Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
BNK Financial faces turmoil ahead of leadership selection
BNK Financial Group headquarters in Busan / Courtesy of BNK Financial Group
By Lee Yeon-woo
BNK Financial Group Chairman Bin Dae-in / Korea Times file
BNK Financial Group is under growing pressure to halt its leadership selection process, as political backlash and shareholder activism mount ahead of the final candidate announcement, industry officials said Friday.
The board is set to choose its next chairman following final interviews and evaluations on Monday. Markets had broadly expected incumbent Chairman Bin Dae-in to secure a second term.
Bin, who took office in 2022, has delivered stable financial results during his tenure at BNK, Busan's flagship regional financial group. He also drew praise for his handling of a 300 billion won ($204 million) embezzlement scandal at BNK's Kyongnam Bank early in his term.
But criticism is intensifying over the integrity of the selection process.
On Thursday, five lawmakers from the ruling Democratic Party of Korea — representing districts in Busan, Ulsan and South Gyeongsang Province — held a press conference at the National Assembly, denouncing the procedure as Bin's "self-appointment attempt." They demanded the resignation of all candidates, including Bin and BNK Busan Bank CEO Bang Seong-bin, while urging financial regulators to launch a special audit.
The dispute centers on a fast-tracked timeline. The group's candidate recommendation committee accepted candidate applications from Oct. 2 to 16. With the Chuseok holiday overlapping with the application window, candidates had just five business days to submit materials — a schedule critics say was designed to curb competition and favor the incumbent.
Activist fund Life Asset Management added to the criticism Thursday, sending an open letter accusing the board of rushing the process. While the firm directly holds around 3 percent of the group's shares, the total stake aligned in consensus reportedly approaches 10 percent.
"Any leadership appointed through such a procedurally flawed process will face questions over its legitimacy from the outset," the letter said. "Ultimately, this will undermine BNK’s management stability and corporate value."
Since October, regulators have voiced concerns over BNK's chairman selection process, citing potential governance risks. On Dec. 1, Financial Supervisory Service Gov. Lee Chan-jin reiterated those concerns and signaled possible reforms.
"It seems many financial group chairmen are eager to stay on," Lee told reporters. "The problem arises when that desire becomes excessive."
Meanwhile, BNK Financial Group said Friday that the selection process will continue as planned, in line with the preestablished principles and schedule, and pledged to step up shareholder communication.
"BNK Financial Group's leadership succession process is being conducted in accordance with preestablished principles and in line with best practices followed by other major financial holding companies," the group said in a statement. "The final candidate will be selected based on their ability to enhance BNK's long-term corporate value and maximize shareholder returns."
Observers say the outcome of BNK's leadership process could set a precedent for other financial holding firms. "With the FSS governor openly questioning reappointments, the result could carry broader implications beyond BNK," one industry official said.