Woori Financial Group's CEO Nomination Committee Resumes Next CEO Appointment Process

Chairman Sohn Tae-seung Shows Determination to Pursue Reappointment
Possibility of Two-Way Race Between Kwon Kwang-seok and Kim Jeong-gi Among Three Candidates

From the left in the photo: Kwon Kwang-seok, CEO of Saemaeul Geumgo Central Credit Union; Kim Jeong-gi, Executive Vice President of Woori Bank's Sales Support Division and HR Group; Lee Dong-yeon, CEO of Woori FIS.

[Asia Economy Reporter Jo Gang-wook] Woori Financial Group resumed the procedure to appoint the next Woori Bank CEO on the 11th, which had been delayed due to the heavy disciplinary action against Sohn Tae-seung, Chairman of Woori Financial Group. Following Sohn’s decision to file an administrative lawsuit against the disciplinary action, Woori Financial’s immediate move to proceed with the next CEO selection is interpreted as a strong indication of the group’s determination to push for Sohn’s reappointment.

According to sources in the financial sector, the Woori Financial Group Executive Recommendation Committee plans to hold a meeting on the day to select candidates for the next Woori Bank CEO. Currently, the committee has narrowed down the candidates to three and has conducted interviews. The final three candidates are Kwon Kwang-seok, CEO of Saemaeul Geumgo Central Credit Guarantee, Kim Jeong-gi, Executive Vice President of Woori Bank’s Business Support Division and HR Group, and Lee Dong-yeon, CEO of Woori FIS.

Previously, the committee had planned to select the final candidate after in-depth interviews and presentations on the 29th of last month but postponed the decision to the 31st due to a lack of consensus. However, when Sohn received a heavy disciplinary action (a warning with reprimand) from the Financial Supervisory Service’s Sanctions Review Committee on the 30th for responsibility over losses from overseas interest rate-linked derivative-linked funds (DLF), the CEO appointment process scheduled for the next day was temporarily suspended. Subsequently, at an emergency meeting held on the 6th, Woori Financial’s board decided to maintain Sohn’s leadership until the official notification of the sanction’s enforcement early next month and to resume the CEO appointment process.

Within the financial sector, it is widely expected that the competition will be between Vice President Kim and CEO Kwon among the three candidates. Vice President Kim has been a close associate working alongside Chairman Sohn and has formed a leading position based on the tradition of alternating CEOs between commercial bank and Hanil Bank backgrounds. Traditionally, Woori Bank has alternated its CEOs between those from the commercial bank and Hanil Bank. Sohn, who currently serves as Woori Bank CEO, is from Hanil Bank and chairs the recommendation committee. Five outside directors?No Seong-tae, Park Sang-yong, Jeong Chan-hyung, Jang Dong-woo, and Jeon Ji-pyeong?recommended by Woori Financial’s major shareholders participate as committee members. Meanwhile, Kwon, who has recently emerged as a dark horse, is reportedly backed by IMM PE, one of Woori Financial’s major shareholders. There are also rumors of political support.

Following the Financial Supervisory Service’s sanctions and Sohn’s objection, several incidents surrounding Woori Financial, including the unauthorized use of Woori Bank customer passwords and false sales reporting by Woori Card, have surfaced, deepening the rift between the Financial Supervisory Service and Woori Financial and increasing interest within the financial sector. Some interpret that, amid growing uncertainty over governance, the CEO appointment process could no longer be delayed to maintain organizational stability, while others view it as effectively supporting Sohn’s reappointment.

Meanwhile, the personnel appointments for presidents of Woori Financial affiliates are also expected to take shape. The suspension of the CEO appointment process had also delayed the recommendation process for CEO candidates at six subsidiaries, including Woori Card, Woori Finance, Woori FIS, Woori Financial Research Institute, Woori Credit Information, and Woori Fund Service. The recommendation committee plans to proceed with the appointment of the next CEOs for four affiliates?Woori Card, Woori FIS, Woori Finance, and Woori Credit Information?alongside the next bank CEO. The delayed personnel appointments for bank executives are also expected to accelerate.

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