Chairman Oh Hwa-gyeong of the Savings Bank Association has successfully been re-elected.
The Chairman Recommendation Committee of the Savings Bank Association held a regular general meeting on the 31st at the Bank Hall's Bankers Club on the 16th floor in Jung-gu, Seoul, and announced that it elected current Chairman Oh Hwa-gyeong as the 20th chairman of the association. Representatives from 79 savings banks nationwide participated in the vote, with each person casting one vote, and the re-election was confirmed with more than two-thirds approval from the members present. Chairman Oh's second term begins on this day and will last for three years.
Chairman Oh's re-election was essentially a foregone conclusion. Initially, it was expected that the election would be a two-way race against Jeong Jin-su, the former CEO of Sangsangin Plus Savings Bank, but following Jeong's announcement of his voluntary withdrawal from the race on the 24th, Chairman Oh was recommended as the sole candidate by the committee and smoothly garnered re-approval.
A notable achievement during his first term was the relaxation of merger and acquisition (M&A) regulations. In 2023, regulations allowing savings banks outside the metropolitan area to expand their business zones to a maximum of four locations were eased. This month, the M&A regulations for savings banks in the metropolitan area were also relaxed, raising expectations for a broad restructuring across the industry.
A key challenge for his second term is addressing the issues surrounding real estate project financing (PF). PF has been pointed to as a major cause of the deterioration of savings banks' soundness, but some savings banks remain reluctant to sell distressed PF assets. In January, a PF sales platform involving savings banks, non-life insurance companies, and community credit cooperatives was launched under the leadership of the Financial Supervisory Service, but ensuring its effectiveness remains a challenge.
Adjusting deposit insurance premium rates has also emerged as a significant challenge. The deposit insurance premium rate refers to the percentage of the premiums paid by financial companies to the Korea Deposit Insurance Corporation when accepting deposits. Savings banks bear the highest deposit insurance rate of 0.40% among financial institutions, prompting the industry to consistently demand relief.
Chairman Oh Hwa-gyeong was born in 1960 and graduated from the School of Business at Sungkyunkwan University and the Graduate School of Business at Korea University. He entered the financial sector in 1989 as an industrial analysis analyst at Seoul Securities and gained international finance experience through roles such as executive director at HSBC Korea and vice president of the HSBC China Korea desk. He then served as CEO of Ajou Capital and Ajou Savings Bank, as well as CEO of Hana Savings Bank, accumulating management skills across the industry. In 2022, he was appointed chairman of the Savings Bank Association, a rare achievement for someone from the private sector.
A representative from a savings bank said, "Chairman Oh is a private sector figure well-acquainted with the industry and enjoys considerable internal trust," but added, "However, after re-election, it will be necessary to demonstrate leadership that decisively addresses structural challenges such as regulatory improvements and soundness issues."