Youngjoo Ham Clears 8-Year Legal Risks, Accelerates Hana Financial Group’s Management Momentum

Supreme Court Overturns Recruitment Corruption Charge, Remands for Retrial; Fine Imposed
Chairmanship Maintained... "Grateful for Ruling, Will Faithfully Fulfill Financial Responsibilities"

Youngjoo Ham, Chairman of Hana Financial Group, has cleared his legal risks after eight years. This follows the Supreme Court overturning part of the conviction related to the "recruitment corruption" charges that began in 2018 and remanding the case for retrial with a not-guilty verdict in mind. Although a fine was finalized for gender discrimination in hiring, he avoided a sentence of imprisonment or higher, which would have resulted in the loss of management rights. Following his victory in 2024 in the lawsuit to overturn disciplinary action related to the sale of overseas interest rate-linked derivative-linked funds (DLFs), this latest ruling further removes legal shackles, stabilizing the governance structure of Hana Financial Group.

Hyungjoo Ham, Chairman of Hana Financial Group.

The First Division of the Supreme Court (Presiding Justice Kyunghwan Seo) on the 29th overturned the lower court's decision that sentenced Chairman Ham to six months in prison, suspended for two years, and a fine of 3 million won for charges of obstruction of business and violation of the Equal Employment Opportunity Act. The Supreme Court remanded the obstruction of business charge to the Seoul High Court, while rejecting the appeal on the gender discrimination charge, thus finalizing the guilty verdict and fine.

Chairman Ham was indicted in 2018 for allegedly telling the head of human resources to "take good care" of a particular candidate's child during the 2015 open recruitment process when he was bank president (obstruction of business), and for instructing that the male-to-female ratio be set at 4:1 in advance during the 2016 open recruitment, favoring male applicants and discriminating against female applicants (violation of the Equal Employment Opportunity Act).

In March 2022, he was acquitted of all charges in the first trial, but the following year, the appellate court found him partially guilty, sentencing him to six months in prison, suspended for two years, and a fine of 3 million won.

However, with this Supreme Court ruling overturning the appellate decision, Chairman Ham has now cleared all legal risks. According to laws governing the governance of financial companies, an executive only loses eligibility if a sentence of imprisonment or higher, or a suspended sentence, is finalized. The obstruction of business charge was remanded with a not-guilty verdict in mind, and although the gender discrimination charge was upheld, it resulted only in a fine, posing no legal obstacle to his chairmanship.

Within the financial sector, there is a consensus that Chairman Ham can now focus solely on management issues. Having led the group for an extended period, he has also dispelled concerns about a leadership vacuum and is expected to demonstrate strong leadership for the remainder of his term. His management activities are likely to accelerate. In his New Year's address, Chairman Ham emphasized "game-changing innovation," outlining visions such as ▲ innovation in both banking and non-banking sectors ▲ a major financial transformation through AI ▲ and the establishment of a Korean won stablecoin ecosystem.

Following the ruling, Hana Financial Group issued a statement expressing "boundless respect and gratitude for the Supreme Court's fair and just decision."

The statement continued, "With this ruling as a turning point, we will pay close attention to disadvantaged and marginalized groups in finance with even greater humility and care within a stable governance structure. We will focus all our resources on providing productive finance to support the nation's future growth and the stability of people's livelihoods, as well as expanding inclusive finance." The group also emphasized, "We will further enhance corporate value and shareholder returns through sustainable profit generation, and faithfully fulfill the fundamental role of finance."

Meanwhile, Chairman Ham, born in 1956, is a self-made figure who rose from a high school graduate bank clerk to the CEO of a financial holding company. Originally from Buyeo, Chungnam, he graduated from Kangkyung High School and joined Seoul Bank, the predecessor of Hana Bank, in 1980 as a high school graduate. Recognized for his business performance, affability, and strong trust from colleagues, he became the inaugural president of Hana Bank following its merger with Korea Exchange Bank in 2015. After serving as Vice Chairman of Hana Financial Group, he has been leading the organization as Chairman since 2022. His term runs until March 2028.