The essence of finance lies not in lending money, but in assessing risk. The ability to accurately determine whom to fund, which industries to invest in, and which assets are risky defines a financial company's competitiveness. With the advent of the AI era, the methods of making these judgments are rapidly changing. In the past, human experience and intuition were central, but now data and algorithms are sharing that responsibility.
Kim Yong-seok, CEO of Hana Capital, is a prominent risk management-oriented leader who has emerged amid this transformative trend. A former head of the credit group at Hana Bank, he has focused on strengthening the fundamentals of finance—soundness and assessment capabilities—rather than merely promoting flashy digital finance. Since taking office, he has improved the management of non-performing assets and enhanced risk management systems, resulting in a net profit of 53.5 billion won in the first quarter of 2026, a 67.7% increase from the same period last year. The market views this not merely as a rebound in performance but as a testament to Kim's approach to improving the company's structure.
Finance is ultimately an industry of judgment.
Kim Yong-seok's management philosophy can be summed up in one phrase: finance is an industry of judgment. With over 30 years of experience in credit assessment and corporate finance, he understands better than anyone that the rise and fall of financial companies hinge on the quality of their assessments. This is why Hana Financial Group appointed him as CEO of Hana Capital, expecting his expertise in credit assessment and risk management to transform the company.
Upon taking office, Kim prioritized soundness over growth. While this strategy may seem frustrating in terms of short-term results, accurate judgment is paramount in the era of AI finance. AI, after all, is a technology that predicts the future based on data. No algorithm can function properly on faulty assets and unreliable data, which is why Kim focused first on soundness.
Changing the structure before pursuing innovation
When Kim took office, Hana Capital faced significant challenges. Issues regarding the soundness of overseas commercial real estate investments and certain corporate finance assets had come to light, and the risk of defaults was increasing in a high-interest environment. Many CEOs might have opted for aggressive expansion or new business ventures, but Kim chose the opposite path.
He established a dedicated asset solutions team for post-management in corporate finance and separated the functions of credit assessment and post-management. This created a system focused on reducing risky assets and intensively managing watchlist assets. While this may have appeared as a retreat, it was, in fact, a preparatory measure for the future. Industry observers have labeled him as a CEO who chose structural improvement over mere performance.
Risk management proven by numbers
The results appeared more quickly than expected. In the first quarter of 2026, Hana Capital's net profit reached 53.5 billion won, a 67.7% increase from the previous year, while operating profit rose by 55% to 70.1 billion won. Notably, the provision for bad debts significantly decreased, leading to a recovery in profitability. The ratio of non-performing loans (NPL) improved from 1.76% to 1.56%. Ultimately, a financial company's performance begins with soundness.
The process of reducing risky assets and increasing quality assets takes time, but the effects are clear. Kim Yong-seok concentrated on restoring the fundamental strength of the financial company before AI could change finance, and the results are beginning to show in the numbers.
The core of AI finance is assessment innovation
Many people think of chatbots or platforms when discussing AI finance. However, Kim's focus is somewhat different. He believes the essence of AI finance lies in assessment innovation. Financial companies will soon move beyond merely lending money based on credit ratings. AI-based assessment systems that analyze consumer patterns, transaction histories, business growth potential, industry outlooks, and behavioral data are likely to become the standard in finance.
AI can analyze more data and predict risks faster than humans. However, this does not mean that humans will disappear. A structure will emerge where AI handles analysis while humans make final judgments. Kim's efforts to strengthen the credit assessment organization and refine the risk management system can be seen as preparations for this era of AI finance.
Turning attention to advanced industries
Another characteristic of Kim's leadership is the response to industrial changes. Hana Capital has recently expanded its financial support for national strategic industries such as semiconductors, secondary batteries, and future vehicles. This is not merely about loan sales; it involves supplying capital based on the growth potential of future industries. The entrepreneurial spirit of financial companies in the AI era goes beyond just managing money.
The ability to identify which industries will lead the future and connect capital to those industries is crucial. Kim views future vehicles and advanced manufacturing as new growth pillars. Being selected as the main financial partner for GM and BYD is an extension of this strategy.
New possibilities in retail finance
Hana Capital is also seeking new growth engines in retail finance. The company is expanding its car rental business from a B2C focus to a B2B model and is strengthening healthcare finance. In particular, the medical device and veterinary hospital markets are seen as areas with high growth potential. AI will play a significant role in this retail finance innovation process, analyzing customer data to propose tailored products, predict risks in advance, and enhance operational efficiency. Ultimately, capital companies will evolve from simple lenders to data-driven financial institutions.
Kim Yong-seok is not a flashy innovator. He is a manager who values the essence of finance above all else. He prioritizes soundness over growth and accuracy over speed. Ironically, this philosophy is becoming a greater competitive advantage in the AI era. AI is not a technology that changes the essence of finance but one that refines it further.
In the end, the winners in future finance are likely to be those companies that make the most accurate judgments, not necessarily those with the most data. In this regard, Kim Yong-seok's challenge goes beyond mere performance improvement. He is currently experimenting with transforming Hana Capital into a financial company with the strongest assessment capabilities in the AI era, and that experiment is beginning to yield results.
: SWOT Analysis :
Strengths
Kim Yong-seok is a prominent risk management expert with a background as the head of the credit group at Hana Bank. Since taking office, he has focused on cleaning up non-performing assets and enhancing the assessment system, leading to a 67.7% increase in net profit in the first quarter of 2026 and an improved NPL ratio. His strengths lie in assessment and risk management capabilities, which are critical competitive advantages in the AI era.
Weaknesses
Compared to competitors like Hyundai Capital and KB Capital, Hana Capital's digital platform and brand story are relatively weak. The focus on restoring soundness over aggressive growth has led to a perception of a lack of an aggressive growth image.
Opportunities
As AI-based credit evaluation and risk management technologies advance, Kim's expertise may become even more prominent. Expanding financial support for future vehicles, semiconductors, and advanced industries, along with restructuring the corporate finance portfolio, presents new growth opportunities.
Threats
The prolonged high-interest rates and economic slowdown, along with the risk of corporate finance defaults, remain burdensome. Additionally, as competition in AI finance intensifies, ongoing pressure from large financial institutions with significant digital investments could pose a challenge.
* This article has been translated by AI.
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