[DLF Disciplinary Action] Next Woori Bank President Final Candidate Selection Process in 'Uncertainty'

Son Tae-seung, Chairman of Woori Financial Group and President of Woori Bank

[Asia Economy Reporter Kim Hyo-jin] The Financial Supervisory Service's disciplinary committee's 'severe sanctions on DLF' is expected to somewhat delay the final candidate selection process for the next Woori Bank president of Woori Financial Group.

According to the financial sector on the 31st, contrary to the original plan for the Woori Financial Group Executive Candidate Recommendation Committee to select and announce one candidate from the three shortlisted candidates for Woori Bank president on the same day, it is known that they are considering continuing discussions a bit longer in light of the future developments following the severe sanctions on DLF.

The Financial Supervisory Service's disciplinary committee decided on a reprimand against Sohn Tae-seung, Chairman of Woori Financial Group, at the third disciplinary hearing held the day before regarding the overseas interest rate-linked derivative-linked fund (DLF) loss incident. The levels of sanctions against financial company executives are divided into five stages: dismissal recommendation, suspension of duties, reprimand, cautionary warning, and caution. Reprimand and above are classified as severe sanctions.

If a financial company executive receives a sanction classified as severe, they can complete their remaining term but will be restricted from employment in the financial sector for the next 3 to 5 years. Accordingly, it has become uncertain whether Chairman Sohn, who was recommended last month as the next chairman for a three-year term, can be appointed as planned at the shareholders' meeting in March.

Woori Financial Group had earlier decided to separate the group chairman position from the Woori Bank president position and has been preparing for the next Woori Bank president selection. Currently, Chairman Sohn concurrently holds the position of Woori Bank president. He also serves as the chairman of the Group Executive Candidate Recommendation Committee responsible for recommending candidates for Woori Bank president.

A financial sector official predicted, "Since a significant variable has arisen concerning the position of Chairman Sohn, who is both the chairman and the head of the group, it is unlikely that the Group Executive Candidate Recommendation Committee will push forward the schedule."

On the other hand, there is also a view that it is difficult to link the severe sanctions on DLF with the next Woori Bank president selection. The decision to separate the group chairman and Woori Bank president positions itself is a preemptive measure considering the responsibility issues related to the Financial Supervisory Service disciplinary committee and the DLF incident.

A Woori Financial Group official said, "There have been no special changes decided regarding the Group Executive Candidate Recommendation Committee's schedule yet," adding, "We need to observe the situation a bit more."

The Group Executive Candidate Recommendation Committee previously conducted in-depth interviews on the 29th with three candidates: Kwon Kwang-seok, CEO of the National Credit Guarantee Federation of Saemaeul Geumgo, Kim Jeong-gi, Head of Woori Bank's Sales Support Division and HR Group Division (Deputy President), and Lee Dong-yeon, CEO of Woori FIS. Once the committee selects and recommends one of them, the formal appointment process will proceed at the shareholders' meeting in March.

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