In the market, the board-approved shift by NH Investment & Securities to a dual-CEO system is largely seen as a move to secure a channel for the National Agricultural Cooperative Federation to intervene in appointments.
The change, which passed the board on the 24th, touted "responsible management" for core business segments, but in reality is interpreted as a gambit to split investment banking (IB) and wealth management (WM) and seat appointees to the central federation's liking.
Accordingly, the IB institutional sector will remain under current CEO Yun Byung-woon, while a new CEO will be appointed to the WM institutional sector, shifting to a bifurcated structure.
Inside NH Investment & Securities, there is virtually no disagreement over CEO Yun Byung-woon's leadership, which drove a record first-quarter performance. Even so, the National Agricultural Cooperative Federation's decision to split the top job under the banner of "responsible management" is seen as an attempt to check Yun's dominance and exert direct influence. The National Agricultural Cooperative Federation effectively controls NH Investment & Securities as a grandchild company through NongHyup Financial Group, in which it holds 58.15% equity.
In fact, Kang Ho-dong, head of the National Agricultural Cooperative Federation, sparked conflict by pushing to install a closest aide with no securities industry experience as CEO immediately after taking office in March. At the time, Lee Seok-jun, then chairman of NongHyup Financial Group, blocked the move by stressing expertise and independence, but ultimately failed to win another term and stepped down, and even the Financial Supervisory Service issued an unusual warning over the central federation's intervention in personnel.
An IB industry official said, "The shift by NH Investment & Securities to a dual-CEO system amounts to a compromise in a situation where the results under CEO Yun cannot be denied," adding, "It seeks to enforce the central federation's appointment authority without completely undermining NH Investment & Securities' management independence."
Among those mentioned as strong candidates before the dual-CEO revamp are former executive director Bae Kyung-joo, who oversaw asset management strategy, and former executive director Kwon Sun-ho of the OCIO business division. Bae, a former member of Kang Ho-dong's campaign team, is viewed as a quintessential pro-central federation figure. Notably, Bae previously received heavy disciplinary action in connection with the Optimus scandal.
Former executive director Kwon Sun-ho, an internal veteran at NH Investment & Securities whose performance has been recognized, was also cited, but some noted this may simply be a token pick to fend off pressure from the National Agricultural Cooperative Federation.
A senior executive in the securities industry said, "If the National Agricultural Cooperative Federation's excessive intervention continues, NH Investment & Securities will not be able to avoid criticism that the trust and expertise it has built in the market could be shaken."
An NH Investment & Securities official said, "We will reconstitute an ad hoc candidate recommendation committee to draw up a list of dual-CEO candidates," adding, "Whether CEO Yun will serve another term and the other pool of CEO candidates have not yet been finalized."