Financial Holding Chairmen Align with Lee Administration's Agenda [1mm Finance Talk]

Financial Holding Companies Rush to Support
the Lee Jaemyung Administration's Emphasis on
"Productive Finance" and "Inclusive Finance"
Concerns Deepen as Chairmen's Terms Near Expiration

Lim Jongryong, Chairman of Woori Financial Group, explained the promotion plans for productive finance of 73 trillion won and inclusive finance of 7 trillion won, along with supporting capital stability, a major transformation of the management system based on artificial intelligence (AI), and matters related to asset soundness at the "Woori Financial Group Future Co-Growth Project CEO Joint Briefing" held on the 29th of last month. Provided by Woori Financial Group

"We will lay the foundation for sustainable growth by transitioning to productive finance and expanding inclusive finance."

Lim Jongryong, Chairman of Woori Financial Group, recently made this statement directly in front of reporters, emphasizing his commitment. Industry insiders considered Chairman Lim's direct appearance highly unusual, as it is very rare for the head of a financial holding company to personally conduct a briefing, except for investor relations events. Woori Financial Group has also prepared a "generous gift," planning to invest a total of 80 trillion won by 2030.

Since the inauguration of the Lee Jaemyung administration, major domestic financial holding companies have been busy aligning themselves with the new government's policies. They are actively supporting the administration's push for "productive finance." At the founding anniversary ceremony on the 29th of last month, Yang Jonghee, Chairman of KB Financial Group, also emphasized productive finance and directly stated, "We will adapt to the launch of the new administration and the new financial paradigm."

Due to the nature of the financial industry, which, like other large conglomerates, lacks a practical owner and is heavily regulated, financial holding companies inevitably pay close attention to the preferences of each new administration. A senior official in the financial sector commented, "Once you clear the 'hurdle' of meeting the government's expectations, things definitely become easier afterward." This sentiment is especially true for holding company chairmen whose terms are nearing expiration. Chairman Lim's term runs until March next year.

Eokwon Lee, Chairman of the Financial Services Commission (sixth from the left), and financial holding company chairmen attended the "Chairman of the Financial Services Commission-Financial Holding Company Chairmen Meeting" held at the Bankers' Association Hall in Jung-gu, Seoul on the 15th of last month, and took a commemorative photo. 2025.9.15 Photo by Kang Jinhyung

In fact, during the Yoon Sukyeol administration, there were multiple instances of financial holding company chairmen stepping down in succession, which many interpret as a result of pressure from the government. It is widely known that the abrupt resignation of former Shinhan Financial Group Chairman Cho Yongbyung, whose reappointment was virtually certain, was influenced by the presidential office in Yongsan. Son Taeseung, former Chairman of Woori Financial Group, who was preparing for a third term, also stepped down following pressure from former Financial Supervisory Service Governor Lee Bokhyeon. Before former KB Financial Group Chairman Yoon Jongkyu announced his intention to resign, former Governor Lee also indirectly applied pressure by stating, "Other candidates should be given a fair opportunity."

Particularly, Chairman Lim, who took office during the Yoon Sukyeol administration, is seen as having ties to the previous administration, given his experience as Chairman of the Financial Services Commission during the Park Geunhye government. However, within Woori Financial Group, he is positively regarded for resolving factional conflicts between Hanil Bank and Commercial Bank, and many believe his successful acquisition of Tongyang Life Insurance justifies the need for his reappointment.

In light of Woori Financial Group's unexpected moves, other holding companies are also expected to face increasing concerns. The terms of Jin Okdong, Chairman of Shinhan Financial Group, and Bin Daein, Chairman of BNK Financial Group, both expire in March next year, while Yang Jonghee, Chairman of KB Financial Group, will serve until November next year. Another senior official in the financial sector said, "Rather than making declarative announcements about large sums, we are internally discussing practical ways to contribute to the productive finance emphasized by the government."