From left to right: Candidate Lee Hwan-joo for KB Kookmin Bank CEO, Jeong Sang-hyeok for Shinhan Bank CEO, Candidate Lee Ho-sung for Hana Bank CEO, Candidate Jeong Jin-wan for Woori Bank CEO. /Courtesy of each company

As Lee Ho-sung, CEO of Hana Card, was selected as the candidate for the presidency of Hana Bank, three out of the four major banks (KB Kookmin, Shinhan, Hana, and Woori Bank) have replaced their leaders with new faces this year. In the financial industry, the keyword that traverses the heads of the four major banks is assessed as 'sales expert.' While there were expectations that banks would focus on risk management in their next presidential selection, it seems they plan to further drive organizational reform amid increasingly difficult management conditions.

According to the financial sector on the 13th, the selection of new heads for the four major banks was finalized on the 12th with the presidential selection of Hana Bank. All four bank presidents, including the reappointed Jeong Sang-hyeok of Shinhan Bank, are regarded as 'sales experts.' This appears to be viewed as a decision made to respond to the uncertain financial environment, according to industry evaluations.

Hana Financial Group is being evaluated for ordering changes in the organization by replacing Lee Ho-sung, the CEO of Hana Bank, a core affiliate of the group. Candidate Lee Ho-sung for the presidency of Hana Bank is a sales expert who has experience in various frontline sales roles, including Head of the Gangnam and Seocho Sales Division, Head of the Central Sales Group, and Head of the Sales Group since 2021. He has received high marks for enhancing sales capability and revenue with the 'Travelogue' card.

Lee Hwan-joo, CEO of KB Life, has been recommended as the new candidate for the presidency of KB Kookmin Bank. He has extensive experience across key areas, including finance, strategy, and sales. Serving as Vice President of the Bank Management Planning Group since 2020 and Chief Financial Officer (CFO) of the holding company since 2021, he is known as the 'financial expert' within the group, but he was also recognized as a sales expert while serving as the Head of Sales Planning.

The Woori Bank subsidiary CEO recommendation committee has recommended Jeong Jin-wan, the current Vice President of the Small and Medium Enterprises (SME) Group, as a candidate. Jeong is also noted as a sales expert. In the financial sector, Jeong Jin-wan and Yoo Do-hyun, the Vice President of Woori Bank's Management Planning Group, were seen as closer candidates for the future presidency, but the selection of Jeong, a sales expert, over Yoo, who is seen as an 'administrative expert,' symbolizes a strong commitment to enhancing sales capability and renewal.

A view of a loan window at a bank in Seoul. /Courtesy of News1

A source from a commercial bank noted, 'Essentially, banks are sales organizations, so it's difficult to appoint someone lacking sales capability as a bank president. However, due to recent regulatory pressures, there are challenges in expanding assets as desired in lending, making it a critical issue of how to operate sales efficiently.' They added, 'It's true that achieving record high performance this year or last year will be difficult in 2025, so it's a moment that calls for significant change and strong driving force.'

Reappointed Jeong Sang-hyeok of Shinhan Bank is also a sales expert. Having served as a branch manager for 11 years from 2008 to 2018, he has been recognized for his skills in field sales, winning awards 28 times. He is optimizing performance by placing outstanding sales leaders throughout the organization.

There is also an assessment that the broad trend of increasing uncertainty in next year's market conditions cannot be overlooked. Considering the Bank of Korea's interest rate cut and the expectation of continued easing of tightening next year, a decline in revenue seems unavoidable. The average net interest margin (NIM) for the five major commercial banks in the third quarter of this year was 1.57%, down 0.07 percentage points from the previous quarter (1.64%), prompting concerns that performance pressure is already intensifying.

Another source in the banking sector remarked, 'Basically, banks are sales organizations, so they do not appoint those lacking sales potential as presidents, but with recent pressures from regulators, it is difficult to expand assets as desired in lending. Thus, how to operate sales efficiently has become the key focus.' They added, 'Achieving record high performance this year and last year will be difficult in 2025, so the need for substantial change is recognized, adding that strong driving force is vital.'