieved results in accelerating digital transformation (DT), promoting the introduction of Environmental, Social, and Governance (ESG) management systems, and establishing a financial support plan of 13.8 trillion KRW to revitalize K-New Deal projects, all contributing to sustainable management and social responsibility alongside structural improvements. Initial public skepticism about a former bureaucrat’s understanding of financial group management faded as NongHyup Financial Group showed both quantitative and qualitative changes.

Major domestic bank CEOs recommended Kim as chairman of the Korea Federation of Banks, evaluating him as "someone who can greatly contribute to the development of the banking industry facing prolonged COVID-19 and digital transformation uncertainties, based on his extensive experience and outstanding insight into the banking sector." This evaluation is grounded in Kim’s achievements beyond his bureaucratic background, demonstrated at NongHyup Financial Group.

His communication skills, exemplified by his horizontal and flexible organizational culture where he frequently met and freely discussed with young employees, including those born in the 1990s, are expected to be a strong asset in performing the chairman role of the Federation, which requires understanding of the banking industry and communication with the government. Following the private equity fund scandal and the resulting bank industry contraction, there is a growing need for an experienced figure familiar with both public and private sectors to properly represent the banking industry’s voice and balance it with the government’s.

Another of Kim’s strengths is his ability to grasp industry trends and present clear strategies and directions. Digital transformation, ESG management, and globalization, which will remain key topics for the banking industry this year and next, were repeatedly emphasized and successfully implemented during his tenure as head of NongHyup Financial Group.

In his inaugural speech as chairman of the Korea Federation of Banks, Kim proposed operational directions reflecting the banking industry’s reality: ▲trust in customers ▲securing stable soundness, profitability, and growth of banks ▲transition to digital banks ▲evolution into eco-friendly ESG banks ▲redefining global expansion strategies and business models for banks.

He stated, "Trust in customers and the stability of the banking system are values that must not change regardless of the times, and the transition to digital banks and evolution into eco-friendly banks are missions that must be undertaken for survival." He added his pledge, "To this end, I will closely cooperate with the National Assembly, financial authorities, banks, and other associations and become a chairman who raises necessary voices."