KEB to regain original forte

The new head of the Korea Exchange Bank has vowed to reinforce currency trading services as a part of its effort to reverse the bank’s weakening profitability and regain its market credibility.

“One of our main strengths is foreign-exchange services, but the income from trading currencies and from its related services is declining,” said KEB president & CEO Kim Han-jo at a press meeting on Friday.

“Currency-trading is still our No. 1 priority. We will improve the trading team and their services to regain our strength,” he said.

Hana Financial Group, KEB’s holding company, appointed Kim to take over the position from outgoing KEB CEO Yun Yong-ro earlier this month.

Kim is now taking the helm of the country’s largest foreign exchange bank, amid concerns of deteriorating growth in the country’s financial industry.

Net profit of the country’s banking sector fell to its lowest since the 2009 global financial crisis due largely to prolonged low interest rates and higher loan-loss reserves.

KEB, in particular, reported a net profit of 365.7 billion won ($332 million) at the end of 2013, which amounts to a nearly 42 percent drop in earnings in one year.

Kim admitted during his inauguration ceremony on Friday that he felt “enormous” pressure to lead the bank, especially in such difficult times for the sector.

“I’ll do my utmost to recover our business network and establish new service areas,” he added.

Kim has more than 30 years’ experience at KEB. He served as the head of KEB Capital until recently.

His appointment as the new CEO of KEB came while Hana Financial Group Chairman Kim Jung-tae is looking to speed up a merger of the group’s two banking arms, Hana Bank and Korea Exchange Bank.

Market watchers say the group chairman expects Kim to soothe any possible resentment felt by KEB’s labor union.

“It’s been more than two years (since Hana gained ownership of Korea Exchange Bank), and I think there is no more strong sentiment against (the merger).”

“But when necessary I will try my best to communicate with our labor union,” he added.

By Oh Kyu-wook (596story@heraldcorp.com)