Major bank CEOs face pivotal test for potential reappointment

From left are KB Kookmin Bank CEO Lee Hwan-ju, Shinhan Bank CEO Jung Sang-hyuk, Hana Bank CEO Lee Ho-sung, Woori Bank CEO Jung Jin-wan and NH NongHyup Bank CEO Kang Tae-young. Korea Times file

Leadership changes are looming at Korea's major commercial banks as the terms of all five CEOs expire at the end of the year, setting the stage for closely watched potential reappointment decisions, industry officials said Thursday.

The terms for the CEOs of KB Kookmin, Shinhan, Hana, Woori and NH NongHyup banks all expire in December.

Under the financial authorities' corporate governance guidelines, succession procedures should begin at least three months before a CEO's term expires, meaning that the selection process is expected to begin around September.

This year, industry officials say earnings results alone are unlikely to determine who stays and who goes, with governance standards and leadership changes at parent financial groups also expected to play a role in the decisions.

Bank CEOs typically serve two-year terms, with an additional one-year extension granted based on management performance.

KB Kookmin Bank CEO Lee Hwan-ju is considered well positioned for another term after delivering solid financial results. The lender posted a net profit of 3.862 trillion won ($2.6 billion) in 2025, regaining the industry's top position.

Even so, Lee's future could hinge on whether KB Financial Group Chairman Yang Jong-hee, whose term expires in November, secures another term. A leadership change at the holding company could trigger a reshuffle among its affiliates, although industry officials widely expect Yang to remain in his post.

Shinhan Bank CEO Jung Sang-hyuk is also considered a strong candidate for another term after maintaining stable management. He secured a second term in 2024, and Shinhan posted a net profit of 3.7 trillion won that year.

Still, a third consecutive term would be difficult. Financial regulators have expressed discomfort over prolonged CEO tenures at financial institutions, leaving open the possibility of a leadership change despite Jung's solid performance.

Hana Bank CEO Lee Ho-sung has also strengthened his case for another term after increasing the bank's annual net profit by about 12 percent in 2025 and posting a net profit of 1.1 trillion won for the first quarter.

A pedestrian walks past ATMs of major banks at a building in Seoul, April 12. Newsis

Woori Bank CEO Jung Jin-wan, meanwhile, appears to face a steeper challenge.

Woori was the only one among the five major lenders to report a decline in annual net profit last year, while its first-quarter earnings also trailed those of NH NongHyup Bank.

According to industry sources, Jung sent an internal message to employees following the release of the bank's first-quarter earnings, outlining measures to improve performance for the remainder of the year.

NH NongHyup Bank CEO Kang Tae-young also faces uncertainty.

The lender has traditionally replaced its chief executive after a single term. Industry officials also view that the ongoing push to overhaul NongHyup's governance structure following an embezzlement scandal in March could influence the succession process.

"Each bank is in a different position in terms of earnings and internal issues, making it difficult to predict the outcome," a banking industry official said.

"Business performance used to be the primary consideration in reappointment decisions, but this year, external factors, such as the financial authorities' corporate governance reform plan, are also expected to influence the outcome."

The industry is closely watching the Financial Supervisory Service's planned announcement on the governance reform plan, which is expected to be unveiled as soon as this month after being postponed from its original April schedule.

The move follows President Lee Jae Myung's criticism of what he described as "corrupt inner circles" in the financial sector, raising expectations that the new guidelines will tighten scrutiny of how financial groups appoint their top executives.