Financial Supervisory Service Chief "Respect for Cho Yong-byeong's Voluntary Retirement"... Financial Authorities' Personnel Changes Labeled 'Government Control' Repeatedly

Kim Juhyun and Lee Bokhyun, Financial Authorities Chiefs
Pressure on Sohn Taesung, Woori Financial Group Chairman
Emphasizing Private Sector-Led Autonomous Personnel
Effectively Expanding Controversy Over Government-Controlled Finance

[Asia Economy Reporter Shim Nayoung] As major financial institutions undergo a wave of leadership changes, financial authorities are issuing 'guidelines' daily. While the government emphasizes private-sector-led autonomous personnel decisions, it appears to be effectively setting directions for personnel matters in private financial firms, which is expected to intensify controversies over government-controlled finance.

At the beginning of this month, Lee Bokhyun, Governor of the Financial Supervisory Service (FSS), commented on Cho Yongbyung, Chairman of Shinhan Financial Group, who voluntarily gave up his bid for a third term, saying, "Seeing him give opportunities to his juniors, I personally find him admirable as a leader." This remark is interpreted as an indirect reference to Sohn Tae-seung, Chairman of Woori Financial Group, who is holding on until his term ends in March next year.

Financial Services Commission Chairman Kim Joo-hyun and FSS Governor Lee Bokhyun, Daily Pressure on Sohn Tae-seung, Chairman of Woori Financial Group

Governor Lee said on the 21st, right after holding a meeting on retirement pensions at Lotte Hotel in Euljiro, Jung-gu, Seoul, "Chairman Cho made a comprehensive self-assessment of Shinhan Financial Group's record-breaking performance and the failures in consumer protection caused by external expansion processes such as the Lime incident, and then yielded to his juniors." He added, "Due to this concession, a new chairman was appointed, and I understand that Shinhan is cultivating a group of CEOs to lead the next generation," emphasizing, "In that sense, there was a healthy check and balance."

Financial Services Commission Chairman Kim Joo-hyun also stated the previous day regarding Sohn Tae-seung, Chairman of Woori Financial Group, who received a heavy disciplinary action from financial authorities over the Lime fund redemption suspension incident, "As the CEO, Chairman Sohn clearly bears responsibility for the Lime fund," adding, "This decision was made after discussions within the FSC and reflects the government's intention."

Chairman Sohn, whose term ends in March next year, is currently considering filing an administrative lawsuit against the financial authorities. In 2019, during the one-year relaunch of Woori Financial Group, Sohn concurrently held the positions of CEO and Chairman, and since March 2020, he has served solely as Chairman. Filing an administrative lawsuit is essential for his reappointment bid next year. If he files for a provisional injunction to suspend the disciplinary effect within 90 days of the FSC's heavy disciplinary decision and wins, he will not face restrictions on his eligibility for reappointment.

However, with the financial authorities continuously pressuring Chairman Sohn, the very attempt to seek reappointment has become considerably burdensome, according to voices inside and outside Woori Bank. A financial sector official said, "Using the phrase 'government's intention' is no different from issuing a directive." The Woori Financial Group board announced on the 16th that it would not discuss Chairman Sohn's position related to the financial authorities' sanctions at the meeting and would instead deliberate on it in January next year.

Former FSC Chairman Jung Eun-bo, Candidate for Next IBK Bank President

Meanwhile, Chairman Kim revealed on the 20th that former FSS Governor Jung Eun-bo is included among the candidates for the next president of Industrial Bank of Korea (IBK), stating, "(The appointment of the IBK president) is proposed by the FSC, so multiple candidates are being reviewed." The term of current IBK President Yoon Jong-won ends on January 2 next year, leaving less than two weeks.

With the FSC Chairman officially mentioning former FSS Governor Jung Eun-bo, his candidacy is considered more prominent in the financial sector. A National Assembly Financial Services Committee official said, "Although Jung served as FSS Governor under the Moon Jae-in administration, he stepped down immediately after the administration changed, which allowed the current Governor Lee Bokhyun to take office on time," adding, "There is a positive atmosphere toward former Governor Jung Eun-bo within the ruling party as well."

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