‘Former Bureaucrat’ Im Jong-ryong Faces Criticism for Chairman Bid
“An Insider with High Field Understanding Should Come”
[Asia Economy Reporter Kwon Hyun-ji] Former Financial Services Commission Chairman Lim Jong-ryong has officially declared his challenge for the position of Chairman of Woori Financial Group. In response, the Woori Financial labor union criticized it as a 'Mofia parachute attempt' and clearly opposed the appointment of an external figure.
According to the financial sector on the 25th, former Chairman Lim expressed his intention to challenge for the Woori Financial chairman position. With determination to objectively resolve internal issues of Woori Financial as an external expert, he drew a line against the controversy over government-controlled finance.
Woori Financial’s chairman candidate recommendation committee narrowed down the first round of candidates (longlist) to eight individuals from both internal and external backgrounds on the 18th. Former Chairman Lim, a bureaucrat and a leading candidate, was included, sparking renewed controversy over parachute appointments. With Lim declaring his challenge, it is highly likely he will be included in the second round of candidates (shortlist) to be announced on the 27th.
The labor union strongly criticized this and urged autonomous management. The National Financial Industry Labor Union’s Woori Financial Labor Council held a press conference in front of the Presidential Office in Yongsan-gu, Seoul, on the same day, stating, “We express concern over the excessive greed of retired old boys and the challenge of external figures lacking expertise who have no understanding of internal situations for the chairman position,” and urged, “The Executive Candidate Recommendation Committee should appoint internal candidates who are well aware of the internal organizational situation and have a high understanding of field operations to dispel the controversy over government control and achieve transparent and rational management succession through wise judgment.”
They continued, “Former Chairman Lim is a former government Mofia member who served as Financial Services Commission Chairman during the privatization of Woori Bank and announced the model code of corporate governance for financial companies. At that time, the key keyword for Woori Bank’s privatization was ‘autonomous management.’ If such a person aims for the head of Woori Financial, it is a disgraceful attempt that proves government control itself,” fiercely attacking. They also pointed out, “We are concerned that Woori Financial Group might become a playground for the Mofia and old boys.”
Park Bong-su, chairman of the Woori Financial labor union, responded, “He is challenging because he has secured some support through contact with outside directors. If he thought he wouldn’t even make it to the second round of candidates (shortlist), would he have challenged?” raising suspicions of external pressure.
When asked by reporters, “What is the biggest concern when appointing an external figure?” he replied, “It is obvious that current executives, including the bank president, will be ousted and people related to him will come in,” adding, “There are many factors that could undermine the purity of Woori Financial Group itself.”
The labor union warned of a strong response, stating, “If the board of directors passively acts as a rubber stamp by joining government-controlled finance, the union will strongly fight back using all means and methods, including the introduction of labor directors, representing the employees who are the largest shareholders of Woori Financial.”
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