Jeonbuk Bank CEO Says It Will Monitor Big Banks’ Expansion Into Jeonbuk

Park Chun-won, CEO of Jeonbuk Bank, said the lender will pursue “mutual-growth” management and strengthen its role as a regional bank alongside the local community. He said the bank will decide how to respond to moves by major financial groups such as KB Financial Group and Shinhan Financial Group into Jeonbuk after monitoring how their plans develop.

Park said at a news briefing on Wednesday that “as a bank founded on a regional base, Jeonbuk Bank clearly recognizes its responsibility to the local community.” He added that without “a stable profit structure as a company,” the bank’s contributions to the region “cannot be sustained.”

Jeonbuk Bank also plans to step up institutional business by operating dedicated branches for local government treasury accounts.

Park said he does not expect recent entries by nationwide banks into Jeonbuk Innovation City to shrink Jeonbuk Bank’s business. “In some cases, it appears tied to the management of specific funds such as the National Pension Service,” he said, adding that he does not believe those banks are likely to move and run their core operations in Jeonju. “We need to watch a bit longer to see whether it leads to locally focused financial activity,” he said.

Park also addressed criticism that Jeonbuk Bank relies on high-interest lending. He said interest rates on general loans handled within Jeonbuk Province are not significantly different from those of nationwide banks or other regional banks. He said the bank has a relatively higher share of areas where major banks are less active, including mid-rate loans for mid- and low-credit borrowers and financial services for foreigners, which he said has helped cement an outward image of high-interest business.

“Jeonbuk Bank has grown with roots in the region, and we will focus on sustainable management,” Park said. “I believe making the company stronger is ultimately the biggest contribution to the local community, and we will continue responsible management to build a Jeonbuk Bank that grows with the region.”