"Changing Generals During War"... Our Kwon Kwang-seok and Hana Ji Sung-gyu Reappointment in Focus

Growing Support for Stability Amid COVID Risk
Reappointment Prospects Rise Due to Achievements in Digital Innovation

Kwon Kwang-seok, President of Woori Bank (left), Ji Sung-kyu, President of Hana Bank

[Asia Economy Reporter Kim Hyo-jin] With Heo In, CEO of KB Kookmin Bank, and Jin Ok-dong, CEO of Shinhan Bank, successfully securing their reappointments, attention is also turning to whether other major commercial bank heads such as Kwon Kwang-seok of Woori Bank and Ji Sung-kyu of Hana Bank will be reappointed. The prevailing view in the financial sector is that, barring any special variables, they are also likely to be reappointed.

Given the amplified internal and external risks due to the aftermath of the novel coronavirus disease (COVID-19) and other factors, the notion that "you should not change generals in the middle of a war" is expected to continue to carry weight as a rationale for stability.

According to the financial sector on the 29th, Woori Financial Group is expected to begin behind-the-scenes discussions early next year regarding the appointment of the next Woori Bank CEO and reach a conclusion by February. CEO Kwon, who took office in March this year for a one-year term, is evaluated to have focused on organizational reform to build capabilities to respond agilely to rapidly changing external environments by prioritizing values such as ▲leading digital innovation ▲enhancing organizational vitality ▲restoring consumer trust.

A typical example is the organizational restructuring carried out last July under the so-called "zero-base innovation" principle. Through this, CEO Kwon introduced the ACT (Agile Core Team) organizational system, which is an intermediate form between departments and teams, and established new units including the Investment Product Strategy Team, Digital Transformation (DT) Promotion Team, AI Business Division, Securities Management Division, and Global IB Review Division. This comprehensive restructuring took into account factors such as deteriorating profitability due to COVID-19 and the resulting prolonged low-interest-rate environment.

The "Kwon Kwang-seok-style casual dress code" has also quickly taken root within the bank, playing a role in refreshing the atmosphere, especially among younger members. Recent executive personnel changes at Woori Financial, which have somewhat "cleared the way" for potential candidates for the Woori Bank CEO position, are also analyzed to have increased the prospects for CEO Kwon’s reappointment.

A financial sector official said, "It can be seen that CEO Kwon focused on laying the foundation for fundamental innovation this year," adding, "Based on various achievements, the group’s control tower will likely pay attention to maintaining leadership continuity to maximize the effects of such efforts."

CEO Ji Sung-kyu Also Expected to Secure 'Smooth Reappointment'

CEO Ji Sung-kyu of Hana Bank, whose two-year term will be completed in March next year, is also generally expected to be reappointed smoothly. CEO Ji is evaluated to have focused on "consumer-centered digital innovation," striving to establish competitiveness in the future digital financial market.

The Hana Bank "non-face-to-face account opening service," which he is known to have devoted great effort to, recently won the grand prize in the Information Service category of the Mobile Web division at the Web Award Korea 2020 hosted by the Korea Internet Professionals Association.

Hana Bank’s organizational restructuring announced the day before, emphasizing the "NEXT 2030, Big Step" strategy, established the Consumer Risk Management Group and entrusted the operation of related groups such as the Customer Happiness Group and Consumer Risk Management Group entirely to female executives, which is analyzed to have increased the potential for future organizational innovation.

Strong performance in global sectors such as the China and Indonesia branches also adds weight to CEO Ji’s reappointment. Hana Bank recorded a cumulative net profit of 1.6544 trillion won in the third quarter. Although this is a 7.6% decrease compared to the same period last year, considering that competing banks’ cumulative net profits for the third quarter dropped by more than 10% compared to the previous year, it is regarded as a solid performance.

A financial sector official predicted, "Considering the precedent of guaranteeing a '2+1 year' term, CEO Ji’s reappointment is almost certain." However, there remains a view that the situation regarding the successor selection for Hana Financial Group Chairman Kim Jung-tae could act as a variable affecting CEO Ji’s reappointment.

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