Strong Candidate for Third Term... On Proposal to Create Vice Chairman Position, "Organization is Growing"
Shin Yong-byeong, Chairman of Shinhan Financial Group, is attending the Ministry of Economy and Finance-Financial Institutions meeting held at the Bankers' Hall in Myeongdong, Jung-gu, Seoul on the 27th, listening attentively to the remarks of Deputy Prime Minister for Economy Choo Kyung-ho. The meeting was attended by Deputy Prime Minister Choo, Kim So-young, Vice Chairman of the Financial Services Commission, and the chairmen of the five major financial holding companies including KB, Shinhan, Hana, Woori, and NongHyup. Photo by Kim Hyun-min kimhyun81@
[Asia Economy Reporters Yu Je-hoon and Song Seung-seop] Cho Yong-byeong, Chairman of Shinhan Financial Group, said on the 8th regarding the organizational restructuring including the establishment of a vice chairman position after being nominated as the candidate for CEO of Shinhan Financial Group, "The organization has grown significantly, so I think change is necessary."
On the morning of the same day, before the interview with the shortlisted candidates for CEO at the Shinhan Financial headquarters in Jung-gu, Seoul, Chairman Cho told the press, "The key point is to systematically refine the organization more precisely and create a system that allows for speedy decision-making."
Regarding his bid for a third term, Chairman Cho first expressed, "I am grateful to the employees and customers for allowing me to stand here again after serving six years as chairman." On the fact that internal candidates are competing, unlike other financial holding companies, he added, "It is the strength of our employees," and "There are also different aspects of governance."
Widely regarded as highly likely to secure a third term within and outside the financial sector, Chairman Cho emphasized the need for change concerning the highly anticipated establishment of the vice chairman position, saying, "The organization has grown so large that there are as many as 16 presidents. Jokingly, I say I forget the number of presidents by generation." He also stressed the need for a swift decision-making structure and a refined system within the organization, stating, "We need to create an organization that grants a lot of authority to the front line so that it can operate autonomously."
Regarding next year's outlook amid expectations of reclaiming the leading bank status this year, he said, "The important thing is not whether we are confident about being the leading bank, but to firmly build the foundational strength to ensure sustainability first." He added, "If we strengthen our foundation, we will become number one, but depending on the portfolio, we may fall behind. We are not sensitive to such things (leading bank status)."
Meanwhile, Shinhan Financial held a CEO candidate recommendation committee meeting on the morning of the same day and conducted final interviews with Chairman Cho, Shinhan Bank President Jin Ok-dong, and Shinhan Card President Lim Young-jin, who made it to the shortlist. The candidate selected as the final nominee will be inaugurated as the next CEO after the regular shareholders' meeting in March next year.
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