HF Inks Management Agreement with Its Subsidiary for Shared Growth

- HF leads mutually beneficial management by establishing ‘collaboration- and trust-centered’ partnership 

□ Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) stated on July 15, 2021 that it entered into the Management Agreement for Shared Growth with its subsidiary, HF Partners Co., Ltd.* (CEO Cho Sung-Hwan), at its headquarters in Nam-gu, Busan, on the 14th <See the image below>.

 * As an HF subsidiary incorporated in October 2019 with 100% equity investment from HF, HF Partners operates the Call Center and u Center (underwriting documentation) and provides building and other facilities maintenance services.

 ㅇ Under this MOU, HF and its subsidiary have agreed on defining each party’s roles for independence and discretion in the operations of the subsidiary and continuing joint efforts to ensure its stable growth and greater employee welfare.

① HF supports its subsidiary’s stable growth and enhanced employee treatment

□ Since setting up the subsidiary in October 2019, HF has eagerly implemented government policies by △ improving outsourcing practices and △ providing the subsidiary with budget and HR support to ensure its operational independence and stability. At the same time, HF has carried out various support measures to improve the subsidiary employees’ standard of living and treatment in the workplace. 

 ㅇ In particular, HF hired consulting services to help the subsidiary establish a reasonable wage and compensation system that reflects local labor market wage levels and realign its employee benefits program, such as by introducing employee welfare points and holiday allowances.  

 ㅇ HF also makes efforts to foster solidarity between HF and the subsidiary and improve the welfare of its employees by providing them access to the HF Training Center and related facilities and the HF electronic library service. 

□ Highly recognized for its enthusiastic implementation of government policies and subsequent decent job creation, HF won the Minister of Employment and Labor’s Award for public-sector temporary to permanent staff conversion at the 2020 Government Awards for Job Creation.

② HF builds trust-based partnership with its subsidiary through seamless communication and cooperation

□ HF CEO Choi Joon-Woo stressed, “Our subsidiary is an important business partner for our institution, as it serves as a point of customer engagement and communication through which we present our policy products and listen to voices of the public. As such, we will continue to work to facilitate mutual communication and cooperation and thereby build a reliable collaborative relationship with it.”

 ㅇ More specifically, in order to establish smooth cooperative relations with the subsidiary, it is strengthening the bilateral business communication channel by △ operating a working-level consultation group, △ sharing work status, △ introducing an employee feedback and suggestion system, △ and adopting a rewards system for subsidiary employees.

 ㅇ It has also adopted a management evaluation system to help achieve their joint goals, build a responsible management system at the subsidiary, and establish a stable collaborative relationship between the two institutions.

□ HF said, “Now that our subsidiary has been incorporated, we are seeking ways to ensure its operational independence and help it lay the foundation to grow into a public service provider equipped with its own expertise and resources.”

 ㅇ It added that, by establishing a collaboration- and trust-centered robust partnership with its subsidiary, it will create decent jobs and improve the quality of public services, creating additional social value.

<Image Description>

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) signed the HF-HF Partners Management Agreement at its headquarters in Busan International Finance Center, Busan, on the 14th to facilitate shared growth with its subsidiary. HF CEO Choi (right) and HF Partners CEO posed for a photo after the signing ceremony.