[New Year's Message] Choi Seok-jong, CEO of KTB Investment & Securities, "Focusing on Enhancing Shareholder Value"

Seokjong Choi, CEO of KTB Investment & Securities

[Asia Economy Reporter Minwoo Lee] Choi Seok-jong, CEO of KTB Investment & Securities, emphasized enhancing shareholder value as the top priority in his New Year's address on the 4th. Following the implementation of common stock dividends for the first time in 18 years last year, he expressed his ambition to continuously establish a foundation for increasing shareholder value. Along with this, he announced plans to strengthen overseas alternative investments, which had temporarily slowed, and to focus on corporate social responsibility such as Environmental, Social, and Governance (ESG) management. Below is the full text of the New Year's address.

◆2021 New Year's Address

Dear KTB Investment & Securities family! The eventful year of 2020 has ended, and the new year of 2021, the Year of the Ox, has dawned. I am grateful to be able to greet you like this and hope that soon we can meet without masks.

At the beginning of last year, our company’s start was not smooth due to the impact of Covid-19, but thanks to the dedicated efforts of all employees, all business divisions exceeded their targets, demonstrating strength even in crisis. However, while we were running, competitors took leaps to higher levels. This is why we must not be satisfied with last year’s achievements but accelerate further.

In the industry, not only existing competitors but also new and powerful competitors based on Big Tech and FinTech have emerged. If past achievements were a period to build basic strength, future survival competition will require not only the steadiness of a marathon but also extreme patience and stamina suitable for a triathlon. Under these internal and external circumstances, I would like to share the company’s commitments and a few requests to all employees.

First, we will focus the company’s capabilities on the corporate duty of enhancing shareholder value.

Last year, the company conducted common stock dividends for the first time in 18 years, bringing the joy of shareholder returns to KTB Investment & Securities shareholders, which gave us a small sense of accomplishment. Without resting on past achievements, we will create a stable and continuous profit base to build a stronger foundation for enhancing shareholder value. This year, we will consider various ways to demonstrate responsible management and achieve remarkable results to repay our shareholders.

Second, we will leverage our strengths to develop customer-tailored new products and thoroughly prepare overseas alternative investments, which had temporarily slowed, to establish ourselves as a “professional group providing total financial solutions.”

Last year, we set aggressive goals to expand new services and products, but it is true that progress was insufficient. In our strong sales areas, we must develop differentiated products unique to our company, such as customer-tailored structured products, rather than merely playing a simple role, to secure new customers.

Developing new services and products is also a task to be applied in the overseas alternative investment sector. Despite the global Covid crisis, competitors are gradually accelerating overseas alternative investments. Our company also incorporated the KTB New York branch as an affiliate in the second half of last year, establishing a foothold for overseas alternative investments. In connection with affiliates such as KTB Asset Management, we will expand strategic investments in high-quality deals to secure not only synergy among affiliates but also an independent profit model. Additionally, we will secure local partnerships to attract large investors and holders of high-quality assets.

Third, this year is the time to seriously consider not only financial performance but also corporate social responsibility (CSR) such as ESG management.

Recently, interest in responsible investment has increased domestically. For example, according to the National Pension Service, “the scale of assets subject to responsible investment is expected to expand to about 50% of the total fund assets by 2022,” and “from 2022, responsible investment factors will be reflected in the selection and evaluation of entrusted stock and bond managers.”

We believe that responding to such social demands is the role of a corporation. Going forward, KTB Investment & Securities will contribute to the environment by swiftly transitioning to digital finance and supporting eco-friendly infrastructure finance, and will further strengthen various social contribution activities (Social). Also, we will establish sustainable management (Governance) through shareholder value returns and transparent information disclosure.

There has never been a time when emphasizing health was excessive. I wish all beloved employees good health and hope we can share the fruits of KTB Investment & Securities’ growth together. Happy New Year.