Hana Financial's New Chairman Likely to Be Vice Chairman Ham Young-joo
Focus on Legal Risk After the 25th
Woori Bank President Announcement Possible Shortly After Seol Holiday
[Asia Economy Reporter Shim Nayoung] The next chairman of Hana Financial Group and the new CEO of Woori Bank are expected to be revealed within this month. Hana Financial Group will see a change in its group CEO for the first time in 10 years since Chairman Kim Jung-tae was appointed in 2012.
The final candidate is expected to be decided after the 25th, when the legal risks surrounding the most likely candidate, Vice Chairman Ham Young-joo of Hana Financial Group, become clearer. Woori Financial Group is set to select CEOs for eight affiliates, including the CEO of Woori Bank, and the announcement is anticipated shortly after the Lunar New Year holiday.
On the 28th of last month, Hana Financial Group shortlisted five candidates: three internal candidates including Vice Chairman Ham, Hana Bank CEO Park Sung-ho, and Hana Capital President Yoon Kyu-sun, as well as two external candidates, former Bain & Company Korea CEO Lee Sung-yong and former Korea Investment Corporation President Choi Hee-nam.
Among them, Vice Chairman Ham is considered the leading candidate in the financial sector. However, he has been on trial for over three years on charges of involvement in irregularities during new employee recruitment, which is seen as a risk factor. The prosecution has requested a three-year prison sentence for this charge. Nevertheless, since Shin Yong-byeong, Chairman of Shinhan Financial Group, was previously acquitted on the same charge, the financial sector also anticipates a not guilty verdict for Vice Chairman Ham. The verdict scheduled for the 25th will clarify whether Ham can ascend to the chairman position. Vice Chairman Ham has worked closely with Chairman Kim since he became the inaugural integrated bank president of Hana Foreign Exchange Bank, launched at the end of September 2015.
The candidates for Woori Bank CEO are Senior Executive Vice President Lee Won-duk of Woori Financial Group, Deputy CEO of Credit Support Group Park Hwa-jae, and Deputy CEO of Risk Management Division Jeon Sang-wook. Among them, Senior Executive Vice President Lee is known to be the leading candidate. Since joining Woori Bank in 1990, he has held positions such as Head of Global Strategy, Head of Future Strategy Team, Head of Management Planning Group, and Vice President of Strategy Division at Woori Financial Group, earning a reputation as a strategist within the group.
Woori Bank CEO Kwon Kwang-seok was not included in the final candidate pool and thus failed to secure reappointment. His term ends in March.
The Subsidiary CEO Recommendation Committee held discussions over two days starting from the 27th of last month. On the same day, Woori Financial held an extraordinary shareholders' meeting to inaugurate the new board of directors. Shin Yo-han, former CEO of Shin Young Securities (recommended by new major shareholder Eugene Private Equity), and Yoon In-seop, former CEO of Korea Ratings (recommended by existing shareholder Fubon Life), were included as outside directors. The recommendation committee consists of Woori Financial Chairman Sohn Tae-seung and six outside directors. Woori Financial is expected to select the final candidate by the end of next month at the latest. The final candidate will be appointed at the March shareholders' meeting.
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