Leadership Renewal Accelerates at Four Major Financial Groups as Many Subsidiary CEOs Reach End of Term

Leadership Transitions in Financial Sector
Shinhan Financial Group Replaces CEOs at Two of Four Subsidiaries
Terms Expire for 24 CEOs at KB, Hana, and Woori Affiliates
Focus on Potential Generational Change

With Jin Okdong, Chairman of Shinhan Financial Group, set to begin his second term, a wave of leadership changes among CEOs at the group’s subsidiaries is accelerating a broader generational shift across Korea’s four major financial holding companies. Many of the CEOs whose terms end this year are heads of non-banking units such as insurance and securities. These subsidiaries are expected to play a greater role in generating profits, as banks are increasingly burdened by hefty fines and various financial contributions.

According to Shinhan Financial Group on December 9, out of four subsidiary CEOs whose terms expire at the end of this year, two have been replaced and two have been reappointed. Cheon Sangyoung, Executive Vice President in charge of group finance, has been nominated as the new CEO of Shinhan Life, while Lee Seokwon, former Head of Strategy at the National Pension Service’s Fund Management Division, has been tapped to lead Shinhan Asset Management. Meanwhile, Shinhan Asset Trust CEO Lee Seungsoo and Shinhan EZ General Insurance CEO Kang Byungkwan, whose terms also expire at the end of this year, have been recommended for reappointment.

Previously, on December 4, Chairman Jin emphasized to reporters that “qualitative growth” is the most important keyword for the upcoming CEO appointments. This intent was clearly reflected in the personnel decisions. Although Shinhan EZ General Insurance failed to turn a profit, CEO Kang was reappointed due to achievements such as building digital insurance infrastructure and advancing IT capabilities. Last year, Shinhan Financial Group replaced the CEOs of 9 out of its 14 subsidiaries, marking a major generational shift. This year, the scope of replacements has been reduced by about half.

Excluding Shinhan Financial Group, more than half of the CEOs at 41 subsidiaries of KB Financial Group, Hana Financial Group, and Woori Financial Group-24 in total-will see their terms expire at the end of this year. At KB Financial Group, 7 out of 11 subsidiaries; at Hana Financial Group, 7 out of 14; and at Woori Financial Group, 10 out of 16 will be affected.

At KB Financial Group, the terms of seven CEOs will end by year’s end: Kim Sunghyun and Lee Honggu of KB Securities, Koo Bonwook of KB Insurance, Kim Youngsung of KB Asset Management, Bin Joongil of KB Capital, Sung Chaehyun of KB Real Estate Trust, and Seo Hyeja of KB Savings Bank.

Within this group, there is growing industry attention on whether Kim Sunghyun, who has served as CEO since 2019, will secure a sixth consecutive term. Kim led strong results, with cumulative operating profit in the corporate finance (IB) division reaching 366.8 billion won in the third quarter, up 31.4% year-on-year. However, given that he was born in 1963, the holding company’s push for “generational change” could become a key variable. There is also focus on whether Seo Hyeja, the only female CEO among KB subsidiaries, will be reappointed. While Seo achieved results in risk management, such as reducing delinquency rates, the ongoing losses at her subsidiary are seen as a drawback.

At Hana Financial Group, the terms of seven CEOs will expire, including Kang Sungmook of Hana Securities, Nam Goongwon of Hana Life Insurance, Bae Sungwan of Hana General Insurance, Min Gwansik of Hana Asset Trust, Jung Haesung of Hana Alternative Investment Asset Management, Kang Donghoon of Hana F&I, and Park Geunyoung of Hana Financial TI.

The greatest attention is on whether Kang Sungmook, who also serves as Vice Chairman of Hana Financial Group, will be reappointed. Kang, who took office in January 2023, has already secured one reappointment. Given the strong trust of Hana Financial Group Chairman Ham Youngjoo, his chances for another term are high, but approval for the issuance of promissory notes remains a key variable. This business has long been a goal for Hana Securities, and if final approval is granted, it will allow the company to raise funds up to 200% of its equity capital, providing a major boost to Hana Financial Group’s efforts to strengthen its non-banking business. Should Kang be reappointed again, he would become the first CEO since Lee Jinguk in 2018 to serve a third term in seven years.

At Woori Financial Group, 10 CEOs are up for replacement, including Nam Gicheon of Woori Investment & Securities, Ki Dongho of Woori Financial Capital, and Choi Seungjae of Woori Asset Management-the largest number among the major financial holding companies.

Within Woori Financial Group, the future of Nam Gicheon, CEO of Woori Investment & Securities, is attracting the most attention. Nam joined Woori Financial Group in 2023 as CEO of Woori Asset Management, and last year led the group’s entry into the securities business by serving as CEO of both Woori Comprehensive Finance and Woori Investment & Securities. As Nam was recruited by Woori Financial Group Chairman Lim Jongryong, it is widely believed that his future will depend on whether Chairman Lim is reappointed.

Amid mounting pressure from financial regulators for leadership renewal, there is speculation that this year’s appointments at the four major financial groups will be more performance-oriented, rather than based on past compensation practices. In particular, Lee Chanjin, Governor of the Financial Supervisory Service, has recently made remarks aimed at holding company chairmen’s personnel decisions. At a press conference on December 1, he stated that “financial holding companies are organizations that require a high degree of public responsibility,” and at a National Assembly audit in October, he criticized, “Some chairmen, once appointed, build a kind of trench around themselves.” Whether a generational change will occur is also a key point of interest. At Shinhan Financial Group, CEOs born in the 1970s are emerging, with Kang Byungkwan of Shinhan EZ General Insurance, who was just reappointed, being born in 1977 and currently 48 years old.