President Lee Jae-myung criticized the practice of bank holding company chairs serving consecutive terms, saying it creates a "corrupt inner circle where a few take turns exercising control," but with Yim Jong-ryong of Woori Financial Group locking in another term, all major bank holding company chairs whose terms were set to expire under the Lee Jae-myung administration have secured extensions. In the past, leadership at bank holding companies often changed when a new administration took office, but analysts say the Lee administration is not yet in a position to intervene in top executive (CEO) appointments at financial firms.
According to the financial sector on the 30th, Jin Ok-dong, chair of Shinhan Financial Group, Yim Jong-ryong, and Bin Dae-in, chair of BNK Financial Group, all won new terms. In the past, when administrations changed, bank holding company chairs were often replaced. Right after the launch of the Yoon Suk-yeol administration, former Shinhan Financial Group Chair Cho Yong-byeong and former Woori Financial Group Chair Sohn Tae-seung, both seen as strong candidates for another term, stepped down, and former KB Financial Group Chair Yoon Jong-kyu also gave up a fourth consecutive term.
At the time, some officials in the presidential office were said to have shown strong interest in CEO appointments at bank holding companies. Lee Bok-hyun, former head of the Financial Supervisory Service and known as a close aide to former President Yoon, also reflected the presidential office's intent by publicly expressing opposition to the extension of a specific bank holding company chair's term.
By contrast, under the Lee Jae-myung administration, the senior secretary for growth economy (formerly the senior secretary for economy and finance), who conveys the Blue House's views to private financial firms, has been vacant for an extended period, making it structurally difficult to relay the Blue House's position to the industry, according to analysis within the financial sector. Although Financial Supervisory Service (FSS) Governor Lee Chan-jin, a close aide to the president, is zeroing in on bank holding company chairs' "self-extensions," it is not seen as involvement at the Blue House level.
A senior official in the financial sector said, "In the past, presidential aides have been deeply involved in CEO appointments at financial firms, but under the Lee Jae-myung administration, that is not the atmosphere yet."
With local elections next year, changes in financial firm leadership could disrupt the administration's core pledges such as growth finance and inclusive finance, a factor seen as part of the calculus. The four major bank holding companies — KB, Shinhan, Hana, and Woori — are pursuing an expansion of productive and inclusive finance in line with government policy. The four have pledged to invest 400 trillion won over five years in these areas, but leadership changes could delay the timeline.
Within the financial sector, attention is turning to KB Financial, which will choose its next chair in Nov. next year. While many see strong odds for another term, a wildcard is the financial authorities' push to overhaul governance to prevent CEOs from extending their own terms.
The financial sector warns that if government control intensifies, it could foster a culture of political favoritism within financial firms and fuel foreign investors' distrust of Korea's financial industry. Overseas institutional investors are major shareholders of domestic bank holding companies. If financial firms focus only on reading the administration's mood and lose growth momentum, it could hurt the real economy.
Kim Dae-jong, a professor in the business administration department at Sejong University, said, "Only by building a cooperative partnership — not an adversarial relationship — between the government and banks can truly inclusive finance be realized."