KB Financial Group's Chairman Candidate Recommendation Committee Narrows Down to 4 'Private' Candidates Today

Final 4 Confirmed as Chairman Candidates
Will Chairman Yoon Jong-kyu Secure a Third Term?

[Asia Economy Reporter Park Sun-mi] The KB Financial Group Chairman Candidate Recommendation Committee (hereinafter referred to as the Committee) held a meeting on the morning of the 28th and narrowed down the final candidate pool for the successor to Chairman Yoon Jong-kyu, whose term expires on November 20, to four people.

The KB Financial Committee confirmed a pool of 10 internal and external candidates (longlist) last April. Among the internal candidates on the longlist are Chairman Yoon, KB Kookmin Bank President Heo In, KB Insurance President Yang Jong-hee, and KB Kookmin Card President Lee Dong-cheol.

At the meeting, the committee members conducted a vote based on evaluations of the total 10 candidates to finalize four candidates for the chairman position (shortlist). The ratio of internal to external candidates in the shortlist has not been determined, so it is possible that all four could come from either inside or outside the company.

The current longlist is confidential.

The Committee keeps the longlist strictly secret to the extent that even those listed on it are unaware. However, the KB Financial labor union has expressed dissatisfaction, stating that keeping the longlist confidential to the point that candidates themselves do not know is an opaque and unfair process. They worry that if candidates are not asked for their willingness to participate from the beginning, some may decline during the final selection of the four candidates, resulting in uncompetitive candidates inevitably being chosen as the final four. The KB Financial labor union views this as a mere 'formality' for Chairman Yoon’s reappointment.

Currently, both inside and outside KB Financial, there is growing support for Chairman Yoon’s possibility of a third term. The fact that KB Financial has solidified its position as the leading financial holding company under Chairman Yoon’s management is highly regarded.

Despite the ultra-low interest rate environment caused by the spread of the novel coronavirus disease (COVID-19), KB Financial’s second-quarter net profit this year was 981.8 billion KRW, a 35% increase compared to the same period last year. This significantly exceeded market experts’ expectations of around 880 billion KRW. It surpassed the previous number one, Shinhan Financial Group (873.1 billion KRW), establishing itself as the top financial holding company in the industry.

The mergers and acquisitions (M&A) led by Chairman Yoon are also being completed one after another. He is receiving praise for successfully supplementing the previously weak overseas and non-bank sectors through aggressive M&A, further highlighting the possibility of his third term.

The stock price of Bukopin Bank, a medium-sized Indonesian bank, surged immediately after KB Kookmin Bank completed its acquisition, reflecting expectations for the 'new owner.' Additionally, Prudential Life Insurance, considered a 'cash cow' in the life insurance industry, received final approval from the Financial Services Commission and was confirmed as the 13th subsidiary.

Meanwhile, based on the shortlist prepared on this day, the Committee will conduct in-depth evaluations through interviews with the shortlisted candidates on September 16. At that time, one final candidate for chairman will be selected. After a qualification verification process for the final candidate, the Committee plans to recommend the chairman to the shareholders’ meeting at the September 25 meeting.

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