CEOs of major securities firms set to get terms extended

From left are Mirae Asset Securities Vice Chairman Choi Hyun-man, Korea Investment & Securities President Jung Il-mun, NH Investment & Securities CEO Chung Young-chae and KB Securities co-CEO Park Jeong-rim. Yonhap

By Lee Min-hyung

The heads of the country's major securities firms are set to have their terms extended during a year-end reshuffle of top management on top of sound earnings performances.

Mirae Asset Securities, the largest brokerage firm here by net profit, is expected to retain Vice Chairman Choi Hyun-man as its sole CEO after Kim Jae-sik, the former co-CEO of the firm, was recently nominated to head Mirae Asset Life Insurance.

Choi has led the cash cow affiliate of Mirae Asset Financial Group since November 2016. As a founding member of the group, Choi will likely maintain his post in recognition of the securities arm's record profit. His tenure is supposed to end March 2022.

The company's operating profit topped 1 trillion won in 2020, a first in the local securities industry. Mirae Asset Securities is expected to achieve similar earnings this year, which has raised the likelihood of Choi's leadership being extended next year.

Jung Il-mun, president of Korea Investment & Securities, is also expected to have his term renewed in recognition of him achieving record earnings in the first half of 2021.

The brokerage achieved an earnings surprise with an operating profit of 703.3 billion won in the first half of 2021, up 308 percent from the previous year.

After the securities company was mired in a mis-selling scandal involving risky fund products last year, Jung decided to offer full compensation for any losses suffered by customers who signed up for the soured funds sold by the company.

The swift decision to handle the aftermath of the financial fiasco helped the company win back trust.

Office buildings are located in the nation's financial district of Yeouido, Seoul, in this file photo. Yonhap

But the fate of NH Investment & Securities CEO Chung Young-chae remains up in the air despite this year's robust earnings, due to the brokerage's involvement in the mis-selling of troubled funds from Optimus Asset Management.

Chung did not express a desire to stay on as leader of the brokerage, but pledged to focus on dealing with the aftermath of the fiasco before his term ends in March 2022.

“I have not thought about my term being extended and will follow the upcoming decision made by shareholders,” he told lawmakers during a National Assembly audit last month.

The future of KB Securities co-CEO Park Jeong-rim also remains unclear due to a similar hurdle. Park received a reprimand from the financial authorities last year, but this “sanction” has not been confirmed by the Financial Services Commission.

If the regulator does not finalize the decision by the end of the year, Park may be able to extend her term in recognition of her contribution in increasing profits.