Year-End Pros and Cons for Financial Investment Industry CEOs... Securities Firms 'Retention' and Asset Management 'Innovation'

6 Securities Firm CEOs Retain Positions
Major Asset Management CEOs Replaced

[Asia Economy Reporter Hwang Junho] The year-end personnel changes in the financial investment industry are revealing the contrasting fortunes of CEOs. While securities company CEOs who endured the private equity fund scandal last year and led record-breaking performances have been able to continue their terms, asset management company CEOs, hit by the shrinking public funds and backlash from direct investments, have been replaced one after another.

Six Securities Company CEOs Retain Their Positions

According to the financial investment industry on the 17th, a total of six securities company heads have been able to extend their terms until next year. Successfully concluding the private equity fund scandal and recording historic performances were the keys to their reappointment.

On the previous day, KB Financial Group and Shinhan Financial Group each submitted proposals to their respective committees to retain the current securities company CEOs. In the case of KB Securities, President Kim Seonghyun, who expanded the IB division, and President Park Jeongrim, who significantly grew the Wealth Management (WM) division, were allowed to continue their positions. For Shinhan Financial Investment, CEO Lee Youngchang, who initiated strong structural improvements through internal control system reforms and organizational and personnel renewal following the Lime scandal, was able to keep his seat.

Despite the 'generation change' wave sweeping through Samsung Group's financial affiliates such as Samsung Fire & Marine Insurance and Samsung Card, Samsung Securities President Jang Seokhun was retained, recognized for leading strong performances every year, including achieving over 1 trillion won in operating profit by the third quarter of this year.

There were also promoted CEOs. In the case of Mirae Asset Securities, Senior Vice Chairman Choi Hyunman was promoted to Chairman. Although his term was originally set to expire in March next year, he was reappointed regardless. He was acknowledged for maintaining the industry's top position by increasing annual operating profit from 1 trillion won last year?the first among securities companies?to 1.5 trillion won this year.

Lee Hyun, a founding member of Kiwoom Securities and CEO for four years, was promoted to Vice Chairman of the Daou Kiwoom Group. Subsequently, Hwang Hyunsun, Group Strategy Management Director, took over as CEO of Kiwoom Securities.

Additionally, Korea Investment & Securities, NH Investment & Securities, Daishin Securities, and Meritz Securities are also reported to be more likely to choose reappointment over replacement. An industry insider analyzed, "Since securities companies' performance grew significantly this year compared to last year after the private equity fund scandal, and the market situation next year is expected to be challenging, stability is likely to be chosen."

Asset Management Companies Face Replacement Wave

While securities company CEOs breathed a sigh of relief, a harsh wind of change swept through asset management companies. In response to the shrinking public funds, intensified competition in Exchange-Traded Funds (ETF), and the introduction of default options for retirement pensions next year, a large-scale reshuffle aimed at strengthening capabilities took place.

Samsung Asset Management, the industry leader, recommended Executive Director Seo Bonggyun, head of Samsung Securities' Sales & Trading division, as the new CEO candidate. The company explained, "He is the right person to solidify Samsung Asset Management's position in the ETF market and lead the expansion of global asset management infrastructure." Although Samsung Asset Management leads the ETF market, it has been unable to respond effectively to the fierce pursuit by Mirae Asset Management, the industry's second place, this year.

Mirae Asset Management, which chased the market share from 25% to 35% based on net assets this year, also initiated a generational change by replacing its CEOs with Vice Chairman Choi Changhoon and Executive Vice President Lee Byungseong. Earlier in July, Hanwha Asset Management changed its head for the first time in five years, coinciding with a significant increase in discretionary investment.

Korea Investment Trust Management is also considering a CEO replacement. It is reported that Vice President Bae Jaegyu of Samsung Asset Management, a pioneer in ETFs, was nominated as CEO, but he was not included in the regular executive appointments announced by Korea Financial Group on the day. However, the industry expects a separate announcement due to the delay in the CEO appointment process.

At Shinhan Asset Management, former KB Asset Management CEO Jo Jaemin, who held CEO positions at competing asset management firms for over 20 years, was appointed. CEO Jo stated, "We plan to work on securing stability in the merger of Shinhan Asset Management and Shinhan Alternative Investment Management," and added, "We will develop a variety of product lines in line with industry changes."

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