Resolving the Biggest Obstacle: Risk of 'Financial Authorities' Opposition'
[Asia Economy Reporter Kiho Sung] Hana Financial Group is set to hold the Chairman Candidate Recommendation Committee (CCRC) as early as the beginning of next week to make the final recommendation for the next chairman. Currently, the atmosphere favors the possibility of reappointment of Kim Jung-tae, Chairman of Hana Financial Group. Recently, with financial authorities expressing that they "respect the board's decision," the biggest obstacle to Chairman Kim's reappointment seems to have been resolved.
According to the financial sector on the 20th, Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), said before attending the Macroeconomic Financial Meeting on the 18th, when asked about Chairman Kim's reappointment, “It is according to the board regulations, so it is difficult for the FSS to comment,” adding, “However, I hope the process is conducted more transparently.” He also added, “I hope the procedure for the next successor proceeds well,” indicating he does not strongly oppose Chairman Kim's reappointment.
Financial Services Commission Chairman Eun Sung-soo also said on the 16th, when asked about Chairman Kim's reappointment challenge, “As with the previous KB Financial chairman, the basic principle is to follow the board and CCRC procedures,” adding, “It is not appropriate for financial authorities to intervene, and it seems right to respect their judgment.”
Earlier, Hana Financial Group announced on the 15th that the CCRC had narrowed down the next chairman candidate shortlist to four: Chairman Kim, Vice Chairman Ham Young-joo, Hana Bank Vice President Park Sung-ho, and former Korea Citibank President Park Jin-hoe. The financial sector currently views Chairman Kim's reappointment as highly likely. Kim became chairman of Hana Financial Group in March 2012 and successfully renewed his term in 2015 and 2018.
Even if reappointed, term is 1 year... 'Finding a successor' is the challenge
Initially, Chairman Kim faced burdens due to clashes with financial authorities during his third term reappointment in 2018. At that time, the FSS requested the CCRC to postpone the next chairman candidate selection schedule, arguing that it was unfair for the incumbent chairman to participate, but the CCRC proceeded with the schedule and ultimately selected Chairman Kim as the final candidate.
However, as other leading candidates were exposed to legal risks, support for Chairman Kim's reappointment began to grow. Vice Chairman Ham, a strong candidate, is currently undergoing administrative litigation after receiving heavy sanctions from financial authorities due to Hana Bank recruitment corruption trials and incomplete sales of overseas interest rate-linked derivative-linked funds (DLF).
The CCRC plans to finalize the next CEO chairman candidate as early as next week after conducting in-depth interviews and other procedures with the final candidate group.
If Chairman Kim succeeds in his reappointment, Hana Financial Group must immediately begin searching for a 'successor.' This is because even if Kim is reappointed, his term will be only one year. According to Hana Financial Group's internal regulations, the chairman can serve only until the age of 70. Chairman Kim is 69 years old this year.
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