[Kim Daesik · Kim Hyeyeon's AHA] "AI Banking Will Create a New Paradigm, Not Just a Technological Shift"

Developing AI Agent-Based Financial Services
Far Simpler and More Intuitive Than Traditional Internet Banking
What Once Required Hundreds Now Needs Only Small Teams
Costs Reduced to 20% of the Past
AI Trained on Financial Data Enables

Editor's NoteAsia Economy has decided to examine, from the perspectives of both engineers and artists, how the rapidly advancing field of generative artificial intelligence (AI) is transforming the world of artistic creation, and what concerns 'humans' should consider. To this end, we have established a monthly feature in which Kim Daesik, Professor of Electrical and Electronic Engineering at KAIST, and Kim Hyeyeon, choreographer and CEO of Yeonist, engage in discussions or debates with artists about their works. The title of this feature, 'AHA', stands for 'AI, Human & Art'. We hope that, through Professor Kim Daesik, who is passionately exploring the future of generative AI, and choreographer Kim Hyeyeon, who is boldly integrating generative AI with dance, you will take a step closer to the profound questions surrounding AI, humanity, and art.

Since founding Webcash Group in 1999, Chairman Seok Changgyu has introduced a series of firsts in Korea, including the first convenience store ATM, corporate internet banking, virtual accounts, corporate cash management, and research and public financial management systems, shaping the framework of the B2B (business-to-business) fintech industry. He boldly transformed Webcash Group from a system integration (SI)-centered structure into a solution company based on software as a service (SaaS), implementing the management strategy of 'discard, remove, and change,' and growing core services such as KyungriNara, InhouseBank, and Branch. In Cambodia, the company trains the top 3% of IT talent each year, fulfilling both social responsibility and global expansion. We met Chairman Seok at the Webcash Group headquarters in Yeongdeungpo-gu, Seoul, on August 4.

Seok Changgyu, chairman of Webcash Group, is having a discussion with Professor Kim Daesik of KAIST and choreographer Kim Hyeyeon at the Webcash headquarters in Yeongdeungpo-gu, Seoul, on the 4th. Photo by Kang Jinhyung

 Please briefly introduce yourself.

 I started my career as a banker. I joined Kookmin Bank in 1988, where I was responsible for designing electronic finance architecture, and later worked at Dongnam Bank and Busan Bank. About a year later, on the day Korea's first internet banking service launched, I handed in my resignation. The advent of TCP/IP-based financial services was such a tremendous innovation for me that I became convinced I could not remain within the confines of a bank. Webcash was born from that sense of innovation.

Currently, we provide asset management services for corporations and public institutions in the B2B fintech sector, and our affiliates include Kukon, Korea's number one data business, and Bizplay, an expense and welfare management SaaS platform. Many of the services that have become part of everyday life, like convenience store ATMs, were actually innovations we pioneered. At the time, we reduced ATM installation and operating costs to one-eighth, replaced small screens with large ones, and introduced automatic communication downloads. This challenge was the catalyst that led to the widespread adoption of large screens on ATMs worldwide.

 What was the situation like when you founded the company in 1999? What challenges did you face?

 It was the most difficult period. The aftermath of the 1997 financial crisis lingered, and the internet had yet to become mainstream. Amazon was established in 1996 and Google in 1998, which shows just how early it was. However, I had already experienced the innovation that TCP/IP technology would bring while working in the bank. Previously, it took over a month to connect a company and exchange information via dedicated lines.

But with just a LAN cable, a world where information flowed instantly had arrived. The impact was beyond words. Moving from the era of modem beeps to instant connections, I became convinced that "finance will change completely from now on." That conviction led me to start the company, and indeed, services like virtual accounts and securities/card withdrawals rapidly spread based on TCP/IP technology.

Professor DaeSik Kim of KAIST (left) and Chairman ChangGyu Seok of Webcash Group

 How was the transition from banker to entrepreneur?

 I was closer to being a technician than a banker. Since I handled electronic finance in the bank, I thought, "Once I'm outside, the world is mine." But within a year, I realized that was a misconception. The world was not easy. After two years, I couldn't even pay my employees' salaries. There were times when I used my own credit cards to support my staff, and after two and a half years, all I had was debt. It felt great to be recognized for our technology and receive investment, but without profits, the debt became a burden. Honestly, I considered quitting, but I was already in too deep to stop. The startup began with flair, but in reality, it was a continuous struggle to survive.

 When did you start to feel confident?

It took about 15 years before I gained confidence. Just as Napoleon, after conquering one territory, would always find another mountain ahead, the challenges never ceased. Ten years passed that way. At first, we focused on the SI business, but over time, I realized that was not the answer. So we shifted to the SaaS business and adopted the strategy of "discard, remove, and change." We discarded what customers didn't love, removed what had no future, and changed to services that customers adored, which revived the company. That was when I finally sensed, "We're on the right track." This was the secret and method of conviction that allowed Webcash Group, which fluctuated between losses and profits from 1999 to 2015, to grow into a company generating 30 to 40 billion won in operating profit.

 How do you see the direction of AI utilization in the B2B fintech (finance + technology) sector in the era of artificial intelligence?

 I see AI not as a revolution, but as a 'trend of the times.' A revolution is when existing vested interests collapse and positions shift. That is exactly what is happening now. The key is whether all employees are actually using AI tools and are interested in them. If not, it's meaningless. Internally, we have already begun our AI transformation. We gave employees a project with the instruction, "Do nothing else but this," and developed a system where complex processes, previously managed by hundreds of manuals, could be handled by a natural language-based chatbot. Through this experience, our employees gained great confidence, and as a company, we became convinced that "AI is already delivering tangible results."

Recently, we have been applying this concretely by developing AI agent-based financial services that are much simpler and more intuitive than internet or smart banking. In the past, building an internet banking system required hundreds of people, but now it can be done with a small team, and the cost is reduced to about 20%. In the future, Webcash's AI agent banking will be able to be applied without changing or modifying existing internet banking systems. I see this not just as a technological change, but as a transformation of the entire B2B financial paradigm. Furthermore, as AI learns from financial transaction data and becomes more sophisticated on its own, it will provide customers with increasingly precise and convenient services over time.

Seok Changgyu, chairman of Webcash Group, is having a discussion with Professor Kim Daesik of KAIST and choreographer Kim Hyeyeon at the Webcash headquarters in Yeongdeungpo-gu, Seoul, on the 4th. Photo by Kang Jinhyung

 Could you share your management philosophy?

 I always talk about three revolutions. The first is the Industrial Revolution, the second is the information revolution based on TCP/IP, and the third is the current AI revolution. These three trends have completely changed the paradigm of human society. In the AI era, business leaders must create both 'detailed strategies' and a 'horizontal organization.' You can't just leave behind employees who are not familiar with AI. It's not, "You don't have to do it," but rather, you must strategically lead everyone together. If a leader is too smart and gets trapped in a small box, the company cannot grow. I believe a leader's role is to understand employees' capabilities and set flexible goals.

 You are particularly known for your emphasis on social contribution. Could you elaborate?

 I believe I have received much grace in Korea. So paying more taxes and donating to society is only natural. As part of this, I started investing in education in Cambodia, almost by chance but also as if it were fate. In 2013, I saw that young people in Cambodia, even after graduating from university, had no dreams. Their dream was to become a driver for a foreign company. After hearing that, I began selecting the top 3% and started providing software education.

At one point, most of the students graduating each year were applying to our educational institution, such was the enthusiasm. Now, when Korean IT companies enter Cambodia, our talent forms the backbone of their operations.

I do not treat social contribution as a duty. I genuinely enjoy and feel happy doing it. When I attend graduation ceremonies every year and see my friends, I find myself tearing up and wanting to help even more. I realize that the happiness you receive gradually decreases, but the happiness you give always increases. In this sense, social contribution must be continuous to be truly powerful. I also hope other companies will continue to contribute in this way.

Seok Changgyu Webcash Group Chairman

 Looking back on your journey as a founder and business leader, do you have any messages for young people in the AI era?

 Looking back on the early days of my startup, there were times I regretted it, but now I can say, "You have to do it no matter what." Even if you fail, you learn; if you succeed, you learn even more. I always say that startups should focus on doing one thing really well. A restaurant with a single specialty dish lasts longer than one with a large menu. Even if you want to do many things, you must coldly choose the one that fits the market and focus on it. That is the power that creates tenfold growth.

My advice to young people is simple: don't be afraid of failure and take action. Innovation does not come from imitation. Only those who take action will find a path.

Kim Daesik, Professor of Electrical and Electronic Engineering at KAIST · Kim Hyeyeon, Choreographer and CEO of Yeonist