By Lee Min-hyung
Shinhan Financial Group and KB Financial Group have placed stability over change in their year-end reshuffle of CEOs by making few changes to their current leadership, the nation's two largest financial holding companies said Friday.
This allows all of seven CEOs of KB affiliates ― such as KB Kookmin Card and KB Insurance ― to extend their presidencies in 2020. In November, KB Kookmin Bank CEO Hur Yin also extended his term for one more year in recognition for his success in stabilizing earnings of the group's key affiliate.
The decision comes in response to growing financial market uncertainties amid prolonged low economic growth and low interest rate.
The seven leaders include KB Kookmin Card CEO KB Kookmin Card CEO Lee Dong-cheol, KB Life Insurance CEO Huh Jung-soo and KB Investment CEO Kim Jong-pil.
KB Insurance CEO Yang Jong-hee also extended his term despite the affiliate's weak profit in the third quarter. The non-life insurer posted 67.7 billion won ($58.3 million) in its third-quarter net profit, down 25 percent from the previous quarter due to worsening market conditions.
This can be interpreted as KB's group-wide strategy to focus more on stabilizing its organizational structure in 2020, rather than making drastic changes to tackle economic slowdown and rapid saturation in the local financial industry.
"We placed our focus on nominating figures who can execute verified leadership by generating tangible management outcomes even in an era of local economic slowdown and super-low interest rate," an official from the group's CEO recommendation committee said.
This came a day after Shinhan Financial Group, the largest financial holding firm by market capitalization here, also decided to extend leadership of seven out of eight CEOs of its affiliates.
Of the affiliates, attention were drawn to whether Shinhan Card CEO Lim Young-jin would be able to extend his leadership in 2020, as he already served presidency for three years.
CEOs from Shinhan affiliates generally serve three years in leadership, but the group decided to keep placing him to the post. This was because Lim has achieved stable growth of the card company, while at the same time generating notable outcomes in the firm's overseas business and portfolio diversification.
He also proved his leadership by enhancing competitiveness of the non-banking sector, and enabled the company to solidify its leading position in the industry, according to Shinhan.
"We extended terms of the CEOs whose management capabilities have been proven," an official from Shinhan said.
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| Shinhan Card CEO Lim Young-jin |
This allows all of seven CEOs of KB affiliates ― such as KB Kookmin Card and KB Insurance ― to extend their presidencies in 2020. In November, KB Kookmin Bank CEO Hur Yin also extended his term for one more year in recognition for his success in stabilizing earnings of the group's key affiliate.
The decision comes in response to growing financial market uncertainties amid prolonged low economic growth and low interest rate.
The seven leaders include KB Kookmin Card CEO KB Kookmin Card CEO Lee Dong-cheol, KB Life Insurance CEO Huh Jung-soo and KB Investment CEO Kim Jong-pil.
KB Insurance CEO Yang Jong-hee also extended his term despite the affiliate's weak profit in the third quarter. The non-life insurer posted 67.7 billion won ($58.3 million) in its third-quarter net profit, down 25 percent from the previous quarter due to worsening market conditions.
 |
| KB Insurance CEO Yang Jong-hee |
"We placed our focus on nominating figures who can execute verified leadership by generating tangible management outcomes even in an era of local economic slowdown and super-low interest rate," an official from the group's CEO recommendation committee said.
This came a day after Shinhan Financial Group, the largest financial holding firm by market capitalization here, also decided to extend leadership of seven out of eight CEOs of its affiliates.
Of the affiliates, attention were drawn to whether Shinhan Card CEO Lim Young-jin would be able to extend his leadership in 2020, as he already served presidency for three years.
CEOs from Shinhan affiliates generally serve three years in leadership, but the group decided to keep placing him to the post. This was because Lim has achieved stable growth of the card company, while at the same time generating notable outcomes in the firm's overseas business and portfolio diversification.
He also proved his leadership by enhancing competitiveness of the non-banking sector, and enabled the company to solidify its leading position in the industry, according to Shinhan.
"We extended terms of the CEOs whose management capabilities have been proven," an official from Shinhan said.
