[Exclusive] Choi Won-seok, CEO of BC Card, Reappointed for 4th Year... Withstood External Pressure Amid KT Leadership Change

Appointed in 2021... Maintaining CEO Position for 4 Years Despite Being Non-KT Origin

Choi Won-seok, CEO of BC Card. [Photo by BC Card]

Choi Won-seok, CEO of BC Card, has succeeded in his fourth consecutive term. A four-year long tenure for a CEO is the first since KT acquired BC Card in 2011. Moreover, it is significant that Choi, who is not from KT, retained his position despite the management changes following the recent leadership change at KT.

According to a report compiled by Asia Economy on the 28th, BC Card held an executive nomination committee meeting in the afternoon and confirmed the reappointment of Choi as the sole CEO. The term is one year. A BC Card official stated, "Details regarding CEO Choi’s position can be confirmed through future disclosures," adding, "There is nothing further to disclose about this personnel matter."

CEO Choi graduated from Seoul National University with a degree in International Economics and has worked at Korea Securities, Long-Term Credit Bank, Samsung Securities, and served as CFO of the financial information analysis firm FnGuide, as well as CEO of FnAsset Evaluation. Choi was appointed CEO of BC Card in March 2021 and completed a two-year term this past March. However, due to an extended management vacuum at the parent company KT, he was reappointed to maintain an interim management system and was given a short nine-month term.

Industry insiders initially viewed the possibility of Choi’s reappointment as low. This is because Choi was appointed as BC Card’s head at the request of former KT CEO Koo Hyun-mo, the last KT leader under the Moon Jae-in administration. After a five-month CEO vacancy, Kim Young-seop became KT’s CEO, and a reorganization at the end of last month included personnel changes aimed at what was called "erasing Koo Hyun-mo." Subsequently, similar reorganizations and personnel moves were expected to take place sequentially at KT affiliates, including BC Card.

There was also justification for replacement due to poor performance. BC Card’s cumulative consolidated operating profit for the third quarter of this year was 74.64586 billion KRW, and net profit was 69.59959 billion KRW. Compared to the same period last year, operating profit decreased by 13.6%, and net profit dropped by 48.2%. The main causes of the poor performance were increased financial burdens due to prolonged high interest rates and foreign currency-related losses caused by high exchange rates.

Some view Choi’s reappointment as reflecting KT’s determination to successfully complete the initial public offering (IPO) of K Bank, an internet-only bank in which BC Card is the largest shareholder. The listing of K Bank is one of KT Group’s long-standing goals. Given the already challenging situation in the card industry, it was deemed better for Choi to maintain his leadership until the IPO is finalized rather than causing disruption through a leadership change. K Bank had planned to go public in February but has indefinitely postponed the IPO due to deteriorating investor sentiment.

With domestic business sluggish due to reduced merchant fee rates, CEO Choi is expected to demonstrate results through global business going forward. BC Card is currently focusing its efforts on overseas expansion by leveraging its nation-to-nation (N2N) payment network technology to extend card payment networks in Central Asian countries such as Kyrgyzstan, Uzbekistan, and Mongolia, and by promoting QR code payments in Japan and China. A card industry insider said, "Under CEO Choi’s leadership, there have been notable achievements such as issuing proprietary cards, securing global capabilities, and managing delinquency rates," adding, "The future success of major domestic card companies will hinge on breakthroughs in overseas markets."

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