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JB Financial Group. (Photo = JB Financial Group) |
[Alpha Biz= Paul Lee] The labor union of Kwangju Bank held a press conference at the bank’s headquarters on December 4, strongly criticizing parent company JB Financial Group for its management policies.
The union argued that the bank’s plan to issue KRW 100 billion in hybrid capital securities effectively amounts to “borrowing to pay dividends,” which it claims contradicts the fundamental mission of a regional bank. The union also pointed out that profits generated locally are being diverted to other regions, noting that the KRW 150 billion dividend paid by Kwangju Bank last year was used to recapitalize Jeonbuk Bank, another JB Financial subsidiary.
They further criticized Kwangju Bank’s wide loan–deposit interest margin, asserting that high interest rate policies maximize profits for excessive dividend payouts while burdening local residents and risking customer attrition.
The union also took aim at JB Financial Group Chairman Kim Ki-hong, stating that he received KRW 3.38 billion in compensation in the first half of 2025, among the highest in the industry, and argued that “regional asset extraction and high-interest operations ultimately benefit the controlling family.”
The union called for Kim’s resignation, accusing him of neglecting the public role of a regional bank and its responsibility to support the local economy.
In response, a Kwangju Bank representative said the planned hybrid capital issuance is aligned with the bank’s 2025 business plan and is necessary to maintain a stable BIS capital ratio amid public institution treasury competitions and evolving regulatory requirements, following the maturity and repayment of KRW 70 billion in similar securities in 2021.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
