'Yongtoe' Jo Yong-byeong: "Activity restricted due to hiring suspicions and COVID... Time for generational change"

"Customer Damage and Internal Company Discipline Cause Heartache... Someone Must Ultimately Take Responsibility and Resolve It"

Shin Yong-byeong, Chairman of Shinhan Financial Group, attended the Ministry of Economy and Finance-Financial Institutions meeting held at the Bankers Hall in Myeong-dong, 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 Reporter Yu Je-hoon] Cho Yong-byeong, Chairman of Shinhan Financial Group, who chose to 'step down' during the recommendation process for the next CEO chairman, said on the 8th, "Considering the final shortlist, excellent juniors have emerged, so I believe it is time for a generational change."

Cho met with reporters at the headquarters in Jung-gu, Seoul, in the afternoon and said regarding his stepping down, "I have been contemplating whether it is right to stabilize the organization by continuing my term or to hand it over to the juniors."

He first stated, "I have endured about four years of hardship due to trials related to hiring allegations, and it is true that COVID-19 imposed limitations on my activities as a CEO. What hurt me the most was that many customers suffered damages. Many employees were disciplined, and I personally accepted the resignations of some CEOs," he said.

He continued, "In a way, there is a difference between leaving voluntarily when you can continue and leaving because you have no choice. Personally, although I received a 'caution' in the Financial Supervisory Service's reexamination, I thought someone should take overall responsibility and sort things out," he emphasized.

Regarding his decision to step down without any particular signs, Cho said, "(The recommendation of the CEO chairman candidate) is a matter decided by the board of directors," adding, "A CEO must always remain calm."

About the future of Shinhan Financial, he said, "I will work closely with Jin Ok-dong, the bank president who has been nominated as the next CEO chairman, to ensure the organization remains solid," and added, "As the nominee, I hope he will reorganize and manage personnel on a case-by-case basis from the perspective of Shinhan's culture."

Meanwhile, the Shinhan Financial Group Chairman Candidate Recommendation Committee conducted interviews with the shortlisted candidates on the same day and decided to recommend President Jin as the next CEO chairman. Initially, many inside and outside the financial sector expected Cho to secure a third term due to his achievements in improving performance and expanding the business, as well as being finally acquitted by the Supreme Court regarding hiring corruption allegations, which reduced judicial risks. However, it was reported that Cho expressed his intention to step down to the board on this day.