New Woori Bank President Kwon Kwang-seok... What Is the Background of His Appointment?

Instead of Kim Jeong-gi, the initial frontrunner, Kwon Kwang-seok appointed
Kwon's strong network... Chairman Son faces reappointment pressure and opposition from some outside directors, leading to a compromise

[Asia Economy Reporter Kwon Haeyoung] The Executive Recommendation Committee of Woori Financial Group has recommended Kwon Kwangseok, CEO of the Credit Guarantee Division at Saemaeul Geumgo Central Association, as the new CEO of Woori Bank. Since Kim Jeonggi, Head of Woori Bank Division, was initially considered the frontrunner, this unexpected appointment has drawn attention to the background behind the decision. Some speculate that this move is a strategic attempt to improve relations with financial authorities by appointing Kwon, who has a strong network with regulatory bodies, amid concerns over Chairman Sohn Tae-seung’s push for reappointment.

On the 11th, Woori Financial held the Executive Recommendation Committee meeting and recommended Kwon as the next CEO of Woori Bank. Born in 1963, Kwon joined Woori Bank in 1988, served as Executive Vice President of the IB Group and External Cooperation Division, then as CEO of Woori PE, and is currently serving as CEO of the Credit Guarantee Division at Saemaeul Geumgo Central Association. He has previously handled key roles in strategy and HR at Woori Financial Group and has experience in government relations and public relations.

Kwon’s nomination is regarded as a surprise both inside and outside Woori Financial. Since Chairman Sohn strongly favored Kim Jeonggi, Executive Vice President of Woori Bank’s Sales Support Division and HR Group, as the next CEO, many expressed puzzlement over Kwon’s appointment. Relatedly, there is growing speculation within and outside Woori Financial that Chairman Sohn and the outside directors, burdened by the DLF (Derivative Linked Fund) heavy sanctions yet determined to pursue reappointment through administrative litigation, pushed for Kwon’s nomination to improve relations with financial authorities.

Kwon is reported to have a solid network spanning financial authorities, government, and the National Assembly. Notably, some outside directors opposed Chairman Sohn’s challenge to the Financial Supervisory Service’s sanctions and the administrative lawsuit, and felt uneasy about appointing Kim Jeonggi, who is considered close to Sohn, as CEO of Woori Bank. As an alternative, they are believed to have attempted to improve relations with regulators by appointing Kwon, who maintains good relations with financial authorities, as the next CEO. It is also rumored that financial authorities preferred Kwon over Kim as the next CEO of Woori Bank.

A financial industry insider explained, "Kwon has diverse networks across financial authorities, government, and political circles. Some outside directors, including those from IMM Private Equity, felt burdened by a full confrontation with financial authorities and pushed for Kwon as the alternative candidate for the next CEO."

The Woori Financial Executive Recommendation Committee stated, "We expect CEO candidate Kwon to create synergy through smooth communication between the holding company and the bank, operating separately for the first time since the establishment of Woori Financial Group, and to achieve outstanding results based on organizational stabilization and customer-centric operations at the bank."

Kwon’s top priority is to reorganize Woori Bank, which has been shaken by the DLF incident. With the bank accounting for 90% of Woori Financial’s total profits, coordinating closely with the holding company is also a key task.

Meanwhile, the Woori Financial Executive Recommendation Committee recommended CEO candidates for six subsidiaries. Kim Jongdeuk, current Executive Vice President of Woori Bank’s Treasury Market Group, was appointed CEO of Woori Investment & Securities; Cho Suhyung, current Executive Vice President of Woori Bank’s Consumer Brand Group, was appointed CEO of Woori Credit Information. Ko Youngbae, current Managing Director of Woori Bank’s Trust & Pension Group, was newly appointed CEO of Woori Fund Service. The CEOs of Woori Card, Woori FIS, and Woori Financial Research Institute?Jung Wonjae, Lee Dongyeon, and Choi Gwanghae, respectively?were reappointed.

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