KB Life Insurance Lee Hwan-ju / Courtesy of KB Financial Group
The CEO recommendation committee of KB Financial Group recommended KB Life Insurance CEO Lee Hwan-ju as the next CEO of KB Kookmin Bank, the group said Wednesday.
Lee's strong leadership is expected to bolster the bank's stability, as demonstrated by the successful integration of Prudential Life and KB Life, the group said.
The candidate is expected to continue efforts to expand the bank's global presence, underpinned by effective internal controls and a reorientation of corporate culture to establish a clearer communication process. Also strengthened will be customer-focused strategies, backed by bold execution.
“Lee has a strong track record of exploring new markets,” the group said. “He will drive a robust growth in a stable manner, while bolstering overall organizational efficiency, thereby fortifying corporate and shareholder value.”
Lee is the first candidate without prior experience at the bank, a decision that KB Financial considers optimal for maximizing the synergistic growth of both its banking and non-banking businesses.
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“The financial conditions have been and will continue to be challenging, as illustrated by dwindling net interest margin (NIM), compounded further by heightened global market volatility. His leadership with a strong focus on growth will greatly benefit the bank.”
The appointment will be finalized at a shareholders' meeting after the bank conducts interviews with him. Lee's term is set to begin in January of next year.
He will succeed the current CEO, Lee Jae-keun, who has led the robust growth of the banking subsidiary since his term began in 2022.
The group plans to discuss the term extensions for the CEOs of its brokerage, card, and digital subsidiaries in mid-December.
KB Financial Group reported a record-high net income of 1.61 trillion won ($1.22 billion) in the third quarter, up 17.9 percent from a year earlier.
The figure for the first nine months reached 4.39 trillion won.
KB Kookmin Bank's net income for the first nine months of this year came to 2.61 trillion. The year-on-year drop of 8.3 percent was ascribed to 8.62 trillion won in ELS loss compensation in the first three months of this year.
However, net profit for the third quarter rebounded to 1.11 trillion won, marking an 11.5 percent increase from the previous year and solidifying its status as the country's top lender in terms of net income.