'Post Kim Jeong-tae'... Hana Financial's Dilemma in Finding the Next Successor

Chairman Kim Jeong-tae's Term Ends in March Next Year
Candidates Including Ham Young-joo, Ji Seong-gyu, and Park Seong-ho Mentioned

[Asia Economy Reporter Kiho Sung] As the financial sector enters the CEO appointment season starting in December, attention is focused on the successor to Kim Jung-tae, the chairman of Hana Financial Group, who is the only one among the five major financial holding companies whose term is ending. Since Chairman Kim is subject to the age limit for directors under Hana Financial's governance regulations and has recently clearly expressed his intention not to seek reappointment, it is highly likely that a new figure will lead Hana Financial for the first time in 10 years.

According to the financial sector on the 3rd, Hana Financial is expected to form a Chairman Candidate Recommendation Committee (Chairman Recommendation Committee) by next month at the latest and begin the process of selecting the next chairman. This is because the final candidate group (shortlist) must be selected one month before the regular shareholders' meeting in March. Afterward, the committee will select a candidate pool (longlist), including chairman candidates managed by the group, conduct in-depth interviews, finalize the candidates, and elect the chairman through a resolution at the shareholders' meeting. By January next year, the outline of the 'post-Kim Jung-tae' will emerge. This marks the end of the Kim Jung-tae era after 10 years and the beginning of a new leadership.

Chairman Kim has already served four consecutive terms and is also subject to the age limit for tenure (70 years old), which adds weight to his retirement. Chairman Kim himself emphasized that he has no intention of seeking reappointment.

Although many variables remain, the financial sector is naming Vice Chairman Ham Young-joo, Vice Chairman Ji Sung-kyu, and Hana Bank President Park Sung-ho as the next chairman candidates for Hana Financial.

Vice Chairman Ham is highly regarded for having served as the inaugural president after the 2015 merger of Hana Bank and Korea Exchange Bank, leading the unification of the two organizations. Additionally, his ability to increase Hana Bank's net profit from around 1 trillion won to 2 trillion won within a year is a strong point. The recent resolution of some legal risks also raises his profile. He is currently involved in lawsuits related to recruitment and administrative litigation concerning overseas interest rate-linked derivative-linked funds (DLF). In August this year, Sohn Tae-seung, chairman of Woori Financial Group, won the first trial in a disciplinary cancellation lawsuit related to DLF, and Cho Yong-byeong, chairman of Shinhan Financial Group, was acquitted in the appellate trial related to recruitment corruption. Because of this, many expect a positive outcome for Vice Chairman Ham's trials as well.

Vice Chairman Ji is well known as an 'overseas expert' who spent 20 years in China. During his tenure as Hana Bank president, he led digital enhancement by revamping the mobile application Hana One Q, introducing face recognition services and refinancing loan services for the first time in the banking sector. From the beginning of his term as bank president, he aimed to transform the bank into a data information company, and since this year, he has held the position of group digital vice chairman, overseeing the group's digital strategy. Since global and digital initiatives are considered the next challenges for Hana Financial, expectations for Vice Chairman Ji are high.

President Park attracted attention earlier this year by making the shortlist in the chairman recommendation committee. President Park is a 'digital expert' who previously served as CEO of Hana Financial TI, Hana Financial Group's IT specialist affiliate. He also has extensive overseas experience, including serving as president of Hana Bank Indonesia. However, since he was appointed as Hana Bank president this year, there is also speculation that he will complete his remaining term.