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The new CEO of Woori Financial Holding, Lee Pal-seung CEO of Seoul Philharmonic Orchestra, has promised to accelerate privatization and enhance its non-banking sector. At a press conference, he clearly mentioned the first priority of speeding up the privatization of the group and increasing its competitiveness. Also, he suggested it be a worldwide bank and M&A is a new alternative in achieving that goal. He knew its weakness of non-banking sector and will try to boosting securities and insurance.
He said it can make it through a unity between subsidiaries and he can help them derive best effiency. Moreover, he graduated Korea University where President Lee also did. He began with a banker at Hanil Bank and was at Woori Investment & Securities and then moved to the Seoul Philharmonic Orchestra in 2005.
Opinion
Woori Bank is the third biggest financial group(behind KB and Shinhan) in the market value. A heavy mission is given to the new CEO Lee Pal-seung due to complicated economic situation. We can summarize two strategies in his comment.
The first one is the privatization. In fact, Woori Financial Holdings is the sum of previous various banks and securities; for example Hanil Bank, Hanbit Bank, and LG Investment Securities. Therefore, the CEO should express their subsidaries' merits with the unity of them. But M&A can harm the unity so he will react this very carefully because M&A costs considerably and the effect on firm is very excessive.
And the second thing, non-banking sector, is very good because 자통법(Captial Market Integration Law) is executed in Feb 2009. Then, the Korean JP Morgan will be born and many financail group is preparing for this situation. Woori's Commercial Bank is very strong(1st place in Korea) so it has an enviornment expanding non-banking area.
Woori is very large and it can be bigger and bigger with CEO's sound business. We will notify the new CEO of Woori react this market situation.
(Source : KRX)
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(Source: Koreatimes, By Kim Jae-kyoung(Staff Reporter), 2008/05/29)
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