4 Major Financial Holding Companies' Year-End Personnel Keyword 'Stability'... 'Vice Chairman System' Practically Abolished

KB, Shinhan, Hana, Woori and other senior executives finalized
Hana Financial Group abolishes vice chairman position and adopts 'partial executive system'
Shinhan Financial Group subsidiary CEOs 9 reappointed

As the year-end personnel changes and organizational restructuring of the four major domestic financial holding companies are entering their final stages, most financial holding companies have chosen 'stability' over 'change' in response to next year's economic uncertainties. This decision comes from the judgment that although record-breaking performance was achieved amid this year's interest rate hike trend, next year will not be easy. The 'Vice Chairman system,' which financial authorities have criticized sharply, is also being phased out.

According to the financial sector on the 28th, the four major financial holding companies?KB, Shinhan, Hana, and Woori?have mostly completed year-end appointments of subsidiary CEOs and executives, leaving only staff appointments remaining.

Hana Financial Group abolished the Vice Chairman position and introduced a 'Division Executive' system. The existing organizational structure, which had multiple divisions under the Vice Chairman, was changed to a system where the Vice Chairman also serves as the division head. Since the Vice Chairman concurrently serves as the division head, the decision-making process within the organization can be simplified. Additionally, to enhance customer value, strengthen competitiveness, and promote cooperation among group affiliates, the 'Group Customer Value Division' was newly established. To systematically support vulnerable groups, small business owners, and youth who are struggling amid increased economic uncertainty, a 'Win-Win Finance Support Task Force' was newly created under the 'Group ESG Division.'

Jin Ok-dong, Chairman of Shinhan Financial Group, who emphasized responsible management by quoting the adage "Do not change generals during a war" amid the crisis, decided to renew the terms of nine subsidiary CEOs whose terms are expiring. The holding company streamlined its previously segmented 11 organizations into four divisions, and extended the terms of Kim Sang-tae, CEO of Shinhan Investment Corp., and Cho Jae-min, CEO of Shinhan Asset Management, from one year to two years.

Woori Financial Group, having already implemented personnel and organizational changes following the inauguration of Chairman Lim Jong-ryong earlier this year, minimized changes this time. In the year-end executive appointments, only one division head was replaced, and the executive rank system, which was divided into Vice President, Senior Executive Vice President, and Executive Director, was unified under the Vice President title. The bank also unified the positions of Deputy Head and Deputy Head Assistant into the Deputy Head position to enable faster decision-making. Furthermore, the 'Corporate Culture Leadership Center' was expanded, and new dedicated organizations were established, including the 'New Business Partnership Promotion Department' to actively discover and nurture new businesses, and a dedicated organization for mid-sized companies and future customers.

KB Financial Group, which saw relatively significant CEO changes, also maintained the CEOs of its core affiliates. In the first personnel changes since Chairman Yang Jong-hee's inauguration, the positions of Lee Jae-geun, CEO of KB Kookmin Bank, Kim Sung-hyun, CEO of KB Securities, and Lee Chang-kwon, CEO of KB Kookmin Card were retained, while internal experts were appointed as new CEOs for the remaining six affiliates.

The reason the four major financial holding companies minimized changes is to prepare for economic uncertainties next year. Although record-breaking performance was achieved for the second consecutive year during the interest rate hike period, there are considerable latent risks such as real estate project financing (PF) and non-performing household and corporate loans. In particular, the background for abolishing the Vice Chairman system, which financial authorities have strongly criticized, and consolidating ranks to slim down the organization is in line with this context.

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