Hana Financial Group to Appoint New Chairman Possibly Within Two Weeks... Profiles of the Candidates

Kim Jeong-tae Current Chairman Likely to Be Reappointed
1-Year Term Expected... Final 3 Candidates Also Draw Attention

From the left in the photo: Kim Jeong-tae, Chairman of Hana Financial Group; Ham Young-joo, Vice Chairman of Hana Financial Group; Park Seong-ho, Vice President of Hana Bank; Park Jin-hoe, former President of Citibank Korea.

[Asia Economy Reporter Kiho Sung] Hana Financial Group will soon hold the Chairman Candidate Recommendation Committee (CCRC) 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. However, even if Chairman Kim succeeds in his reappointment, the profiles of the other final candidates are also receiving attention since his term is only one year.

According to the financial sector on the 22nd, Hana Financial’s CCRC is expected to make the final recommendation for the next chairman as early as this week. At the meeting on the 15th, the CCRC confirmed a total of four final candidates: three internal candidates including the current Chairman Kim, Vice Chairman Ham Young-joo, and Hana Bank Vice President Park Sung-ho, and one external candidate, former Korea Citibank President Park Jin-hoe. Previously, in 2018, Hana Financial took six days from selecting the final candidate group to recommending the final candidate, and in 2015, it took eight days.

Currently, the financial sector views Chairman Kim’s reappointment as highly likely. Although Chairman Kim has consistently stated that he has no intention of seeking reappointment, insiders at Hana Financial reportedly agree that amid the high uncertainty caused by COVID-19 and the need for organizational stability, there is no better candidate than Chairman Kim. Especially positive is the fact that the financial authorities, who opposed his reappointment in 2018, have expressed a stance of "respecting the board’s judgment."

If Chairman Kim succeeds in his reappointment, Hana Financial will soon face the challenge of ‘finding a successor.’ Even if Chairman Kim is reappointed, his term will be only one year. According to Hana Financial’s internal regulations, the chairman can serve only until the age of 70. Chairman Kim is 69 years old this year. Naturally, attention is turning to the remaining candidates.

Vice Chairman Ham is the former inaugural bank president of the merged Hana and Korea Exchange Bank and successfully led the integration of the two banks. Currently, he serves as the group’s Vice Chairman of Management and has been mentioned several times as a potential successor to Chairman Kim. However, legal risks are holding him back. Vice Chairman Ham is currently undergoing trials related to allegations of recruitment irregularities and the overseas interest rate-linked derivative-linked fund (DLF) incident. How quickly he can overcome these risks is crucial.

Vice President Park is considered the biggest ‘surprise candidate’ in this chairman recommendation process. He made the final list, surpassing Vice Chairman Lee Jin-guk and Hana Bank President Ji Sung-kyu. The financial sector expects that Park’s inclusion in the final list will significantly raise his standing within Hana Financial. Moreover, Park has walked the path of a ‘Hana man’ for 34 years since joining Korea Investment & Finance, the predecessor of Hana Bank, symbolizing a ‘homegrown talent’ and is seen as a potential leader of ‘generational change.’

Former Bank President Park, though an external candidate, is evaluated positively for his strong drive in improving profitability, structural reform, and digital transformation during his tenure as Citibank President. Notably, he secured a foothold to return to the financial sector by making the final candidate list for Hana Financial chairman just six months after stepping down as Citibank President.