ed Hana CEO fiasco

The sudden resignation of a top executive from one of the nation's four leading financial groups has rekindled the debate over Seoul's financial repression and shaky governance structure. The market is abuzz with speculation that links his withdrawal to government pressure or a power struggle with the septuagenarian Chairman Kim Seung-yu.

Hana Financial Group President Kim Jong-yeol tendered his resignation two months before a scheduled shareholders’ meeting. The timing of his exit is puzzling. The 60-year-old says he made the decision so as not to burden the merger process of Hana and KEB. He was the chief negotiator for the takeover. Few will accept his statement at face value.

As public skepticism escalated, the Hana chairman Friday hinted at returning the resignation to the president.

His resignation came after Shinhan Financial President Shin Sang-hun was kicked out of his post for an alleged breach of trust in 2010. The government previously ousted the KB CEO to install President Lee's crony Euh Yun-dae.

KB, Woori and Hana are all headed by alumni of Korea University, the alma mater of President Lee Myung-bak.

The Lee administration has wielded an unbridled behind-the-scenes influence over financial firms. Except for Woori, all of them are private companies. The governance structure of the financial groups is shaky.