Hana Financial, Kim Jung-tae Once Again... Chose Stability

Final Candidate for Next Chairman Selected
Task of Finding the 'Post Kim Jeong-tae'

[Asia Economy Reporter Kiho Sung] Kim Jung-tae, Chairman of Hana Financial Group, will lead Hana Financial for one more year. Although Chairman Kim had consistently expressed his intention not to seek reappointment, as the COVID-19 crisis prolonged, both internal and external opinions emphasized the importance of stable leadership, leading to a consensus on extending his term. However, due to internal regulations that prohibit the chairman from exceeding the age of 70, there is an urgent task to find a ‘post-Kim Jung-tae’ successor within the remaining year.

According to financial circles on the 25th, Hana Financial held a Chairman Candidate Recommendation Committee meeting the previous day, conducted interviews with the shortlisted candidates, and selected Chairman Kim as the final candidate for the next chairman. Although procedures such as reporting to the board of directors next month and the regular shareholders' meeting remain, the reappointment is effectively confirmed. Chairman Kim became the second financial group CEO to achieve a fourth term, following former Shinhan Financial Group Chairman Ra Eung-chan. The chairman candidate pool included Chairman Kim, Vice Chairman Ham Young-joo of Hana Financial, Vice President Park Sung-ho of Hana Bank, and former Korea Citibank President Park Jin-hoe.

Immediately after the committee’s decision, Chairman Kim stated, "I will dedicate myself to stabilizing the group’s organization," adding, "With a heavy sense of responsibility, I will devote myself to overcoming crises caused by internal and external uncertainties such as COVID-19 and stabilizing the group’s organization."

Since his last appointment, Chairman Kim has continuously expressed his intention not to seek reappointment. Recently, he has been delivering lectures to subsidiary employees with the message, "I will be a stepping stone." It is known that Chairman Kim has officially and unofficially expressed his intention to step down more than ten times this year alone.

However, as individuals mentioned as next chairman candidates faced legal risks such as lawsuits and disciplinary actions by financial authorities, the opinion that Chairman Kim should continue his term gained strength. Additionally, outstanding performance, including a record-high net profit of 2.6372 trillion KRW last year amid the COVID-19 situation, also contributed to his reappointment. Furthermore, the financial authorities, who opposed his reappointment in 2017, appeared to accept it this time, which had a positive effect.

Group Executive Candidate Recommendation Committee Starts Operation from the 25th to Restructure the System

Although Chairman Kim succeeded in his reappointment, the short term is a burden. Reflecting Hana Bank’s internal regulation limiting the chairman’s age to 70, Chairman Kim, who is 69 this year, will serve only one more year before stepping down.

Therefore, there is already speculation that the task assigned to Chairman Kim is to find the ‘post-Kim Jung-tae’ successor. The first step in finding a successor is the Group Executive Candidate Recommendation Committee (Candidate Committee), which begins operation today. Among Hana Financial’s 14 subsidiaries, the CEO terms of 11 companies expire next month. Chairman Kim will also participate as a member of the four-person Candidate Committee.

In the financial sector, there is speculation about the possible replacement of Hana Bank President Ji Sung-kyu and Hana Financial Vice Chairman and Hana Financial Investment CEO Lee Jin-guk. Park Sung-ho, Vice President of Hana Bank, who was listed in this Candidate Committee, is a strong candidate to succeed President Ji. Vice President Park is considered the biggest ‘surprise figure’ in this chairman recommendation process, as he made it to the final list ahead of Vice Chairman Lee and President Ji. Having joined Korea Investment Finance, the predecessor of Hana Bank, and walked the path of a ‘Hana man’ for 34 years, Vice President Park symbolizes a ‘homegrown talent’ and is expected to lead the ‘generation change.’

Lee Eun-hyung, Vice Chairman of Hana Financial, is mentioned as a candidate for CEO of Hana Financial Investment. Vice Chairman Lee is known as a top international expert in the financial sector, having served as Executive Vice Chairman of China Minsheng Investment, the largest private investment group in China, and as an advisory professor at Peking University.

Candidates recommended by the Candidate Committee will be finalized at the next month’s shareholders’ meeting after going through each company’s Candidate Committee and board of directors.

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