Financial sector braces for CEO reshuffle as Shinhan, Woori chiefs eye reappointment

The process of appointing new leaders for major financial groups, state-run banks and financial companies is set to kick off in earnest at the end of the year, with all eyes on whether Shinhan Financial Group Chairman Jin Ok-dong and Woori Financial Group Chairman Yim Jong-yong will secure reappointment, industry officials said Friday.

Attention is also focused on who will take the helm of state-run lenders such as the Export-Import Bank of Korea (Eximbank) and the Industrial Bank of Korea (IBK).

Shinhan Financial Group was the first in the industry to launch its leadership selection process, convening its chairman candidate recommendation committee on Sept. 26 to discuss the criteria for evaluating potential successors to Jin, who assumed the post in March 2023 and whose term will expire in March next year.

The committee plans to draw up a shortlist of candidates by late November and select the final nominee in early December during an expanded meeting attended by all outside directors.

The chosen candidate will then undergo a board review before being officially approved as chairman at the annual general shareholders’ meeting slated for next March.

Woori Financial Group is also expected to begin discussions soon on the selection process for its next chairman, as Yim’s term concludes in March next year. The group’s executive candidate recommendation committee is likely to start its work later this month at the earliest.

Market insiders see strong prospects for the reappointment of both Jin and Yim.

Jin has been credited with successfully driving Shinhan’s expansion into Southeast Asia, particularly Vietnam, and earning the trust of key shareholders through his value-up initiative, which includes retiring 50 million treasury shares by 2027 in line with President Lee Jae Myung’s KOSPI 5,000 vision.

Jin is also known for maintaining smooth ties with the Lee administration, being the only one among the five major financial group leaders to attend both the official inauguration ceremony for Lee on Aug. 15 and the government’s public presentation of the National Growth Fund, one of the president’s key economic pledges, on Sept. 10.

Jin also accompanied the president on his recent visit to New York.

Yim, meanwhile, oversaw the launch of Woori Investment & Securities through the merger of Woori Investment Bank and Korea Foss Securities, and successfully led the acquisitions of Tongyang Life and ABL Life. By reinforcing the group’s presence in the securities and insurance sectors, he is widely seen as having achieved the group’s long-standing goal of establishing a comprehensive financial group portfolio.

Appointments for the new leaders of state-run Eximbank and IBK are also expected soon.

Eximbank has been without a chief for over two months since former Chairman Yoon Hee-sung stepped down on July 26.

By law, the bank’s chairperson is nominated by the finance minister and appointed by the president.

While the exact timing is unclear, the vacancy is likely to be filled soon as the government’s plans for reorganizing its economic and financial institutions have taken shape.

IBK CEO Kim Sung-tae’s term expires on Jan. 2 next year. The IBK head is appointed by the president based on a recommendation from the chairperson of the Financial Services Commission.

Additionally, a significant number of CEOs at major financial group affiliates are also expected to be replaced by the end of this year or, at the latest, in the early months of next year.

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