The incoming presidents of Busan Bank and Jeonbuk Bank, who begin their terms on January 1, have outlined their strategic priorities, with one focusing on maritime logistics infrastructure support and the other on expanding venture capital investments. Both have signaled their commitment to strengthening their roles as regional financial institutions in line with the Lee Jae-myung government's push for productive finance.
Kim Sung-joo, the president-designate of Busan Bank, said in a phone interview with The Seoul Economic Daily on Tuesday that expectations for Busan as a maritime capital have grown following the relocation of the Ministry of Oceans and Fisheries to the city.
"The role of Busan Bank has become more important," Kim said. "We will actively support maritime logistics infrastructure, including ship financing."
On the government's productive finance initiative, Kim noted that regional banks need to pay more attention to productive finance given the difficulties facing local economies. He emphasized plans to expand related investments through collaboration with BNK Capital, where he previously served as CEO.
Kim also expressed his intention to expand overseas operations centered on Central Asia. BNK Financial Group currently operates subsidiaries in six countries through its capital arm: Kazakhstan, Uzbekistan, Kyrgyzstan, Myanmar, Cambodia, and Laos. The Kazakhstan subsidiary received approval to convert to a banking license in June, marking the first time a Korean financial company in the overseas microfinance market has obtained such approval from local authorities.
"Following Kazakhstan, we plan to convert our Kyrgyzstan subsidiary into a bank through a savings bank transition," Kim said. "The bank will take over the localization strategy pioneered by the capital arm and expand overseas operations."
Kim added that the smooth completion of his appointment process demonstrates that BNK Financial Group has faithfully followed model governance standards.
Park Chun-won, the president-designate of Jeonbuk Bank, said in a separate phone interview that he feels the weight of responsibility taking on this important role as the bank's performance deteriorates. He identified portfolio diversification, including expanded VC investments, as his top priority.
"The bank has been overly focused on retail banking, which meant holding onto products with declining profitability," Park said. "Drawing on my experience growing auto-secured loans to the top position in the industry, I will focus on improving the profitability of existing product structures."
During his tenure as CEO of JB Woori Capital, Park reorganized the portfolio by pursuing profitability-focused asset strategies in used car financing while reducing real estate project financing exposure and expanding corporate loans and acquisition financing. The capital arm even surpassed Jeonbuk Bank in net profit under his leadership.
"We plan to actively increase the proportion of acquisition financing and securities assets going forward," Park said. "We are also considering joint investments in promising VCs in collaboration with the capital arm."
When asked about allegations linking him to the IMS Mobility investment, known as First Lady Kim Keon-hee's "butler gate" scandal, Park dismissed the concerns.
"It was an entirely normal deal that has been fully explained to JB Financial Group's outside directors," Park said. "Would the board have proceeded with the appointment process if they weren't confident?"
