KB Financial Group is accelerating the selection process for its next chairman by narrowing the candidate pool to three. The decision on whether current Chairman Yang Jong-hee will be reappointed is a key focus, especially with the recent initiation of a special tax investigation by the National Tax Service into KB Kookmin Bank, which could serve as a last-minute variable.
According to the financial sector on the 26th, the KB Financial Chairman Candidate Recommendation Committee (CRC) plans to conduct first-round interviews with six candidates on the 27th, reducing the pool to three. The CRC will assess each candidate's management strategies, responses to questions, sustainable growth plans, and leadership qualities.
The candidate list confirmed on July 3 includes four internal candidates: Chairman Yang, Lee Jae-geun and Lee Chang-gwon, both division heads at KB Financial, and Lee Hwan-joo, the president of KB Kookmin Bank. Two external candidates are former Woori Bank President Kwon Kwang-seok and one individual whose identity remains undisclosed at their request.
The CRC will conduct in-depth second-round interviews with the three finalists on September 11 and will finalize one candidate. Following qualification verification and recommendations from the CRC and the board, the new chairman is expected to be appointed at an extraordinary shareholders' meeting in November.
Currently, there is a strong possibility of Chairman Yang's reappointment, bolstered by his current position and the strong performance during his first term. Under his leadership, KB Financial has achieved record profits, exceeding 5 trillion won in net income for two consecutive years. In the first half of this year, the company reported a net income of 3.8846 trillion won, setting a new record for the period. His proactive shareholder return policies, including stock buybacks and cancellations, also support his case for reappointment.
Among the internal candidates, there is interest in who will make the final three, particularly as Lee Hwan-joo leads the core subsidiary, KB Kookmin Bank. Competing with the internal candidates are Kwon Kwang-seok and the undisclosed external candidate.
Initially, the financial authorities' proposed improvements to the governance structure of financial holding companies were considered a major variable, but delays in its announcement suggest it may not directly apply to this succession process. Changes such as limits on reappointment or strengthened voting requirements would require legal amendments, making it difficult to institutionalize before the final candidate selection next month.
Instead, the ongoing irregular tax investigation by the Seoul Regional Tax Office into KB Kookmin Bank has emerged as a new variable. The investigation is expected to continue until the end of the year, making it unlikely that results will be available before the final candidate selection on September 11. Therefore, the CRC's evaluation will likely focus on the initiation of the tax investigation itself and the group's internal controls and management responsibilities of key subsidiaries.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.