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Leader of new KDB group spearheads Asian expansion
November 07, 2009
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At least that’s the hope of the chairman of the soon-to-be-privatized KDB Financial Group, Min Euoo-sung. In an interview with the JoongAng Ilbo, Min also expressed disappointment at missing the chance to take over Lehman Brothers after its collapse last year, since Nomura Holdings’ takeover of Lehman eventually helped the Japanese firm rapidly expand. KDB Financial Group officially began operations this month after the state-run Korea Development Bank separated its “policy financing” operation, offering low-interest loans to small and midsized exporters and to industries strategically backed by the government, from its other commercial sections. The former went to the new Korea Finance Corp., and the latter to KDB Financial Group. Q. You’ve been talking recently a lot about “financial exports.” Tell us what that means. A. KDB, as a state-run bank, dealt with so many public financing projects to develop railways, roads, ports and other basic infrastructure. And now many developing Asian countries trying to build public infrastructure are in need of the same financial services, which we’re trying to export. And doing so has many merits. For instance, if we take part in large public financing projects to build infrastructure in Asian countries, other Korean companies, from builders to plant developers, can gain a foothold there. Once such infrastructure projects are completed, other Korean conglomerates like Samsung or LG can build their own production plants there to secure better standing in newly-emerging markets. Also, our plan to buy other Asian banks means we can spread out not only in the country where the bank is based but neighboring countries, too. How do you feel about the failed bid to take over Lehman Brothers? I still feel so bad about missing that opportunity. A global investment bank like Lehman has such excellent business networks all around the world, with which enormous amounts of intelligence and good information can be gathered. If you can get the same information only an hour earlier than others, you can often change the whole business situation, and more accurate information can also help you make far better decisions. Nomura Holdings had long tried to expand its overseas sales to little avail, but now it reaps more profits in overseas markets than it does domestically within just a year after it took over Lehman. Speaking of the aftermath of the financial downturn, some people say we need to be more cautious and take more time before moving aggressively to explore foreign markets. It’s quite the contrary. Now is the perfect time. KDB has played the role of one of Asia’s biggest and most successful private equity funds by taking over ailing companies, normalizing their operations and selling them later at a higher price. LG Card, Daewoo Shipbuilding and Marine and Hynix Semiconductor are good examples of this practice. There will be more companies like these in Asia, and there will be demand for a bank that can deal with such ailing companies. KDB, with ample experience helping ailing Korean companies for the past decade, is better positioned to step forward. By Nam Yoon-ho [hawon@joongang.co.kr] |
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