Financial Supervisory Service Chief and Major Bank CEOs Gather at Front1 on the 26th (Comprehensive)

Korea Federation of Banks Regular Board Meeting on 26th
Start of Next President Selection Process
Yoon Seok-heon, Financial Supervisory Service Chief, Attends Dinner Meeting with Bank Presidents

[Asia Economy Reporter Park Sun-mi] The Korea Federation of Banks will hold its regular board meeting next week at 'Front1,' the world's largest startup complex support center located in Mapo, Seoul, and begin the process of selecting the next chairman. A dinner meeting between Yoon Seok-heon, Governor of the Financial Supervisory Service, and heads of commercial banks is also scheduled at Front1.

According to the financial sector on the 23rd, the Korea Federation of Banks decided to hold the regular board meeting scheduled for around 5 p.m. on the 26th at Front1 instead of the Myeongdong Bank Hall. At the regular board meeting, the Federation will start the process of selecting candidates for the next chairman to succeed Kim Tae-young, whose term ends on November 30.

The board will discuss in earnest the method for selecting the chairman candidate and the detailed schedule for the selection process. Once the selection method is finalized at the board meeting on the 26th, a total of 11 people, including the heads of 10 banks and the chairman of the Federation, will meet privately in early next month to recommend candidates. Subsequently, through several meetings involving discussion, verification, and evaluation, the final candidate will be selected.

Currently, there is a growing sentiment that a candidate with a bureaucratic background should be selected to actively reflect the voices of the banking sector. Former Financial Services Commission Chairman Choi Jong-gu, former National Assembly Political Affairs Committee Chairman Min Byung-doo, and former Financial Services Commission Chairman Lim Jong-ryong are among the bureaucratic candidates being considered.

Next Chairman of the Korea Federation of Banks: A Bureaucrat?

In 2017, during the selection of the chairman of the Korea Federation of Banks, a private-sector candidate was appointed amid a mood to exclude 'Gwanpia' (a portmanteau of bureaucrat and mafia), but this time the balance seems to be tipping back toward a bureaucratic candidate.

The most prominent candidate, former Chairman Choi, is a 25th-grade administrative examination pass and a representative bureaucrat who spent a long time at the Ministry of Strategy and Finance. Having served as the head of the Export-Import Bank in 2017, he is well acquainted with the banking environment and also served as Financial Services Commission Chairman, which highlights his advantage in voicing opinions in the political arena.

Former lawmaker Min, having served as chairman of the National Assembly Political Affairs Committee, is well aware of banking issues and is considered a strong candidate due to his ability to shield the banking sector from political attacks. However, Min is also mentioned as a potential successor to Jung Ji-won, Chairman of the Korea Exchange, whose term expires on the 1st of next month, due to his expertise from eight years of activity in the Political Affairs Committee overseeing securities and financial institutions, which adds an element of uncertainty.

Regular Board Meeting Held at Front1

The fact that the Korea Federation of Banks' board meeting is unusually held at Front1 is also attracting attention. Since this board meeting is the kickoff for selecting the next chairman, the heads of commercial banks naturally gather at Front1, increasing the likelihood that issues such as support plans for Front1 by the banking sector, fostering startups, ventures, innovative companies, and job creation will be discussed.

Front1 is operated by D.CAMP, the Bank Sector Youth Startup Foundation, established in 2012 by financial institutions affiliated with the Korea Federation of Banks to contribute to job creation through startup support. The banking sector has contributed a total of 845 billion KRW to the foundation by the end of this year. The Federation also confirmed and approved a social contribution project worth 155 billion KRW in September, including a 25 billion KRW contribution for operating Front1's startup support space, demonstrating strong support for Front1.

Notably, Governor Yoon of the Financial Supervisory Service will also attend this Front1 meeting. This will be the first time in 13 months since September last year that Governor Yoon attends the Korea Federation of Banks' regular board meeting dinner and meets with bank heads. Given his invitation, it is expected that the authorities' stance on banking sector issues will be conveyed and opinions exchanged with the bank heads. A banking sector official said, "Issues such as compensation plans for suspended redemption private funds, strengthening credit loan management, and responses to the novel coronavirus infection (COVID-19) may also be discussed."

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