Jeonbuk Business Community Urges Withdrawal of JB-BNK Merger Proposal

"Concerns Over Outflow of Regional Funds and Reduced Financial Support"

Business leaders in North Jeolla Province have voiced opposition to the proposed merger discussions between JB Financial Group and BNK Financial Group, demanding the withdrawal of the proposal. They argue that the integration of regional financial institutions could undermine the local engagement function of Jeonbuk Bank and have a negative impact on the effort to establish North Jeolla as the third financial hub.

The Jeonbuk Chamber of Commerce Council issued a statement on July 20 titled "Call for the Withdrawal of the JB Financial Group and BNK Financial Group Merger Proposal," criticizing the merger discussions proposed by Align Partners.

The North Jeolla business community emphasized that regional finance goes beyond being a simple financial company, serving as the economic foundation that channels locally generated capital to local businesses and residents, supporting corporate growth and investment. They also pointed out that the rationale of economies of scale and increased corporate value—often cited as reasons for mergers—cannot fully explain the significant role regional finance has played.

Business figures argued that the competitiveness of local banks lies not in asset size, but in their understanding of the region and the trust and community-focused financial services developed alongside local growth. They also expressed concerns that restructuring a financial group—which has grown based on regional characteristics and independence—according to short-term investment return logic, could weaken the original function of regional finance.

The North Jeolla business community identified several major concerns regarding the merger: ▲ the outflow of regional funds to other areas ▲ reduced financial support for local businesses ▲ and the possible weakening of Jeonbuk's financial functions. They particularly asserted that in a situation where the North Jeolla Special Self-Governing Province is promoting designation as the third financial hub and fostering the financial industry, merger talks that undermine the independence and regional nature of the province's representative financial group run counter to both the region's future growth strategy and the national goal of balanced development.

Kim Jungtae, chairperson of the Jeonbuk Chamber of Commerce Council, stated, "Now is not the time to weaken, but to further strengthen the competitiveness of regional finance," adding, "Together with 1.8 million residents of North Jeolla, we oppose merger discussions that would damage the public role and independence of regional finance institutions."

This content was produced with the assistance of AI translation services.