Regional Financial Leaders Facing End of Terms: Will They Be Reappointed?

Transparency of BNK Financial Group’s Appointment Process Emerges as Key Variable
iM Bank Faces Fierce Internal Competition for New President
Close Ties Between Chairman Bin Daein and Busan Bank President Bang Seongbin
Reappointment Prospects Dra

The heads of major regional financial holding companies and banks are approaching the end of their terms. For holding companies, BNK Financial Group is in focus, while for banks, Kwangju Bank, Busan Bank, iM Bank, and Jeonbuk Bank are affected. For BNK Financial Group, the transparency of the appointment process is considered the most significant variable. For the other banks, except iM Bank, performance is expected to play a decisive role in determining reappointment.

According to the financial sector on October 24, the BNK Financial Group board of directors formed an Executive Candidate Recommendation Committee on the 1st of this month, accepted candidate applications, finalized the first pool of candidates (long list) on the 16th, and is now proceeding with the management succession process. Current chairman Bin Daein’s term ends in March next year, and he is seeking reappointment. However, on the 21st, Lee Chan-jin, Governor of the Financial Supervisory Service, publicly criticized the BNK Financial Group chairman appointment process during the National Assembly Political Affairs Committee audit, introducing a new variable to Chairman Bin’s bid for another term. At the time, Assemblyman Park Beomgye of the Democratic Party of Korea raised concerns about the legitimacy of the process, to which Governor Lee responded, “There are many procedural irregularities, so we are continuously monitoring the situation. We will thoroughly review the legality of the formal procedures and, if necessary, make every effort to correct any issues through ad hoc inspections.”

There are two main issues raised by Assemblyman Park and Governor Lee. The first is the candidate application period. The process began just before the Chuseok holiday, giving those preparing to apply for the BNK Financial Group chairman position only four to five business days to prepare. This has led to speculation that Chairman Bin may have set a tight schedule to minimize competition from external candidates. The delayed disclosure of the process schedule has also been criticized as a “black box.” In other financial holding companies, the launch of the Chairman or Executive Candidate Recommendation Committee is announced on the day of commencement, but BNK Financial Group only made the process public on the 13th, ten days after it had begun.

On the 21st, Lee Chan-jin, Governor of the Financial Supervisory Service, appeared at the 2025 National Assembly Political Affairs Committee audit and publicly criticized the appointment process of the BNK Financial Group chairman. Photo by Yonhap News

Given that the Financial Supervisory Service has previously intervened in the appointment of financial holding company chairmen, there is a possibility that the appointment process could be delayed if ad hoc inspections are conducted. In 2017, the Financial Supervisory Service raised procedural issues when Hana Financial Group and KB Financial Group attempted to reappoint their chairmen.

BNK Financial Group manages a standing pool of CEO candidates, comprising internal candidates and individuals recommended by two external organizations. Internal candidates reportedly include Chairman Bin Daein, Busan Bank President Bang Seongbin, Kyongnam Bank President Kim Taehan, and BNK Capital CEO Kim Sungju. Among external candidates, former Busan Bank President An Gamchan is being mentioned. Jung Youngseok, Chairman of the BNK Financial Group Executive Candidate Recommendation Committee, stated, “The recommendation of CEO candidates will be conducted with the highest level of fairness and transparency, in accordance with BNK Financial Group’s management succession plan.”

Meanwhile, iM Bank, which has transitioned to a commercial bank but maintains its base in a regional area, is also proceeding with the appointment of its new president. With President Hwang Byungwoo having announced his intention to focus on his role as holding company chairman, attention is on whether an internal candidate will be promoted or an external candidate will be selected. The internal pool is divided between those from the bank and those from the holding company. Within iM Bank, Kang Junghoon, Deputy President of the Management Planning Group, and Kim Kiman, Deputy President of the Metropolitan Group, are being discussed, while among holding company executives, Park Byungsoo, Executive Vice President of the Risk Management Group, Sung Taemun, Executive Vice President overseeing Group Value, and Cheon Byungkyu, Executive Vice President overseeing Group Management, are being considered.

The outcome of Chairman Bin’s reappointment bid is also drawing attention to whether Bang Seongbin, President of Busan Bank, will be reappointed. President Bang’s term also ends in March next year. He previously worked closely with Chairman Bin, serving as Head of the Management Planning Division when Bin was President of Busan Bank. Given their close professional relationship, there is speculation that if Chairman Bin is reappointed, President Bang’s chances for another term will also improve. During President Bang’s tenure, Busan Bank’s net profit increased from 379.1 billion won to 455.5 billion won.

Koh Byungil, President of Kwangju Bank, and Baek Jongil, President of Jeonbuk Bank, both succeeded in being reappointed once at the end of last year and are now seeking a second reappointment. Jeonbuk Bank is showing an upward trend in performance, and with long-serving former presidents such as Hong Sungju and Lim Yongtaek, the possibility of President Baek’s third term is gaining traction. Kwangju Bank, however, saw its net profit decrease by 7.9% in the first half of this year compared to the previous year, so its reappointment decision is expected to depend on performance in the remaining period.