Hana Financial, Chairman Ham Young-joo's Swift Decision... Confidence in Overcoming Adversity

Unexpected Speed by the Negotiation Committee Defies Industry Expectations... Sudden Announcement in Just 4 Business Days
Urgent Organizational Restructuring... Confidence to Face Legal Risks and Other Challenges Head-On

Hana Financial Group

[Asia Economy Reporter Minwoo Lee] Hana Financial Group has decided on its next leader faster than expected. This move is interpreted as a strategy to stabilize the organization as quickly as possible and overcome various adverse factors.

According to industry sources on the 9th, the Hana Financial Group Chairman Candidate Recommendation Committee recommended Vice Chairman Ham Young-joo of Hana Financial Group as the sole candidate for the next group chairman the day before. He is expected to be appointed as chairman for a three-year term after the board meeting and the regular shareholders' meeting next month.

The process of appointing the next leader appears to be concluding faster than anticipated. The industry had expected the committee to narrow down a long list of about 20 candidates by the end of last month and then select a final shortlist within this month. However, contrary to this, the committee announced the final five candidates directly on the 28th of last month.

The final candidate selection was also considered a 'speed race.' The committee was expected to make a decision around mid-month after conducting in-depth interviews with the chairman candidates. Based on past decisions, it was anticipated that the selection would be completed by early next week at the earliest. However, defying expectations, Vice Chairman Ham was chosen the day before. This was just 11 days after the shortlist announcement. Considering the Lunar New Year holiday, the decision was made in about four business days. This contrasts with February last year when it took seven business days from the shortlist announcement to the decision on Chairman Kim Jung-tae's reappointment.

Initially, there was a view that the next leader would be decided after the trial results involving Vice Chairman Ham, expected around the end of this month. However, the committee apparently judged that it was better to conclude the process quickly. Given that Vice Chairman Ham is the leading candidate with evaluations that his management ability and experience surpass other candidates, and with forecasts that he will not receive a prison sentence in the trial, Hana Financial Group was able to reduce its burden.

Currently, Vice Chairman Ham is involved in two trials: one related to recruitment and another administrative lawsuit concerning derivative-linked funds (DLF). First, on the 16th, a ruling is scheduled for the lawsuit filed by Vice Chairman Ham to cancel the Financial Supervisory Service's sanctions on DLF. Since Chairman Sohn Tae-seung of Woori Financial Group won the first trial in August last year regarding the cancellation of heavy sanctions related to DLF, it is expected that Vice Chairman Ham is also in a favorable position in the trial. On the 25th, a first trial ruling is scheduled for the recruitment fraud case. The prosecution requested a three-year prison sentence and a fine of 5 million won at the sentencing hearing held on the 14th of last month. However, since Chairman Cho Yong-byoung of Shinhan Financial Group received a suspended sentence in the first trial related to Shinhan Bank recruitment, it is analyzed that Vice Chairman Ham may also receive a favorable judgment. Even if he receives a suspended sentence rather than acquittal, if he appeals, the management vacuum can be prevented for the time being.

Besides judicial risks, organizational restructuring issues such as appointing subsidiary CEOs are also cited as reasons for this rapid decision. The terms of major subsidiary CEOs, including Yoon Kyu-sun, CEO of Hana Capital who is among the final candidates for group chairman, Kwon Gil-joo, CEO of Hana Card, Kim In-seok, CEO of Hana Life Insurance, Kwon Tae-gyun, CEO of Hana Non-Life Insurance, and Oh Hwa-kyung, CEO of Hana Savings Bank, expire next month. A financial industry official explained, "Hana Financial Group's move reflects a determination to confront adverse factors such as judicial risks head-on rather than delay. Since this is the first leadership change in 10 years, there was a felt need to quickly reorganize the organization."

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