70% of Deputy Heads at 5 Major Banks to End Terms Next Month... Year-End 'Personnel Storm' Brewing

Industry Accelerates Digital Innovation... Generation Shift Expected Over Retention

[Asia Economy Reporter Kwangho Lee] As the tenures of deputy heads of domestic commercial banks are set to expire en masse at the end of the year, a wave of generational change is expected. It is anticipated that the personnel changes for deputy heads will trigger a domino effect involving assistant deputy heads, executive directors, and managing directors.

According to the banking sector on the 26th, among the 59 deputy heads of the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?41, or 69.4%, will have their terms end by the end of this year. This means that 7 out of 10 are at a crossroads between stepping down or extending their tenure.

Typically, bank executives serve a two-year term followed by a one-year extension. Many deputy heads have already completed two years and received a one-year extension. Especially given the record-high performance achieved amid the COVID-19 crisis, there are calls for appropriate rewards.

The banks’ vigorous push for digital innovation is also considered a factor influencing the year-end personnel changes. Recently, with the replacement of the heads of the Financial Services Commission and the Financial Supervisory Service, personnel aligned with the financial authorities’ policy codes are also needed.

In the case of KB Kookmin Bank, the terms of all six deputy heads?Seong Chaehyun, Kim Wuntae, Woo Sanghyun, Kim Younggil, Ha Jeong, and Yoon Jinsu?will expire on the 31st of next month. As KB Financial Group is set to hold its affiliate CEO candidate recommendation committee early next month to start CEO appointments for major affiliates, the fate of these deputy heads is expected to hinge on the position of KB Kookmin Bank President Heo In, whose term also ends on the 31st of next month.

Among Shinhan Bank’s 21 deputy heads, 12?including Jang Donggi, Lee Jaehak, Jung Jiho, Lee Byungchul, Bae Duwon, Jo Kyungseon, Kim Imgeun, Ahn Hyoyeol, Shin Yeonsik, Choi Sangyeol, Park Hyunjun, and Bae Sihyung?will have their terms expire on the 31st of next month. With Shinhan Bank President Jin Okdong emphasizing “performance” and aiming to transform into a digital company, it is widely expected that there will be significant personnel changes.

Hana Bank’s personnel changes are also a point of interest. Among its 12 deputy heads, 10?including Kim Giseok, Nam Gungwon, Park Seungo, Park Jihwan, Yoon Sungi, Lee Seungyeol, Lee Jongseung, Lee Hoseong, Jung Minsik, and Hwang Hyosang?will have their terms expire on the 31st of next month. Han Junseong, whose term ended on September 30, moved to become CEO of GLN International, a Hana Bank subsidiary. Hana Bank is expected to focus on change and carry out bold promotions. Chairman Kim Jungtae’s term at Hana Financial Group expires in March next year, with Vice Chairman Ham Youngjoo, who oversees ESG (Environmental, Social, and Governance), emerging as a strong candidate for the next chairman.

At Woori Bank, the terms of all five deputy heads?Park Hwajae, Lee Jungho, Hwang Gyumok, Kim Sungjoong, and Jo Byungkyu?will end next month. Woori Bank recently announced the reappointment of only Deputy Head Jo Byungkyu through an executive appointment disclosure. Consequently, a fierce competition is expected among the 15 assistant deputy heads whose terms expire next month. Above all, the personnel shake-up is likely to be influenced by whether Woori Bank President Kwon Kwangseok, whose term expires in March next year, is retained. When Kwon took office last year, he was unusually given a one-year term, and when his term was extended in March this year, it was again for only one year. Currently, prospects for reappointment are weighted toward performance improvement.

At NH Nonghyup Bank, among 15 deputy heads, the terms of seven?including Jang Seunghyun, Oh Kyunggeun, Ji Junseop, Kim Yukyung, Kim Hyungshin, Park Sangguk, and Shin Insik?will expire next month. Deputy Head Hong Myungjong’s term will also end in February next year. Since President Kwon Junhak is emphasizing “customer-centered digital finance” and “strengthening Nonghyup Financial’s role” this year, replacement rather than extension is anticipated.

An official from one bank said, “Although performance has exceeded expectations despite COVID-19, it is difficult to predict next year’s situation, so the scope of personnel changes will depend on what the management prioritizes.”