Four Major Financial Groups Opt for 'Stability' as Second-Term Leadership Begins... 'Productive Finance' and 'Consumer Protection' Take Center Stage

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 phase” leadership. Given the significant challenge of “productive finance,” as well as the need to strengthen household debt management and address large-scale fines, the industry is placing greater emphasis on “stability” rather than changing leadership. A notable feature of recent organizational restructuring 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 of the four major financial holding companies have succeeded in renewing their top leadership, officially ushering in the “second phase” system. With the terms of Jin Okdong, Chairman of Shinhan Financial Group, and Lim Jongryong, Chairman of Woori Financial Group, set to expire in March next year, both have been nominated as sole candidates, effectively confirming their reappointment. Earlier this year, Ham Youngjoo, Chairman of Hana Financial Group, also secured a second term. Yang Jonghee, Chairman of KB Financial Group, will see his first term end in November next year. Amid increasing responsibilities and tighter regulations-such as strengthened household debt management, large-scale fines, a major shift toward productive finance, and enhanced consumer protection-the industry has opted for “stability” over the uncertainty of leadership changes.

Personnel appointments at subsidiaries have also prioritized “stability” over “renewal.” Of the 18 executives subject to appointments at KB, Shinhan, and Hana Financial Groups, only five were replaced, while 13 were reappointed. Last year, KB Financial Group made bold moves by replacing all five vice presidents whose terms expired (out of six), but this year only two of seven subsidiary CEOs were replaced, reflecting a focus on organizational stability under Yang Jonghee’s leadership.

Shinhan Financial replaced two of the four subsidiary CEOs whose terms expired at the end of this year, while the other two were reappointed-a sharp contrast to last year, when nine of 14 subsidiary CEOs were replaced in a sweeping personnel overhaul. This is interpreted as an effort to secure momentum for mid- to long-term growth tasks, in line with Chairman Jin Okdong’s emphasis on “qualitative growth.” Hana Financial Group replaced just one of seven CEOs subject to change, underscoring a commitment to management stability amid significant external uncertainties. At Woori Financial Group, appointments for 10 subsidiary CEOs have yet to be finalized, but large-scale replacements are considered unlikely in the interest of stable organizational management.

The core keywords for organizational restructuring are “productive finance” and “consumer protection.” The consensus is that leadership teams have been structured to align with the government’s financial policy direction. KB Financial Group established the 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 subsidiary, KB Kookmin Bank, launched the “Growth Finance Promotion Headquarters,” a dedicated organization to support productive finance.

Shinhan Financial Group launched a new “Group Productive Finance Promotion Task Force,” chaired directly by Chairman Jin Okdong. Its main subsidiaries-Shinhan Bank, Shinhan Investment & Securities, and Shinhan Capital-each established dedicated organizations for productive finance. Hana Financial Group reorganized its existing CIB Headquarters under the Synergy Division into separate “Investment Banking Headquarters” and “Corporate Banking Headquarters,” creating the new “Investment & Productive Finance Division,” which includes a newly established “Productive Finance Team.” Woori Financial Group set up the Productive Finance Investment Department within Woori Bank to serve as the control tower for productive finance. Additionally, Woori Financial holds a monthly “Advanced Strategic Industry Finance Council” chaired by Lim Jongryong to directly monitor the group’s progress.

“Consumer protection” has also been given top priority. The Financial Supervisory Service has emphasized consumer protection by placing the Consumer Protection Coordination Division directly under Governor Lee Chanjin through its recent organizational restructuring. KB Financial Group moved its Information Security Department from the IT Division to report to the Chief Compliance Officer and appointed an executive-level expert to lead it. The group also established a “Cyber Security Center” within its information security organization. KB Kookmin Bank created a dedicated team under its 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 in this area.

An industry official commented, “Typically, when a holding company chairman is replaced, there is a major reshuffle, but during reappointments, the scope of personnel changes is minimized. Given the Lee Jaemyung administration’s focus on productive finance, this will likely be the biggest issue for the financial sector next year as well.”