Hana Financial Group to Launch Chairman Selection Committee as Early as Tomorrow... Starting Next Chairman Appointment Process

Attention on Vice Chairman Ham Young-joo and Other Leading Candidates

[Asia Economy Reporter Kiho Sung] Hana Financial Group is entering the process of appointing a successor to Chairman Kim Jung-tae. Since Chairman Kim's term expires in March, the next chairman is expected to be decided as early as mid-next month.

According to the financial sector on the 11th, the Hana Financial Chairman Candidate Recommendation Committee (Chairman Recommendation Committee) is expected to hold a meeting as early as the 12th to discuss the schedule for selecting the next chairman. Accordingly, the internal and external candidate pool (longlist) is expected to be finalized within this month, followed by the selection of the final candidate pool (shortlist) next month, and then the final chairman candidate will be recommended.

The Chairman Recommendation Committee is composed entirely of outside directors according to Hana Financial's internal governance regulations. There are a total of eight outside directors at Hana Financial, with Professor Heo Yoon of Sogang University serving as the committee chair. If the CEO (chairman) does not intend to renew their term, they can become a committee member, but Chairman Kim is known to have decided not to participate in this committee. The committee is expected to review candidates recommended by external advisory agencies (search firms) and set the longlist at around 20 people. Based on past cases, the shortlist is expected to be finalized at about 3 to 5 candidates.

In Chairman Kim's case, having already served four consecutive terms and being subject to the retirement age limit (70 years old), there is strong weight on his voluntary retirement. Chairman Kim himself has emphasized that he "has no intention to renew his term." The next chairman candidates include Vice Chairman Ham Young-joo of Hana Financial Group, Vice Chairman Ji Sung-kyu, and Hana Bank President Park Sung-ho.

In the financial sector, Vice Chairman Ham is viewed as the most likely next chairman. He was appointed as the inaugural president after the 2015 merger of Hana Bank and Korea Exchange Bank, leading the unification of the two organizations. Additionally, he demonstrated strong capability by increasing Hana Bank's net profit from around 1 trillion won to 2 trillion won within a year. Legal concerns have also been somewhat resolved. He is currently involved in lawsuits related to recruitment and administrative litigation concerning overseas interest rate-linked derivative-linked financial products (DLF). In August last year, Sohn Tae-seung, Chairman of Woori Financial Group, won the first trial in a lawsuit to cancel disciplinary action related to DLF, and Cho Yong-byeong, Chairman of Shinhan Financial Group, was acquitted in the appellate trial related to recruitment irregularities. Because of this, many expect a positive outcome for Vice Chairman Ham's trials as well.

Besides Vice Chairman Ham, Vice Chairman Ji Sung-kyu and President Park Sung-ho are also considered strong candidates. Vice Chairman Ji is well known as an "overseas expert" who spent 20 years in China. During his tenure as Hana Bank president, he led digital enhancement by revamping the mobile application Hana One Q, introducing face recognition service and refinancing loan services for the first time in the banking sector. From the beginning of his term as president, he aimed to transform the bank into a data information company, and starting this year, he has taken on the role of Group Digital Vice Chairman, overseeing the group's digital strategy.

President Park gained attention last year by making the shortlist in the Chairman Recommendation Committee. He is a "digital expert" who served as CEO of Hana Financial TI, Hana Financial's IT specialist affiliate. He also has extensive overseas experience, including serving as president of Hana Bank Indonesia. However, since he was appointed as Hana Bank president early last year, there are also expectations that he will complete his remaining term.

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