KDB's Lee Dong-gull begins second term

By Kim Bo-eun

Korea Development Bank Chairman Lee Dong-gull

Korea Development Bank (KDB) Chairman Lee Dong-gull secured a second term, Thursday.

Lee, who began his first term on Sept. 11, 2017, will head the state-run lender for another three years. His term will end on Sept. 10, 2023.

The KDB chief is recommended by the Financial Services Commission chairman and appointed by the President.

Lee is known to have wished to step down from the position, but current circumstances involving COVID-19 are seen to have made authorities persuade the incumbent chairman to stay for another term, given KDB's role as a state-run bank

Another factor may be the collapse of the Asiana Airlines deal. KDB leads Asiana's creditors.

Lee had been determined to lead the sale of the embattled Asiana Airlines, but the deal with Hyundai Development Company (HDC) fell through after the entities failed to narrow their differences.

Lee is known to have offered for creditors to take the burden on up to 1 trillion won in HDC's acquisition of the air carrier, but HDC has insisted on a second round of inspections of the company's financial condition following the outbreak of the COVID-19 pandemic.

KDB is tasked with supporting Asiana and normalizing operations at the company until the next opportunity comes to sell it.

Lee's first appointment as he starts his second term will be attending a meeting with chiefs of government ministries on plans for Asiana.

KDB has also yet to sell off its life insurance unit ― a task that has been pending since 2014.

Attention is also being drawn to Lee's achievements as he begins his second term.

Lee succeeded in leading the sale of Daewoo Shipbuilding & Marine Engineering (DSME) to Hyundai Heavy Industries and restructuring Kumho Tire as well as GM Korea.

KDB has also strengthened funding for innovative startups during Lee's term. The lender began a program in 2016 to bridge promising startups with venture capital. So far a total of 1.8 trillion won has been invested in 313 firms through KDB's Next Round program.

Lee is the fourth chief of the state-run bank to serve another term. He is the first KDB chairman to serve a second term in 26 years.