'No Speculation at All'... Will President Wi Seong-baek Be Reappointed? (Comprehensive)

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[Asia Economy Reporter Jin-ho Kim] The financial sector's attention is focused on Wi Seong-baek, president of the Korea Deposit Insurance Corporation (KDIC), whose term expires in just over two months on September 17. Unlike previous years, there has been no speculation whatsoever about the next president, strongly suggesting the possibility of Wi's reappointment. The fact that the replacement timing coincides with the end of the administration also adds weight to the reappointment theory, as there is significant pressure in appointing a new head.

According to the financial sector on the 23rd, KDIC recently completed the formation of the Executive Candidate Recommendation Committee (ECRC) and has officially begun the process of selecting the next president. An ECRC official stated, "We plan to announce the president recruitment notice soon," adding, "Afterward, we will recommend multiple candidates to the Financial Services Commission (FSC) through document screening and interviews."

The KDIC president is appointed by the president of the Republic of Korea upon the FSC's recommendation, following the ECRC's endorsement. The term is three years, with the possibility of renewal on a yearly basis depending on job performance.

Inside and outside the financial sector, the prevailing view is that Wi will be reappointed. This is based on precedents where the Moon Jae-in administration recently decided to renew the terms of heads of major financial public institutions. These appointments emphasized continuity and stability of operations amid the national COVID-19 crisis. Notable examples include Lee Dong-geol, chairman of KDB Industrial Bank, and Yoon Dae-hee, president of the Korea Credit Guarantee Fund. However, no KDIC president has been reappointed before.

That said, considering these cases, there is speculation that Wi could be reappointed for about one year, taking into account his achievements and operational continuity. Since his inauguration, Wi has received favorable evaluations for fostering a horizontal organizational culture and introducing a system for returning mistaken remittances.

With the next presidential election only seven months away, the growing burden of appointing heads of major public institutions is also expected to have an impact. There are concerns that if a head is replaced near the end of the administration, the new appointee's term may be less than a year. In fact, the Financial Supervisory Service has been experiencing a leadership vacancy for 78 days as of today.

The complete absence of speculation about candidates other than Wi also strengthens the reappointment theory. There is no talk about the next president within KDIC or even among financial authorities. A financial authority official said, "It's so unusual that there is no speculation at all," adding, "The total lack of speculation indicates that there is no suitable candidate, so it seems likely that reappointment will be the outcome."

However, if a successor other than Wi is appointed, it is expected that a senior official from the Ministry of Economy and Finance or the FSC will be a strong candidate. Considering that both Wi and his predecessor Kwak Beom-guk were former directors of the Treasury Bureau at the Ministry of Economy and Finance, there is much speculation that Heo Nam-deok, director of the Treasury Bureau, is a likely candidate. Within the FSC, Heo and his contemporaries from the 35th Administrative Examination, Kim Tae-hyun, secretary-general, and Park Jeong-hoon, standing commissioner, are also mentioned as potential candidates.