Kang Reappointed to Lead Kookmin Bank
By Lee Hyo-sik
Staff Reporter
Kookmin Bank President Kang Chung-won will lead the nation's largest retail lender for another three years as its ad hoc recommendation committee picked the incumbent head over other potential candidates.
But his reappointment has roused strong protests from unionized workers who vow to take all possible measures, including a walkout, to prevent Kang from managing the lender for the next three years.
Since Aug. 16, the committee examined about 100 possible contenders, including former Woori Financial Group Chairman Hwang Young-ki. It decided Thursday night that Kookmin would be better off under Kang's continued leadership, according to bank officials.
The bank's board of directors also held a meeting Friday and decided to submit Kang's reappointment to the shareholders' meeting slated for Oct. 31 for approval. Kang's first three-year term is to expire on the same date. If he receives approval from shareholders, he will begin the second term on Nov. 1.
The officials said the recommendation committee members unanimously voted for Kang's reappointment, adding his second-term is conclusive since it was passed by the board directors Friday, even though shareholders have to approve it next month.
Following the news, Deutsche Bank projected that Kang's reappointment as Kookmin president would have positive effects on its share price as his second term eases uncertainties surrounding bank management and ensures the management continuity.
It said Kookmin shares will draw an upward curve toward the end of the year, reaching as high as 110,000 won, as Kang's reappointment will provide momentum to its efforts to acquire a brokerage firm and an insurer, and transform itself into a financial holding company. Kookmin shares closed at 76,200 won Friday, up 900 won, or 1.19 percent, from the previous trading.
However, other analysts said the news of Kang's second-term will not likely have a positive impact on Kookmin shares.
They said the banking sector as a whole is widely expected to post a drop in earnings in the coming months as lenders have failed to find new sources of earnings amid accelerating shift of funds to securities companies for popular equity investment.
Unionized workers are denouncing Kang's reappointment, saying they will mobilize all possible measures to stop Kang from serving the second term. A union official said, workers will not accept Kang as bank president and if necessary, they will go on strike.