Shinhan Bank's CEO Selection Stalls After Third Meeting

Shinhan Bank's search for a new CEO has failed to yield results after its third meeting. The competition appears to be ongoing between the current CEO and Lee Hyung-joo, head of the Financial Intelligence Unit (FIU).

The CEO Recommendation Committee held its third meeting on October 26 but did not finalize a candidate. A bank official stated, "There was no candidate who received the agreement of four or more committee members, so we plan to reconvene later." However, the date for the next meeting has not yet been set.

The committee consists of five members: three recommended by the Ministry of Economy and Finance, the Financial Services Commission, and the Ministry of Oceans and Fisheries, along with two recommended by the National Federation of Fisheries Cooperatives. To be nominated as a final candidate, a candidate must receive the agreement of at least four members.

In the first meeting on September 22 and the second meeting on October 6, the current CEO received three votes while Lee received two, resulting in no conclusion. Specific voting results from the latest meeting were not disclosed. The current CEO's term expires on November 17, and the bank has not yet decided whether to reopen the application process.

Meanwhile, Shinhan Bank is reviewing whether to contest a fine of 1 billion won imposed by the FIU in March. The FIU determined that the bank failed to properly verify the addresses and identities of 86 customers when opening new accounts in 2021. Financial institutions are required by law to confirm the identity and address of customers to prevent money laundering.

Some speculate that Lee's candidacy for the CEO position and the bank's review of the fine may be an attempt to create a favorable situation for the current CEO's reappointment.

However, the bank clarified that the review of the fine is a separate matter from the CEO selection process. A bank official noted, "I understand that other banks facing similar sanctions are currently in litigation, and we plan to decide on legal action after monitoring the progress of related lawsuits by other companies."