An Occasion for New Resolutions

Kookmin Bank celebrates 9th anniversary of merger with Korea Housing Bank

President Min Byong-deok of Kookmin Bank said on the 9th anniversary of its merger with the Housing Bank that the bank should put all of its resources behind the effort to turn itself into more effective and productive financial institution in the days ahead.
In a speech commemorating the anniversary of the merger at a ceremony held at the bank’s auditorium in Seoul on Nov. 1, he said the bank should strengthen its operational capacity, its base for sustainable future growth, the establishment of a results-oriented culture and communication management to recover its old glory as a leading financial institution. He also expressed his sorrow for the honorary retirements being carried out by the bank as a way to be more competitive and productive.
Min said, he had to implement the honorary retirements, although it is truly a heartbreaking move since we have to part with many of our colleagues, adding that he would like to convey his deep consolation to those who decided to take the honorary retirement.
Min said he wanted to make it a bank that can move fast and still remain large by reshuffling personnel to strengthen the bank’s marketing programs and expand the number of products and services that reflect customer needs. He also stressed the need to strengthen investment banking operations and the foreign exchange sector, saying that the bank should not cling solely to its retail banking because it will weaken the bank’s long-term leadership.
He will reward those who submit very good ideas for the improvement of the bank’s operations, along with those exceptionally talented personnel. He also said the results-oriented performance evaluations will be introduced to replace the equal personnel policy based on seniority, stressing the importance of communication. He will tour the country to visit the bank’s outlets to check their operations.
He said the branches with few regular customers will be trimmed or merged with other branches. He said he will set up special units to take charge of excellent corporate customers and open new small banking outlets where many people move around, such as areas with universities.
In his inaugural speech as CEO early this year, Min said management’s first priority is, and will always be, maximizing customer value. It’s an employee of Kookmin Bank for close to three decades, I have experienced firsthand that the road to building a better, stronger bank starts with the nurturing of customer value. Which is why KB will adopt a more customer-centric approach that will bolster the quality of our products and services to meet each individual’s specific financial needs while fluidly remodeling our corporate structure and organizational polices in ways that best suits our customers.
Second, Kookmin Bank is going to focus on cost-efficiency. To ensure that a virtuous cycle of low cost, high efficiency can be maintained throughout the bank, we will concentrate heavily on increasing productivity, while adopting a slimmer structural model and enacting cost-cutting measures throughout the bank.
Third, KB’s many branches will be the centerpiece of our business strategy. Kookmin Bank’s greatest strength has always been the employees’s sales skills, outstanding teamwork and unrelenting spirit. With the singular goal of increasing business, everyone at KB will work both diligently and systematically to equip our branches with the necessary sales capabilities that will result in enhanced productivity.
Fourth, we will upgrade the bank’s risk management significantly by establishing an integrated management system through the development and execution of a bank-wide risk management strategy. Our early warning system will be better utilized as well, in order to practice a proactive and preventive risk management style that accounts for expected loss and become less reliant on provisions such as allowance for bad debts.
Fifth, Kookmin Bank will firmly establish a culture of meritocracy where all KB employees will be rewarded according to their performance and ability. I believe that this will lead to maximum productivity on all levels. Finally, we will give growth to a new corporate culture based on a can-do spirit that is unique to Kookmin Bank. innovation, challenge, and teamwork are the three components that will be the materials we use to build our new organizational culture, and it will be the executives and the senior employees who will be at the forefront, laying down the first bricks of innovation.
We will coordinate diverse campaigns to promote reform throughout the organization, fostering a culture of cooperation and teamwork, with employees who are eager to embrace new challenges. nw

President Min Byong-deok of Kookmin Bank.