KDB chief under fire for proposing merger with Kexim

Korea Development Bank (KDB) Chairman Lee Dong-gull is facing growing criticism after proposing a merger with the Export-Import Bank of Korea (Kexim).

The chairman cited economies of scale as the reason for the structural reform of the state-run financial institutions, saying the merger would see fewer back office workers but a larger budget. 

His remarks stirred up controversy with the Kexim, which strongly opposes the plan. "It was inappropriate for a mere state-run institution chief to make such remarks," a Kexim spokesman said. "We were embarrassed at his remarks, given that it is time to work together to counter Japan's export curbs."

Kexim's union added: "In 2013, the government confirmed that the KDB was in charge of domestic policy financing, while the Eximbank was in charge of external policy financing. Lee made irresponsible remarks, being unfaithful to his own duty."

Amid the growing controversy, the KDB said its chief simply expressed his individual opinion, which was not discussed with KDB executives or government officials.