Kiwoom Securities with Hwang Hyun-soon Stepping Down, Board Discusses Next Leader to Resolve 'Yeongpung Paper Incident'

Risk Management Expected to Strengthen with CEO Promoted from Within

Kiwoom Securities will hold a regular board meeting on the 16th to discuss the appointment of the next CEO to resolve the Yeongpung Paper unpaid receivables incident. Park Yeon-chae, Vice President and Head of Wholesale Division, and Eom Ju-seong, Vice President and Head of Strategic Planning Division, are being strongly considered as potential candidates to lead the company out of the current turmoil.

The Kiwoom Securities board will initiate follow-up procedures following the resignation of CEO Hwang Hyun-soon at the Kiwoom Securities headquarters in Yeouido. A Kiwoom Securities official explained, "The board’s executive nomination committee will propose candidates for the next CEO, and the board will discuss and elect the next leader."

Although the meeting is a regular board meeting intended to report on management details such as inter-affiliate transactions, the agenda was expanded to include the appointment of the next CEO after CEO Hwang Hyun-soon announced his intention to step down on the 9th due to the Yeongpung Paper unpaid receivables incident.

Industry insiders expect an internal promotion rather than an external hire, considering that most of Kiwoom Securities’ past CEOs have been internal personnel. While Vice Presidents Park Yeon-chae and Eom Ju-seong are mentioned, Kiwoom Securities maintains that nothing has been decided yet.

Vice President Eom Ju-seong, formerly of the old Daewoo Securities (now Mirae Asset Securities), joined Kiwoom Securities in 2007 as head of the Proprietary Investment (PI) team. He has developed Kiwoom Securities’ PI division for over 10 years, achieving results through alternative investments. Having worked in the PI division, investment management division, and strategic planning division, he currently serves as CFO (Chief Financial Officer). He is highly trusted by employees and is well-regarded for his roles in investment, strategic planning, and financial management, contributing significantly to Kiwoom Securities’ risk management. Since Vice President Eom is a non-registered executive, if he is appointed as the next CEO, shareholder approval will be required to appoint him as an inside director, which may delay the new start due to the need to convene an extraordinary general meeting. Vice President Park Yeon-chae, formerly of Hannuri Investment & Securities (now KB Securities), joined Kiwoom Securities in 2006 as head of the Research Center. He is known as a rare “long-serving research center head,” having worked as an analyst in one place for over 10 years.

There are also speculations that the agenda for this board meeting may include the appointment of Kim Dong-jun, CEO of Kiwoom Investment and eldest son of former Daou Kiwoom Group Chairman Kim Ik-rae, as an inside director. However, considering that the prosecution’s investigation into the Daou Kiwoom Group’s management succession process has not yet concluded, insiders familiar with Kiwoom Securities say the possibility is very low.

Last month, Kiwoom Securities incurred unpaid receivables amounting to 494.3 billion KRW due to the Yeongpung Paper stock manipulation incident. Excluding 61 billion KRW recovered through forced sales, the loss amounts to 433.3 billion KRW, exceeding the net profit for the first half of the year. Earlier, CEO Hwang Hyun-soon submitted his resignation to the board on the 9th, taking moral responsibility for the large-scale unpaid receivables caused by the Yeongpung Paper stock manipulation and stepping down. CEO Hwang joined Kiwoom Securities in 2000 and served as head of the China local subsidiary, head of the investment management division, and head of the retail division and strategic planning division before being appointed CEO in January last year. The previous CEO, Vice Chairman Lee Hyun, also served as CEO of Kiwoom Savings Bank and Kiwoom Investment Asset Management before becoming CEO.

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