Woori Bank CEO Cho Byung-kyu attends a meeting between the governor of the Financial Supervisory Service and bank CEOs at the Korea Federation of Banks building in Seoul, Sept. 10. Korea Times file
With the terms of major bank CEOs set to expire at the end of this year, all eyes are on what lies ahead for them.
Woori Bank and NH NongHyup Bank are both expected to see leadership changes. The former is under investigation by prosecutors over suspicions of inappropriate loans extended to relatives of the former chairman of Woori Financial Group, Sohn Tae-seung, while the latter has been linked to six financial crimes this year alone.
According to industry sources on Monday, Woori Financial Group's board of directors expressed Friday that it would be difficult for CEO Cho Byung-kyu, who has led the bank since July last year, to extend his term.
While the bank has received positive evaluations for its performance, with its third-quarter net profit increasing by 10.2 percent from a year earlier, the investigation involving Cho appears to have impacted the prospects of his reappointment.
Cho has been under investigation on allegations of delaying reporting to financial authorities despite being aware of the inappropriate loans.
The candidate for the bank's next CEO is expected to be announced at the end of this month.
NH NongHyup Bank CEO Lee Seok-yong speaks during a climate technology fund establishment agreement ceremony at the Korea Federation of Banks building in Seoul, April 30. Yonhap
NH NongHyup Bank CEO Lee Seok-yong, who has completed his first two-year term, may also be replaced.
Reappointment of the CEO is uncommon at NH NongHyup Bank, and the series of embezzlement, breach of trust and other financial crimes that occurred this year are likely to weigh on Lee's chances.
NH NongHyup Bank plans to announce the pool of candidates for its next CEO after mid-December.
On the other hand, the CEOs of KB Kookmin, Shinhan and Hana banks are expected to have their terms extended.
Kookmin Bank CEO Lee Jae-keun, who took office in January 2022, has completed his initial two-year term and secured a one-year extension.
KB Financial Group plans to hold an affiliate CEO candidate recommendation committee meeting on Wednesday to announce the candidate for the bank's next CEO.
Similarly, Shinhan Bank CEO Jung Sang-hyuk, completing his first term after taking office in February last year, is also expected to be reappointed under the general two-plus-one-year CEO tenure policy.
Hana Bank CEO Lee Seung-lyul, who assumed office in January last year, is also expected to be reappointed. This expectation is driven by the bank's achievement of the highest net profit in the banking sector during his first year and its record-breaking earnings again this year.
Shinhan Financial Group and Hana Financial Group plan to announce their CEO candidates mid-December.