[3rd Term Virtually Confirmed] Financial Sector Reappointment Boom... Prioritizing Stability Over Change

Yoon Jong-kyu, KB Financial Group Chairman, Virtually Confirmed for Third Term
Lee Dong-geol, Korea Development Bank Chairman, Successfully Reappointed
Park Jong-bok, SC First Bank President, Also Confirmed for Third Term

[Asia Economy Reporter Park Sun-mi] The heads of financial institutions are strongly pushing for 'reappointment.' Amid the difficulties caused by the spread of the novel coronavirus infection (COVID-19), it is interpreted that the calculation that seeking stability through continuity of work rather than changes in management is more efficient in achieving results has played a role.

Yoon Jong-kyu, Chairman of KB Financial Group, has virtually secured a third term. The KB Financial Chairman Candidate Recommendation Committee (hereinafter referred to as the Committee) held a meeting on the morning of the 16th and selected Chairman Yoon as the final candidate for the next chairman. The interview on that day included all candidates?Kim Byung-ho, Yoon Jong-kyu, Lee Dong-cheol, and Heo In?who were selected as the final shortlist of chairman candidates by the Committee on August 28. The interview was conducted in the form of opening remarks by the candidates and a Q&A session between the Committee members and the candidates.

Sunwoo Seok-ho, Chairman of the Committee, stated, "Chairman Yoon has stably managed the organization for the past six years and established KB as a leading financial group. He has demonstrated excellent achievements by laying the foundation for revenue diversification through successful M&A in non-banking and global sectors. Additionally, he has built the group's future growth base through digital financial innovation and holds a distinctive philosophy and conviction regarding Environment, Social, and Governance (ESG). In an era where crises like COVID-19 have become commonplace, the Committee members agreed that Chairman Yoon should lead the organization for another three years to help KB overcome difficulties and continue sustainable growth."

Lee Dong-geol, Chairman of Korea Development Bank, Successfully Reappointed

Lee Dong-geol, Chairman of Korea Development Bank (KDB), also succeeded in his reappointment and began his second term on the 11th. The term is three years. According to the Korea Development Bank Act, the chairman of KDB is appointed by the president upon the recommendation of the Financial Services Commission chairman.

Lee’s reappointment is analyzed as considering the importance of KDB’s role in supporting corporate liquidity amid the ongoing COVID-19 pandemic and the need to maintain continuity in corporate restructuring efforts. It is the first time in 26 years that a KDB chairman has been reappointed, and Lee became the fourth CEO to be reappointed. In KDB’s history, there were reappointments once each in the 1950s (Koo Yong-seo, the first governor) and the 1970s (Kim Won-ki, governor), and from 1990 to 1994, Lee Hyung-gu (25th?26th governor) was reappointed.

Earlier, Park Jong-bok, President of SC First Bank, also secured a third term. The new term will last three years starting January 8 next year. SC First Bank usually begins the next president selection process one month before the current president’s term ends in December, but this year, the process was completed more than three months early.

SC First Bank recommended President Park as the final candidate for the next president at the Executive Candidate Recommendation Committee meeting held on the 28th of last month, reflecting the board’s intention to proactively stabilize the organization and resolve uncertainties through early appointment of the next president.

Since assuming office on January 8, 2015, President Park has been evaluated as having significantly improved performance and profitability even under rapidly changing business environments by building a stable business growth foundation and implementing bold and proactive organizational restructuring based on outstanding leadership and extensive banking experience.

Lee Dong-bin, President of Suhyup Bank, and Jin Ok-dong, President of Shinhan Bank, Also Likely to Be Reappointed

Lee Dong-bin, President of Suhyup Bank, whose term expires next month, is also rumored to be likely reappointed. Suhyup Bank’s president recommendation committee was formed on the 11th, and the selection process has begun. This is in accordance with the bylaws requiring the succession process to start up to two months before the president’s term expires. President Lee has received favorable reviews for focusing on personal retail finance during his term, improving the bank’s structure through expanded household loan operations, and leading successful overseas expansion.

Jin Ok-dong, President of Shinhan Bank, who took office in March last year, also has a high possibility of reappointment. There has been almost no precedent of a president finishing a term without reappointment. Performance is excellent. Last year, Shinhan Bank achieved over 370 billion KRW in net profit from overseas markets alone, playing a significant role in maintaining its top position. Since Cho Yong-byeong, Chairman of Shinhan Financial Group, succeeded in his reappointment this year, it is highly likely that the two will work together once more during the remaining term.