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Hana Securities has decided to expand attendance at its weekly "Survival Strategy Meeting," held to strengthen competitiveness, from the executive level to the division-head level. Analysts say the move reflects a strong determination to improve earnings and bolster competitiveness in the securities business, given that the meeting is chaired by Hana Securities CEO Kang Sung-mook. Internally, however, skepticism has emerged that the change could actually reduce employee productivity by increasing the burden of coming to work.
According to the financial investment industry on the 28th, Hana Securities broadened attendance at the "Survival Strategy Meeting," held every Sunday under CEO Kang Sung-mook, from the executive level to the division-head level. It marks the first expansion of the meeting's attendees this year. The meeting, which typically runs three to four hours, is known to cover industry and corporate analysis as well as market strategy.
The expansion of attendance to the division-head level is interpreted as reflecting Kang's judgment that earnings improvement can no longer be delayed. It also appears to stem from a determination to differentiate the firm in competition with securities affiliates of other financial holding groups. Hana Securities posted net income of 212 billion won last year, down 5.8% from the previous year. Despite the booming stock market, it was the only firm to see earnings decline among the top 10 securities firms, as well as among the securities affiliates of the five major financial holding groups. In the first quarter of this year, it showed a recovery, recording operating profit of 141.6 billion won and net income of 103.3 billion won, up 47.9% and 37.1%, respectively, from a year earlier. The expansion is also seen as taking into account that, having been confirmed as a promissory note issuer at the end of last year, the firm must close the gap with existing players by expanding venture capital investment and productive finance based on that business. After receiving authorization as a promissory note issuer, Kang said, "Through the promissory note business, we will expand venture capital investment and support the growth of innovative companies and the building of a future industrial ecosystem."
Internally, however, voices of concern are being raised. While the meeting was previously executive-centered, the inclusion of division heads has prompted concerns that the work burden is spreading. A Hana Securities official conveyed the mood, saying, "Considerable time is required to prepare for the meeting, including reporting tasks," and "Some employees would prefer that the meeting be run with consideration for the nature of an organization that must produce results in the field."
There is also criticism that the move fails to consider the differing organizational characteristics of securities firms and banks. Kang built his career at Hana Bank and currently serves concurrently as CEO of Hana Securities and vice chairman of Hana Financial Group. Internally, some observe that the group-level management system and reporting culture have been applied directly to the securities firm's organization, which may have led to the reinforced operation of the Survival Strategy Meeting.
