Kim Sung-joo, the newly appointed CEO of Busan Bank, has expressed his commitment to expanding overseas operations, stating he will "actively pursue the conversion of overseas subsidiaries, including the one in Kyrgyzstan, to full banking operations."
In a phone interview with The Seoul Economic Daily on December 31, Kim said, "I feel the weight on my shoulders taking on this important responsibility during difficult times," while expressing strong determination to expand overseas business centered on Central Asia.
BNK Financial Group currently operates overseas subsidiaries in six countries—Kazakhstan, Uzbekistan, Kyrgyzstan, Myanmar, Cambodia, and Laos—primarily through its capital arm. Among these, the Kazakhstan subsidiary received approval from local authorities to convert to a full banking license in June this year. This marks the first case of a Korean financial company entering the overseas microfinance market receiving banking conversion approval from local financial authorities.
"Following Kazakhstan, we plan to convert the Kyrgyzstan subsidiary to banking operations after going through the savings bank stage," Kim said. "We will take over the localization strategy pioneered by our capital arm and further grow our overseas business."
Kim also expressed his ambition to strengthen the role of Busan Bank as a regional financial institution in line with the Lee Jae-myung government's pivot toward productive finance. "With the relocation of the Ministry of Oceans and Fisheries, expectations for Busan as Korea's maritime capital have grown, making Busan Bank's role more important," he said. "We will actively support maritime logistics infrastructure, including ship financing."
Regarding the government's productive finance initiative, Kim emphasized, "Given the difficulties facing regional economies, regional banks need to pay more attention to productive finance." He added that he plans to expand related investments through collaboration with BNK Capital, where he previously served as CEO.
On concerns about distressed real estate project financing (PF), Kim responded, "We have struggled significantly with real estate PF issues, but most have been resolved. Some embers remain, but it is no longer a level of major concern."
Regarding the governance controversy under examination by the Financial Supervisory Service, Kim countered, "If we had violated best practice guidelines, regulatory sanctions would have already been imposed. The fact that the appointment process concluded without issues shows that BNK Financial Group faithfully followed the guidelines."
BNK Financial Group held a CEO candidate recommendation committee meeting for its subsidiaries the previous day and selected Kim as the final candidate for Busan Bank CEO. Kim was officially appointed as the new Busan Bank CEO following board and extraordinary shareholders' meetings on the same day, with his term beginning January 1.
This marks the first time a non-bank affiliate head has been appointed as Busan Bank CEO, breaking the convention of internal bank executives being promoted directly to the position.
