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Korean J Financ Stud > Volume 47(2); 2018 > Article
Korean Journal of Financial Studies 2018;47(2):235-265.
DOI: https://doi.org/10.26845/KJFS.2018.04.47.2.235    Published online April 30, 2018.
Business Structures of Financial Conglomerates in Korea : Implications for the Reforming of Business Portfolios
Jung Bum Wee
금융복합그룹의 사업구조 분석
위정범
경희대학교
Abstract
This study examines the business portfolios of the three largest financial conglomerates in Korea and analyzes their activity in banking, credit financing, insurance, and financial investment. It aims to explore possible portfolio reforms that could help improve the conglomerates’ risk-return combination (i.e., risk-adjusted rate of return). In general, it was shown that reducing activity in banking and increasing activity in other fields can help conglomerates improve their simple and risk-adjusted rates of return.
Specifically, it was shown that Shinhan Financial Group could potentially benefit from increasing their activity in insurance, in which they are already successful, and reducing their activity in credit financing, a field that constitutes a relatively weighty portion of their portfolio. KB Financial Group could increase their activity in credit financing, a field in which they are already successful, and insurance, a field in which they have already begun to expand with their acquisition of KB Property and Casualty Insurance. They should also restructure Hyundai Securities, which they recently acquired. Finally, Hana Financial Group was shown to potentially benefit from increasing their activity in financial investment. They could maintain their activity in credit financing and insurance for the time being or dramatically improve the competitiveness of their business activity through mergers and acquisitions. In adjusting their business structure, Korean financial institutions could consider expanding their foreign business as well, considering the intensive competition in the domestic market.
Key Words: 금융복합그룹,사업구조,리스크예산,위험조정수익률,구조조정,Financial Conglomerate,Business Portfolio,Risk Budgeting,Risk-adjusted Return,Restructuring
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