Korea’s KB Financial Group to name new chairman in September

KB Financial Group headquarters [Courtesy of KB Financial Group]

South Korea’s KB Financial Group Inc. has embarked on the procedure of selecting a new chairman.

KB Financial Group’s Chairman Candidate Recommendation Committee on Thursday approved the qualification requirements for the next chairman and the detailed rules for the nomination process.

The five qualifications for the chairman are work experience and expertise, leadership, integrity, shared group vision and values, and sound management efforts in the short and long term.

The committee will come up with the first shortlist of six candidates on August 8 and the second shortlist of three candidates on August 29. It will interview, evaluate, and vote on three candidates on September 8 before determining the final candidate.

The race for the next chairman is expected to be fierce.

Under the regulation to select a long list of candidates for the next chairman every half a year, the committee has selected 20 candidates this year, including 10 internal and 10 external candidates.

The list is known to include the three vice chairmen of KB Financial Group, a general manager, and a head of a major affiliate that the group has been systematically nurturing under its succession program. There are also external candidates including big financial figures and former government officials.

It is most likely that Chairman Yoon Jong-kyoo, whose term ends in November, will step down and Co-Vice Chairmen Yang Jong-hee, Lee Dong-cheol, and Hur Yin will compete in a three-way race.

The company has been implementing a succession program for a long time and is thus more likely to appoint someone from within the company than from outside.

The three vice chairmen were all born in 1961 but they have distinct personalities.

Yang, who was the first to become a vice chairman, is said to have a strong understanding of the group’s vision and values, having worked closely with Yoon at KB Kookmin Bank and KB Financial Group.

Yang is also considered a finance expert like Yoon as he served as vice president of finance at KB Financial Group. He successfully acquired LIG Insurance Co. as a senior executive in charge of strategic planning at the group and stably led KB Insurance Co. for five years as the first manager from KB Financial Group. He is also good at thinking out of the box while remaining rational.

Lee, meanwhile, has experienced all aspects of the business, having worked in both banking and non-banking sectors including insurance and cards.

He served as vice president of KB Life Insurance Co. and president of KB Kookmin Card Co., where he demonstrated his skills in digital innovation and overseas business. He has a strong background in strategic planning, having served as vice president of strategy at KB Financial Group.

He is known to be a strategist as he led several mergers and acquisitions, including the acquisition of KB Securities Co., formerly known as Hyundai Securities Co. He served as the head of the New York branch when he was a banker and also has a license to practice law in New York State. He is also known to value communication and competence.

Hur, in the meantime, has strength in that he served as head of KB Kookmin Bank for three consecutive terms for the first time.

In 2017, Hur became the first head of KB Kookmin Bank after working at Korea Long-Term Credit Bank. Under his leadership, the bank regained its top position in the market.

Hur is known for being a principled leader and practicing strong ethical management. Some analysts say that it helped KB Kookmin Bank to avoid being involved in the latest private equity fiasco.

He is considered a sales expert as he served as deputy head of the sales group of KB Kookmin Bank and is known for his mild leadership.