The First 'Union-Nominated Director' Likely to Emerge at Korea Development Bank

Ministry of Economy and Finance to Complete Outside Director Appointment Procedure This Afternoon
High Possibility of Appointing K-Sure Union-Recommended Candidate
Rapid Progress Expected in Introducing Union-Recommended Director System at Other Financial Public Institutions

[Asia Economy Reporter Kim Jin-ho] The Ministry of Economy and Finance is expected to soon finalize the appointment of an outside director for the Export-Import Bank of Korea (Korea Eximbank), a position that has been vacant for over three months. There is a growing possibility that the financial sector's first-ever 'union-recommended director' will be appointed. This signals the realization of the 'union-recommended director system,' a pledge made by President Moon Jae-in during his candidacy, after more than five years. This development could also trigger attempts to introduce union-recommended directors across the financial sector.

According to financial circles on the 17th, the Ministry of Economy and Finance will select one of the candidates recommended by Korea Eximbank as an outside director as early as this afternoon. A source familiar with internal affairs stated, "The Ministry has conveyed through Korea Eximbank its intention to fill the outside director vacancy before the Chuseok holiday."

Previously, Korea Eximbank President Visit Byung-gyu recommended at least two candidates to the Ministry. Although the exact number is unclear, it has been confirmed that one of the candidates recommended by the union is included. The individual recommended by the Korea Eximbank union is known to be a financial expert with prior experience in the financial sector and currently serves as a professor. Earlier, the director candidate recommendation committee had four candidates, two each from management and labor sides.

Within the financial sector, it is anticipated that the introduction of the union-recommended director system will be realized through this appointment at Korea Eximbank. Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, who had previously expressed a reserved stance, stated that evaluation would be based solely on 'qualifications and capabilities,' and political support from the ruling party and others backs this.

In particular, Song Young-gil, leader of the Democratic Party of Korea, visited the financial labor union's tent protest site in front of the National Assembly the day before and reportedly promised to "look into the introduction of the union-recommended director system until the end." Leader Song also stated at the Korea Federation of Trade Unions-Democratic Party high-level meeting on the 24th of last month that he would "make efforts to reach an agreement."

The Korea Eximbank union's expectations are higher than ever. The atmosphere accepts the introduction of the union-recommended director system as a foregone conclusion. A source said, "We have not considered the possibility of failure," showing their anticipation.

There is also analysis that the recent 'qualification controversy' involving a parachute appointment from the Blue House at Korea Growth Finance may have an impact. The delay in the current appointment of outside directors at Korea Eximbank is partly due to issues related to the nomination of a Blue House-affiliated individual. Since Korea Growth Finance eventually induced the controversial parachute appointee to 'voluntarily resign,' it is expected that the aftermath will positively influence Korea Eximbank union's efforts to introduce the union-recommended director system.

Meanwhile, if Korea Eximbank appoints the financial sector's first union-recommended director, discussions on the 'union-recommended director system,' which had been dormant, are expected to accelerate. Previously, commercial banks such as KB Kookmin Bank, IBK Industrial Bank of Korea, and Korea Asset Management Corporation (KAMCO) attempted to introduce union-recommended directors but were repeatedly unsuccessful.

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