THE KDB Financial Group was inaugurated in October, 2009 as a comprehensive financial group with total assets of 170 trillion won and competitive subsidiaries. These subsidiaries are Korea Development Bank (KDB), Daewoo Securities, KDB Capital, KDB Asset Management and Korea Infrastructure Investments Asset Management (KIAMCO).
This transformation into a financial holding company means that KDB Financial Group has taken its first step towards privatization. The group also announced its aim to become one of the top 20 global corporate and investment banks (CIBs) by 2020.
From the offset, KDB has focused on expanding its deposit business. KDB has collected more than 300 billion won by selling special savings accounts, and recently announced its will to take over banks at home and abroad in order to expand its size so as to better compete with other commercial Korean banks. KDB also promoted synergy among its subsidiaries. It is expected that in the beginning of 2010, KDB and its sister companies will develop and launch new products while at the same time maximizing synergy.
The group has also been moving forward in the strengthening of its securities business. Of late, Daewoo Securities announced a new general asset management brand, “Story” and that it would provide various products and services in accordance with this new brand strategy. Story is based on the basic philosophy of Daewoo Securities that all customers’ assets should be carefully managed and protected. The brand contains the message that Daewoo Securities will write a successful story for its customers with the use of various products, particuarly consulting and services.
Daewoo Securities will utilize this brand for its products and services while maximizing its accumulated capabilities and knowhow. “Product Story” refers to products of Daewoo Securities, such as cash management accounts (CMAs), equity-linked securities (ELSs), wraps, funds and trusts.
“Specialized Investment Consulting Story” offers portfolios that match the customers’ investment preferences and volume of assets by making use of a specialized management and analysis system. VIP customers can use “One-on-One Customized Asset Management Service Story” which offers comprehensive consulting services on investment, taxes and real estate. “We named the new brand “Story” as customers’ assets contain customers’ life stories,” said a manager at the Marketing Department of Daewoo Securities. “We will make Story the most loved asset management brand by strengthening our specialties as well as customer convenience.”
In addition, KDB recently made its first investment in a vessel after the launch of the kdb Shipping Fund on July 23. This was conducted in order to help the restructuring of the shipping industry which suffered a slump because of the global economic downturn. The first investment is in a 180K-class cape-sized bulk vessel for Korea Line Corporation and is being built by Daewoo Shipping & Marine Engineering.
The kdb Shipping Fund will purchase the vessel at US$67 million and lease it to Korea South-East Power Co. for 15 years. Therefore, KDB expects the kdb Shipping Fund #1 to help both the shipbuilder and the shipping company by realizing a win-win model.
Meanwhile, KDB Financial Group has been seen sincerely fulfilling its corporate social responsibilities. The KDB Foundation, the social welfare foundation of the group, held a ceremony to donate 500 million won to Social Solidarity Bank at the KDB Headquarters building on Dec. 10.
The fund will be distributed to low-come families and those who cannot use the regular loan services of banks due to their poor credit record. One can receive a maximum 200 million won loan with a 2% interest rate to be paid using a 48-month installment payment plan. This non-profit loan service does not require any security. Over the past four years, KDB and the KDB Foundation has contributed a total of 1.6 billion won to support 74 people wanting to start small businesses.