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.
MBK replaces Lotte Card CEO
Lotte Card CEO nominee Cho Jwa-jin
By Park Jae-hyuk
By Park Jae-hyuk
Lotte Card said Friday that it has nominated former Hyundai Capital America CEO Cho Jwa-jin as the successor to incumbent CEO Kim Chang-kwon.
Born in 1967, Cho served as the head of Oliver Wyman's Korean office and a managing director of Hyundai Card.
He also led James Cho Management Consulting as CEO.
The nominee will be appointed after the general shareholders meeting and the board of directors meeting slated for late March.
“As an expert having deep knowledge and experience in the credit card business, Cho is the right person to lead our company's grow into a leading credit card firm,” a Lotte Card official said.
The replacement was a surprise as Kim was supposed to serve out his term that ends March 2021.
Kim was reappointed to serve another two-year term in October 2019, although MBK Partners acquired a 79.83 percent stake in Lotte Card from Lotte Group.
It is usual for private equity firms to reshuffle the management of their portfolio companies.
Kim's reappointment was regarded as the largest shareholder's apparent effort to stabilize the company after the takeover.
Lotte Card said Kim will remain in the company as vice chairman, but Cho is expected to lead the company's new businesses.
“Despite deteriorating business conditions in the credit card industry, Kim has pursued profit-oriented management, and businesses for the future, taking a long-term perspective,” the company official said.
“To recognize him for stabilizing the company amid a change in the largest shareholder, we gave him the vice chairman position that did not exist in our company before.”
In addition to the recent nomination, Lotte Card hired three new executives from outside the company in November 2019.
They are Seok Dong-il from Samsung Card, Park Ik-jin from Orange Life Insurance and Ku Young-woo from Korea Retail Asset Management Corp.