Credit Finance Association Starts Search for Next Chair as Candidate Field Shifts

The Credit Finance Association has begun the process of selecting its next chair, seven months after the term of Chair Jeong Wan-gyu ended, prompting a reshuffling of potential candidates. With profitability squeezed by merchant fee regulations and pressure to expand new businesses, the card industry says it needs a leader who understands the sector and can communicate effectively with regulators.

According to the financial sector on the 21st, the association plans to hold a meeting later this month with its 15 board member companies to discuss forming a chair nomination committee. The association aims to complete the committee’s formation by early next month and then launch a full recruitment process.

Because the selection typically takes about six weeks from recruiting candidates to appointment, the next chair is expected to be chosen in June. However, if the candidate is a public official, the timeline could slip to July due to a required public service ethics review. The association has remained under an acting leadership structure for more than seven months as the appointment has been delayed since Jeong’s term ended.

As the nomination committee comes into view, the candidate field is also shifting. Among private-sector contenders, Woo Sang-hyun, a vice president at BC Card, and Kim Sang-bong, a professor of economics at Hansung University, have been confirmed as intending to run.

Woo has worked at BC Card as well as Hyundai Card and Hyundai Capital, and also has experience at the Ministry of Finance and Economy and the Financial Services Commission, giving him both public- and private-sector credentials. He is reported to have retired from BC Card at the end of last month.

Kim has served for more than six years as an adviser to the association and has worked at Shinhan Card, and is seen as having strong industry knowledge. He also signaled his intention to run last year. He plans to begin campaign preparations in early next month, promoting a plan to diversify revenue through overseas expansion and increased investment.

Among government-linked candidates, Seo Tae-jong, a head of the Korea Banking Institute, and Kim Geun-ik, a head of the Korea Exchange’s Market Surveillance Committee, have been mentioned, but no notable moves have been detected since late last year.

Industry officials say a government-linked appointment is again seen as likely. Of the six chairs appointed since 2010, only one, Kim Deok-su, came from the private sector. Kim previously served as CEO of KB Kookmin Card. A card industry official said, “We need someone who can strongly represent card companies’ positions while maintaining a smooth relationship with regulators,” adding, “We need someone who communicates well with the authorities.”