Yang Jong-hee, KB Chairman Nominee: "Is Making Money Enough?...Financial Paradigm Shift"

Yang Jong-hee, Vice Chairman selected as the final candidate for the next chairman of KB Financial Group, is giving a brief interview on the 11th at the KB Kookmin Bank headquarters in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

Yang Jong-hee, the designated chairman of KB Financial Group, said on the 11th, "The paradigm of the financial industry is changing," and added, "I will lead the group with greater attention to social responsibility going forward."

On the same day, at the new building of KB Kookmin Bank headquarters in Yeouido, Yeongdeungpo-gu, Seoul, when asked by reporters about his top priority, Yang said, "Until now, companies have operated with the mindset of 'just making money,' but going forward, the financial industry must benefit all stakeholders and move in a harmonious direction."

Yang also pointed out credit risk issues and the normalization of KB Bukopin Bank, a local affiliate in Indonesia, as the group's major tasks, stating, "I plan to make every effort to prevent various organizational laxities that may arise during this transition period."

Regarding KB Bukopin Bank, one of the top priorities, he said, "Even domestically, it takes time to acquire and normalize a troubled company, and (KB Bukopin Bank) faced more difficulties because the acquisition coincided with the COVID-19 pandemic and the troubled company was acquired at a low price." He added, "We are establishing a framework for cost reduction and it takes time to build systems such as manpower and IT, so I ask for a compassionate perspective."

Yang Jong-hee, Vice Chairman selected as the final candidate for the next chairman of KB Financial Group, is giving a brief interview on the 11th at the KB Kookmin Bank headquarters in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

On additional mergers and acquisitions (M&A), Yang said, "Since the overall portfolio is already in place, M&A itself is not the goal," but added, "We will review it from the perspective of enhancing corporate value as demanded by shareholders, and considering the recent trend in the financial industry where finance and non-finance sectors can advance together, we will also take this aspect into account."

Regarding public opinion that he is the only chairman from within the company who has never served as a bank president, he said, "There were such questions at the board of directors as well, but when KB Financial reviews succession procedures, it operates a process and system where candidates can gain diverse experiences such as in business divisions and vice-chairman positions, considering that only one person can serve as bank president." He added, "I have worked at the bank for 20 years and have learned about the bank and the group overall through business divisions and the vice-chairman role, so I believe this will not be a significant issue."

Regarding recent internal control issues raised about KB Kookmin Bank employees gaining unfair profits through undisclosed information, Yang bowed his head directly. He said, "Ultimately, voluntary internal control is the most important, and I think digital aspects are necessary in this process," adding, "We are actively considering investments on how to introduce digital technology into internal control and systematize it."