Kim Cheol-ju Appointed Next Life Insurance Association Chairman...Traditional Bureaucrat Background

Decision Made at 3rd Meeting of Nomination Committee... Appointment Scheduled for Next Month 5th
Former Blue House Economic and Financial Secretary, ADB and WB Economist

Kim Cheol-ju, Chairman of the Financial Creditors Adjustment Committee, has been nominated as the next president of the Life Insurance Association. Emerging suddenly as a dark horse amid an unusually prolonged schedule of the presidential recommendation committee, Kim defeated other contenders. It appears that preference was given to a traditional bureaucrat over candidates from the private sector and political circles.

The Life Insurance Association's Presidential Candidate Recommendation Committee held its third meeting on the 24th and decided to recommend Kim Cheol-ju, Chairman of the Financial Creditors Adjustment Committee, as the sole candidate for the 36th president to the general assembly. The Life Insurance Association plans to hold an extraordinary general meeting on the 5th of next month to appoint the next president.

Born in 1963, Kim graduated from Daegu Cheonggu High School and Seoul National University with a degree in economics, entering public service in 1985 after passing the 29th Administrative Examination. He is a Seoul National University alumnus and a classmate of Choi Sang-mok, the presidential office's chief economic secretary who was considered for deputy prime minister for economic affairs. During his time at the Ministry of Finance, he worked in the Economic Cooperation Bureau, International Finance Bureau, and Economic Policy Bureau. He also served as an economist at the Asian Development Bank (ADB) and as a senior economist at the World Bank (WB). After serving as head of the Comprehensive Policy Division at the Ministry of Strategy and Finance, during the Park Geun-hye administration, he held positions such as Director-General of the Economic Policy Bureau, Director of Planning and Coordination Office, and Economic and Financial Secretary at the Blue House. It is reported that he volunteered for overseas duty during the transition to the Moon Jae-in administration. After serving as Deputy Director of the Asian Development Bank Institute (ADBI), he has been Chairman of the Financial Creditors Adjustment Committee since May 2021.

Initially, the industry viewed Sung Dae-gyu, former president of Shinhan Life, as the frontrunner for the next association president. Sung, a 33rd Administrative Examination pass, had experience at the Ministry of Strategy and Finance and the Financial Services Commission, led the merger between Shinhan Life and Orange Life as CEO of Shinhan Life, and served as the inaugural CEO of Shinhan Life. With experience both as a regulator who designed systems and in the industry, he was considered an ideal candidate for communication with the government.

However, the atmosphere changed when Kim suddenly emerged as a candidate during the second meeting of the recommendation committee. The final candidate selection was prolonged unusually until the third meeting. Some interpreted that the possibility of Sung being selected decreased after Cho Yong-byoung, former chairman of Shinhan Financial Group, was appointed as chairman of the Korea Federation of Banks. Having two Shinhan affiliates in financial association leadership positions could be seen as a burden.

With Kim, a bureaucrat, being nominated over former lawmaker Yoon Jin-sik from the political sector and Sung from the private sector, the industry expects closer communication with financial authorities. Given that regulatory pressure for win-win finance has shifted from banks to the insurance industry, there is hope that a bureaucrat will raise a stronger voice.

However, concerns remain. Due to his lack of insurance-related experience, his understanding of the industry may be relatively low, and there is a risk of focusing on short-term achievements. An industry insider said, "Since Kim suddenly emerged as a candidate, he will need some time to grasp the industry's characteristics and current issues. Rather than immediate short-term results, it would be good if he could focus on drawing a big picture for the long-term growth of the life insurance market, which has become a red ocean."

Kim Cheol-ju, Chairman of the Financial Creditors Adjustment Committee, appointed as the 36th President of the Life Insurance Association