Yoon Jong-won Appointed as the 26th CEO of Industrial Bank of Korea

IBK "The Right Person to Contribute to Advanced Finance Leap"
Conflict Expected with Labor Union Amid Parachute Appointment Controversy

Yoon Jong-won, the new president of Industrial Bank of Korea [Image source=Yonhap News]

[Asia Economy Reporter Kim Hyo-jin] Former Blue House Chief Economic Secretary Yoon Jong-won has been appointed as the new president of IBK Industrial Bank of Korea. Although the leadership vacancy was resolved after six days, conflicts with the labor union, which has opposed Yoon's appointment as a 'parachute appointment,' are expected.

IBK Industrial Bank of Korea announced on the 2nd that former Chief Secretary Yoon is scheduled to take office as the 26th president on the 3rd.

President Yoon graduated from Inchang High School and Seoul National University with a degree in Economics, earned a master's degree in Public Administration from Seoul National University, and obtained a Ph.D. in Economics from UCLA in the United States.

Yoon entered public service in 1983 by passing the 27th Administrative Examination and served in various positions including the Treasury Department's Savings Review Office, Financial Policy Office Secretary at the Ministry of Finance and Economy, Director of Comprehensive Policy and Industrial Economy at the Ministry of Strategy and Finance, and Director of Economic Policy Bureau.

He later served as Economic and Financial Secretary to the Blue House, Executive Director of the International Monetary Fund (IMF), Ambassador Extraordinary and Plenipotentiary to the Organisation for Economic Co-operation and Development (OECD), and Chairman of the Pension Fund Management Committee.

IBK described President Yoon as "a seasoned economic bureaucrat who has handled a wide range of economic policies including macroeconomics, domestic and international finance, fiscal policy, industry, and structural reform," and "an outstanding economic and financial expert equipped with global sensibility and networks."

The bank also evaluated him as "the right person to further develop IBK's core role in nurturing and supporting small and medium-sized enterprises, which are the backbone of the national economy, with a high understanding of the current government's major economic and financial policies such as 'inclusive growth,' 'people-centered economy,' and 'innovative finance,' and to contribute to its leap into an advanced financial group with global competitiveness."

IBK operated under an 'acting president system' for six days until this day after former President Kim Do-jin stepped down on the 27th of last month upon the expiration of his term, without finding a new leader.

Following this, rumors of President Yoon's appointment spread in the financial sector, and the IBK labor union warned, "He is a parachute appointment with no financial-related experience," adding, "We will carry out a work stoppage protest until the general election and simultaneously join forces with the financial labor union to break policy ties with the current government."

Before rumors of Yoon's appointment circulated, there was a strong expectation that former Blue House Job Secretary Ban Jang-sik would be appointed, which also sparked parachute appointment controversies and union opposition.

IBK is a policy bank with the Ministry of Strategy and Finance holding a 53.2% stake. The president of IBK is nominated by the Chairman of the Financial Services Commission and appointed by the President of South Korea.

On the day before the official announcement of President Yoon's appointment, Financial Services Commission Chairman Eun Sung-soo met with reporters and regarding the parachute appointment controversy said, "It is up to whoever judges who is best for the institution (IBK)," adding, "Whether internal or external is important, but I hope people think about who is the best person."