National Policy Banks Stir Over 'Nakhasan' Chiefs: "Not a Place for Yoon Administration's Favoritism Appointments"

[Asia Economy Reporter Buaeri] Since the launch of the Yoon Seok-yeol administration, national policy banks have been embroiled in continuous controversies over their new leadership. Following the Korea Development Bank, there has been ongoing debate over the appointment of a new president at the Export-Import Bank of Korea.

On the 28th, according to industry sources, the Export-Import Bank union recently issued a statement saying, "Following the appointment of Kang Seok-hoon, a 'polipeseo' (professor-politician) with no field experience, as chairman of the Korea Development Bank, we are hearing that the appointment of a 'polipeseo' as president of the Export-Import Bank is imminent." The union added, "The position of the head of a national policy bank must not become a reward or patronage post for obscure 'polipeseo' figures." The union warned that if the government forcibly proceeds with the appointment of a 'polipeseo,' they will respond strongly, including launching parachute appointment prevention protests.

On the 28th, the Korea Export-Import Bank in Yeongdeungpo-gu, Seoul, where a COVID-19 confirmed case occurred, is quiet. Photo by Moon Honam munonam@

According to financial sector insiders, professors from the Presidential Transition Committee are being mentioned as candidates for the new president of the Export-Import Bank. Professors Shin Sung-hwan of Hongik University’s Department of Economics and Choi Jong-hak of Seoul National University’s Business Administration Department were active in the Economic Division 1 and Planning and Coordination Division of the Transition Committee, respectively. Additionally, Kim Cheol-joo, former Blue House Economic and Financial Secretary, and Choi Hee-nam, former CEO of Korea Investment Corporation, are also being floated as potential candidates.

In particular, Export-Import Bank employees fear a repeat of the precedent set by former bank president Lee Deok-hoon, who was known as a representative pro-Park figure. The union pointed out, "Rather than a policy vision, he insisted on reckless financial support based on political frames, which ultimately led to massive losses and disciplinary actions by the Board of Audit and Inspection," adding, "This has left an indelible scar on the Export-Import Bank and the national economy."

In the case of the Korea Development Bank, the newly appointed chairman Kang Seok-hoon has started work after many twists and turns, but the situation remains thorny. Kang only began working two weeks after his appointment due to protests by the KDB union blocking his entry, but employee sentiment remains cold. In fact, due to issues such as the planned relocation to Busan, over 40 employees have already resigned this year, accelerating the outflow of personnel. The KDB union has been protesting in the head office lobby for 21 consecutive days, shouting slogans such as "Oppose the Busan relocation." Around 500 employees participate daily in this protest. The conflict over the relocation of KDB to Busan, one of the Yoon administration’s major pledges, has reached a peak. Chairman Kang has said he will form a 'Communication Committee' involving labor and management, but there are no signs of reconciliation yet. Jo Yoon-seung, chairman of the KDB union, said, "This is the longest work-entry blocking protest in KDB’s history," and added, "In fact, employees are demanding that the protest continue."

However, in the case of the Industrial Bank of Korea, the prevailing view is that President Yoon Jong-won will complete his term. His term ends on January 2 of next year. Previously, President Yoon also declined the position of the first Minister for Government Policy Coordination under the Yoon administration. Recently, President Yoon has been actively engaged in his duties. On the 26th, he departed for a five-day, four-night business trip to Vietnam. The plan is to assess the status of Korean companies operating locally and discuss cooperative projects with the Vietnamese government and financial institutions.