Will IBK Become the First Financial Institution with a Union-Nominated Director?

[Asia Economy Reporter Song Seung-seop] As Yoon Jong-won, president of Industrial Bank of Korea, is expected to propose candidates for outside directors to the Financial Services Commission, attention is focused on whether the first labor union-recommended outside director in the financial sector will emerge.

According to the financial sector on the 21st, Industrial Bank of Korea is in the process of selecting two successors for outside directors. One outside director's term expired on the 12th, and another outside director's term will end on the 25th.

Accordingly, the Industrial Bank of Korea labor union is also known to have recommended successors for outside directors to the company. If the person recommended by the labor union becomes an outside director, it will be the first case among policy banks and financial public enterprises.

The Industrial Bank of Korea labor union has also been steadily striving to place labor union-recommended personnel in director positions. In March 2019, they recommended a candidate for a director position, but it was unsuccessful, making this the second attempt. In January last year, during the process of blocking President Yoon Jong-won's commute, the labor union secured a promise to consider introducing a labor union-recommended director system.

In a recent written press conference, President Yoon expressed the view that a permanent labor union-recommended director system "requires legal amendments." While acknowledging that it is an issue with both expectations and concerns, he added that when proposing competent experts, the opinions of the labor union are also being heard.