[Manbo Jeongdam] Hwang Byeong-woo, Chairman of DGB Financial, "Learned a lot after recommended resignation... Continuous self-development is necessary"

From Subsidiary Contract Worker to Holding Company Chairman
Dedicated to Self-Development After IMF Recommended Resignation
"Aiming to Grow into a Group Befitting the 'Big 6 Financial Holding Companies'"

There is a person who was hired as a contract worker for the first time in the history of the bank. This person worked hard and even achieved a transition to a full-time position. With the birth of his first child, he thought his life as a banker would be smooth sailing. However, just a week after his daughter was born, the 1997 foreign exchange crisis struck, and he was forced to take a voluntary resignation. While wandering in uncertainty, he was able to rejoin the same bank three months later on the condition of a pay cut. An ordinary person might have settled for such a reality, but he was different. Through relentless self-development, he earned the title of being the first. Starting as the first branch manager from a contract worker, he rose to become the bank president and chairman of the financial holding company. This is the story of Hwang Byung-woo, chairman of DGB Financial Group and president of iM Bank (formerly Daegu Bank), who led Korea’s first regional bank to transition into a commercial bank.

He said, “When I was laid off during the IMF crisis, I felt many things, especially the need to develop my own abilities. The capability of each employee is the capability of the bank, and good talent is our competitiveness, so we are creating an environment where employees can pursue self-development.” We walked for about an hour near Daegu’s Suseong Lake, close to the iM Bank headquarters, and talked about his life and the goals of DGB Financial as a commercial banking group.

On the 7th, Hwang Byung-woo, chairman of DGB Financial Group, who was interviewed by our newspaper at Suseong Lake in Daegu, is looking at the pond.
[Photo by DGB Financial Group]

Suseong Lake Transformed from Reservoir to Resting Place... “iM Bank Will Also Be Loved Through Change”

On the morning of the 7th, Daegu’s Suseong Lake, surrounded by reeds and trees, was occasionally visited by citizens enjoying a walk. There were many cafes and restaurants around Suseong Lake. In front of the monument inscribed with ‘Suseong Lake,’ Chairman Hwang said he often visits this place. He mentioned that while commuting between Seoul and Daegu, he has many lunch and dinner appointments over two months, and often has breakfast meetings only when absolutely necessary. He added, “We usually hold meetings at the Suseong Hotel restaurant, and looking at the beautiful scenery of Suseong Lake helps resolve conflicts even if there were disagreements.”

Chairman Hwang shared the story of how Suseong Lake transformed into a public space through change. Created in the 1920s, Suseong Lake was originally built to supply agricultural water. The area around the lake was mainly used for growing chives. However, as urbanization progressed, it was at risk of being reclaimed. As agricultural land disappeared, other reservoirs were quickly filled in. But Suseong Lake sought to transform into a citizen’s resting space and became the most beloved place among Daegu citizens.

He explained that iM Bank, located not far from Suseong Lake, is in a similar situation. Having transitioned from a regional bank to a commercial bank, it can now operate nationwide. The day we met Chairman Hwang was the 57th anniversary of iM Bank’s founding. Established on October 7, 1967, as Korea’s first regional bank, iM Bank was created through the dedication and efforts of local small business owners. At that time, the government believed regional banks were necessary to successfully implement the five-year economic development plan. The purpose was to gather capital from the local area to promote community development and reduce economic disparities between regions. On January 17 of that year, President Park Chung-hee stated in his New Year’s address, “We will consider and promote the establishment of regional banks to consolidate regional capital, contribute to community development, and mobilize domestic capital.”

On the 7th, Hwang Byung-woo, Chairman of DGB Financial Group, who was interviewed by our newspaper at Suseong Lake in Daegu, is taking a commemorative photo. [Photo by DGB Financial Group]

The Daegu merchants acted swiftly. On the 23rd, six days later, 43 members of the Daegu Chamber of Commerce and Industry, including representatives of large companies, gathered to launch the provisional ‘Daegu Bank Establishment Preparation Committee.’ Despite holding a founding meeting and general assembly and launching a stock subscription, they faced difficulties in obtaining approval due to poor subscription and low payment of shares. However, following a visit by the Minister of Finance to Daegu, they overcame competition with commercial banks and reduced early operational difficulties through government proposals, successfully passing the approval amendment application. On October 7, iM Bank held its opening ceremony at the Daegu Chamber of Commerce and Industry, attended by the first bank president Kim Jun-sung and 43 executives and employees, and began operations. Since then, it has operated as a regional bank contributing to the industrial development of Daegu and Gyeongbuk. Last year, the government promoted the transition of regional banks to commercial banks to stimulate competition in the banking industry, and iM Bank became the target of this initiative.

Chairman Hwang said, “We are attempting a change from a regional bank that led growth within the region to a commercial bank that circulates funds nationwide and leads regional development. Just as Suseong Lake became beloved by citizens through change, iM Bank will also transform and be loved by customers.”

Overcoming Voluntary Resignation Through Endless Self-Development and Positive Thinking

Like iM Bank, which is undergoing continuous change, Chairman Hwang has actively responded to change throughout his life. Having risen from a contract intern to chairman of a financial holding company, he does not hesitate to offer advice to junior employees. What he emphasizes is self-development and positive thinking.

Born in 1967, Chairman Hwang is the youngest among the chairmen of the seven major financial holding companies (KB, Shinhan, Hana, Woori, BNK, DGB, JB). Since joining Daegu Bank in 1995, he has been active as a ‘DGB financial man.’ After serving as head of the Daegu Bank Management Consulting Center in 2012, he held positions such as branch manager, bank president’s secretary, and executive director of DGB Financial Group. Through the group’s CEO development program, he rose to become the president of Daegu Bank. He received the highest evaluation in this rigorous two-year program consisting of 16 detailed courses.

Chairman Hwang described his life before becoming chairman of the holding company as “a truly turbulent life as a banker.” He said his employee numbers reflect this life. He explained that there are ten employee numbers assigned when joining the bank. These include the number he received when he joined in 1995, the number after becoming a full-time employee, the contract employee number after returning post-dismissal, the number after another full-time transition, and numbers received as a manager and executive.

On the 7th, Hwang Byung-woo, Chairman of DGB Financial Group, who was interviewed by our newspaper at Suseong Lake in Daegu, explained the history of Suseong Lake.
[Photo by DGB Financial Group]

The reason for having such diverse employee numbers is because Chairman Hwang experienced dismissal. He was initially a contract worker. Daegu Bank hired an intern for the first time in its history, and he was selected. He worked quietly for three years at the bank’s Financial Economic Research Institute and eventually transitioned to a full-time position. Then came the crisis: the 1997 foreign exchange crisis. Due to worsening management, Daegu Bank forced voluntary resignations on five people in the research institute, including Hwang. The disappointment was even greater for Hwang, who had achieved full-time status. To help them recover emotionally, Daegu Bank gave them five days of special leave. He suggested to his fellow dismissed colleagues, “Let’s go somewhere farthest from Daegu Bank, which caused us pain,” and they headed to Ttangkkeut Village in Haenam, Jeonnam Province. Chairman Hwang recalled, “At that time, I didn’t even want to see the bank building, and I thought going somewhere farthest away might help erase thoughts of dismissal.”

After arriving at Ttangkkeut Village, they went to Bogildo Island, accessible by boat. While playing with colleagues, Hwang entered a guesthouse but couldn’t sleep, so he went out to the breakwater. At that moment, tears fell from his eyes. He said, “I regretted not living properly within an organization and felt I had neglected self-development.”

Rehired by Daegu Bank on the condition of a pay cut, Chairman Hwang devoted himself to self-development. He adopted the Confucian saying “Jiji ja bulyeo hoji ja, hoji ja bulyeo rakji ja” (知之者不如好之者, 好之者不如樂之者: Those who know are not as good as those who love, and those who love are not as good as those who enjoy) as his motto, embracing the mindset of enjoying his work life. While working at the research institute consulting small and medium enterprises, he obtained a career counseling certificate and built his own area of expertise. Later, he acquired certifications such as technology transaction specialist, business valuation expert, and a PhD in economics, gaining recognition within the company beyond finance. Chairman Hwang said, “After becoming bank president, I created a professional job group within the company and established a system to build proper capabilities. I believe that aligning individual visions with organizational visions to enable everyone to grow is essential to securing good talent.”

He also advised that health management is essential for personal growth. Chairman Hwang said that walking exercises help correct poor posture and organize thoughts, which in turn helps secure sufficient sleep.

On the 7th, Hwang Byung-woo, Chairman of DGB Financial Group, was seen looking at Suseong Lake in Daegu. [Photo by DGB Financial Group]

DGB Preparing to Leap as the ‘6th Financial Holding Company Living in Harmony with the Region’

When asked about his reflections six months after taking office as chairman of DGB Financial Group last March, he said it was “a period of preparing to leap into a commercial financial group.” He explained that transactions are now occurring not only in the Daegu and Gyeongbuk regions but also in other regions where they previously could not operate, and this positive sign is boosting the confidence of internal employees. He also emphasized focusing on communicating with the local community and shareholders to build consensus on iM Bank’s transition to a commercial bank and setting long-term goals.

He expressed his ambition to become a commercial financial group worthy of being called the sixth major financial holding company. Chairman Hwang said that one reason the government allowed iM Bank’s transition to a commercial bank was to assign it the role of a ‘catfish’ to break the oligopoly in the banking industry. He pledged, “Through rapid growth, we will respond so that the banking industry will speak not only of the five major financial holding companies but also the sixth.” To this end, he plans to rebalance iM Bank’s assets, which are concentrated 70-80% in the Daegu and Gyeongbuk regions, by increasing the proportion in the Seoul metropolitan area and other regions.

Although he expressed regret over quantitative evaluations such as decreased net profit, he emphasized that coexistence with the region is more important. Chairman Hwang mentioned that iM Bank’s performance this year has declined compared to last year, saying, “This is natural because the Daegu and Gyeongbuk regions are facing difficulties.” He added, “iM Bank is a community of fate with the region, and when the region is struggling, if the bank only pursues profits, people will think, ‘Who would use iM Bank?’ So we strive to help the region without breaking market consensus.” He also predicted, “Although the provisioning issue of iM Securities (formerly Hi Investment & Securities) has significantly affected DGB Financial’s stock price, if this issue is resolved within this year, market evaluations should improve from next year.”