Financial sector braces for major leadership shake-up this year

Shinhan Financial Group Chairman Jin Ok-dong, left, and Woori Financial Group Chairman Yim Jong-yong / Courtesy of Shinhan Financial and Woori Financial

An unprecedented wave of leadership changes is expected in Korea's financial sector in the second half of this year, industry officials said Tuesday, as the new government administration takes office.

The terms of key figures — including Shinhan Financial Group Chairman Jin Ok-dong, Woori Financial Group Chairman Yim Jong-yong, the heads of the three major state-run banks and CEOs of other state-owned financial institutions — are all set to expire.

Jin and Yim are both expected to complete their first terms next March. Their reappointment prospects will likely be decided toward the end of the year by their respective groups' recommendation committees.

Industry observers view their chances of renewal positively, citing strong group performance and favorable evaluations.

Jin has been credited with advancing the government's Corporate Value-Up Program and accelerating the group's transition to artificial intelligence. During his tenure, Yim spearheaded the successful acquisitions of Tongyang Life Insurance and ABL Life Insurance, strengthening Woori's nonbanking sector.

The heads of all three major state-run banks are expected to be replaced in succession.

Export-Import Bank of Korea Chairman Yoon Hee-sung, the first internal appointee of the bank since its founding, is set to step down at the end of this month after completing his full three-year term. The position is appointed by the president upon the recommendation of the minister of economy and finance.

The top leadership position at the Korea Development Bank is currently vacant, as former Chairman Kang Seog-hoon stepped down last month. The chairman is appointed by the president upon the recommendation of the Financial Services Commission (FSC) chairman.

The appointment is facing delays as President Lee Jae Myung's efforts to restructure financial authorities have postponed the appointment of a new FSC chairman. Typically, once the leadership of financial authorities is determined, the heads of state-run banks are subsequently named.

The president is currently considering transferring some policy functions from financial authorities to the Ministry of Economy and Finance, a move that is taking time due to the complexity of the issue and internal resistance.

"No potential candidates have even been floated," an industry official said. "There is significant uncertainty around how the financial supervisory framework will be reshaped. It's possible that leadership appointments will unfold in ways that defy any prediction."

More complications are likely to follow in the coming months.

Industrial Bank of Korea President Kim Sung-tae is set to step down in January, and the selection process for his replacement is expected to start at the end of this year. Again, the authority to nominate a candidate rests with the FSC chairman.

The heads of two public financial companies, the Korea Credit Guarantee Fund and Korea Deposit Insurance Corporation, are also nearing the end of their terms. While Korea Inclusive Finance Agency President Lee Jae-youn completed his three-year term in January, he continues to serve as no successor has been appointed.

The terms of several key industry association leaders are approaching their end as well. Credit Finance Association Chairman Chung Wan-kyu will complete his term in October, and Korea Financial Investment Association Chairman Seo Yoo-seok will step down in December.

Industry officials said these leadership transitions are unfolding at a pivotal time when the industry is expected to play a bigger role under the new administration.

State-owned banks are channeling government support into exports and advanced industries. Commercial and public financial institutions are working to alleviate the public burden through interest relief and loan extensions.

"Appointments for not only top positions but also senior executives have been widely delayed," another industry official said. "As the government pushes new business initiatives, strong leadership will be pivotal in building momentum."