Sooeun Initiates Outside Director Appointment Process... Two Months After Vacancy

Interest in Introducing the 'Nojo Chucheon Isaje' System
Verification Begins for 4 Labor-Management Recommended Candidates
Expected to Conclude by Next Month at the Earliest

[Asia Economy Reporter Jin-ho Kim] The Export-Import Bank of Korea has officially begun the process of appointing a non-standing director. It has been two months since the retirement of former non-standing director Namyeonghyun. Both the bank and its labor union have each recommended two candidates, and reputation checks on these candidates are currently underway. Attention is focused on whether they can successfully introduce the 'Union-Recommended Director System,' a first in the financial sector.

According to the financial sector on the 28th, the bank recently held a board meeting and completed the formation of the Director Candidate Recommendation Committee (DCRC) to recommend candidates for non-standing director. The appointment process for a non-standing director at the bank involves the DCRC → President's proposal → Minister of Strategy and Finance's appointment.

It is unusual that the bank's board has been vacant for nearly two months. Previously, the bank had minimized vacancies by forming the DCRC in advance as the term of the non-standing director approached expiration. However, in this case, the labor union strongly advocated for the introduction of the 'Union-Recommended Director System,' which significantly delayed the appointment process.

In particular, rumors circulated that the Blue House had designated a university professor, formerly a Blue House secretary, as the successor to former non-standing director Nam, causing all procedures to come to a complete halt for over a month. Subsequently, the management and the union engaged in lengthy negotiations over the formation of the DCRC and candidate recommendation procedures, recently reaching an agreement to resume the process.

The bank's DCRC is currently receiving recommendations for non-standing director candidates and conducting the first verification process. Two candidates were recommended by management and two by the union, and reputation checks are underway. The next step is expected to narrow down one candidate from each side, after which President Bang will propose their appointment to the Ministry of Strategy and Finance.

The union appears more confident than ever about the possibility of appointing their recommended candidates as non-standing directors. President Bang has no major objections to introducing the Union-Recommended Director System, and Hong Nam-ki, Deputy Prime Minister and Minister of Strategy and Finance, who holds the appointment authority, has publicly stated that he will "select candidates based on capability without prejudice."

The union's recommended candidates are reportedly one from academia, such as a professor, and one from the labor sector. A union official explained, "We placed emphasis on practical expertise in candidate selection," adding, "There is no disagreement on their expertise, and we recommended individuals with field experience, especially those well-versed in financial operations."

However, considering precedents set by Industrial Bank of Korea and Korea Asset Management Corporation (KAMCO), there are concerns that the introduction of the Union-Recommended Director System may face difficulties. In the case of the Industrial Bank of Korea, President Yoon Jong-won proposed the union-recommended candidate to the Financial Services Commission, but the commission reportedly rejected the candidate citing various issues.

Political circles, which had promised support, have remained silent due to major issues such as the presidential election, adding to the burden. Although political circles have repeatedly expressed their intention to promote legislation for the Labor Director System, a broader concept that includes the Union-Recommended Director System, related discussions have not taken place recently.

A financial sector official said, "All procedures are expected to be completed as early as next month," adding, "The bank is expected to soon discuss various matters with the Ministry of Strategy and Finance, including the method and scale of candidate proposals."

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