Meeting of the Self-Regulation Committee on the 16th... Key Figures Including Executives Decided
Chairman Jo Yong-byeong Resolves Legal Risks... Focus on Stability
[Asia Economy Reporter Kwangho Lee] The key figures, including subsidiary CEOs and executives, who will lead Shinhan Financial Group's 'Next 2022' will be decided on the 16th. Shin Yong-byeong, Chairman of Shinhan Financial Group, is expected to choose stability over change in this personnel appointment. Having recently been acquitted in the appeal trial of recruitment corruption charges and thus able to continue his term until March 2023, with the possibility of reappointment, the focus is expected to be on stabilizing the organization.
According to the financial sector on the 14th, Shinhan Financial will hold a Subsidiary Management Committee meeting on the 16th to recommend candidates for group company executives.
The Subsidiary Management Committee consists of five members, including Chairman Cho as the chairperson and four outside directors. The committee recommends subsidiary representatives, and each affiliate's board verifies qualifications and appoints them.
A total of 10 subsidiary presidents of the group will have their terms expire from the end of this year to early next year.
The terms of Lee Young-chang, CEO of Shinhan Investment Corp.; Lee Chang-gu, CEO of Shinhan Asset Management; Bae Il-gyu, CEO of Asia Trust; Lee Seong-yong, CEO of Shinhan DS; Choi Byung-hwa, CEO of Shinhan ITAS; Lee Ki-jun, CEO of Shinhan Credit Information; Kim Hee-song, CEO of Shinhan Alternative Investment Management; Namgung Hoon, CEO of Shinhan REITs Management; and Bae Jin-su, CEO of Shinhan AI, will end this month. Seo Hyun-joo, President of Jeju Bank, will serve until March next year.
The core issue in this personnel appointment is the fate of CEOs related to the capital market. Among the major affiliates, Lee Young-chang, CEO of Shinhan Investment Corp., stands out. Since his appointment in March last year, he has managed various private equity fund insolvency incidents and led the company to record-high performance this year.
Who will lead Shinhan Asset Management, which will merge with Shinhan Alternative Investment Management on January 1 next year, is also a major point of interest. The financial sector expects that both Lee Chang-gu, CEO of Shinhan Asset Management, and Kim Hee-song, CEO of Shinhan Alternative Investment Management, will be reappointed and maintain a dual CEO system after the merger.
There is also speculation about the possible replacement of Asia Trust, whose remaining shares are scheduled to be acquired by Shinhan Financial next year. Shinhan Financial acquired 60% of Asia Trust's shares in 2019 and incorporated it as a subsidiary. The remaining 40% is planned to be purchased next year. At the time of subsidiary incorporation, Shinhan Financial guaranteed the existing CEO's term. Accordingly, CEO Bae Il-gyu has been leading Asia Trust since 2014.
There are also observations that Choi Byung-hwa, CEO of Shinhan ITAS; Lee Ki-jun, CEO of Shinhan Credit Information; Namgung Hoon, CEO of Shinhan REITs Management; and Bae Jin-su, CEO of Shinhan AI, may be replaced.
Last year, Jin Ok-dong, President of Shinhan Bank; Lim Young-jin, CEO of Shinhan Card; and Sung Dae-gyu, CEO of Shinhan Life, were reappointed for two-year terms, but they were given only one-year terms this time.
A financial sector official said, "With Chairman Cho's judicial risks resolved and the possibility of a third term increased, the likelihood of a large-scale personnel reshuffle is low," adding, "Targeted personnel changes will be made where necessary." He further added, "If appointments focus on stability, the appointment of new executives such as deputy heads and managing directors will not be significant."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
