Will ex-Shinhan Bank chief help enhance Heungkuk Life's brand image?

By Lee Min-hyung

Heungkuk Life Vice Chairman Wi Sung-ho

Former Shinhan Bank CEO Wi Sung-ho is tasked with recovering the tainted brand image of Heungkuk Life Insurance as the vice chairman of the mid-tier life insurer.

His surprise nomination made headlines in financial circles, as this was the first time that Wi has entered the insurance industry.

He has spent most of his career at Shinhan subsidiaries, such as Shinhan Card and Shinhan Bank, but did not take on posts directly related to insurance.

Of note was that the insurer created the vice chairmanship position for the first time to scout Wi.

The industry believes that Heungkuk is seeking to take advantage of Wi's strong crisis managements skills amid a weakening fundamental outlook for the insurer that is suffering unceasing rumors that it is up for sale due to owner risks.

The ex-leader of Taekwang Group, the parent firm of Heungkuk, is being investigated by the prosecution over allegations of embezzlement. A year-long controversy surrounding the former group Chairman Lee Ho-jin has worsened the corporate image of its key subsidiaries, and Heungkuk Life was no exception.

All eyes are on Wi, whose nickname is “Strategist,” to see if he will be able to come up with novel solutions for the insurer to enhance its brand image.

In 2013, Wi stood at the forefront to push Shinhan Card's digitization as the firm's president. He placed innovation as his key management goal and created a division focusing on big data for the first time in the nation's card industry. He also helped the company steadily enhance earnings during his tenure there.

His expertise lies in strategy-setting and planning, taking on major posts in the areas after he joined Shinhan Bank in 1985.

Wi will not directly engage in management of the insurer, but instead, serve as a consultant for the company to build short- to mid-term strategies.

As vice chairman, he also plans to provide management consultation for not just the insurer, but other affiliates, such as Heungkuk Fire & Marine Insurance and Heungkuk Securities.

“Wi has the expertise to set up corporate strategies, so we expect Wi to help draw up our mid-term direction,” an official from the insurer said.