Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Cho to lead Shinhan for 3 more years
Shinhan Financial Group Chairman Cho Yong-byoung receives questions from reporters at the group's headquarters in Seoul, Friday, after the chairman recommendation committee decided to put him forward as the sole candidate for the position to lead the group for next three years. / Yonhap
By Park Jae-hyuk
By Park Jae-hyuk
Shinhan Financial Group Chairman Cho Yong-byoung was essentially reappointed to another three-year term, Friday, as the banking group's chairman recommendation committee decided to put him forward as a sole candidate.
The reappointment of the incumbent chairman will be subject to a general meeting of shareholders in March 2020.
Before selecting him as the sole candidate, the committee interviewed Cho and four others on its shortlist ― Shinhan Bank CEO Jin Ok-dong, Shinhan Card CEO Lim Young-jin, former Shinhan BNP Paribas Asset Management CEO Min Jeong-ki and former Shinhan Bank CEO Wi Sung-ho.
The committee said Cho responded well to questions regarding Shinhan's future, such as gender issues and corporate culture.
“Shinhan has taken the lead in policies for women recently,” Lee Man-woo, a Korea University professor who led the committee, said during a press conference at Shinhan headquarters. “Cho emphasized that he will try harder for the welfare of female employees.”
The committee members also recognized the chairman for enabling the group to produce a differentiated outcome from other financial groups.
“Shinhan refrained from selling derivative products for risk management,” Lee said. “After taking over Orange Life Insurance, it did not reflect the gain from the bargain purchase in its balance sheet for financial soundness.”
During his first term, Cho acquired Orange Life Insurance and Asia Trust, reclaiming the leading bank title from KB Financial Group.
Shinhan posted a net income of 981.6 billion won ($837 million) in the third quarter, bringing the figure for the first nine months of the year to 2.89 trillion won, up 9.6 percent from a year ago. KB reported net income of 2.77 trillion won for the first three quarters.
According to the committee, Cho has also led the group's globalization and digitization.
But still, the chairman is tasked with overcoming legal issues.
He was found guilty of hiring underqualified applicants because of their ties to influential people, such as politicians and ranking bureaucrats. Cho will attend a sentencing hearing January 2020.
The Financial Supervisory Service also expressed concerns regarding this issue.
The committee said it took the risk into account before making its decision.
“Shinhan's board of directors have the right to dismiss the CEO,” Lee said. “In the case of the absence of the chairman, the Shinhan Bank CEO will become acting chairman.”
If Cho is given a suspended sentence, he can continue to serve as chairman until a final judgment comes from a higher court.
After the committee's decision, Cho told reporters he will boost Shinhan's credibility, enhance its competitiveness through openness and pursue organizational innovation.
“I will put the plans into action from tomorrow,” he said.