[Bank President New Year Interview] ① KB Kookmin Bank
[Asia Economy Reporter Buaeri] On the 18th, Lee Jae-geun, President of KB Kookmin Bank, stated, "We have a goal to generate more than 30% of the bank's revenue contribution from the global sector in the mid to long term."
In an interview with Asia Economy, President Lee said, "We are promoting the global business as one of the core businesses that will lead KB's future growth." KB Kookmin Bank, which has already established itself as a leader in the domestic financial industry, is also turning its attention to global business. The plan is to increase the revenue contribution from the global business, currently around 10%, up to three times in the mid to long term.
KB Kookmin Bank is pursuing its global business with a 'two-track strategy.' In emerging markets such as Southeast Asia, the bank plans to build a retail network and expand digital products. In advanced financial markets, it will diversify its overseas portfolio focusing on Corporate & Investment Banking (CIB) and capital market operations. President Lee explained, "This year, to overcome the immediate challenges such as global economic recession and increased uncertainty, we will focus on soundness, risk management, and qualitative growth of profits to strengthen our internal management."
Regarding KB Bukopin Bank in Indonesia, a three-stage growth strategy has been established. President Lee said about KB Bukopin Bank, "We are improving its image through large-scale disposal of non-performing assets," and added, "We plan to continuously reduce non-performing assets by establishing a risk management system." The plan is to rebuild the foundation of Bukopin Bank by the end of this year, expand the base next year, and pursue full-scale growth starting in 2026. He added, "To this end, we will strengthen digital finance and expand synergies among KB Financial Group affiliates operating locally."
Regarding this year's strategy to maintain its position as the leading bank, President Lee said, "We plan to focus on enhancing competitiveness in the loan-deposit margin business while dedicating ourselves to qualitative growth in global, CIB, capital markets, and wealth management (WM) to secure a differentiated market position." KB Kookmin Bank lost its leading bank position to Shinhan Bank based on cumulative net income up to the third quarter last year. President Lee said, "We plan to establish and execute future strategies to be recognized in the market as the number one financial platform."
KB Kookmin Bank is also putting effort into digital transformation, a hot topic in the financial sector. Starting in 2021 with the formation of platform organizations where business and technology teams work together, last year the bank reorganized eight divisions?digital new business, KB Mobile Authentication, supply chain finance, corporate cash management, corporate banking, global digital, institutional sales, and fund services?into platform organizations. President Lee said, "We are continuously expanding ICT recruitment and selecting talent," adding, "We are striving to attract excellent IT talent from big tech, large corporations, and promising fintech companies." KB Kookmin Bank plans to launch a mobile 'AI Financial Assistant' service this year.
Regarding competition with big tech and internet-only banks, KB Kookmin Bank has set a policy to differentiate itself through 'strengthening face-to-face channels.' President Lee explained, "Although banking transactions are rapidly becoming non-face-to-face, face-to-face channels have clear competitive advantages that can be maintained," and added, "We will solidify the role of face-to-face channels through new branch operation models such as the specialized 9to6 Bank, Digital Bank, and Senior Lounge."
Furthermore, he emphasized, "The expertise and know-how in finance that KB Kookmin Bank has accumulated over a long time will enable differentiated customer experiences that big tech companies cannot provide," and said, "We will maintain a solid market position in the core personal and corporate finance sectors, expanding our influence beyond a financial platform to become a platform for everyday life."
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