By Nam Hyun-woo
Shinhan Financial Group is facing a setback in its bid to fill the top post at its banking unit, as favored candidate Wi Sung-ho was involved in an intra-group legal dispute seven years ago, a fiasco the group wants to forget.
According to sources, Friday, Shinhan Financial Group is paying attention to an accusation filed by Financial Justice Solidarity (FJS) against Wi, who is now the CEO of Shinhan Card, over perjury regarding the Shinhan debacle _ a feud between former Shinhan Group Chairman Ra Eung-chan and group CEO Shin Sang-hoon.
In its complaint filed with the Seoul Central District Prosecutors’ office, the civic group claimed that Wi gave false testimony regarding the appointment of a lawyer who defended Ra during a bribery scandal involving the latter and Park Yeon-cha.
The FJS also said that “Wi tried to cover up Ra’s payment of 300 million won ($265,000) bribe to Lee Sang-deuk, former President Lee Myung-bak’s elder brother,” adding that “Wi should not become chief of Shinhan Bank.”
The legal case erupted when Shinhan Bank took Shin to court over embezzlement charges in 2010. In an interview, however, Shin said Ra was also involved and a dispute between the two exposed a series of corruption allegations.
Back then, Wi was serving as the vice president of the group, a close aide to Ra. Wi last month was nominated as a candidate to become the chairman of the group, but withdrew saying “Shinhan Bank CEO Cho Yong-byoung should become the group’s chairman.” As Cho became the sole candidate for the group chairman, suspicions rose that Wi was seeking the Bank CEO post and now he is seen as the most prominent candidate to succeed Cho.
The group’s chairman recommendation committee already dropped hints regarding the CEO appointment that Shinhan believes following its hierarchy is “stable” for the group, meaning the group’s No. 3 Shinhan Card chief should become the No. 2 Shinhan Bank CEO.
Observers said that they are not sure how the accusation will affect Wi; but they are certain that outgoing Group Chairman Han Dong-woo is not happy about it.
During his tenure, Han, who has been neutral over the dispute, exerted his utmost efforts to contain fallout from the fiasco. Current Bank CEO Cho’s nomination was also attributable to his neutral stance during the fight.
Shinhan Group is trying to distance itself from the accusation. “The civic group’s claim is a revival of an outdated row and we have found that the claims were groundless as the plaintiffs were acquitted by a court,” an official at Shinhan Group said.
“Wi has already gone through verification during the race for group chairman appointment. The question is why the civic group came up with the claims now, stating 'Wi should not be Shinhan Bank CEO,' not 'Wi should take responsibility for illegalities,'” he said.
The group will hold a committee meeting to appoint the new Shinhan Bank CEO this month.