[Outside Director Series]② Financial Sector's 'Most Senior'... Heo Yoon, Outside Director of Hana Financial Group

Huh Yoon, Professor at Sogang University

Professor Heo Yoon of Sogang University Graduate School of International Studies is one of the most senior outside directors among South Korean financial companies. From 2015 to 2023, he served as an outside director at Hana Financial Group for nine consecutive years.

Last March, the National Pension Service, the largest shareholder of Hana Financial Group, and ISS, the world's largest proxy advisory firm, opposed the reappointment of Professor Heo and other existing outside directors. The reason was that they were seen as giving a 'free pass' to problematic management. The criticism was that "it was wrong to tolerate management with legal concerns over the incomplete sales of Lime and DLF private funds through 'collective inaction.'"

However, the opposition from the National Pension Service and ISS did not become an obstacle to Professor Heo's reappointment. On March 24, he was reappointed as an outside director of Hana Financial Group at the shareholders' meeting. According to the Financial Companies Governance Act, outside directors can serve up to nine years. This year, Professor Heo reached the statutory maximum term.

Active in the Park Geun-hye Administration Think Tank

Professor Heo's connection with Hana Financial dates back to 2015. In March of that year, he was first appointed as an outside director of Korea Exchange Bank. In September of the same year, when Hana Bank merged with Korea Exchange Bank, his title changed to outside director of Hana Bank. After serving as an outside director at the bank for three years, he moved to the holding company in 2018.

A financial industry insider said, "He served as an outside director for seven years under former Chairman Kim Jung-tae and two years under current Chairman Ham Young-joo. In 2021, after Professor Heo moved to the holding company, former Chairman Kim succeeded in his fourth term, and the chairman nomination committee was composed of outside directors including Professor Heo." Professor Heo's hometown is Busan, the same as former Chairman Kim. After graduating from Busan Nam High School, he studied economics at Seoul National University and earned a Ph.D. from George Washington University.

Having gained prominence as the dean of Sogang University Graduate School of International Studies, Professor Heo was actively involved in external activities during the Park Geun-hye administration. From 2015, when he joined as an outside director of Hana Bank, he served for two years as a member of the National Economic Advisory Council, the Park Geun-hye administration's think tank. Around the same time, he was also a member of the Ministry of Trade, Industry and Energy's self-evaluation committee. In 2016, he served as a director of the Economic, Social and Humanities Research Council, which oversees national research institutes. That same year, he was selected as a member of the first International Financial Development Council led by former Minister Yoo Il-ho of the Ministry of Strategy and Finance. Later, under the Moon Jae-in administration, he contributed to national affairs as a member of the Ministry of Strategy and Finance's Policy Performance Evaluation Committee and the Ministry of Foreign Affairs' Policy Advisory Committee.

Renowned Trade Expert, 'Economist Novelist' in His Youth

Professor Heo is a renowned trade expert. His detailed specialties include trade policy, economic security, and FTA (Free Trade Agreement) strategy. Recently, he has focused on the US-China trade war. This is evident in his 2021 book, The Beginning of History. While many pointed to Trump as the cause of the conflict between the US and China, Professor Heo identified China as the culprit. "China required technology transfers and forced data localization when US companies established subsidiaries in China. China mainly pursued forced technology transfers through acquisitions and joint ventures of US companies. The US views acquisitions of technology companies as involving intervention by the Chinese government and Communist Party. The US sees China's illegal technology theft as a threat to its security and property rights. In that sense, China is the cause of the US-China trade war."

Professor Heo believes the possibility of ending the US-China trade war is close to zero. So, what should South Korea do? "Ultimately, restoring the multilateral system is urgent. It is time to lead the activation of mega FTAs to replace the World Trade Organization (WTO), which is in a coma. The Regional Comprehensive Economic Partnership (RCEP) can be interpreted as a 'local victory' in the free trade war against US trade wars and protectionism," he answered in his book. This remains a survival strategy for South Korea amid the proxy war between the US and China in the Russia-Ukraine conflict and China's threat to invade Taiwan.

His outspoken views conveyed through the media are also notable. In July 2020, when the WTO ruled that "South Korea's ban on seafood imports from eight Japanese prefectures, including Fukushima, does not violate WTO agreements," Professor Heo said in a media interview, "The Japanese government scientifically proved the safety of its seafood, so this ruling was unexpected." He added, "If the import ban on Japanese seafood continues due to this ruling, it could worsen Korea-Japan relations," emphasizing the importance of diplomacy and trade.

His colleagues as outside directors say that being both a trade expert and an economist is his strength. An outside director at Hana Financial Group introduced him by saying, "Professor Heo combines insight into international issues with financial knowledge, offering rich opinions in many areas." In his youth, he was also an 'economist novelist.' In the 1990s, he published a full-length novel titled Wol Mit-e-seon Bongseonhwa-ya (Under the Moon, There Are Balsam Flowers), set in a unified Korean Peninsula, depicting domestic political situations and international dynamics.