All Five Major Financial Institutions Get New Leaders... Focus on Bank Federation and DGB

With KB Financial Group as the last to appoint a new leader, all five major domestic financial holding companies have welcomed new captains, drawing attention to whether there will be further leadership changes in the financial sector. The Korea Federation of Banks is scheduled to begin the race for the next chairman starting this October, and other institutions such as DGB Financial Group and K Bank are also approaching the end of their CEOs' terms.

According to financial sources on the 11th, the Korea Federation of Banks is expected to hold a board meeting next month to discuss the procedures for appointing the next chairman, including the formation of the Chairman Recommendation Committee. This is due to the term of Kim Kwang-soo, chairman of the Federation who took office in 2020, ending at the end of November.

Typically, the Federation forms the Chairman Candidate Recommendation Committee through a board meeting composed of bank presidents around October. Each bank president can recommend one candidate, and the committee selects the final candidate after several rounds of discussions among the recommended candidates. The final candidate is then elected as the next chairman of the Korea Federation of Banks through a resolution at the general meeting of members.

There is much speculation. Among former government officials, Yoon Jong-won, the former president of IBK Industrial Bank and former Blue House economic chief, and Choi Jong-gu, former chairman of the Financial Services Commission and former president of the Export-Import Bank (currently a special advisor at the law firm Hwawoo), are mentioned as candidates. Both have experience leading special banks and are considered strong candidates due to their ability to communicate smoothly with both the private sector and government.

Among former private bank presidents, recently retired financial holding company chairmen are being discussed. These include Cho Yong-byeong, former chairman of Shinhan Financial Group who resigned at the end of last year; Sohn Tae-seung, former chairman of Woori Financial Group; Sohn Byung-hwan, former chairman of NH Nonghyup Financial Group; and Yoon Jong-kyu, chairman of KB Financial Group, whose term also expires this November, making him a strong candidate. Although it has been a long time since leaving the banking sector, Cho Jun-hee, former president of IBK Industrial Bank, is also mentioned.

A financial industry insider said, "This year, there are many candidates, including former bureaucrats, private sector figures, and many retired financial holding company chairmen."

Following KB Financial, the next holding company chairman term to expire is at DGB Financial Group. Kim Tae-oh, chairman of DGB Financial, has a term until March next year. Given that its subsidiary, Daegu Bank, is preparing to transition into a commercial bank, there is speculation about a possible third term. However, recent negative opinions from regulators regarding long-term reappointments of financial holding CEOs are seen as a limitation.

Regarding bank presidents, Seo Ho-sung, president of K Bank, has a term ending at the end of this year, and Park Jong-bok, president of SC First Bank, has a term expiring early next year. Both presidents are credited with leading a turnaround to profitability and maintaining stable performance. However, Seo’s parent company, KT, recently underwent leadership changes, and Park has already served three terms, which are considered variables.

Meanwhile, the National Credit Union Federation of Korea is also experiencing a leadership vacuum after Chairman Park Cha-hoon was recently indicted on bribery charges. Currently, Vice Chairman Kim In is acting as interim chairman, but there are reports of calls for the management’s resignation. Since Park’s term runs until March 2026, the interim leadership period may become prolonged. A delegates’ general meeting is scheduled for the 21st, where this issue may be discussed. If the current management steps down, a by-election will be held to elect a new chairman.

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