New KDB chief reshuffles executives following disputed appointment
A Korea Development Bank (KDB) flag stands at the main gate of the state-run lender's headquarters in Yeouido, Seoul, in this photo taken in 2016. Korea Times file
By Yi Whan-woo
The newly-appointed head of Korea Development Bank (KDB) carried out the first personnel reshuffle since he took office last month, in what is seen as a bid to strengthen his grip over the state-run lender amid strong opposition from unionized workers.
According to sources familiar with the matter, Sunday, KDB Chairman Kang Seog-hoon replaced some executives in the reshuffle that took place, Friday.
“The size of the reshuffle was as usual in previous years,” a source said.
The latest reshuffle came amid strong protest from KDB union members that has continued for more than a month protesting Kang's appointment.
Unionized workers have opposed the selection of Kang, a former university professor who was President Yoon Suk-yeol's economic advisor. The union members claim Kang's selection was a “parachute appointment” to implement the president's controversial pledge to move KDB's headquarters from Seoul to Busan. Parachute appointments refer to the practice of bringing in people with political or business connections to fill a position.
Yoon came up with the relocation plan in the name of balanced regional development.
But the unionized workers argue the relocation plan will only hamper the nation's goal of nurturing the financial industry that is heavily concentrated in Seoul.
Korea Development Bank (KDB) Chairman Kang Seog-hoon delivers a speech during his inauguration ceremony at the state-run lender's headquarters in Yeouido, Seoul, on June 21. The ceremony was held 14 days after his appointment because KDB unionists protested the appointment and barred him from entering his office. Korea Times file
Under the circumstances, Kang was confronted by the unionists as he showed up for work and was only able to enter his office on June 21, 14 days after his appointment.
The protests continue at the lobby of the KDB, involving more than 500 unionists who refuse to accept Kang's proposal to set up a special committee to begin talks on the relocation plan and other sensitive issues.
Kang so far has spent his time mainly to assess the major tasks of individual business units within KDB and receiving briefings from executives, according to the sources.
“It may take time for the new KDB chairman to become completely familiarized with his job,” a source said.
Among the pending issues are the botched sales of two financially troubled companies _ Daewoo Shipbuilding & Marine Engineering (DSME) and KDB Life.
They are a key concern for Kang as trillions of won in taxpayers' money have been injected into the companies despite snowballing national debt.
The planned takeover of DSME by Hyundai Heavy Industries was called off in January after the European Union (EU) rejected the acquisition deal involving the world's two largest shipbuilders.
The deal required the EU's consent, but it raised an objection over the possibility of a monopoly over the construction of liquefied natural gas carriers.
In April, KDB's plan to sell its subsidiary, KDB Life, to JC Partners, a private equity firm, collapsed after nearly a year and a half of negotiations, because the private equity firm failed to meet the conditions for the takeover.