Shinhans Ra Facing Daunting Tasks
By Kim Jae-won
Staff Reporter
Shinhan Financial Group Chairman Ra Eung-chan is expected to extend his chairmanship by three years but faces two major tasks during his fourth, and probably last, term as the head of the nation’s third-largest financial group.
On Friday, the board of the group decided to recommend Ra as the next chairman at the upcoming shareholders’ meeting slated for March 24. If his fourth term is approved at the meeting, Ra will end up having served two decades in the top post at Shinhan.
Analysts said that the board expects Ra to play an important role in preparing for “post-Ra Shinhan” and coping with challenges caused by the reshaping of the banking industry.
The banking industry is facing a boom of M&As. The government vowed to privatize the state-run Woori Financial Group by the end of 2010. Texas-based hedge fund Lone Star also showed its desire to sell its controlling stake in Korea Exchange Bank.
The 71-year-old banker has rich experience in M&A deals. Shinhan acquired LG Card in 2007, which became a strong growth engine of the group. The group also merged with Cho Heung Bank in 2006.
Many employees of Shinhan hope Ra will lead the group again.
“He has led the group well so far. We need his strong leadership again this time as many big issues are waiting for the banking industry,” an employee of the group said on the condition of anonymity.
Shinhan has prepared candidates for chairman, such as Shin Sang-hoon, CEO of the group, in case Ra decides to leave.
Analysts say that Shin is the primary candidate to take office after Ra, adding that Ra may transfer his experience and know-how to Shin during his last term.
“It is very important to transfer power smoothly. It will be Ra’s main task during the coming years,” a local securities company analyst said.