By Q1 Next Year, 17 Financial CEOs' Terms End... Interest in Reappointment of Lee Dong-geol, Yoon Jong-kyu, etc. (Comprehensive)

First Batter Lee Dong-geol, Reappointment Speculation as Chairman of Korea Development Bank
Challenges to Resolve Including Doosan Heavy Industries
Yoon Jong-kyu, KB Financial Group Chairman, Also Likely for Third Term
Jin Ok-dong, Shinhan Bank President, Expected to Be Recognized for Performance

[Asia Economy Reporter Kangwook Cho] The heads of major domestic financial holding companies and banks are set to see their terms expire one after another from next month through early next year, drawing market attention to their future positions. This year alone, seven CEOs in the financial sector will step down, and including the first quarter of next year, a total of 17 financial sector CEOs may leave their posts.

The market largely expects most CEOs to be reappointed, given that commercial banks have enjoyed a boom with record-high earnings in recent years. Continuity and stable management capabilities are required to implement management policies such as digital finance and overseas market expansion, as well as to overcome the COVID-19 crisis. However, some replacements are also anticipated due to accountability issues stemming from private equity fund scandals and organizational renewal.

According to the financial sector on the 13th, starting next month in September, KDB Industrial Bank Chairman Lee Dong-geol’s term will expire, followed by Lee Dong-bin, President of Sh Suhyup Bank, and Park Jin-hoe, President of Citibank Korea, in October; KB Financial Group Chairman Yoon Jong-kyu and KB Kookmin Bank President Heo In in November; Shinhan Bank President Jin Ok-dong and DGB Daegu Bank President Kim Tae-oh in December. In addition, two more will end their terms in January next year, and during the shareholders’ meeting season in March, as many as nine CEOs, including Hana Financial Group Chairman Kim Jung-tae, will see their terms expire simultaneously. Among them, Kim Tae-oh, chairman of DGB Financial Group, also serves as Daegu Bank president, with their respective terms ending this year and early next year. ▶Related article on page 14

Starting with Chairman Lee Dong-geol in September... Heavy weight on reappointment amid numerous corporate sales and restructuring issues

The first to end his term next month on the 10th is Lee Dong-geol, chairman of KDB Industrial Bank. Since September 11, 2017, he has served a three-year term as chairman of the Industrial Bank. The financial sector is leaning toward his reappointment. This is linked to the argument that continuity in handling ongoing corporate sales and other pressing issues under Lee’s leadership is necessary.

Earlier this year, several candidates were mentioned as potential successors to Chairman Lee. However, as time passes, the phenomenon of 'leading candidates' disappearing is occurring. Given the numerous challenges facing the Industrial Bank, such as Doosan Heavy Industries, Asiana Airlines, and the Industrial Infrastructure Fund, it is expected that taking over as chairman would be burdensome. In fact, since his appointment, Lee has taken on restructuring issues of companies that have long troubled the Industrial Bank, including Kumho Tire, Sungdong Shipbuilding, GM Korea, STX Offshore & Shipbuilding, Daewoo Shipbuilding & Marine Engineering, and Dongbu Steel, and has successfully led these efforts. Although the Asiana Airlines M&A issue has recently encountered some setbacks, Lee has been highly praised for responding with principles rather than being led by the companies as a creditor group.

KB Financial Chairman Yoon Jong-kyu’s term expires in November... KB Kookmin Bank President Heo In and Shinhan Bank President Jin Ok-dong end terms one month apart

With KB Financial Group Chairman Yoon Jong-kyu’s term expiring in November, KB Financial Group has already begun the process of selecting the next chairman. Amid fierce behind-the-scenes competition among about ten internal and external candidates (longlist), Yoon’s third term is strongly anticipated. The chairman’s term is three years, and if reappointed this time, he will lead KB Financial for a total of nine years.

The heads of KB Kookmin Bank and Shinhan Bank, fierce competitors for the leading bank position, will also end their terms one month apart. Heo In, president of KB Kookmin Bank, was the first president after the separation of the KB leadership into chairman and president roles. He took office in 2017 and successfully renewed his term for one year last year. He is evaluated as likely to be reappointed due to his good rapport with Chairman Yoon.

Jin Ok-dong, president of Shinhan Bank who took office in March last year, is also highly likely to be reappointed. There has been almost no precedent of presidents ending their terms after a single term. Performance is also excellent. Last year, Shinhan Bank achieved over 370 billion won in net profit from overseas markets alone, playing a significant role in maintaining its top position. Since Shinhan Financial Group Chairman Cho Yong-byeong succeeded in his reappointment this year, it is highly likely that the two will work together once more during the remaining term.

Sh Suhyup Bank President Lee Dong-bin and Citibank Korea President Park Jin-hoe end terms in October... Next president selection process soon

Lee Dong-bin, president of Sh Suhyup Bank, and Park Jin-hoe, president of Citibank Korea, will end their terms in October. Suhyup Bank plans to hold a president recommendation committee soon to begin the process of selecting the next bank president, and currently, Lee’s reappointment is considered highly likely. Park, who took office in October 2014 and successfully renewed his term in 2017 after completing a three-year term, faces obstacles such as controversies over branch closures and uncomfortable relations with the labor union, which are seen as hindrances beyond performance.

The term of Kim Tae-young, chairman of the Korea Federation of Banks, also ends in November. Potential successors include KDB Industrial Bank Chairman Lee Dong-geol and former Financial Services Commission Chairman Choi Jong-ku.

The term of Kim Tae-oh, chairman of DGB Financial Group and concurrently president of Daegu Bank, expires in December. DGB Financial originally planned to announce the next Daegu Bank president candidate in July but recently postponed it to September due to disruptions in the CEO development program for the final candidates caused by COVID-19.

Financial CEOs including Hana Financial Group Chairman Kim Jung-tae to see terms expire through Q1 next year

From January to March next year, the terms of Yoon Ho-young, CEO of KakaoBank; Park Jong-bok, president of SC First Bank; Ji Sung-kyu, president of Hana Bank; and Kwon Kwang-seok, president of Woori Bank will expire.

Yoon Ho-young served as co-CEO at KakaoBank’s launch in January 2017 and has led KakaoBank solely since this year. Park Jong-bok, the first Korean president of SC First Bank, took office in 2015 and was reappointed in 2018.

Ji Sung-kyu of Hana Bank and Kwon Kwang-seok of Woori Bank have received satisfactory performance evaluations, and their reappointments are anticipated. In particular, Kwon, who took office in March this year for a one-year term, is expected to be reappointed smoothly considering that bank presidents typically serve two to three years.

The terms of regional bank presidents will end in March, including Bin Dae-in of BNK Busan Bank, Hwang Yoon-chul of BNK Gyeongnam Bank, Song Jong-wook of Gwangju Bank, Lim Yong-taek of Jeonbuk Bank, and Seo Hyun-joo of Jeju Bank.

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