Largest Global Banking Network Among Domestic Banks

Korea Exchange Bank set to boost its performance results with new products and services at home and overseas

Korea Exchange Bank (KEB) observed its 43rd anniversary with its fame around the country as the domestic bank with the largest global banking network. The bank has 49 banking operations in 21 countries around the world in such countries as the United States, China, Europe, Hong Kong and Singapore, establishing its reputation as a leading bank in Korea taking advantage of its vast overseas banking network.
For this year, KEB aims to post 800 billion won in net income and ROE of 10 percent under the slogan “Not the Largest, But the Top Bank.”
Under such management goals, the bank has been striving to achieve growth with profits and sustainable operations ― strengthening segregated competitive power for KEB, adherence to rules and strengthening internal control ― three major management objectives the bank has been trying to achieve.
President & CEO Larry Klane said at the beginning of this year that the bank should do its best to boost its segregated image and the competitive power of its units. He said the bank will further expand its global operations and boost the potential capacities of retail banking, private banking and credit card units so that the bank will achieve 10 percent in ROE and 800 billion won in net profit, not counting one-time profits. Klane said he expected outstanding loans would gradually increase, net interest margin would grow and loan loss provisions would be reduced to boost net profit. He plans to steer the bank to be small but effective and further develop its well-running sectors, but supplement where help is needed.
In order to solidify the bank’s advantageous competitive position in the domestic banking sector, it will operate marketing programs focused on specific customer groups in order to make them more competitive and will offer innovative financial products and services. The bank will adopt a more effective cost structure and process, effective capital distribution, flexible organization and quick response to customers’ needs according to the detailed management strategy. KEB launched KEB Asia Financial Corp. to take charge of investment banking in the Asia-Pacific region in July 2009 in a bid to make investment banking another growth engine.
In the meantime, KEB announced that on Aug. 2 it held the opening ceremony for its new China subsidiary, KEB Bank (China) Co., Ltd., at the Westin Tianjin hotel in Tianjin.
The bank launched the China subsidiary with a view to securing a key future growth driver and a base for assertively marketing its products and services in the world’s biggest market― and the one with the greatest growth potential.
Headquartered in Tianjin, KEB China has paid-in capital of 2.2 billion yuan. The choice of location was a strategic one, for KEB recognized Tianjin’s vast growth potential based on the Chinese authorities’ plans to develop it into an economic hub of northern China. KEB secured approval to establish KEB China from the China Banking Regulatory Commission on April 20 and began operations on May 17. Without delay, KEB China has embarked on an aggressive marketing campaign across its seven-branch network.
In 1992, KEB became the first Korean bank to enter the Chinese market soon after Korea opened diplomatic relations with China. Now, the bank plans to enlarge its presence in China to 30 branches by 2014 by focusing on strategic footholds with promising growth potential ― the three northeastern provinces, the pan-Yellow Sea region and eastern China.
Even at this early stage, KEB China has delivered sound business results based on an excellent foundation comprising mainly Korean companies operating in China. Building on this firm base, the subsidiary will tap into KEB’s unrivaled competitive edge in international banking and foreign exchange markets to pave the way for sustainable, long-term growth in China and cement its status as a leading bank specializing in foreign exchange.
Through its China subsidiary, KEB intends to expand its corporate-banking base of Chinese companies while marketing retail and credit card products toward Chinese consumers in an effort to become a new financial leader in the Chinese market.
“Since the establishment of Korea-China diplomatic relations, KEB has been committed to providing top-rated financial services to Korean residents of China and Korean companies doing business in China,” said Klane. “With KEB China now officially launched, KEB will work hard to develop new products and services, expand its presence in the country, and appeal to local customers in order to secure a new growth engine and become a leading global bank.” nw

President Larry Klane of the Korea Exchange Bank.