KDB chief hints securities affiliate won’t be sold

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KDB chief hints securities affiliate won’t be sold

The chief of the state-run Korea Development Bank Financial Group hinted yesterday that the possibility of selling its affiliate KDB Daewoo Securities is very low considering that the brokerage firm played an immense role in carrying out financial-funding policy.

“In times when it was impossible for KDB Financial Group to directly provide necessary funding when carrying out restructuring [of debt-ridden corporations], KDB Daewoo Securities provided the funding,” said Chairman Hong Ky-tack.

Hong’s comments were made yesterday at a press conference celebrating his first 100 days as chairman.

Hong, a former economics professor at Chung-Ang University who served as one of the members of the first economy subcommittee under President Park Geun-hye’s transition team, was appointed as head of KDB Financial in April.

While the Financial Services Commission is working on reforming the country’s financial funding policy, the focus has been on what structural change KDB Financial Group and its affiliates might undergo.

There have been recent reports that the government is considering ways to merge KDB Financial Group and the Korea Finance Corporation.

“When the [government] confirms its reorganization plan for financial policy institutions, we will [consider selling our affiliates] based on the overall direction [of the government] and what contribution each affiliate has made in carrying out financial policy,” he said.

Hong also shared his views on the fate of cash-strapped STX Group. KDB Financial is the main creditor of the shipbuilding conglomerate.

“In the course of restructuring, we decided to pick up STX Offshore & Shipbuilding while sending STX Pan Ocean for court receivership,” he said. “There are many subcontractors of STX Offshore & Shipbuilding in the South Gyeongsang area and Busan that would be greatly affected.”

BY LEE EUN-JOO [angie@joongang.co.kr]
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