[New Year's Address] Ham Youngjoo, Hana Financial Chairman: "Crisis for Banks... Innovation to Change the Game Needed"

New Year's Address on January 2
Transition to Productive Finance, Expansion of Digital and Inclusive Finance
Remarks on Changing Financial Paradigms
"Success Formula for Latecomers No Longer Works"

Ham Youngjoo, Chairman of Hana Financial Group. Provided by Hana Financial Group

On January 2, Ham Youngjoo, Chairman of Hana Financial Group, addressed executives and employees, stating, "A fundamental innovation that changes the entire game is necessary," and urged, "We must reinvent ourselves as architects who create new rules and lead the market."

In his New Year's address, Chairman Ham emphasized leading the won-based stablecoin ecosystem, expanding productive financial capabilities, and strengthening the non-banking sector.

Chairman Ham stated, "Household loans have reached their growth limit, and in the areas of corporate lending and investment, keen insight is needed to distinguish between good and bad assets," adding, "It is a crisis for the bank, which has faithfully fulfilled its role as the group's cornerstone."

He went on to explain, "The paradigm of finance is changing," and noted, "There are not only rapid advancements in digital technologies such as artificial intelligence (AI), but also structural changes occurring within the financial industry itself."

Chairman Ham mentioned the 'money move,' where bank funds are shifting toward securities firms, and pointed out, "Past achievements and massive scale cannot guarantee survival tomorrow." He called for strengthening asset management capabilities, transforming into a specialized organization to promote productive finance, and enhancing corporate finance screening and risk management capabilities.

In particular, he stressed, "Until now, as a latecomer in finance, we have adopted proven methods, minimized risk, and achieved stable results," and asserted, "A major transformation of Hana Financial Group's formula for success is needed."

Chairman Ham also emphasized the importance of strengthening the non-banking sector. He said, "We must break the widespread indifference and complacency within the organization and, with a sense of urgency and desperation to overcome this crisis, find new opportunities amid the coming changes."

Regarding stablecoins, he stated, "No one can accurately predict how big the wave will be or how far its impact will reach," and stressed, "We must proactively design and build a complete ecosystem that encompasses the issuance, distribution, and usage feedback loop of coins."

Concerning the planned relocation to the Cheongna office in Incheon this year, he added, "We must focus on thorough internal controls and risk management to prevent accidents that may occur amid the unsettled situation," and described it as "the starting point for a comprehensive transformation and innovation in our work methods and culture."