Restructuring / Turnaround Strategies Case Study

Korea's Kookmin Bank: Restructuring Strategies

Abstract:
The Asian crisis of 1997 had a devastating effect on the economies of the southeast Asian countries. The majority of the loans extended by the countries' financial institutions to prime sectors including manufacturing and real-estate sectors, went bust. Kookmin, the largest commercial bank of South Korea was no exception. Kookmin under the leadership of Jung Tae Kim, who was named the 'best CEO' in 2001 by the Korean Stock Exchange, for his leadership and governance practices, adopted various restructuring strategies to retain its profitability.

Pedagogical Objectives:

• To discuss Kookmin Bank's restructuring strategies
• To discuss the contributions of Kookmin Bank's CEO, Jung Tae Kim.

Keywords : Korea's Kookmin Bank; Restructuring strategy; Asian financial crisis; Jung Tae Kim; Kookmin Interbank Payment Service (KIPS); Customer Relationship Management (CRM); Risk Management group; South Korean chaebol; Risk Adjusted Pricing System (RAPS); Restructuring / Turnaround Strategies Case Study; Basel II capital accord; Financial leverage; Housing and Commercial Bank (H&CB); Private commercial bank; South Korean financial system; Chip-based mobile banking