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Message from the Chairman
- The Korea Federation of Banks(the KFB), since its foundation in 1928, has represented financial institutions conducting banking and related business in Korea, serving as the voice of Korea's banking industry.
- Banks are the lifeblood of our economy. As such, it is important that Korea's banking industry grows in both scope and sophistication so that it may better serve the real sector and in turn promote balanced economic and social development.
- To assist its members in the direction of sustainable growth and profitability, the KFB has committed itself to advocating on behalf of the banking industry regarding key issues, and in particular to push for improvements in regulations relevant to the banking sector.
- In addition, the KFB has encouraged its members to fulfill their social responsibilities through strengthening financial support of both small and medium-sized companies and unbanked or underbanked households through stepping up customer protections, and through expanding social contribution to those in need.
- Today, the banking industry is faced with various new challenges such as profitability deterioration, emergence of internet-primary banks and start-ups using fintech innovation, and increase in political and financial volatility.
- We will help our members with preemptive management of risks that could arise from such challenging environment, including the possible increase in the US interest rate, pressure to carry out corporate restructurings, and accumulation of households debts.
- Furthermore, we will support our members to improve profitability within the domestic market by diversifying their profit sources. increase non-interest profits, especially from banking commissions, and to develop innovative products and differentiated services. We will also foster a market environment where banks can fairly compete with newly emerged internet-primary banks and start-ups without regulatory arbitrage.
- To secure a new growth engine for the Korean banking industry, overseas expansion is considered not an option but a must. To help Korean banks develop into global players, we will put our utmost efforts into assisting Korean banks to expand their overseas business and strengthen global presence.
- Finally, we will keep focusing on raising competitiveness of Korea’s banking industry by improving regulations and continuously identifying room for innovation.
- In line with the activities and initiatives I have described above, let me close by reaffirming our commitment to work closely with all of our members for the purposes of elevating public trust in the banking industry. Despite the unfavorable conditions, I assure that our endeavor will lead the banking industry to become a core driver of the national economy.
- Thank you.