Kookmin Bank head vows to cut costs, boost competitiveness

SEOUL, July 29 (Yonhap) -- The new chief of Kookmin Bank, South Korea's top
lender, pledged Thursday to boost its competitiveness and to enhance the bank's
efficiency by cutting costs.
Min Byong-duk, former vice president of the lender's parent KB Financial Group,
made the pledge during his swearing-in ceremony. Min replaces Kang Chung-won, who
stepped down from the top post on July 13.
"To put the low-cost and high-efficiency system in place as early as possible,
I'll aggressively push for enhancing productivity," Min said in his inaugural
speech. "Cost-cutting measures will be pursued, but I'll willingly support
employees' efforts to boost sales."
His remarks came as Kookmin Bank has been suffering from falling productivity and
dented credibility amid speculation that the inner circle of President Lee
Myung-bak may have influenced the appointment of several figures in the bank.
Euh Yoon-dae, the new chairman of KB Financial Group, described the group as a
patient suffering from obesity, pointing to the inefficient management of South
Korea's top financial services company.
Market watchers expect that KB Financial Group, which controls Kookmin Bank,
might post a net loss in the second quarter, hit by massive provisions related to
sour property-linked loans. The group plans to report its second-quarter bottom
line on Friday.
sooyeon@yna.co.kr
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