Nearly four months have passed since the term of Jeong Wan-gyu, head of the Credit Finance Association, expired, but even the schedule to elect a successor has yet to be set. The Credit Finance Association has typically appointed former bureaucrats to the post, and there is speculation the association is delaying the selection process while waiting for a parachute appointment (a person brought in through connections rather than merit).
According to the financial industry on the 3rd, the Credit Finance Association has not yet finalized the schedules for the board auditor, member directors, or the Chairman Candidate Recommendation Committee to elect the next head. The auditor and member directors refer to the heads of the eight card companies and seven capital companies that are member firms of the association. Typically, the recommendation committee proceeds with all 15 company heads present. Jeong Wan-gyu's term expired on Oct. 5 last year, but under the association's bylaws it is extended until a successor is elected.
The association typically forms the recommendation committee one to two months before the chair's term ends. There have been cases in the past where the chair's term was extended as the selection of a successor was delayed, but it was not as long as this time. In 2013, the 10th chair, Kim Geun-su, was appointed two months after the 9th chair, Lee Du-hyeong, finished the term. Jeong took office four months after former chair Kim Joo-hyun's term ended.
Recently, parachute appointments have been made one after another in the financial sector. Last month, the Korea Deposit Insurance Corporation (KDIC) appointed attorney Kim Sung-sik, a bar exam cohort (28th) of President Lee Jae-myung, as its new president. The Credit Information Association last month appointed former Democratic Party of Korea lawmaker Yun Young-deok as the 6th head of the association.
In the industry, some say the association is unable to proceed with the process of selecting the next chair because it is watching the government's mood. To ensure smooth communication with the financial authorities, the association has mostly chosen former bureaucrats as chairs.
The credit finance industry faces a stack of pending issues, including household loan regulations, expansion of shared-growth finance, and stronger security. In July, a duty structure will be fully implemented, making responses to internal controls an urgent task. A financial industry official said, "Member firms are watching the administration and have not begun the process of selecting the next chair. With so many issues pending, the association needs to quickly elect a chair who can represent the industry's position."