Three of the Four Major Financial Groups Enter "Second Term" Leadership
"Productive Finance" as Key Policy Direction of the Lee Administration
Set to Be the Biggest Topic in the Financial Sector Next Year
With Lim Jongryong, Chairman of Woori Financial Group, effectively securing a second term, three out of the four major financial holding companies (KB, Shinhan, Hana, and Woori) have now entered their “second-term leadership” phase. Given the major challenge of “productive finance,” along with the need to strengthen household debt management and address large-scale fines, the industry is placing greater emphasis on “stability” rather than changing leadership. In terms of organizational restructuring, a notable feature is the prioritization of “productive finance” and “consumer protection,” which are key financial policies of the new administration.
According to the financial sector on December 31, three out of the four major financial holding companies have successfully renewed their leadership, marking the official start of the “second-term” system. With Jin Okdong of Shinhan Financial Group and Lim Jongryong of Woori Financial Group being solely recommended for reappointment, their second terms are effectively confirmed, as their current terms expire in March next year. Earlier this year, Ham Youngjoo of Hana Financial Group also secured a second term. Yang Jonghee of KB Financial Group will see his first term end in November next year. In a climate of increasing responsibility and tighter regulations-due to the need for stronger household debt management, large-scale fines, a major shift to productive finance, and enhanced consumer protection-the industry is opting for “stability” over the uncertainty of leadership changes.
Personnel appointments at subsidiaries also prioritized “stability” over “renewal.” Among the 18 CEO positions at KB, Shinhan, and Hana Financial Groups, which have completed their executive appointments, only 5 were replaced, while 13 were reappointed. Last year, KB Financial Group made bold moves by replacing all 5 vice presidents whose terms had expired out of 6, but this year, only 2 out of 7 subsidiary CEOs were replaced. This is interpreted as a focus on organizational stability under Yang Jonghee’s leadership.
Shinhan Financial Group replaced 2 out of 4 subsidiary CEOs whose terms expired at the end of this year, reappointing the other 2. This contrasts with last year, when it replaced CEOs at 9 out of 14 subsidiaries in a major personnel overhaul. As Chairman Jin Okdong has emphasized “qualitative growth,” these appointments are seen as a way to secure momentum for mid- to long-term growth tasks. Hana Financial Group replaced only 1 out of 7 CEO positions. The priority was placed on management stability amid significant external uncertainties. At Woori Financial Group, decisions regarding the 10 subsidiary CEOs subject to appointment have not yet been finalized. However, there are expectations that large-scale replacements will be avoided in the interest of stable organizational management.
The core keywords for organizational restructuring are “productive finance” and “consumer protection.” The consensus is that the new leadership structure aligns with the government’s financial policy direction. KB Financial Group established a new “CIB (Corporate & Investment Banking) Market Division,” led by former KB Securities CEO Kim Sunghyun, as a group-level strategic control tower to promote productive finance. Its key affiliate, Kookmin Bank, created the “Growth Finance Promotion Headquarters,” an organization dedicated to supporting productive finance.
Shinhan Financial Group launched a new “Group Productive Finance Task Force,” chaired directly by Chairman Jin Okdong. Its major subsidiaries-Shinhan Bank, Shinhan Investment & Securities, and Shinhan Capital-each established dedicated organizations for productive finance. Hana Financial Group split its existing CIB Division under the Synergy Division into the “Investment Banking Division” and the “Corporate Banking Division,” reorganizing them into the “Investment & Productive Finance Division,” and established a “Productive Finance Team” within it. Woori Financial Group set up a Productive Finance Investment Department within Woori Bank to serve as the control tower for productive finance. Additionally, Woori Financial Group holds a monthly “Advanced Strategic Industry Finance Council” presided over by Chairman Lim Jongryong to directly review the group’s progress.
“Consumer protection” has also been brought to the forefront. The Financial Supervisory Service emphasized consumer protection by placing the Consumer Protection General Division directly under Governor Lee Chanjin through its organizational restructuring. KB Financial Group moved its Information Security Department from the IT Division to the Compliance Officer’s division and appointed a senior-level expert. It also established a “Cyber Security Center” within the information security organization. Kookmin Bank created a dedicated team under the Consumer Protection Group. Shinhan Bank expanded the roles and functions of its Consumer Protection Department, while Hana Financial Group elevated the head of its Consumer Protection Group from executive director to deputy president to strengthen responsibility and authority for consumer protection.
An industry official commented, “Typically, when a holding company chairman is replaced, there is a large-scale personnel reshuffle, but when a chairman is reappointed, the scope of personnel changes is minimized. With the Lee Jaemyung administration emphasizing productive finance, the biggest topic in the financial sector next year will also be productive finance.”
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