K-Bank and Toss Bank CEOs Await Decision on Reappointment

Internet Bank Leadership Put to the Test
KakaoBank Remains the Only Case of Formal CEO Reappointment
K-Bank Eyes CEO Reappointment Ahead of IPO
Toss Bank's First Annual Profit Draws Attention to CEO's Next Move

The terms of the heads of internet banks are approaching their expiration. Choi Woo-hyung, CEO of K Bank, will see his term end on December 31, and Lee Eunmi, CEO of Toss Bank, will reach the end of her term on March 31 next year. When internet banks first appeared in 2017, they brought a wave of digital innovation to the banking sector and emerged as disruptive players. However, eight years later, their growth has been largely driven by mortgage loans, and they have failed to present a clear differentiation strategy from traditional commercial banks, putting their leadership to the test.

K Bank Faces IPO and CEO Reappointment at the Same Time

According to K Bank on the 24th, the board of directors has activated the executive recommendation committee and begun the process of selecting the next CEO. Both inside and outside the financial sector, there is growing speculation that Choi Woo-hyung is likely to be reappointed, given that K Bank is preparing for its third initial public offering (IPO).

K Bank plans to submit a preliminary IPO review as early as the end of this month and will push ahead with its KOSPI listing. Previously, K Bank attempted to debut on the KOSPI in 2022 and 2024, but withdrew its IPO schedule due to weak demand from institutional investors. Due to an agreement with financial investors, K Bank must complete its listing by the first half of next year, making it imperative to succeed with the IPO this time.

An industry insider stated, "It is not easy to change the CEO right before an IPO," adding, "If a new CEO comes in, it will take time just to get up to speed with the work, which creates risk, so this will be taken into consideration."

K Bank's strong performance is also expected to work in favor of Choi Woo-hyung's reappointment. In the second quarter, K Bank posted a net profit of 68.2 billion won, the highest quarterly result since its launch in 2017, and recently surpassed 15 million users. Choi Woo-hyung also enjoys a favorable reputation both inside and outside the company. Another industry official commented, "He is known for his flexibility in work, which is well regarded internally," and added, "Since Choi Woo-hyung took office, K Bank has launched many attractive products."

Will Lee Eunmi, the First Female CEO of an Internet Bank, Be Reappointed?

Lee Eunmi, CEO of Toss Bank, is also approaching the end of her term in March next year. Having taken office last year, she drew attention as the first female CEO of an internet bank.

Lee Eunmi is a former Chief Financial Officer (CFO) of DGB Daegu Bank, the predecessor of iM Bank, and is credited with playing a significant role in Daegu Bank's transition to a commercial bank. She also served as Head of Commercial Banking for the Asia-Pacific region at HSBC's Hong Kong regional headquarters. Based on this experience, she is expected to demonstrate leadership in Toss Bank's future global business expansion. Within Toss Bank, she is recognized for her strong and decisive leadership, often described as having a commanding presence.

Lee Eunmi has also achieved a significant milestone during her tenure, recording the first annual net profit for the bank, which bodes well for her reappointment. Toss Bank posted an annual net profit of 45.7 billion won last year, marking its first annual profit since its founding. In the first half of this year, Toss Bank recorded a net profit of 40.4 billion won, a 65% increase compared to the same period last year (24.5 billion won), setting a new record for the bank.

However, neither K Bank nor Toss Bank has had a case of CEO reappointment so far. At K Bank, with the exception of Shim Sung-hoon, who temporarily extended his term by six months, every new CEO-from Seo Ho-sung to Choi Woo-hyung-has been a fresh face. Similarly, Toss Bank's first CEO, Hong Min-taek, stepped down without being reappointed. However, given the short history of internet banks and their organizational cultures, which are closer to the IT industry than to traditional banks, it is difficult to view this as a precedent. In fact, Yoon Ho-young, CEO of Kakao Bank, succeeded in being reappointed for a fifth term in March this year, maintaining stable leadership.