Next KB Kookmin Bank President: Stability or Generational Change?

Heo In Bank President's Term Ends November 20
Procedures May Start Late This Month, Next Month's Successor Confirmed
Four-Way Contest Among Heo In, Lee Dong-cheol, Yang Jong-hee, Park Jeong-rim

[Asia Economy Reporter Park Sun-mi] With KB Financial Group chairman election virtually confirmed as Yoon Jong-kyu's third term, attention is shifting to the KB Kookmin Bank president appointment process set to begin at the end of this month. Amid the challenging management environment intertwined with the spread of the novel coronavirus disease (COVID-19) and competition with big tech, KB Financial faces the dilemma of choosing the next Kookmin Bank president by weighing the pros and cons between management stability and generational change.

According to the financial sector on the 22nd, a CEO Candidate Recommendation Committee (Daechuwi) will be formed at the end of this month, consisting of Chairman Yoon and three outside directors of the financial holding company, to select the next Kookmin Bank president. After the Daechuwi privately recommends candidates for the next bank president, Kookmin Bank’s outside directors will verify qualifications and conduct evaluations to select the next president. With President Heo In’s term expiring on November 20, the next president is expected to be confirmed within next month.

In the industry, given that Chairman Yoon’s third term is confirmed, there is speculation that President Heo, who works well with Chairman Yoon, may succeed in renewing his term once again. President Heo has already served two years in his term plus one year of renewal, so if he succeeds in reappointment this time, his term will be extended by one more year until November 2021.

The biggest advantage if President Heo is reappointed is the guarantee of management performance stability. Kookmin Bank, which posted the highest net profit of 660.4 billion KRW in the second quarter among the top five banks, has recently expanded its global business by acquiring management rights of Bukopin Bank, a mid-sized bank in Indonesia.

Since KB Financial Group affiliate CEOs, including President Heo, have been candidates for the financial holding company chairman and have proven their capabilities, there is also a possibility that a new bank president may emerge from among the affiliate heads. Among the affiliates, President Lee Dong-cheol of KB Kookmin Card, CEO Yang Jong-hee of KB Insurance, and President Park Jeong-rim of KB Investment & Securities are mentioned as strong candidates for bank president. All of them have terms ending by the end of the year.

However, if an affiliate CEO moves up to the bank president position, which is considered the second-in-command within the group, President Heo, who enjoys strong trust from Chairman Yoon, may face an ambiguous position. This is why there is speculation in the industry about the possible establishment of new vice president and president positions within KB Financial Group, which did not exist before.

If an affiliate CEO becomes the new bank president, it should be considered that generational change at Kookmin Bank will be difficult for the time being, given that the basic term for a bank president is two years.

Among the current candidates, only President Park Jeong-rim was born in 1963, while President Heo, President Lee Dong-cheol, and CEO Yang Jong-hee were all born in 1961. As the bank’s digital transformation accelerates, a management team capable of quick response to change is needed, so selecting a president from among vice presidents for generational change and balancing the old and new with Chairman Yoon’s third term is also considered a plausible scenario.

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