KB Financial Group Chairman Shortlisted to 3 Candidates... Increased Likelihood of Internal Appointment

Inside: Yang Jong-hee and Heo In, Outside: Kim Byung-ho
Under the Yoon Seok-yeol Government
Major Financial Holding Chairpersons Replaced with 'New Figures'

From the left, Yang Jong-hee, Heo In, Vice Chairman of KB Financial Group, and Kim Byung-ho, Chairman of Vietnam HD Bank

The next chairman candidates to lead KB Financial Group have been narrowed down to three. With no former bureaucrats included, the financial sector is increasingly expecting an internal candidate to become the chairman.

The KB Financial Group Chairman Candidate Recommendation Committee (hereinafter referred to as the Recommendation Committee) announced on the afternoon of the 29th that it had shortlisted three candidates for the next chairman. Among the internal candidates are Yang Jong-hee and Heo In, both born in 1961 and serving as KB Financial vice chairmen, while the external candidate is Kim Byung-ho, chairman of Ho Chi Minh City Development Bank (HD Bank) in Vietnam. The Recommendation Committee plans to conduct a second round of in-depth interviews with the three candidates on the 8th of next month before finalizing the candidate.

Yang, who was the first to be promoted to vice chairman, graduated from Seoul National University with a degree in Korean history. He led the acquisition of LIG Insurance in 2015 and served three consecutive terms as president of KB Insurance. His extensive experience in holding management and strategy roles at the holding company is a strong point. Within the group, he is regarded as a representative 'financial expert.'

Heo has been consistently mentioned as a strong candidate for chairman. His strength lies in his experience leading the bank, the group's core business. Heo served three consecutive terms as president of KB Kookmin Bank from 2017 to 2021. He graduated from Seoul National University with a degree in law and is one year junior to President Yoon Suk-yeol. A senior KB Financial official said, "Both vice chairmen are highly capable individuals, so it would not feel strange whichever one is chosen."

Chairman Kim is a seasoned figure in the financial sector, having joined Korea Investment & Finance, the predecessor of Hana Bank, and served as Hana Bank president and vice chairman of Hana Financial Group. Last year, he was appointed chairman of HD Bank. Kim was also included in the KB Financial chairman candidate shortlist in 2020 and was a candidate for chairman of the Korea Federation of Banks.

Notably, with no former bureaucrats included among the KB Financial chairman candidates this time, expectations are growing that an internal candidate will be selected. Previously appointed NH Nonghyup Financial chairman Lee Seok-jun served as head of the Office for Government Policy Coordination, and Woori Financial chairman Lim Jong-ryong was a former Financial Services Commission chairman, both of whom faced controversies over government intervention. At the end of last year, when Shinhan Financial's chairman final candidate was decided, former chairman Cho Yong-byoung was favored for reappointment but unexpectedly announced his retirement, sparking suspicions of financial authorities' interference. Current KB Financial chairman Yoon Jong-kyu announced his intention to step down on the 6th. Yoon succeeded in two reappointments in 2017 and 2020 and is currently in his third term, which expires on November 20. With Yoon's retirement announcement, all major financial holding companies' leadership has been replaced with new figures since the Yoon Suk-yeol administration took office.