In Interview, HSBC Korea President Reveals Priorities

“We are not interested in acquiring the Korea Exchange Bank. We will continue to focus on our core competencies,” answered the president of Hong Kong and Shanghai Banking Corporation (HSBC) Korea, Simon Cooper, 40, as if he had been anticipating the question during an interview on February 16.

He seemed to acknowledge that the media, both Korean and foreign, are pairing out HSBC and Industrial and Commercial Bank of China as the two most likely foreign parties interested in acquiring the Korea Exchange Bank.

In the first exclusive interview with a media outlet, President Cooper told Dong-a Ilbo that HSBC has dropped its plans to grow in size via acquisitions ever since it lost out on the acquisition bid for the bank formerly known as First Bank in 2006. He stressed that HSBC will now focus on organic growth by adapting to Korea’s changing financial environment.

“HSBC Direct will be a driving force in growth”-

HSBC has 11 branches throughout Korea in Seoul, Gyeonggi Province, Daejeon, Daegu, Busan, and other areas. Its total asset sums up to 15.2 trillion won as of last June.

When asked if 11 branches will allow enough organic growth, President Cooper presented HSBC Direct as the solution.

HSBC Direct, which the bank introduced earlier this month, will give customers 24-hour, 365 days a year Internet and telephone access to their accounts at 3.5 percent yearly interest and no fees for transactions.

“HSBC Direct accounts are covered by the Depositor Protection Act, without transaction fees and restrictions as to when a customer can access their account,” said President Cooper. “In Taiwan, we had more new customers in the first five weeks after we launched HSBC Direct last September than we had in all of the five years we offered off-line accounts. It looks even more promising in Korea.”

He also accentuated that HSBC has 1,350 employees in Korea compared to the 550 in July 2005 and that this will allow organic growth.

“Investment in real estate will fall”-

President Cooper, who started out in HSBC’s London headquarters in 1989, rose to the post of HSBC Korea president last March after serving as the vice president of HSBC Thailand and the head of Corporate Banking in HSBC Singapore.

He said that HSBC is working hard to introduce new financial products in Korea, “A country full of sophisticated customers”.

On the subject of real estate investment, President Cooper said that there is no way to be sure, but if the real estate market settles down, it will give Koreans a chance to invest in diverse assets. He said that HSBC has been reducing its share of real estate backed loans since late last year.

When asked about life in Korea, President Cooper said that he was amazed by the hardworking Koreans.

“I have to force my employees to go on vacations and to work out a work-life balance. Last year we had a party in a ski resort in Gangwon Province. My two daughters, one who was born in Thailand, and one in Singapore, enjoyed their first encounter with snow,” remarked President Cooper.

jaeyuna@donga.com