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| The K bank head office in Seoul / Courtesy of K bank |
By Jhoo Dong-chan
K bank, one of the nation's two internet-only banks, is seeking to appoint a new CEO as the bank's incumbent CEO and President Shim Sung-hoon's term ends next month.
According to industry sources, K bank convened the candidate recommendation committee for the bank's next CEO Wednesday. The committee is a subgroup of the bank's board that recommends the firm's executives and outside directors.
Under K bank's management terms and conditions, it should initiate the CEO succession process at least 30 days prior to the end of incumbent CEO's three-year term. Shim's term ends on Sept. 23.
The five-member committee has already nominated seven men, including Shim, as its first candidate group. The bank's interest groups, including its stakeholders and outside consulting agencies, can also recommend candidates for the second candidate group.
The committee then carries out various screenings, including a shortlist interview, to single out one final candidate to report to the bank's board members.
Sources said Shim's reappointment is very unlikely since the internet-only bank suffered a series of setbacks in recapitalization over the past three years. Due to lack of its cash reserve, the bank has also experienced difficulties in its loan businesses.
"Shim was first appointed to the post because he was from KT. The internet-only bank's stakeholders expected Shim to lead the firm's fintech innovation, but what really matters now is to secure financial soundness for its smooth loan businesses," said an industry observer who asked not to be named.
"If the bank manages to attract investors through a massive recapitalization in the near future, Shim would serve the consecutive term, but this is highly unlikely considering his remaining term."
In April, the Financial Services Commission announced its decision to halt the review of KT's plan to raise its stake in internet-only K bank due to an ongoing anti-trust inspection into the mobile carrier.
KT sought to raise its stake in the internet-only bank to 34 percent as a related law came into force in January. The mobile carrier's plan hit a snag after the Fair Trade Commission started investigating K bank over a possible antitrust law violation.
Under a related act regarding internet-only banks, major shareholders should not have been found guilty of violating financial laws, including antitrust and tax laws, in the previous five years.





































