'Overcoming the COVID Crisis' Stability Theory Gains Weight Amid Reappointment Watch on Kwon Kwang-seok and Ji Sung-kyu (Summary)

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

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

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

Given the amplified internal and external risks due to the aftermath of the novel coronavirus infection (COVID-19) and others, the stability theory of "not changing generals during a war" is expected to carry weight going forward.

According to the financial sector on the 29th, Woori Financial Group is expected to start behind-the-scenes discussions on the appointment of the next Woori Bank CEO early next year 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 newly established units such as the Investment Product Strategy Team, Digital Transformation (DT) Promotion Team, AI Business Division, Securities Operation Division, and Global IB Review Division. This was a comprehensive overhaul considering factors such as deteriorating profitability due to COVID-19 and the resulting prolonged low interest rates.

The "Kwon Kwang-seok style casual dress code" also quickly took root within the bank, playing a role in refreshing the atmosphere, especially among younger members. Recent executive personnel changes at Woori Financial, which 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 control tower will likely pay attention to maintaining leadership continuity to maximize the effects of such efforts."

CEO Ji Sung-kyu Also Expected to Have a 'Smooth Reappointment'
Could Become a Variable in the Selection of the Next Hana Financial Chairman

CEO Ji Sung-kyu of Hana Bank, whose two-year term will be completed in March next year, is also generally expected to be smoothly reappointed. Ji is evaluated to have focused on "consumer-centered digital innovation" and worked hard 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, which emphasized the "NEXT 2030, Big Step" strategy announced the day before, 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, thereby increasing 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 was a 7.6% decrease compared to the same period last year, considering that competing banks' cumulative net profits for the third quarter decreased 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 certain." However, there remains a view that the situation regarding the selection of Kim Jung-tae, Chairman of Hana Financial Group's successor, could act as a variable affecting CEO Ji's reappointment.

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