Bank presidents were replaced one after another, including Woori Bank and Suhyup Bank.
Presidents of all five major commercial banks are subject to appointment, and whether or not there is an accident has a major impact.
In the banking sector, where financial incidents such as breach of trust and embezzlement have continued, there has been a series of recent head changes. Even though the financial authorities continue to order strengthening of internal control and improvement of governance structure, the level of pressure is gradually increasing as accidents continue, and the burden of reappointment is increasing.
According to the financial sector on the 23rd, Woori Financial Group, which is suffering from a series of unfair loans and financial accidents, has begun the process of replacing the CEO of Woori Bank, a key affiliate. Woori Financial Group held a regular board meeting the day before and discussed the agenda of the subsidiary CEO candidate recommendation committee (self-recommendation committee). At this meeting, the board of directors reportedly judged that it would be difficult for current Woori Bank President Byeong-gyu Cho to be reappointed.
Chairman Cho was recently converted into a suspect during the prosecution’s investigation into the case of unfair lending to a relative of former Woori Financial Group Chairman Son Tae-seung. As four financial accidents occurred this year, the prevailing view was that it would be difficult to secure a second term.
Financial authorities are continuously putting pressure to improve governance structure, such as strengthening internal control and management succession, due to continued accidents. Accordingly, financial companies are increasingly emphasizing public interest as a qualification requirement for representatives in their internal governance norms.
Previously, Sh Suhyup Bank’s new president took office on the 18th. During the process of selecting the next president of Suhyup Bank, former bank president Kang Shin-sook challenged for a second term.
Internally, there was a possibility of reappointment, but it was revealed that an employee had been embezzling customer money for several years. This incident, which was revealed at a time when the financial authorities were keenly aware of the constant incidents of large-scale embezzlement and breach of trust in the banking sector, also had an impact on the selection of bank presidents.
In this regard, it is expected that financial accidents will have a significant impact on the selection of future bank presidents. All five major commercial bank presidents are scheduled to expire at the end of this year.
NH Nonghyup Bank suffered its fifth financial accident this year alone. It appears that embezzlement and breach of trust involving over 10 billion won continues. As financial authorities focus on examining the organization’s governance and internal control issues, there are observations that this may lead to a generational change in management, including Nonghyup Bank President Lee Seok-yong.
KB Kookmin Bank also had four accidents this year. Accidents involving breach of trust worth more than 10 billion won are the most common.
Kookmin Bank President Lee Jae-geun is serving a second term after completing his two-year term after taking office in 2022. He completed his ‘2+1 year’ term as bank president, and the possibility of replacement is being raised in light of the accident this year. Internally, there is speculation that he will be reappointed for a third consecutive term, in light of the precedent of his predecessor, former President Heo In, who achieved organizational stability through reappointment.
As Shinhan Bank President Jeong Sang-hyeok and Hana Bank President Lee Seung-yeol have had relatively few major accidents recently and have shown solid performance thanks to interest income, there is growing speculation that they will be reappointed for one year.
(Seoul = Newsis)
Source: www.donga.com
