IBK Avoids Government Control...Why an Internal Candidate Was Selected After 3 Years

Kim Sung-tae, IBK Nominee, First Day at Work on the 3rd
Recognized as a Strategic Expert by Former Presidents

Government Also Burdened as Controversy Over Financial Sector Intervention Intensifies
IBK President Position Shifts to Internal Candidate

[Asia Economy Reporter Shim Nayoung] The atmosphere at Industrial Bank of Korea (IBK), which will see a change in leadership on the 3rd, is distinctly different from three years ago. This is because Kim Sung-tae, an executive director who joined the bank in 1989 and rose through the ranks from the ground up, is becoming the new president. IBK employees and even the labor union are relieved by the revival of an internally promoted president.

Since 2010, IBK has been relatively free from external influences. The previous three presidents?Jo Jun-hee (2010?2013), Kwon Sun-joo (2013?2016), and Kim Do-jin (2016?2019)?were all from within IBK. The one who broke this streak was President Yoon Jong-won, who is stepping down on the 2nd. Yoon, a former economic secretary to the presidential office during the Moon Jae-in administration, faced criticism as a parachute appointment even before taking office. Due to union opposition, he barely managed to start working a month after his term began. This set a record for the longest work-blocking protest in the history of the domestic financial sector.

"Although he is from inside the bank, President Yoon Hee-sung, who is highlighted for his connection with President Yoon Suk-yeol through civil service exam studies, and (the nominee Kim) have different styles. The internal evaluation of Kim is very positive," said Kim Hyung-seon, chairman of the IBK labor union. Before Kim was selected, there were rumors for a while that former Financial Supervisory Service Chairman Jung Eun-bo would become IBK president, which the union was wary of. Chairman Kim said, "It seems the government has partially accepted the union's demand against parachute presidents," adding, "There will be no work-blocking protests this time."

Kim Sung-tae, Nominee for President of Industrial Bank of Korea

Kim is well known as a 'strategist.' He started in 2008 as head of the Future Innovation Team in the Strategic Planning Department and took on strategic duties. He caught the eye of then-President Yoon Yong-ro, a former bureaucrat, and served as his chief of staff. When Jo Jun-hee took office the following year, Kim led the newly established Future Planning Office (2011). He later served as head of the General Planning Department and Marketing Strategy Department, then worked as a regional headquarters chief before being promoted to vice president in 2016. In 2019, he managed the affiliate IBK Capital as CEO and served as executive director (senior vice president), the second-in-command at IBK, during Yoon Jong-won's term.

An IBK executive said, "In any organization, those who held key positions under previous leaders are usually excluded under the next, but Kim has consistently been recognized for his abilities by successive presidents," adding, "No one finds it strange that Kim has become IBK president." Another employee said, "He is welcomed for his gentle and mild style and outstanding professional skills."

In the financial sector, amid recent fierce controversies over government intervention, there is speculation that the government has shifted its stance by appointing an internal candidate to IBK. This comes alongside the appointment of Lee Seok-jun, a former State Affairs Coordination Office chief from President Yoon Suk-yeol's camp, as chairman of NH Nonghyup Financial Group; rumors of pressure for Cho Yong-byeong, chairman of Shinhan Financial Group, to step down; and pressure on Sohn Tae-seung, chairman of Woori Financial Group, to resign. If parachute appointment controversies arise at IBK as well, criticism of the current administration could intensify. A financial sector official said, "In IBK's case, it seems they have found a suitable internal candidate and made a well-calculated 'golden move.'"