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| Oh Young-jin, fourth from right, president and publisher of The Korea Times, poses with Vice Finance Minister An Il-whan, fourth from left, and leaders of the nation's major financial companies on the sidelines of the 2020 Korea Times Forum at The Plaza Seoul, Thursday. Korea Times photo by Shim Hyun-chul |
CEOs share strategies in 'new normal' world
By Lee Min-hyung
Financial and business leaders here have vowed to place digitization as a top management strategy, with contactless economic activities emerging as a "new normal" in the post-coronavirus world, they said on the sidelines of the 2020 Korea Times Forum.
The global economic environment was faced with a structural slowdown even before the COVID-19 outbreak, but most financial players here and abroad did not consider sluggish growth as a huge challenge that was serious enough to change their management principles.
But with the rapid spread of the virus bringing unexpected woes to the economy, financial circles across the globe have started recognizing the emerging threat and are rushing to brace for a post-virus future.
Marking the May 28 Korea Times Forum jointly planned with McKinsey & Company, CEOs from financial and business circles here underlined the need to rapidly embrace digital transformation not to fall behind the virus-sparked contactless economic paradigm shift. They discussed post-virus era strategies under the key theme of "New World, New Strategies: A path to the Next Normal after COVID-19."
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| Oh Young-jin, president and publisher of The Korea Times, delivers an opening speech of the 2020 Korea Times Forum at The Plaza Seoul, Thursday. Korea Times photo by Shim Hyun-chul |
"The dangers in this COVID-19 era are obvious," Oh Young-jin, president and publisher of The Korea Times said in an opening speech at the forum.
"The global economy is at a standstill, unemployment is skyrocketing, corporations teeter on the verge of bankruptcy and much of the world looks like it's on the dole. But opening up workplaces carries its own risks since it could trigger second and third waves of infections. We appear to be caught between a rock and a hard place."
Financial industry leaders also shared a similar outlook over the virus-sparked challenges ahead. They said the financial circle cannot delay a digital drive any longer to deal with the imminent threats.
"Digitization will play an important part in post-virus financial innovation, as the outbreak has clearly shown that the public is paying growing attention to contactless services," Shinhan Financial Group Chairman Cho Yong-byoung said during the forum.
"Against the backdrop of the shift in the market environment, we are going to speed up our group-wide digital transformation strategy and preemptively seek business opportunities there," he said.
KB Financial Group Chairman Yoon Jong-kyoo also said his company would remain agile in changing its management strategy in line with the virus-driven market changes.
"Our affiliates are setting up short- and mid- to long-term strategies to brace for the new normal in the post-coronavirus world," he said. "The group's think tank is particularly presenting renewed management strategies after analyzing the recent market changes represented by the rise of contactless economic activities."
Woori Financial Group Chairman Son Tae-seung, who also joined the forum, predicted the finance industry to experience a faster-than-expected digital-driven paradigm shift.
"With a growing sense of uneasiness and uncertainties surrounding the pandemic spread, non-face-to-face transactions are rapidly expanding," Son said. "Digital transformation is also progressing at a brisk pace in line with the shift in the external market environment."
State-run financial organizations have also realized the importance of making drastic changes in their management style to lead the post-virus digital economy.
"We are going to expand contactless financial services and introduce automatic screening systems for more companies to receive financial support in a swift manner in this period of virus-driven market uncertainty," Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu said.
The lender also pledged to conduct a thorough review on how the virus has changed business ecosystems in every corner of local industry.
"The Eximbank will adopt a digital-oriented finance strategy to be in line with the rapidly-changing market environment," Bang said.
Industrial Bank of Korea (IBK) CEO Yoon Jong-won said the digital-driven "contactless economy" would become a part of the public's daily lives in the post-virus world.
"The social and economic order will never return to the pre-COVID-19 world, and consumption behaviors from the public are likely to go through drastic changes in the post-coronavirus era," Yoon said. "One noteworthy trend will be the acceleration of the Fourth Industrial Revolution and the emergence of a digital-powered contactless economy."
Korea Investment Corporation CEO Choi Hee-nam also shared his outlook that almost all industries will have to speed up their digital drive amid the rise of virus-sparked contactless business activities.
"Commercial transactions, education and even the medical sector will speed up their drive to embrace contactless business operations in the post-COVID-19 world by building digital infrastructure," he said.
Expanding digital foothold
Banking players also voiced their consensus in ramping up efforts to strengthen their digital drive.
"Hana Bank plans to do the utmost to utilize artificial intelligence and big data with a view to strengthening our 'contactless financing,'" Hana Bank CEO Ji Sung-kyoo said.
Citibank Korea also expressed strong willingness to enhance its digital capabilities in the post-virus era.
"As COVID-19 left people with no choice but to have contactless experiences, the post-virus new normal may be a world where consumers take the lead in digitization, actively making demands for and consuming digital services," Citibank Korea CEO Park Jin-hei said.
"This means only financial service providers who accurately address consumer demand will survive and as a result, digitization through strengthened digital and data capabilities will accelerate."
Kakao Bank CEO Yoon Ho-young vowed to continue introducing more customer-oriented mobile banking services.
"Kakao Bank is a 100-percent contactless and mobile-driven bank, and has led the nation's contactless finance industry as the first internet-only lender here," he said. "We are going to expand the number of financial products and services in the post-COVID-19 era and help customers enjoy more convenient financial experiences."
