NH Investment & Securities has confirmed a new co-representative leadership structure featuring younger executives from within the company, following a prolonged vacancy and internal disputes regarding the next CEO. Amid speculation about potential interference from the National Agricultural Cooperative Federation (NACF) and conflicts over the appointment process, the decision to promote from within is seen as a move to ensure organizational stability and continuity in management.
According to the financial investment industry on June 11, the NH Investment & Securities Executive Candidate Recommendation Committee held a meeting in Seoul late into the evening and finalized two candidates for the co-representative positions. Shin Jae-wook, head of the Real Estate Infrastructure Division (Executive Director, born in 1970), was selected for the investment banking (IB) sector, while Bae Kwang-soo, head of the Wealth Management (WM) Division (Senior Director, born in 1972), was chosen for the asset management sector.
Shin was promoted to head the IB2 Division last December, overseeing real estate and infrastructure projects, while Bae has led the WM Division since last December. The exclusion of current CEO Yoon Byeong-woon (born in 1967) from the next appointment suggests a shift toward a younger internal leadership.
Market observers had speculated that NACF's influence could affect the selection process, but the final choice of internal candidates has been praised for securing organizational stability and continuity in management.
The process of appointing a new CEO at NH Investment & Securities has faced challenges for several months. After restructuring the recommendation committee in mid-May, the company held its third meeting by June 2 without finalizing a candidate.
Tensions escalated on June 5 when Lee Chang-mok, a leading candidate for the WM sector, was dismissed from his position as head of the OCIO Division (Executive Director). This dismissal was reportedly linked to the company's failure to secure a contract for the Housing and Urban Fund's external management, losing out to Mirae Asset Global Investments and KB Securities.
The Housing and Urban Fund is considered a key public fund for securities firms' OCIO operations, alongside other significant funds managed by the Ministry of Economy and Finance and the Ministry of Employment and Labor. NH Investment & Securities has managed this fund since 2018, with an asset size of approximately 14 trillion won as of the end of last year.
However, some in the financial investment sector interpret the internal power struggles surrounding the CEO selection as influential in the process. Lee reportedly raised concerns with the recommendation committee regarding governance issues related to the appointment of the next representative.
The changes in the candidate pool are also believed to be influenced by the NACF's reform agenda. Earlier, the NACF Reform Committee adopted a recommendation for reform on March 24 aimed at restoring trust among farmers and the public. Following this, the recommendation committee reflected these suggestions by excluding candidates who had retired within the past year, leading to the removal of several previously mentioned external candidates.
Yoon Byeong-woon's term expired on March 1, but he has continued to serve as CEO due to delays in appointing a successor. NH Investment & Securities announced in March that it would not present a CEO appointment proposal at the regular shareholders' meeting and would instead discuss restructuring management. On April 24, the board of directors decided to transition from a single CEO structure to a co-representative system dividing IB and WM responsibilities.
With the selection of co-representative candidates, the prolonged CEO vacancy appears to be nearing resolution. The final appointment process and subsequent executive appointments are expected to follow, drawing market attention to whether the new leadership structure will enhance organizational stability and business competitiveness.
An extraordinary shareholders' meeting for NH Investment & Securities is scheduled for June 26.
* This article has been translated by AI.
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