Oh Hwa-kyung, Chairman of the Korea Federation of Savings Banks, Reappointed After 36 Years... "Stable Management of Real Estate PF Until Year-End"

76 out of 79 Votes at the General Meeting on the 31st... 96.2% Approval Rate
Chairman Oh: "Diversifying Financial Portfolios for Ordinary Citizens"
"Mid- to Long-Term Tasks: Lowering Deposit Insurance Premium Rates and Liberalizing M&A"

Oh Hwa-kyung, Chairman of the Korea Federation of Savings Banks, succeeded in his reappointment with a voting rate of 96.2%. Chairman Oh became the first reappointed chairman in 36 years.

Oh Hwa-kyung, Chairman of the Korea Federation of Savings Banks, is speaking to reporters after successfully being re-elected as the 20th (next) Chairman at the 2025 regular general meeting of the Federation held on the 31st morning at the Bankers Club on the 16th floor in Jung-gu, Seoul. Photo by Moon Chae-seok

After confirming his reappointment on the 31st, Chairman Oh said, "Real estate project financing (PF) and bridge loan trading are the most important," adding, "We will manage them stably until the end of the year to gain market trust and properly fulfill the role of the Federation."

Chairman Oh was elected as the next (20th) chairman of the Federation with 76 votes out of 79 savings bank representatives at the regular general meeting held that morning at the Bankers' Hall in Jung-gu, Seoul, achieving a voting rate of 96.2%. His term will last until March 30, 2028.

After the meeting, he told reporters, "There are many pressing issues, so the responsibility feels heavy, but I will strengthen communication to overcome difficulties well."

Chairman Oh explained that as of the end of last year, the asset ratio of metropolitan area savings banks accounted for 85% of the total, and the income ratio was about 88%. He acknowledged that the gap between the metropolitan area and provinces has widened compared to when he took office as the 19th chairman three years ago.

He declared to the 79 savings bank representatives that during his three-year term, he would accomplish four tasks: asset soundness, expansion of the role of savings banks, deregulation, and enhancement of the next-generation IT system.

On the morning of the 31st, attendees are conversing at the 2025 Savings Bank Central Association regular general meeting held at the Bankers Hall in Jung-gu, Seoul. Photo by Moon Chae-seok

Chairman Oh emphasized that he would push for complete deregulation of mergers and acquisitions (M&A) and an increase in the deposit insurance premium rate. The deposit insurance premium rate is the rate of insurance premiums that financial companies pay to the Korea Deposit Insurance Corporation when they receive deposits. Savings banks are subject to the highest rate of 0.40% in the financial sector.

He revealed plans to propose to financial authorities the broadening of the business areas of provincial savings banks as part of easing M&A regulations. The industry intends to convey to the authorities a request to relax the strict regulations that only allow "conditional M&A" for metropolitan savings banks with asset soundness below grade 4, which are at risk of insolvency.

Chairman Oh said, "Since the combined asset ratio of provincial savings banks is only 15%, I plan to request the authorities to broaden the business areas of provincial savings banks."

Chairman Oh is recognized for focusing on resolving pressing issues such as blocking the risk of mass withdrawals (bank runs) of real estate PF deposits during his three-year term as the 19th chairman starting February 2022. He led the establishment of a specialized non-performing loan (NPL) company under the Federation, concentrating on improving the soundness of the savings bank sector.

According to the Financial Supervisory Service, the delinquency rate of 79 savings banks last year soared to 8.52%, the highest in nine years.

At the general meeting, the Federation also handled major agenda items such as the appointment of Kim In-gu as Executive Director (former head of the Bank of Korea Daejeon-Sejong-Chungnam Headquarters), Lee Yong-man as auditor (professor of real estate at Hansung University), and approval of last year's financial statements.

New Executive Director Kim is an expert in monetary and financial stability, having served as director of the Bank of Korea's Financial Stability Bureau and head of the Daejeon-Sejong-Chungnam Headquarters. New auditor Lee is a real estate expert who has served as president of the Korea Housing Association and the Korea Real Estate Analysis Association.