"Let's Acquire Homeplus with Saemaeul Geumgo" Fierce Chairman Election Battle [1mm Finance Talk]

Two Weeks Until the Saemaeul Geumgo Chairman Election
Surprise Pledge Shakes Up the Race
Chairman Kim In Registers Candidacy... Seeks Final Term

As the election for the Chairman of the National Federation of Saemaeul Geumgo gains momentum, competition among the candidates has intensified. Interest within and outside the financial sector is rising, especially after a candidate announced plans to acquire Homeplus, which is currently undergoing corporate rehabilitation procedures (court receivership).

Last month, Jang Jaegon, Chairman of Jongno Plaza Saemaeul Geumgo, declared his candidacy and unveiled a pledge to acquire Homeplus, merge finance with retail, and establish a "coexistence ecosystem for small business owners." In a phone interview with The Asia Business Daily on December 3, Chairman Jang stated, "Currently, Saemaeul Geumgo’s operations are simple and overly concentrated on real estate project financing, which has caused significant damage. At this point, we need other interconnected businesses, and I plan to create ways for rural and urban branches to collaborate on business projects."

Chairman Jang also presented a concrete blueprint. He plans to transform Homeplus into the "MG Small Business Owners Mart" and benchmark the paid membership model of Costco Korea. Based on Saemaeul Geumgo’s 20 million members, he envisions running an annual membership system and expanding small business-focused credit products by utilizing retail sales data.

Jang Jaegon, Chairman of Jongno Plaza Saemaeul Geumgo. Provided by Chairman Jang.

Regarding the National Federation of Saemaeul Geumgo’s acquisition capacity, he said, "The market estimates Homeplus’s acquisition price at between 1.5 trillion and 2 trillion won, but since there are no buyers, we could negotiate an even lower price." As for funding, he explained that the National Federation could provide 1.2 trillion won, or 60% of the acquisition funds, and raise an additional 500 billion won by creating a fund targeting Saemaeul Geumgo members.

As Chairman Jang, who had previously received less attention, brought forward the Homeplus acquisition pledge, the election race has become more heated. A financial industry official commented, "The claim that Saemaeul Geumgo will acquire Homeplus has significantly increased attention from the financial sector. However, there is criticism that the pledge lacks feasibility and was made just to attract attention."

Meanwhile, once official candidate registration is completed on this day, the election campaign for the Chairman of the National Federation of Saemaeul Geumgo will begin in earnest. The election will be held on December 17 at the MG Human Resources Development Center in Cheonan, South Chungcheong Province, with the 1,262 branch chairmen nationwide casting their votes. Except for the 2023 by-election, this is the first direct election in which branch chairmen across the country will directly elect the Chairman.

The leading contender is currently Chairman Kim In. According to the National Election Commission, Chairman Kim also completed his candidate registration the previous day. He is credited with improving organizational innovation and soundness at Saemaeul Geumgo following the bank run crisis, and his advantage lies in the benefits of incumbency. If elected, Chairman Kim would serve his final consecutive term. Although the Saemaeul Geumgo Act was revised earlier this year to limit the Chairman’s term to a single four-year term starting in March 2026, Chairman Kim is not subject to this change.

In addition to Chairman Kim, Yoo Jaechun, Chairman of Seoul Livestock Saemaeul Geumgo, has also entered the race. Chairman Yoo is said to be emphasizing an "innovative" image and highlights his achievement of growing Seoul Livestock Saemaeul Geumgo from a small branch with assets of about 20 billion won to a large-scale branch with assets of approximately 872.4 billion won.