HCB has just started to let investors know that it will no longer lend to large corporates. It says that the risk-adjusted return on capital does not make that business worthwhile. This strategy, of course, has big implications for corporate Korea - which is still dominated by large corporates, known as chaebol. HCB will stop lending to the top 30, and more broadly, to any corporate that taps the domestic bond market.
Whether this vision will be carried forward when or if HCB merges with Kookmin, is not certain. That, in part, may come down to who is selected as CEO of the new entity. But, certainly, HCBs...
