Seven Financial CEOs with Terms Expiring This Year... Focus on Reappointment of Lee Dong-geol and Yoon Jong-kyu

Up to 17 CEOs Targeted by Q1 Next Year
Record-Breaking Performance Boom Raises Reappointment Prospects

First Candidate: Lee Dong-geol, KDB Chairman, Reappointment Rumors
Yoon Jong-kyu, KB Financial Chairman, Also Likely to Secure Third Term

[Asia Economy Reporter Kangwook Cho] The heads of major domestic financial holding companies and banks are approaching the end of their terms one after another from next month through early next year, drawing market attention to their future positions. This year alone, seven CEOs in the financial sector will see their terms expire, and including the first quarter of next year, a total of 17 CEOs may step down.

The market expects most CEOs to be reappointed, as commercial banks have enjoyed a boom with record-high earnings in recent years. Continuity and stable management capabilities are required to overcome the COVID-19 crisis as well as to pursue management policies such as digital finance and overseas market expansion. However, some replacements are also anticipated due to accountability issues stemming from private equity fund scandals and organizational renewal.

According to the financial sector on the 13th, starting next month in September, KDB Industrial Bank Chairman Dong-geol Lee’s term will expire, followed by Dong-bin Lee of Suhyup Bank and Jin-hoe Park of Citibank Korea in October; KB Financial Group Chairman Jong-kyu Yoon and KB Kookmin Bank President Heo In in November; Shinhan Bank President Ok-dong Jin and DGB Daegu Bank President Tae-oh Kim in December?seven CEOs will finish their terms this year alone. Additionally, two will end their terms in January next year, and during the shareholders' meeting season in March, as many as nine CEOs, including Hana Financial Group Chairman Jung-tae Kim, will see their terms expire simultaneously. Among them, Tae-oh Kim serves as both chairman of DGB Financial Group and president of Daegu Bank, with their respective terms ending this year and early next year. ▶Related article on page 14

The first to finish next month on the 10th is KDB Industrial Bank Chairman Dong-geol Lee. He has served as chairman of Industrial Bank since September 11, 2017, for a three-year term. The financial sector weighs heavily on the possibility of his reappointment, citing the need for continuity in ongoing corporate divestiture projects and other pressing issues under his leadership.

Earlier this year, several candidates were mentioned as potential successors to Chairman Lee. However, as time passes, the phenomenon of 'leading candidates' disappearing is occurring. Given the numerous challenges facing KDB, such as Doosan Heavy Industries, Asiana Airlines, and the Industrial Infrastructure Fund, it is expected that taking over as chairman would be burdensome. In fact, since his inauguration, Chairman Lee has taken on restructuring issues of companies that have long troubled the bank, including Kumho Tire, Sungdong Shipbuilding, GM Korea, STX Offshore & Shipbuilding, Daewoo Shipbuilding & Marine Engineering, and Dongbu Steel, successfully leading these efforts. Although the Asiana Airlines M&A issue has recently encountered some setbacks, his principled stance in negotiations, rather than being led by the companies, has been highly praised.

High Possibility of Reappointment for Heo In and Ok-dong Jin

With KB Financial Group Chairman Jong-kyu Yoon’s term expiring in November, the group has already begun the process of selecting the next chairman. Amid fierce behind-the-scenes competition among about ten internal and external candidates (longlist), Yoon’s third term is strongly anticipated. The chairman’s term is three years, so if reappointed, he will lead KB Financial for a total of nine years.

The heads of KB Kookmin Bank and Shinhan Bank, fierce competitors for the leading bank position, will also finish their terms just one month apart. Heo In, president of KB Kookmin Bank, was the first president after the separation of the chairman and president roles at KB, appointed in 2017 and successfully reappointed for one year last year. He is evaluated as likely to be reappointed due to his good rapport with Chairman Yoon.

Ok-dong Jin, president of Shinhan Bank who took office in March last year, is also highly likely to be reappointed. There has been almost no precedent of presidents serving only a single term. Performance is excellent; last year, the bank recorded over 370 billion KRW in net profit from overseas markets alone, playing a significant role in maintaining its top position. With Shinhan Financial Group Chairman Cho Yong-byoung successfully reappointed this year, it is highly likely that the two will work together once more during the remaining term.

Suhyup Bank President Dong-bin Lee and Citibank Korea President Jin-hoe Park will finish their terms in October. Suhyup Bank plans to soon hold a president recommendation committee meeting to proceed with selecting the next president, and currently, Lee’s reappointment is considered highly likely. Park, who took office in October 2014 and was reappointed in 2017 after completing his three-year term, faces obstacles such as controversies over branch closures and uncomfortable relations with the labor union, which are considered hurdles beyond performance.