Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hana committee begins process to appoint next chairman
From left are Hana Financial Group Co-Vice Chairmen Ham Young-joo and Ji Sung-kyoo and Hana Bank CEO Park Sung-ho. Courtesy of Hana Financial Group
By Lee Min-hyung
By Lee Min-hyung
Hana Financial Group's chairman recommendation committee went into operation Wednesday to replace outgoing Chairman Kim Jung-tai, with three candidates vying for the next leadership of the nation's third-largest financial holding firm.
Hana's board of directors plans to confirm the shortlist for the group's next chairman by the end of January. The new leader will start their term in March when Kim's tenure ends.
The industry expects the group's two vice chairmen ― Ham Young-joo and Ji Sung-kyoo ― and Hana Bank CEO Park Sung-ho to compete for the position.
Ham is considered the strongest candidate, given his presence as the group's de facto deputy leader after having been promoted to the vice chairman post back in 2016. He also served as the chief of Hana Bank and is now mapping out the group's environmental, social and corporate governance (ESG) strategies.
Ham is also the longest-serving vice chairman among the candidates and has assisted the chairman for more than five years, increasing the likelihood for his promotion to the top spot. It has been only one year since Ji was promoted to the group's vice chairman post. Park has also served for less than a year as the CEO of Hana Bank.
The only risk that may hamper Ham's promotion is a legal dispute regarding the group's involvement in the misselling of risky derivative-linked funds (DLF). Earlier, the Financial Supervisory Service (FSS) slapped a reprimand on Ham by holding him responsible for Hana's sales of risky DLFs, but he filed a lawsuit against the watchdog.
The Seoul Administrative Court is expected to hand down a ruling on the suit as early as the end of February.
Given that the court ruled in favor of Woori Financial Group Chairman Son Tae-seung, who also filed a similar lawsuit against the FSS' decision to punish him over his firm's involvement in the DLF scandal, Ham is widely expected to avoid major legal risks at the upcoming ruling.
Ham has also played a major leadership role in a series of key events. He has attended the National Assembly's annual audits for the past few years and proven his skills in risk management. Ham's name was also included on the shortlist for Hana's next chairman in 2021.
“Considering Ham's unwavering leadership within the group, he is most likely to become the next leader of Hana, but there stands a chance that either Ji or Park will be able to replace the incumbent chairman due to Ham's lingering legal risks,” a financial industry source said.
Ji started drawing attention within the group in 2019 when he started his term as chief of Hana Bank. He helped the lender generate record earnings during the first year of his tenure. In 2020, he also focused on developing the bank's digital expertise to catch up with the rapid industrial paradigm shift during the COVID-19 pandemic.
Starting from March 2021, he was promoted to vice chairman of the group in recognition of his digital achievements and he is currently in charge of Hana's digital business.
Park, the youngest among the three candidates, has won trust from the group for his stable management of the lender after taking office in March 2021, when he was recommended as the sole candidate for the next leader of the bank.
Hana Bank is also expected to set a new record in its earnings performance for last year. The lender reported a net profit of 1.94 trillion won during the first three quarters combined in 2021, up 17.6 percent from the previous year.