An Aggressive
Design

FOB Chairman Yoo calls on banks to be more aggressive to expand overseas operations

Chairman of the Federation of Banks Yoo Ji-chang, in his New Year speech, said the banks had done better than other financial institutions last year in terms of profit and soundness of their operations, despite many factors hindering their sound operations. It was a significant year with the banks having able to expand the number of outlets and doing well in the area of launching new business facilities such as the cross-sale of financial products and expanding overseas operations.
It was a busy year for the FOB with the federation doing all it can to play the role of facilitator, coordinator, and initiator for its member banks as I recall, renewing their determination to do a good job.
This year every one in the banking industry has high hopes, but it doesn't seem that the road is clear. Many economists predict that the world economy would not grow as big as it did last year, and domestically, the appreciation of the Korean won will be steep, interest rates rising,
expansion of real estate price bubble spreading and political risks increasing, which would stunt the economic growth. The prospect for the financial industry will not be that good, in reflection of the negative factors outlined above. The financial industry's position might be weakened due to a number of financial laws and regulations to be revised which will touch upon the competitive structure and management strategies of the industry.
FOB is in a position to cope with high expectations by member banks on what it can do this year to help them in terms of winning the public trust and firm up their images as an industry making huge contribution to the growth of the national economy.
One huge area is corporate contribution to society. We did lot last year, but we have to do it more this year. Another area is securing the base for banks to expand their overseas operations for this year in tandem with the government strategy to make Korea a financial hug in northeast Asia and the expected conclusion of the free trade agreement with the United States. It is no longer stoppable for the financial industry to be part of the global financial market.
The financial authorities have asked the FOB to develop programs to help Korean banks make advances into overseas. nw

Dignitaries at the New Year reception held by the Federation of Banks including Deputy Prime Minister and Finance and Economy Minister Kwon O-kyu, FSC Chairman Yoon Jeung-hyun, Rep. Lee Jong-koo, of the Grand National Party, and FOB Chairman Yoo Ji-chang, make a toast to celebrate the new year for all members of the financial community in Korea.

Deputy Prime Minister and Finance and Economy Minister Kwon O-kyu poses with award winners, including Kookmin BankPresident Kang Chung-won, Samsung Securities CEO Bae Ho-won, IBK CEO Kang Kwon-seok, Kwangju Bank CEO Chung Tae-suk, and Dongbu Insurance Co. CEO Kim Sun-hwan.