Following the Top 5 Banks... Attention on Leadership Changes at the Korea Federation of Banks and DGB

With KB Financial Group appointing its new leader, all of the top five domestic financial holding companies (KB, Shinhan, Hana, Woori, and NH Nonghyup) have welcomed new captains, drawing attention to whether there will be leadership changes in other financial sectors such as the Korea Federation of Banks. The Korea Federation of Banks is expected to begin the race for the next president by the end of this month, while other institutions like DGB Financial Group and K Bank are also attracting interest as their CEOs approach the end of their terms.

According to the financial sector on the 2nd, the Korea Federation of Banks is expected to hold a board meeting around the end of this month to discuss the procedures for appointing the next president, including the formation of the Presidential Recommendation Committee. This is due to the term of Kim Kwang-soo, president of the Korea Federation of Banks since 2020, ending at the end of November.

Typically, the Korea Federation of Banks forms a Presidential 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. The final candidate is then elected as the next president of the Korea Federation of Banks through a resolution at the general meeting of members.

Speculation is rife. Among candidates from the public sector are Yoon Jong-won, the former president of IBK Industrial Bank of Korea 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 of Korea (currently a special advisor at the law firm Hwawoo). 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.

From the private banking sector, recently retired financial holding company chairpersons are mentioned. 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. Additionally, Cho Jun-hee, former president of IBK Industrial Bank of Korea, is also mentioned. A financial sector official said, "This year, many candidates from both the traditional bureaucratic background and the private sector are being discussed, and there are many former financial holding company chairpersons who have retired, so the candidate pool is quite large."

Meanwhile, leadership changes are also drawing attention in some financial holding companies and banks where CEO terms are nearing expiration. DGB Financial Group is one such case. The term of Kim Tae-oh, chairman of DGB Financial Group, lasts until March next year. Given that its subsidiary, Daegu Bank, is preparing to transition into a commercial bank, a third term is considered possible. However, recent negative opinions from regulatory authorities regarding long-term CEO extensions in financial holding companies pose limitations.

Regarding bank presidents, the term of Seo Ho-sung, president of K Bank, expires at the end of this year, and that of Park Jong-bok, president of SC First Bank, expires 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 a leadership change, and Park has already served three terms, which are considered variables.

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