KB Financial Group's CEO to bow out after nine-year run

KB Financial Group Chairman Yoon Jong-kyoo will not seek a fourth term at the financial group, bowing out after nine years as the chairman at the financial giant. His term is slated to terminate on Nov. 20.

KB Financial Group Chairman Yoon Jong-kyoo [KB FINANCIAL GROUP]

KB Financial Group Chairman Yoon Jong-kyoo will not seek a fourth term at the financial group, bowing out after nine years as the chairman at the financial giant. His term is slated to terminate on Nov. 20.

“Chairman Yoon submitted his will to the Chairman Recommendation Committee that he will not seek a consecutive term,” the committee said Sunday.

“It is time for the baton to be handed over for KB Financial Group's new future and changes,” Yoon told the committee members last week.

“I hope someone with the capacity to lead sustainable growth at the KB Financial Group so that it can become Asia’s leading financial group, going beyond Korea, will be nominated as the next chairman.”

The committee announced on July 20 that the nomination process for the next CEO of the KB Financial Group has been initiated.

The committee, comprised of seven outside board members, plans to come up with a six-member shortlist Tuesday, followed by interviews to decide the final three. The shortlist will not include Yoon as he stepped out from the race.

After in-depth interviews with the three finalists scheduled for Sept. 8, a final candidate will be selected sometime before the financier's shareholders' meeting scheduled for Nov. 20, where the candidate will be voted upon.

The 68-year-old Yoon has been leading the KB Financial Group for nine years since 2014, extending the term twice.

Yoon, known as an M&A strategist (mergers and acquisition), strived to diversify the financier's business portfolio by acquiring LIG Insurance, Hyundai Securities and Prudential Life Insurance among others.

In 2017, he achieved the group's first 3-trillion-won ($2.3 billion) net profit, followed by 4.4 trillion won and 4.1 trillion won in net in 2021 and 2022.

Compared to 1.4 trillion won in 2014 when he was first inaugurated as the chairman, KB Financial Group's net profit increased by nearly threefold.

"Yoon has been expressing his thoughts to the board members from early this year that it is time to show that [KB Financial Group's] succession system and stable management system have been established and that they function well," said the committee head Kim Kyung-ho on Sunday.

"The transparent, objective and considerate attitude he showed to the board of directors has made an opportunity for KB's governance system to establish its basic structure. It will remain as a good tradition for the future CEO."

Hur Yin, Yang Jong-hee and Lee Dong-cheol, currently vice chairmen of the financial group, are expected to be included in the shortlist, according to industry reports.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]