Is Su Eun-seo the First 'Union-Nominated Director' in the Financial Sector?

Final Candidates for Outside Directors Soon to Be Recommended to the Ministry of Economy and Finance
Expected to Spread Across the Financial Sector Upon Implementation

[Asia Economy Reporter Jin-ho Kim] The Export-Import Bank of Korea is in the final stages of appointing a non-executive director. It has been over three months since the retirement of former non-executive director Namyeonghyeon Na. The bank is expected to soon submit the final list of candidates, including those recommended by the labor union, to the Ministry of Economy and Finance. Attention is focused on whether the financial sector’s first-ever ‘labor union recommended director’ will emerge.

According to financial circles on the 26th, Bank President Bang Won-kyu will soon submit the final list of outside director candidates, including those recommended by the labor union, to the Ministry of Economy and Finance. The appointment process for non-executive directors at the bank involves the Director Candidate Recommendation Committee → President’s submission → Minister of Economy and Finance’s appointment.

The bank’s board has been vacant for nearly three months. This delay is reportedly due to the labor union’s strong demand for the introduction of the ‘labor union recommended director system,’ which had failed to be implemented last year, causing the appointment process to take longer than usual.

The Director Candidate Recommendation Committee has shortlisted a total of four candidates, with two recommended by management and two by the labor union. The labor union proposed candidates from academia and the labor sector.

An official from the bank said, "I understand that the Ministry of Economy and Finance is currently in the final review stage, deciding whether to submit two or four candidates," adding, "Considering the vacancy period, we expect a swift conclusion."

In the financial sector, the government’s positive stance on introducing the labor union recommended director system has raised expectations higher than ever. On May 23rd, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated during a National Assembly government questioning session, "There is no need to exclude labor union recommended directors, nor is there an obligation to appoint them. If recommendations come, we will select candidates based on qualifications and capabilities without prejudice."

Particularly, the requirement that the candidates submitted to the Ministry of Economy and Finance must include an equal number of labor union recommended individuals is also raising hopes. Last year, four candidates were recommended in total, with three from management and one from the labor union. However, this year, if two candidates are recommended, one must be from each side; if four are recommended, two must be from each side. An insider familiar with internal affairs hinted, "Since recommendations are made in equal numbers, fair competition will be possible," and added, "The Ministry of Economy and Finance is not opposing the introduction of the system, and the evaluation of labor union candidates is reportedly not unfavorable."

Meanwhile, if the bank introduces the financial sector’s first labor union recommended director system, it is expected to have a significant impact not only on other financial public institutions but also on commercial banks such as KB Kookmin Bank. As this could open the way for the previously repeatedly failed labor union recommended director system, discussions are expected to accelerate rapidly.

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