By Kang Seung-woo
With tenures of major financial institutions’ chief executives nearing their end, the banking industry is likely to see a series of changes in the leadership line up early next year.
Merger and acquisition (M&A) deals are expected to play a key role in executive shake-ups, amid heightening concerns that former government officials are likely to be parachuted into the coveted spots.
Hana Financial Group’s top three chief executives ― Chairman Kim Seung-yu, President Kim Jong-yeol and Hana Bank CEO Kim Jung-tae ― are about four months shy of completion of their terms and their fates are expected to be swayed by how the on-going takeover deal of the Korea Exchange Bank will unfold.
Hana, the nation’s fourth-largest financial services firm, signed a contract with Lone Star in London, Thursday, to take over the U.S. buyout fund’s stake of KEB, a deal that will push the group to become the nation’s third-largest banking group once the deal is finalized.
Given a few months are still needed for Hana to receive regulatory approval, the transfer of the KEB shares is expected to be complete in January or February. It will be clearer at that point what will happen to the three executives.
Woori Financial Group Chairman Lee Pal-sung and Woori Bank CEO Lee Chong-hwi are scheduled to finish their terms in June next year, and like Hana, according to the result of the planned privatization of the financial holding group, their future at the group will be decided.
The sale of the nation’s largest financial holding firm is part of the government’s plan to put state-controlled companies, rescued from the Asian financial crisis a decade ago with taxpayers’ money, in private hands and a total of 11 prospective buyers expressed their intentions to purchase a controlling stake in the state-owned Woori.
The chairman hopes to stay on, forming two consortia in Woori’s bid for the stake, but otherwise, his status will be uncertain.
As for Lee Chong-hwi, he is banned from working for financial institutions for the next three years after facing two warnings from the financial authority.
Industrial Bank of Korea (IBK) CEO Yun Yong-ro is slated to complete his three-year term on Dec. 20.
Although there is a positive chance of his reappointment, supported by his solid career at the helm, Financial Services Commission (FSC) vice chairman Kwon Hyouk-se and Financial Supervisory Service (FSS) Senior Deputy Governor Kim Yong-hwan are on the list to succeed Yun.
Troubled Shinhan Financial Group plans to announce a new leader to replace former Chairman Ra Eung-chan at a board meeting scheduled to take place in February.