[Initial Perspective] To Prevent the 'Return of Oldboy' from Repeating...

[Asia Economy Reporter Junho Hwang] The election to select the 6th president of the Korea Financial Investment Association has officially begun. Candidates completed their registration on the 30th of last month. It is understood that none of the current CEOs have registered as candidates. The lineup of candidates is diverse. A total of six individuals, ranging from former heads of the National Pension Service Fund Management to asset management company CEOs, have stepped forward to represent the interests of the financial investment industry for the next three years. The candidates are Kang Myeon-wook, former head of the National Pension Service Fund Management; Koo Hee-jin, former CEO of Daishin Asset Management; Kim Hae-jun, former CEO of Kyobo Securities; Seo Myung-seok, former president of Yuanta Securities; Seo Yoo-seok, former president of Mirae Asset Global Investments; and Jeon Byung-jo, former president of KB Securities.

However, within the industry, this is being described as the so-called "return of the old boys." The sentiment is that "we are seeing again those who had been out of sight for years." Because of this, there are also remarks that "it is difficult to find a big name in this presidential election." Such evaluations may feel somewhat unfair or uncomfortable to the candidates.

There is some validity to these criticisms, given that many of the candidates have been out of active roles for a long time. Except for former CEO Koo Hee-jin (who changed to an advisory role in June this year), the others stepped down from their CEO or head positions quite some time ago. Kang Myeon-wook stepped down as head in 2017. Jeon Byung-jo left his CEO position at the end of 2018, and Seo Myung-seok stepped down in 2020. Seo Yoo-seok and Kim Hae-jun left their CEO titles in 2021.

The expectation that current Korea Financial Investment Association Chairman Na Jae-cheol would have been considered a "big name" had he run in this election reflects the same perspective. However, Chairman Na declared last month that he would not run in this election and pledged to work towards a fair election.

Behind the "return of the old boys" lies a structural difficulty in deciding to run for president either after leaving active work or just before. The president’s term is three years, starting at the beginning of the year and ending on the last day of the third year. Since the election must be held before the term ends, an announcement is made about a month before the term expires, and the election process begins. On the other hand, regular executive appointments in the financial investment industry usually take place at the end of the year. Because the fate of CEOs is decided after the presidential election starts, even if a CEO is interested in the presidency, it is easy to miss the timing. Although current CEOs can register as candidates, they usually do not, as it could interfere with their duties and the company unless in special circumstances.

Within the industry, there is talk that if the president’s term were extended by about a month to operate under an emergency committee system and hold the next presidential election afterward, more talented candidates could be attracted.

If the election were held this way, it would take place after most regular executive appointments at financial investment firms are completed, allowing for a more diverse pool of candidates. Also, those who have recently left active roles and are well-informed about current issues would be more likely to apply. From the perspective of the financial investment industry as voters, this would help calm the unsettled atmosphere caused by personnel changes and allow for serious consideration of the most suitable candidate to represent the industry as president.

The reason why current CEOs or recently retired CEOs have not challenged for the presidency is not necessarily due to the current election system. Among those who registered as candidates this time, some retired during the current chairman’s term and had no choice but to wait for the election schedule. However, if the system can be improved to create a better pool of candidates, there is no reason for the association not to make improvements.

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