Forecast: Satellite Baek's Leadership to Continue for the Time Being

Term Expired on the 17th... Impact of Delay in Appointment Committee Procedures

[Asia Economy Reporter Jin-ho Kim] Wi Seong-baek, President of the Korea Deposit Insurance Corporation (KDIC), is expected to remain in his position for the time being. Although his official term expired on the 17th, the delay in the appointment process for the next president has caused this extension. The leading candidates for the next president are Kim Tae-hyun, former Secretary General of the Financial Services Commission (FSC), and Kim Kwang-nam, former Vice President of KDIC.

According to financial circles on the 25th, the KDIC Executive Candidate Recommendation Committee (Nomination Committee) was unable to recommend a candidate for the next president by Wi’s term expiration date on the 17th. As a result, Wi will continue to hold the position until the next president is confirmed.

Under the Act on the Management of Public Institutions, the Nomination Committee originally planned to recommend the final candidate to the FSC before Wi’s term ended. However, the review process of the documents submitted by the candidates was delayed, and with the understanding of the financial authorities, the recommendation process has continued.

The Nomination Committee, composed of three non-standing directors and two external members, has been conducting verification of the four candidates who applied for the president position over the past month. Although interviews were completed on the 9th, subsequent procedures have been delayed.

The KDIC president, as the head of a public institution, is appointed by the President upon the recommendation of the Financial Services Commission Chairman after the Nomination Committee’s recommendation. The term is three years, with the possibility of renewal on a yearly basis depending on performance.

Currently, Kim Tae-hyun, former Secretary General of the FSC, is considered the most likely candidate for the next KDIC president. Since the intention of the FSC Chairman plays a decisive role, it is widely expected that a former FSC official will take the KDIC presidency. For the past six years, the KDIC president position has been held by officials from the Ministry of Economy and Finance. A financial industry insider said, "With the inauguration of FSC Chairman Ko Seung-beom, Kim, the former Secretary General, has emerged as the leading candidate for the next KDIC president. Given that he has held key positions at the FSC and was also mentioned as a potential next Financial Supervisory Service chief, he is clearly the top candidate."

Kim Kwang-nam, former Vice President, is also mentioned as a strong candidate. His long tenure at KDIC and involvement in key tasks such as the restructuring of insolvent savings banks are considered strengths. It is also reported that KDIC employees prefer an internal candidate for the presidency.