Lee Won-duk, Woori Bank President, and Im Jong-ryong, Former Financial Services Commission Chairman, Face Off in Two-Way Race
Next Chairman Sole Candidate Announced After In-Depth Interview on the 3rd
▲Lee Won-duk, Woori Bank President; Shin Hyun-seok, Head of Woori America Corporation; Lee Dong-yeon, Former President of Woori FIS; Im Jong-ryong, Former Chairman of the Financial Services Commission (from left)
[Asia Economy Reporters Sim Nayoung, Kwon Hyunji] 'Should it be an insider who can minimize confusion despite the financial authorities' scrutiny?' 'Or an outsider who can overhaul an organization riddled with problems but is at the center of controversy over government intervention?'
Woori Financial Group's Executive Candidate Recommendation Committee will decide on the new chairman candidate on the 3rd. On this day, the committee will conduct in-depth interviews with the four candidates for the next chairman. The sole candidate will be appointed as chairman after approval at the shareholders' meeting scheduled for the 25th of next month. In the financial sector, among the four candidates (Lee Won-deok, CEO of Woori Bank; Shin Hyun-seok, head of Woori America; Lee Dong-yeon, former president of Woori FIS; and Lim Jong-ryong, former chairman of the Financial Services Commission), Lee is seen as the leading insider candidate, and Lim as the leading outsider candidate.
Lee was considered a strong candidate early on among the first round of candidates. He has the advantage of knowing the internal situation well and being able to minimize confusion even after the term of Woori Financial Group Chairman Sohn Tae-seung ends. Lee has a close connection with Chairman Sohn. They both come from Hanil Bank and worked together at Woori Bank's New York branch, building trust. Sohn's influence was significant in Lee's appointment as bank president in March last year. However, while executives tend to be favorable toward Lee due to his closeness with Chairman Sohn, there are voices among regular employees calling for a change in atmosphere.
Former Financial Services Commission Chairman Lim is regarded as an 'icon of reform' even among bureaucrats. During his tenure, he led deregulation efforts and created policies such as the first round of safe conversion loans. This is why he is seen as someone who can change the stagnant atmosphere at Woori Financial Group, which has been affected by various financial accidents. However, his association with government intervention is a downside. Since Woori Financial Group has transformed into a private financial company, having a former Financial Services Commission chairman as an external candidate for chairman could provoke criticism of excessive government control.
On the 1st, the candidates gave presentations on their capabilities, expertise, and leadership during the committee's in-depth interviews. The committee members conducted a detailed examination through 30 minutes of Q&A per candidate. It is reported that they questioned the candidates about measures to handle severe disciplinary actions from financial authorities and plans to improve internal controls.
The candidate chosen as the next chairman will face the task of deciding whether to proceed with the Lime Fund lawsuit. Since there is a 65 billion KRW subrogation lawsuit against Shinhan Financial Investment, it is necessary from the company's perspective. However, the financial authorities have implicitly indicated that they do not want the lawsuit to proceed, making Woori Bank's decision a key point to watch. How well the new chairman handles internal control issues, which have drawn criticism from the Financial Supervisory Service due to incidents such as last year's 70 billion KRW employee embezzlement case and recent workplace harassment cases, will also be crucial in assessing leadership.
The new chairman is being decided about 90 days after the financial authorities signaled a 'shake-up' for Woori Financial's chairman. Interest in who the next Woori Financial chairman will be began on November 9 last year, when Chairman Sohn received a reprimand warning from the Financial Services Commission related to the Lime Fund incomplete sales scandal. Since this was a severe disciplinary action restricting employment in the financial sector for 3 to 5 years, Sohn was unable to seek reappointment unless he filed an injunction lawsuit. With increasing pressure from financial authorities to resign, Sohn gave up his bid for reappointment last month.
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