'Too Many Banks,' Says the President Of Korea First

Korea First Bank president, Wilfred Y. Horie, said Friday that six to seven banks are enough to run the nation's banking industry.

Speaking at a seminar sponsored by the Korea Employer's Federation, the bank president said that, considering the scale of the nation's economy, the number of banks should be cut by half.

Regarding financial restructuring, the bank chief said Australia is a good example of bank reform that could speed financial restructuring.

Criticizing the lenders' past activities, Mr. Horie asserted that banks should end their "social roles" as the government's wallet.

The bank chief said that when he was appointed Korea First Bank president in January last year, he was shocked to find that the bank's accounting department was part of the general affairs department, two unrelated divisions. He said that he was surprised that there was not a single certified public accountant in the accounting department. Also, the fact that the bank closed its books only twice a year amazed him very much, Mr. Horie said.

Mr. Horie said the banks should treat their employees as their invaluable assets and customers as their bosses. He added that in the past the banks' major concern was increasing external growth through market share expansion. But he pointed out that operating growth based on operating profits should be given priority now.

by Cheong Chul-gun