Kwon Kwang-seok, Woori Bank President with One Month Left in Term... Weight on Possibility of Reappointment

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[Asia Economy Reporter Wondara] Woori Financial Group is set to activate the Subsidiary CEO Candidate Recommendation Committee (Sub-CRC) as early as next week to discuss the reappointment of Kwon Kwang-seok, CEO of Woori Bank. Once the Sub-CRC recommends a candidate for the bank president, the final decision on Kwon's reappointment will be made through the Woori Bank Executive Candidate Recommendation Committee (Exec-CRC), the board of directors, and the shareholders' meeting. Within the financial sector and Woori Financial Group, expectations are growing that CEO Kwon will be reappointed.

This Year’s Woori Bank Shareholders’ Meeting Scheduled Between March 22-26... Kwon Kwang-seok’s Reappointment Favored

On the 18th, a Woori Financial official stated, "We will soon activate the Sub-CRC to recommend the next bank president candidate," adding, "Typically, the Sub-CRC is held about a month before the shareholders' meeting." This year’s Woori Bank shareholders' meeting is tentatively scheduled between March 22 and 26. If the schedule proceeds as planned, the Sub-CRC is expected to be activated around next week. However, Woori Bank noted, "Unlike the holding company, subsidiaries are not obligated to finalize decisions a month before the shareholders' meeting," and thus did not specify an exact timing.

Within the financial sector, the outlook for CEO Kwon’s reappointment is strong. This is due to the need for stable leadership amid crises such as COVID-19, the entry of internet banks, and big tech companies into the financial sector.

There is also an assessment that the one-year term since Kwon’s appointment last March was too short to fully demonstrate his capabilities. Considering that the typical term for domestic bank presidents is "a basic two years with a one-year extension based on performance," extending Kwon’s term without any major missteps is seen as natural.

In particular, Kwon has been internally recognized for stabilizing the organization amid the turmoil caused by the Derivative Linked Fund (DLF) scandal and focusing on strengthening consumer protection, thereby enhancing customer trust. Additionally, with Sohn Tae-seung, chairman of Woori Financial Group, having been disciplined by financial authorities, it is expected that replacing the bank president for the sake of stability will be difficult.

Financial Authorities Emphasize Importance of Coordination with Existing Bank Presidents Ahead of ‘COVID Cliff’

From the perspective of financial authorities, coordination with existing bank presidents is crucial as the end of COVID-19 financial support approaches in the second half of the year, leading to a so-called ‘COVID cliff.’ The Financial Supervisory Service (FSS) stated in its business plan announced on the 16th, "Due to the prolonged COVID-19 pandemic, borrowers’ debt repayment capacity has weakened, raising concerns that latent non-performing loans may surface once financial support measures normalize." It also noted, "If interest rates rise during the economic recovery, defaults among marginal companies and households may increase." Following the reappointment of Shin Ok-dong, CEO of Shinhan Bank, in December last year, speculation about the reappointment of Ji Sung-kyu, CEO of Hana Bank whose term ends next month, is also emerging.

Financial Services Commission Chairman Eun Sung-soo has reiterated his stance of not intervening in the reappointment issues within the financial sector. During a report to the National Assembly’s Political Affairs Committee held the previous day, in response to a question from Kim Han-jung, a Democratic Party lawmaker criticizing the reappointment of financial holding company chairmen, Chairman Eun said, "In principle, this is a matter that financial companies should decide on their own," adding, "We are judging whether it contributes to the development of the financial industry."

Meanwhile, CEO Kwon has recently been focusing on activating the ‘Together Group (VG System),’ a cooperative system that groups one key branch with approximately 4 to 8 nearby branches. This initiative aims to respond to the risks posed by the accelerated entry of internet banks and big tech into finance through joint sales, sharing of operational know-how, and joint customer management among branches.

In his New Year’s address, Kwon mentioned the Together Group system, emphasizing that "it will change the paradigm of sales methods." He stated, "The emergence of internet-only banks, big tech, and platform companies demands fundamental innovation to the extent that the definition of banking must be redefined," adding, "This year, Woori Bank will set its direction as ‘Digital First, Digital Initiative’ and accelerate the digitalization of sales sites."

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