In an interview with Maeil Business Newspaper, Financial Services Commission (FSC) Chairman Chin Dong-soo, talked about ways to improve the global competitiveness of South Korean financial institutions and the privatization plans Woori Bank.
Regarding Competitiveness & Globalization:
The FSC Chairman said that Korean financial institutions must focus their capabilities in developing their distinct characters.
“South Korean commercial banks are competing in the domestic market without differentiated strategies. He advised the banking industry to arm themselves with unique capabilities and use them as leverage to explore the global market.”
Globalization, another pillar in advancing the industry, Chin told the industry to target Asia first before expanding into the global market. Chin cited Spain’s Banco Santander’s successful launch into Latin America market by exploiting their similar cultural backgrounds.
Regarding Woori Bank:
Chin said privatization of Woori Bank will begin in the second half of the year after reviewing the plan in the first quarter.
The issue remains at the heart of the South Korean banking industry’s Big Bang (deregulation).
The best option is putting up government-owned stakes in the bank on the market, but a merger is another alternative if market conditions are not as sound.
The public fund management committee will reach a conclusion in the first half after analyzing the strength and weaknesses of all measures.
See here for more information regarding the privatization of Woori Bank.
Regarding Corporate Governance:
In terms of the latest issue surrounding the corporate governance of the banking industry, FSC is mulling over measures to set up a department on corporate governance that can overlook and supervise corporate governance of domestic banks, equity and insurance firms.
For more information on the deregulation of Korea’s financial industry click here.
(Source: Maeil Business)
No related posts.
