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.
Too old to manage?
BNK Financial Group Chairman Kim Ji-wan / Korea Times file
By Park Jae-hyuk
BNK chief in hot seat for serving another term at 73
By Park Jae-hyuk
The popular saying, “Age is just a number,” has not been true for most financial holding companies here as they have restricted their executives aged over 70 from taking the leadership.
BNK Financial Group Chairman Kim Ji-wan has overcome this custom of age limit, since the 73-year-old chief executive was reappointed earlier this month to serve another three-year term.
The provincial banking group's executive recommendation committee decided Feb. 6 to put Kim forward as a sole candidate.
The recommendation committee said it recognized him for having stabilized the governance structure and improved the performance of the non-banking and non-interest sectors since he took office in September 2017.
BNK posted a 562.2 billion won ($477 million) net income in 2019, up 12 percent from a year earlier.
The chairman, however, has aroused controversy, because his reappointment followed his previous conduct, regarded as an attempt to prolong his leadership.
In March 2019, BNK announced an internal rule revision that restricts the chairman from serving three consecutive terms.
Back then, the group was criticized for refusing to set an age limit, apparently for the sake of Kim.
In contrast with BNK, the nation's four largest banking groups have age limits for their chiefs.
In 2011, Hana Financial Group became the country's first financial holding company to restrict executives aged over 70 from being appointed chairman.
KB and Woori financial groups adopted a similar restriction afterwards.
Shinhan Financial Group bans executives aged over 67 from being the newly appointed chairman, but incumbent chiefs can challenge for the top seat until they turn 70.
DGB Financial Group, a provincial banking group that is in an intense rivalry with BNK, restricts those aged over 67 from leading the group.
JB Financial Group, another rival to BNK, has yet to set an age limit for its chief executive, but its former Chairman Kim Han voluntarily stepped down in 2018, when he was 64.
Incumbent JB Chairman Kim Ki-hong is at 63.
The financial authorities have also recommended financial holding companies to set age limits, in order to advance their governance structures.
“The incumbent BNK chairman's long career in the financial industry can be a merit on its own, but there exists questions about his ability to pursue changes swiftly, amid the trend of digital transformation,” a banking industry official said on condition of anonymity.
The reappointment of the incumbent chairman will be subject to a general shareholders meeting in March.