Jeonbuk Bank, First Internal President in 52 Years as President Im Yong-taek Steps Down (Comprehensive)

Seo Hanguk Senior Deputy Governor, Next Governor Nominee
"The Right Person to Contribute to Regional Economic Development"
Stepping Stone for '3rd Term' Im Yongtaek Governor's Retirement

From the left, Im Yong-taek, former President of Jeonbuk Bank, and Seo Han-guk, the next designated President of Jeonbuk Bank

[Asia Economy Reporter Kim Hyo-jin] Jeonbuk Bank is set to welcome its first internally promoted president in half a century, leveraging the voluntary retirement decision of the incumbent President Im Yong-taek (69).

According to the financial sector on the 27th, JB Financial Group's CEO Candidate Recommendation Committee selected Seo Hanguk (57), Senior Vice President, as the next president of Jeonbuk Bank the day before. Seo, a 'Jeonbuk Bank man,' joined Jeonbuk Bank in 1988. This is the first time since the bank's founding that an internal candidate has been appointed president, marking 52 years. He is scheduled to be officially appointed at the shareholders' meeting in March.

The committee explained the background of the appointment, stating, "He is the right person who can greatly contribute to regional economic development based on his diverse work experience and capabilities across the financial industry." A Jeonbuk Bank official said of Seo, "He is highly trusted by employees and possesses excellent execution skills," adding, "As an internal candidate, he understands the local sentiment well and is expected to lead the organization stably."

Born in 1964 in Jeongeup, Jeonbuk, Seo graduated from Jeonju Commercial High School, Korea National Open University, and Jeonbuk National University Graduate School of Business Administration. After joining Jeonbuk Bank, he worked in various headquarters departments such as the General Planning Department and Risk Management Department, as well as branches including Inhu-dong Branch, Taepyeong-dong Branch, Angol Branch, and Palbok-dong Branch. In 2010, he served as the TFT team leader for the International Financial Reporting Standards (IFRS) team at Jeonbuk Bank.

He is particularly recognized inside and outside the bank for successfully leading the IFRS adoption project, the largest project since Jeonbuk Bank's founding. Subsequently, he served as Managing Director in charge of JB Financial Group's Management Support Headquarters and Risk Management Headquarters. He was appointed Vice President of Jeonbuk Bank in 2016 and promoted to Senior Vice President last year. During his vice presidency, he oversaw Jeonbuk Bank's digital finance operations.

President Im’s Decision Led by ‘Creative Destruction’

The background of this appointment lies in President Im’s voluntary retirement. Since his inauguration in November 2014, Im had served three consecutive terms, holding the title of the longest-serving president. Although a fourth term was highly anticipated, he made the decision to step down under the pretext of organizational innovation. He was on the 'shortlist' of two candidates for the next president alongside Seo.

On the 18th, President Im posted on the internal bulletin board, stating, "What we need most now is 'change' and 'creative destruction' for that purpose," and expressed his intention to "withdraw from the honorable Jeonbuk Bank CEO candidacy." Im will move to JB Financial Group to oversee overseas business.

A Jeonbuk Bank official explained, "President Im, who has always emphasized new changes and innovation at the bank, chose a graceful exit for the sake of nurturing successors," adding, "It is interpreted that President Im’s intention for Jeonbuk Bank to grow more robustly and self-sufficiently after half a century is reflected in the appointment of Seo."

With this, the contours of the next management structure of regional banks have become somewhat clear. Song Jong-wook, President of Gwangju Bank, was solely recommended as the next president on the 8th and will lead Gwangju Bank for another two years until the end of next year. Bin Dae-in, President of Busan Bank, who was reappointed in March last year, is expected to be reappointed once more in recognition of his performance during the COVID-19 crisis. Similarly, there is a strong view that Hwang Yoon-chul, President of Gyeongnam Bank, who took office in March 2018, will be reappointed under similar circumstances.