By Na Jeong-ju
Staff Reporter
This is an embarrassing season for a number of bank CEOs.
Korea Development Bank (KDB) Governor Kim Chang-lok will take the stand for a planned parliamentary audit late this month regarding allegations that he exerted influence to help disgraced art curator Shin Jeong-ah get donations from the bank.
The bank has denied Kim's involvement in its extension of funds to Shin, but there has been no clear answer about why the KDB offered donations to Sungkok Art Museum, where Shin was working. Sungkok was the only art gallery that received a donation from the KDB between 2004 and 2006.
Behind the donations was the governor's close relationship with former chief presidential secretary for national policy, Byeon Yang-kyoon, who is touted as Shin's sugar daddy. Kim and Byeon are high school alumni.
According to Kwon Young-se, a lawmaker of the main opposition Grand National Party, the state-owned bank provided more than 50 million won to the museum to sponsor art exhibitions that Shin organized. The money was provided to her on three occasions.
Kookmin Bank CEO Kang Chung-won has secured another three-year term at the country's largest lender, but his relationship with the bank's union has turned from bad to worse.
Kookmin's union has demanded Kang step down, citing his failure to consolidate the bank's market dominance over the past three years. The bank has seen the gap with business rivals, such as Shinhan Financial Group and Woori Financial Group, narrowing and failed in its bid to acquire the Korea Exchange Bank.
Kang has also drawn criticism from unionists for the stock options offered to him when he became Kookmin's CEO in 2004. Kang now has unexercised stock options worth more than 10 billion won.
The bank recently decided to scrap stock options and introduce an alternative system to evaluate the performance of managers.
``Kang increased his personal wealth hugely during his term at Kookmin while rival banks caught up with Kookmin,'' the union said in a statement. ``We believe he is not eligible to lead the bank any more. The management should scrap its decision to offer him another term at Kookmin.''
Hana Bank CEO Kim Jong-ryul is also at odds with the union.
Hana's union has filed lawsuits against Kim, claiming the president attempted to block lawful activities by the union and did not treat unionists with respect. The union recently boycotted the management's campaign to sell 10 trillion won in fund products.
Woori Bank's President Park Hae-choon is also expected to be grilled by lawmakers in connection with an influence-peddling scandal involving former presidential secretary Chung Yoon-jae and a Busan-based contractor Kim Sang-jin.
Former SC First Bank CEO John Filmeridis also had to leave South Korea in the face of growing struggles with unionists and falling market share. He was replaced by David Edwards last week, only six months after his reappointment as the bank's CEO was announced.