3 KB vice chairmen make 6-candidate list as next group CEO
From left, KB Financial Group Vice Chairman Hur Yin, Vice Chairman Yang Jong-hee, Vice Chairman Lee Dong-cheol and Park Jeong-rim, KB Securities co-CEO and head of capital markets, corporate and investment banking and asset management / Courtesy of KB Financial Group
By Yi Whan-woo
KB Financial Group said Tuesday it included three of its vice chairmen ― Hur Yin, Yang Jong-hee and Lee Dong-cheol ― on the list of six candidates for its next chairman and CEO, in the first of three stages to select the successful candidate.
Hur is in charge of the group's global business and insurance business unit, while Lee, the former CEO of KB Kookmin Card, currently oversees the group's digital and IT businesses. Yang, meanwhile, is responsible for retail customer relations, pensions and small and medium enterprise business.
It also said the six-member list includes one of its executives, Park Jeong-rim, who is KB Securities co-CEO and heads capital markets, corporate and investment banking and asset management, plus two additional outside figures.
The banking group did not disclose the names or other details of the two outside figures for confidentiality reasons.
The six were narrowed down from a pool of 20 finance experts, both within and outside the group's ranks, who had been longlisted in May.
The six will be shortlisted down to three by Aug. 29. The final, sole nominee will be determined by Sept. 8.
The final candidate will need consent from the board of directors in a joint meeting with the committee members, Sept. 12, plus approval from shareholders in their meeting slated for Nov. 20.
Outgoing KB Financial Group Chairman Yoon Jong-kyoo / Courtesy of KB Financial Group
The successful candidate will replace outgoing Chairman and CEO Yoon Jong-kyoo, whose term will end on Nov. 20.
The country's largest banking group adopted a rare, multi-stage selection process as the government is calling for transparency and objectivity concerning its leadership.
Each stage accordingly consists of a thorough screening process, including stress interviews and presentations.
In a letter to shareholders, Yoon said the company “has an excellent program in ensuring a smooth succession of CEO and it has managed a pool of capable and qualified candidates in a sustainable manner.”
“In that regard, I believe the CEO recommendation committee will make a sound judgment in picking the right nominee in line with the financial market's expectations.”
Some industry sources suggested that Yoon wrote the letter to ease investor anxiety and ensure that the group will remain unchanged in pursuing its vision and strategy even after he quits.
The sources referred to Yoon's decision last week that he will not seek another term after his third three-year term ends on Nov. 20.
Under Yoon's leadership, the company has been expanding non-banking businesses such as insurance and securities, setting the foundations for KB to become a “leading financial group” of the country.
In the second quarter of this year, the banking group reaped a record quarterly net income of 1.49 trillion won.
It also posted the highest half-year revenue of 2.99 trillion won in the January-June period.
Meanwhile, the CEO recommendation committee members said they respect his decision and will cherish the time spent together.