Four Major Bank Leaders Face Term Expiration at Year-End

Four major bank leaders will see their terms expire at the end of this year. Despite achieving record performances, the restructuring of governance by financial authorities and the potential for reappointments are seen as key variables.

According to the financial sector on June 23, the terms of Lee Hwan-joo, CEO of Kookmin Bank; Jeong Sang-hyeok, CEO of Shinhan Bank; Lee Ho-seong, CEO of Hana Bank; and Jeong Jin-wan, CEO of Woori Bank, will all end simultaneously at year’s end.

Except for Jeong, who successfully secured a reappointment in December 2024, the others are completing their first terms. The CEO recommendation committee for the four major banks is expected to begin its selection process in September.

Lee Hwan-joo has been serving since 2025 and can extend his term by an additional year based on performance evaluations. Kookmin Bank continues to achieve record profits, making his reappointment likely. Net profit rose from 3.25 trillion won in 2024 to 3.86 trillion won last year, an 18.8% increase. In the first quarter of this year, net profit reached 1.1 trillion won, marking a 7.3% year-on-year increase and setting a new record.

The reappointment of Yang Jong-hee, chairman of KB Financial Group, could also influence the selection of the next bank leaders. Typically, when a holding company chairman is replaced, it often leads to changes in key management positions, including bank CEOs.

Jeong has been in his role since 2023 for a four-year term. He has received positive evaluations for leading the bank to reclaim its status as a leading bank in the first quarter. Net profit increased from 3.69 trillion won in 2024 to 3.78 trillion won last year. Given the history of long tenures by previous CEOs, such as Ra Eung-chan (eight years) and Shin Sang-hoon (six years), there is speculation about his chances for reappointment. However, financial authorities have pointed out the need for organizational renewal due to long tenures, suggesting a potential for change.

Lee Ho-seong has also received positive evaluations based on performance. However, his reappointment is uncertain based on past precedents. Former CEO Lee Seung-yeol transitioned to vice chairman after a two-year term, while Park Sung-ho and Ji Sung-kyu completed their terms without reappointment. Thus, Lee Ho-seong's future will likely hinge on strategic decisions at the holding company level.

Jeong Jin-wan, who has completed a two-year term, may also seek an additional year. However, as the only one among the four major banks to see declining performance, his reappointment appears uncertain. Due to a reduction in small business loans this year caused by the push to eliminate non-performing companies, he has faced internal pushback for not presenting clear solutions. Consequently, he has urged employees to cut selling and management costs, signaling his intent to pursue reappointment.

The biggest variable remains the restructuring of governance by financial authorities. Authorities believe that merely enhancing the transparency of the chairman selection process is insufficient and that a comprehensive improvement of the CEO succession system across affiliates is necessary. A financial sector insider stated, "The atmosphere around appointments could change significantly depending on what kind of reform proposals the authorities present."