Kim Sung-tae Nominated as IBK President... Revival of Internal Candidate After 3 Years

A Strategist Recognized by Former Bank Presidents
Government Feels Pressure Amid Growing Controversy Over Financial Sector Intervention
IBK Bank President Position Shifts to Internal Candidate

▲Kim Sung-tae, Nominee for President of Industrial Bank of Korea

[Asia Economy Reporter Sim Nayoung] The atmosphere at Industrial Bank of Korea (IBK), which will have a new head on January 3rd next year, is quite different from three years ago. This is because Kim Sung-tae, Executive Director who joined the bank in 1989 and worked his way up from the bottom, has been nominated as the new president. On the 30th, the Financial Services Commission announced, "Kim Sung-tae, the current Executive Director of IBK, has been recommended for appointment as the new president of Industrial Bank of Korea." Not only the employees of IBK but also the labor union are relieved by the revival of a president from within the organization.

Since 2010, IBK has been relatively free from external influences. The previous three presidents?Jo Jun-hee (2010?2013), Kwon Sun-joo (2013?2016), and Kim Do-jin (2016?2019)?all came from within IBK. The one who broke this chain was President Yoon Jong-won, who will retire on February 2nd next month. Yoon, a former senior secretary for economic affairs at the Blue House during the Moon Jae-in administration, faced criticism as a parachute appointment even before taking office. Due to union opposition, he barely started working a month after his term began. This led to the longest work-blocking protest in the history of the domestic financial sector.

"Nominee Kim Sung-tae is highly regarded within the bank"…Union and employees respond positively

"Although he is an internal candidate, Kim Sung-tae is different from Yoon Hee-sung, who is highlighted for his connection with President Yoon Seok-yeol through their civil service exam studies. Kim is very well regarded within the bank," said sources inside IBK. Before Kim was selected, there was speculation that former Financial Supervisory Service Chairman Jung Eun-bo might become IBK president, which the union was wary of. Kim Chairman said, "It seems the government has partially accepted the union's demand against parachute presidents," adding, "There will be no work-blocking protests this time."

Kim is well known as a 'strategist.' He started in 2008 as head of the Future Innovation Team in the Strategic Planning Department. He caught the eye of then-President Yoon Yong-ro, a former bureaucrat, and served as his chief of staff. When Jo Jun-hee took office the following year, Kim led the newly established Future Planning Office (2011). He later served as head of the General Planning Department and Marketing Strategy Department, then worked as a regional headquarters chief before being promoted to vice president in 2016. In 2019, he became CEO of IBK Capital, a subsidiary, and during Yoon Jong-won's presidency, he served as Executive Director (Senior Vice President), the bank's second-in-command.

No parachute controversy this time

An IBK executive said, "In any organization, people who held key positions under the previous head are usually excluded under the next, but Kim has consistently been recognized for his abilities by all past presidents," adding, "No one finds it strange that Kim has become IBK president." Another employee said, "He has a gentle and mild style and is excellent in his work, so he is welcomed."

In the financial sector, as recent controversies over government intervention have intensified, there is speculation that the government has shifted its stance by selecting an internal candidate for IBK. This comes amid a series of events including the appointment of Lee Seok-jun, a former senior official from Yoon Seok-yeol’s campaign, as chairman of NH Nonghyup Financial Group; rumors of pressure for Cho Yong-byeong, chairman of Shinhan Financial Group, to step down; and pressure on Sohn Tae-seung, chairman of Woori Financial Group, to resign. If IBK were also embroiled in a parachute appointment controversy, criticism of the current administration could increase. A financial sector official said, "In IBK’s case, it seems the government has made a well-calculated 'golden move' by finding an appropriate internal candidate." Once the president completes the appointment process, Kim will start his first day as president on February 3rd next month.

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