Kang Sin-suk, Suhyup Bank President: "Acquisition of Asset Management or Capital... Swift Transition to Financial Holding Company"

Kang Sin-suk, CEO of Sh Suhyup Bank, Press Conference on the 4th
"The Most Urgent Task is to Improve the Funding Structure"
"Achieving Net Profit of Over 300 Billion Won"

Kang Sin-suk, President of Sh Suhyup Bank

[Asia Economy Reporter Buaeri] Kang Shin-sook, CEO of Sh Suhyup Bank, announced on the 4th that she will accelerate the improvement of the funding structure and the transition to a financial holding company system this year.

On the morning of the same day at Suhyup Bank headquarters in Songpa-gu, Seoul, CEO Kang said about the prerequisite for transitioning to a financial holding company, "For Suhyup Bank to smoothly perform its role as a cooperative bank profit center, acquiring subsidiaries that can create optimal synergy with the bank is a prerequisite."

Last month, Suhyup Bank established the Future Innovation Promotion Office directly under the CEO. She explained, "The Future Innovation Promotion Office will also comprehensively review whether to transition to a financial holding company system, including acquiring subsidiaries that can create optimal synergy with the bank in the future." The Future Innovation Promotion Office discovers new growth engines and responds to changes in the future financial environment.

Regarding the transition to a financial holding company, CEO Kang said, "As a preliminary task, we plan to focus on acquiring subsidiaries that can create optimal synergy with the bank," adding, "It is currently being reviewed in various ways by the Future Innovation Promotion Office."

She added, "Initially, I think acquiring asset management companies or capital companies that are easily accessible will be a priority." After 2024, Suhyup Bank plans to actively promote the transition to a financial holding company together with Suhyup Central Association and expand subsidiaries.

CEO Kang said, "The purpose of transitioning to a financial holding company system is to create synergy among affiliates," adding, "In terms of channels, if the bank takes the lead and securities companies and asset management companies collaborate, one-stop financial services will become possible. In terms of profit and product structure, non-interest income will expand, and it will be possible to add high-risk, high-return product structures." However, she added that acquiring insurance businesses is not being considered.

On the same day, CEO Kang declared a new vision called "New Finance Meeting with the Value of Cooperation" and stated that this year will be the first year of Suhyup Bank's new leap. This means building a co-growth ecosystem with fishermen and member cooperatives, fostering a culture of mutual growth where employees and the company grow as one, and transforming through enhancing competitiveness in financial services such as digital innovation.

CEO Kang also announced plans to achieve a net profit of more than 300 billion KRW this year to establish a stable profit base. To this end, Suhyup Bank will pursue five core tasks: establishing a future response organizational system, company-wide digital transformation, strengthening risk management, enhancing internal control, and protecting financial consumers. Suhyup Bank’s capital increase of 200 billion KRW from Suhyup Central Association has been confirmed this year.

CEO Kang added, "The most urgent task for Suhyup Bank is 'improving the funding structure,' and we will focus our capabilities on increasing low-cost deposits and enhancing competitiveness in non-interest businesses."

Furthermore, she emphasized, "I adopt the management philosophy of 'Chosim Bulmang Mabu Jakchim' (meaning that if you persistently and earnestly strive, no matter how difficult the task, you will surely achieve it)," and stressed, "We will make Suhyup Bank a more solid and robust bank so that it can confidently compete with large commercial banks."