Competition fierce for KFSB chairmanship

By Lee Kyung-min

Nam Young-woo

By Lee Kyung-min

• Published Jan 17, 2019 8:15 AM KST
• Updated Jan 17, 2019 8:15 AM KST

Competition for the top post at the Korea Federation of Savings Banks (KFSB) is fiercer than ever, with seven high-profile figures throwing their hats into the chairmanship ring.

This is the largest number of candidates seeking to head the organization that represents 79 savings banks nationwide.

With current chairman Lee Soon-woo not seeking a second term, the race for the three-year term will be among four people from the private sector and three former government officials.

Lee, a former Woori Bank head, is among only two KFSB chairmen to come from the private sector, following Kwak hoo-sup.

Their predecessors were all former government officials, which drew criticism that the much-coveted post had been largely filled with “parachuted in” figures whose political inclination suited the then incumbent administration.

This year's race, however, is expected to be fairer, indicated by the record number of candidates.

Competition for the post, which has an annual salary of 500 million won ($447,000), comes amid the fast-improving performance of the savings banks.

With combined assets of 64 trillion won, they earned 2 trillion won in interest income in the first half of 2018.

Total assets and interest income are estimated to have reached 70 trillion won and 4 trillion won, respectively, in the second half of last year.

The three former high-ranking government officials include former finance ministry official Han Yi-hun, who also headed the Fair Trade Commission; Park Jae-sik, who led both the Korea Financial Intelligence Unit and the Korea Securities Finance Corp.; and former Korea Research Institute for Financial Inclusion head Cho Sung-mok.

The four candidates from the private sector are Nam Young-woo, who served eight years as CEO at Korea Investment Savings Bank; Park Do-kyu, who worked at Citibank Korea before moving to Standard Chartered Bank Korea where he served as vice president until 2014; former Yes Savings Bank head Cho Sung-kwon; and former Hana Savings Bank CEO Hwang Jong-sup.

Meetings from Jan. 14 to 16 by a seven-member recommendation committee under the KFSB will shortlist the candidates who will run for election Jan. 21.

Among the shortlisted candidates, the winner will need to get two-thirds of the vote in an election participated in by a majority of the 79 KFSB members.

If no candidate secures two-thirds, a run-off will be conducted for the top two candidates, one of whom will become winner through a majority vote.