The race to succeed the Korea Federation of Banks chair pits two former financial holding company chairs against four former bank heads. Based on the six candidates' affiliations, careers and remaining selection schedule, this report looks at the outlook for the appointment.
The Korea Federation of Banks' nomination committee said at its meeting on the 13th that, after discussing names recommended by each member, it had narrowed the pool of candidates for the next chair to six. In alphabetical order, they are Kim Han-jo (former Korea Exchange Bank CEO), Park Jong-bok (former Standard Chartered First Bank CEO), Son Byung-hwan (former NH Financial Group chairman), Yoon Jong-kyu (former KB Financial Group chairman), Yoon Jong-won (former IBK Industrial Bank of Korea CEO), and Lee Won-deok (former Woori Bank CEO). The current chair, Cho Yong-byung,'s term ends at the end of this month.
By career, two candidates, Son Byung-hwan and Yoon Jong-kyu, were heads of financial holding companies, while four, Kim Han-jo, Park Jong-bok, Yoon Jong-won and Lee Won-deok, were bank CEOs. All six have served as chief executives of financial institutions. Their former organizations, KB Financial, NH Financial, Korea Exchange Bank, Standard Chartered First Bank, IBK Industrial Bank of Korea and Woori Bank, do not overlap at all. No single financial group has dominated the shortlist, with one candidate drawn from each affiliated organization. Because the list was compiled from recommendations by each committee member, it reflects a mix of figures from across several branches of the banking sector.
Candidates from the private sector are seen as strong on their firsthand experience in the financial industry and their familiarity with current issues facing the sector. Former chairman Yoon Jong-kyu led KB Financial for nine years starting in 2014 and completed major mergers and acquisitions (M&A) during that time. Former CEO Park Jong-bok ran Standard Chartered First Bank for about a decade, turning the bank's losses into profits. Combined, the two men's tenures as top executives come close to 20 years.
From KB Financial's perspective, a former chair who led the group for nine years is now a candidate for the head of the industry's representative association. Along with Son Byung-hwan, another former holding company chair, their experience overseeing a financial group that spans banking and non-bank subsidiaries sets them apart from the four former bank CEOs.
The selection timeline is tight. The nomination committee plans to hold its third meeting on the 23rd to select the final candidate. Six names must be reduced to one within ten days of the 13th, when the pool was confirmed, and only about a week will remain between the final candidate's selection and the end of Cho's term at the end of this month.
Ultimately, the key is the outcome of the 23rd meeting. Whether the final candidate comes from the two former holding company chairs or the four former bank CEOs will shape the career profile of the next Korea Federation of Banks chair. Which of the six candidates, narrowed down through the committee's member recommendations, is ultimately chosen remains the deciding variable.