By Kim Tong-hyung
Shinhan Financial, one of the country’s biggest financial groups, prolonged the term of Shinhan Bank chief executive Suh Jin-won for three more years in its new management board Friday.
While valuing continuity at its main business unit, Shinhan’s affiliate management committee reshuffled the leadership at Shinhan Capital, a credit-specialized financial services provider, and Shinhan Credit Information, which offers debt collection and credit research services.
Seo, who has worked with Shinhan since 1983, has served as the right-hand man for Shinhan Chairman Han Dong-woo, who took the management helm in December 2010 after a highly-publicized feud between his predecessor Ra Eung-chan and former group CEO Shin Sang-hoon led to their disgraceful exits. Suh replaced former Shinhan Bank CEO Lee Baek-soon shortly after Han’s appointment.
Shinhan sources say Han highly appreciated Shin's efforts to mend the emotional scars left from the internal management bickering and reducing divisions among employees, including many mid-level managers who had to pick a side, either Ra or Shin.
Shinhan Bank setting a new record of 2.12 trillion won (about $1.9 billion) in annual profit, becoming the first Korean commercial bank ever to crack the symbolic 2 trillion won mark, obviously didn’t hurt Suh’s case.
He has a wealth of experience across the Shinhan group of companies, serving as the bank’s director of sales, vice president and CEO of Shinhan Life Insurance before taking the job as CEO.
Han had already hinted that Seo’s job was safe, telling reporters earlier this year, ``It wouldn’t be right for a CEO of a global financial company to be replaced only after a year and three months.’’
``Chairman Han insisted that the CEOs of our affiliates must have great expertise in their sector, but also a deep understanding of our corporate culture,’’ a source said in explaining the internal support for Seo.
While Shinhan trails KB Financial and Woori Financial in asset size, it leads them both in the category that matters most ― profits. The robust earnings at the bank as well as the solid performances of its non-banking units Shinhan Card and Shinhan Capital allowed the group to post 3.1 trillion won in profits last year, which is easily higher than any other financial group here.
Hwang Yeong-seop, a group vice president, was named to replace longtime CEO Han Do-heui at the helm of Shinhan Capital, marking the first leadership change at the company in six years.
Former bank Vice President Moon Jong-bok was picked to replace Park Ju-won as Shinhan Credit Information CEO.
Heo Chang-gi, CEO of Jeju Bank, another Shinhan affiliate, was given another year at the job as was Shinhan Data System CEO Kim Hyung-jin.