KB Financial's Next Chairman Appointment Process Kicks Off... Key Points to Watch

Next Month's Shortlist... September Final Candidate Selection
Internal Competition Among Three Vice Chairmen
Chairman Yoon Jong-kyu's Position Also 'In Focus'

KB Financial Group has begun the process of appointing its next leader in earnest. In the financial sector, there is a prevailing expectation that the next chairman will be chosen from among the three internal vice chairmen, given that KB Financial's management succession program is well-organized. The future of Chairman Yoon Jong-kyu, whose term ends this November, is also a key point to watch.

According to KB Financial on the 21st, out of a long list of 20 candidates including both internal and external figures, the first shortlist of 6 will be decided on August 8, and the second shortlist of 3 will be selected on August 29. Subsequently, on September 8, the final candidate will be chosen after interviews and in-depth evaluations. The KB Financial Chairman Candidate Recommendation Committee (Chairman Recommendation Committee) has set five minimum qualification criteria for the chairman: 'work experience and expertise,' 'leadership,' 'morality,' 'sharing the group's vision and values,' and 'efforts for sound management in the short and long term.'

In the financial sector, the prevailing view so far is that the final candidate will emerge from among Vice Chairmen Heo In, Lee Dong-cheol, and Yang Jong-hee, who have been nurtured through the succession program. In particular, Vice Chairman Heo has experience leading the group's core business, the bank. Heo, who served as the CEO of KB Kookmin Bank, graduated from Seoul National University with a degree in law and is also one year junior to President Yoon Suk-yeol. Vice Chairman Lee, who previously served as Vice President of KB Life Insurance and CEO of KB Kookmin Card, has extensive experience in both banking and non-banking business sectors. Vice Chairman Yang, who was the first among the three to be promoted to vice chairman, has strengths in holding management and strategic roles at the holding company. Besides these three, Park Jung-rim, CEO of KB Securities and the first female CEO of a domestic securities firm, is also being mentioned as a candidate.

Yoon Jong-kyu, Chairman of KB Financial Group

There is also interest in whether Chairman Yoon will serve a fourth term. Since his inauguration in November 2014, Yoon has led KB Financial through two reappointments in 2017 and 2020. He is credited with resolving the 'KB incident,' where conflict arose between the chairman and the bank president over the replacement of the mainframe computer, and has demonstrated strong leadership. Therefore, the possibility of Yoon’s reappointment cannot be completely ruled out. However, many believe that the likelihood of Yoon seeking another term is low due to the financial authorities' negative stance on reappointments. The financial authorities have previously pressured by expressing respect for the voluntary retirement of former Shinhan Financial Group Chairman Cho Yong-byeong and by stating that they expect wise judgment from former Woori Financial Group Chairman Sohn Tae-seung.

Lee Bok-hyun, Governor of the Financial Supervisory Service, recently told reporters that while efforts will be made to minimize influence on any specific individual regarding the KB Financial chairman appointment, he hopes the industry will set a leading precedent. A senior official in the financial sector commented, "Isn't it likely that the policy of 'new government, new person' will prevail this time as well?"

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