Final Candidate for Chairman Recommended
Appointment to Be Confirmed at Shareholders' Meeting in March Next Year
Jongryong Lim, Chairman of Woori Financial Group Inc., was selected as the final candidate for the next chairman on December 29, effectively securing a second term.
The Executive Candidate Recommendation Committee (ECRC) of Woori Financial Group held a meeting that morning, conducting interviews with four candidates: Chairman Lim, Jinwan Jeong, President of Woori Bank, and two external candidates. The committee announced its decision following the interviews.
This decision comes about two months after the ECRC initiated the management succession process on October 28.
In a statement released that day, Chairman Lim expressed, "I am deeply grateful to be recommended as the next chairman candidate, and at the same time, I feel a heavy sense of responsibility."
He added, "As the appointment must be approved at the shareholders' meeting in March next year, I will work to further refine the strategies and plans presented by the ECRC and to concretize the implementation measures."
Chairman Lim emphasized, "First, I will execute the 'Woori Financial Future Co-Growth Project' for productive and inclusive finance without setbacks and at an even faster pace. Building on the enhanced portfolio achieved through entry into the securities and insurance sectors last year and this year, I will develop the group into a comprehensive financial group capable of generating significant synergies."
He also pledged to continue innovation by establishing AX governance, accelerating AI transformation efforts such as integrating AI into field operations, enhancing shareholder value, strengthening consumer protection, and reinforcing internal controls.
On the same day, Kanghaeng Lee, chairman of the ECRC, explained the reasons for recommending Chairman Lim: "During his tenure, he successfully entered the securities business and acquired insurance companies, completing the comprehensive financial group portfolio. He also narrowed the gap in the common equity tier 1 (CET1) capital ratio, which had lagged behind other financial groups, thereby improving financial stability. His proactive shareholder return policy more than doubled the market capitalization, all of which were highly evaluated by the committee members."
He continued, "In addition, Chairman Lim's vision was clear and concrete, he met the leadership criteria set out in the management succession plan, and he enjoys strong trust both inside and outside the organization, all of which were highly regarded."
The ECRC identified the current challenges facing Woori Financial Group as follows: ▲ Focusing on nurturing securities and insurance subsidiaries, leveraging the completion of these businesses as a foundation for a stable leap to a top-tier comprehensive financial group ▲ Systematically preparing for the era of AI and stablecoins to secure a solid market-leading position ▲ Enhancing corporate value by capitalizing on the group's strengths in corporate finance and creating synergies among capital market affiliates during this period of major transformation in productive finance.
Kanghaeng Lee stated, "Woori Financial Group faithfully reflected the Financial Supervisory Service's best practices for corporate governance by fully revising its management succession regulations and CEO succession plan in February 2024. In accordance with these regulations and principles, we have managed an ongoing pool of internal and external candidates over the past two years and conducted this succession program. Over the past two months, we have held multiple committee meetings and discussions to thoroughly review and evaluate the candidates, ultimately recommending the final candidate to lead Woori Financial Group's next leap forward."
Chairman Lim, who took office in March 2023, is currently serving a term that runs until the shareholders' meeting in March next year. If approved at the meeting in March next year, he will lead Woori Financial Group Inc. for another term until March 2029.
There were many twists and turns before Chairman Lim's reappointment was decided.
President Jaemyung Lee's remarks criticizing the practice of financial holding company chairmen serving consecutive terms as a "corrupt inner circle" were also considered a variable. Regarding this, Chairman Lee of the ECRC stated, "We have given deep consideration to the public interest in this matter," adding, "However, the structure of Woori Financial Group's outside directors makes it difficult for any individual or specific group to dominate opinions, and we have confidently proceeded with the process in full compliance with the Financial Supervisory Service's best practices."
In August 2023, early in his term, Chairman Lim faced internal control challenges due to a scandal involving improper loans related to the relatives of the former chairman.
He was the first financial holding company chairman to attend the National Assembly's Political Affairs Committee audit, where he promised to reduce his authority, including relinquishing the power to appoint executives at subsidiaries. He also reorganized the internal control system and worked to eliminate factionalism within the organization stemming from the legacy of Commercial Bank and Hanil Bank backgrounds.
During his three-year term, Chairman Lim focused on transforming the group into a comprehensive financial group by strengthening the non-banking portfolio. He merged Woori Plus Securities with Woori Investment & Securities to launch Woori Investment Securities and successfully completed the long-awaited acquisition of insurance companies by acquiring Tongyang Life and ABL Life.
At the same time, he raised the CET1 capital ratio, a key indicator of financial soundness, to nearly 13 percent. Based on this, he increased the foreign ownership ratio, contributing to the rise in the stock price-an achievement attributed to Chairman Lim.
However, challenges remain for Chairman Lim, such as the fact that Woori Bank accounts for 90 percent of the group's net profit, and the need to achieve both qualitative growth and alignment with the government's "productive finance" policy.
Meanwhile, the ECRC began the management succession process on October 28, and after a thorough review of the ongoing candidate pool over about three weeks, recommended the long-list candidates on November 17.
After further evaluations, including background checks and interviews, the committee recommended a shortlist of two internal and two external candidates on December 1. The committee explained that it conducted a variety of evaluations and verification processes over about a month, including management plan presentations, in-depth interviews by committee members, and multiple interviews with external experts for all four candidates, including the two external candidates.
If approved at the regular shareholders' meeting scheduled for March next year, Chairman Lim, who has been recommended as the final candidate, will begin his next three-year term as chairman.
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