KB Financial Group will select its next chairman on September 11. With Yang Jong-hee, the current chairman, showing strong performance and a potential for the first annual profit to exceed 6 trillion won, he is favored for reappointment. Meanwhile, Lee Jae-geun, head of KB Financial, and Kwon Kwang-seok, former head of Woori Bank, are in a tight competition.
According to the financial sector on September 10, the KB Financial Chairman Candidate Recommendation Committee will conduct in-depth interviews with three candidates on September 11 and finalize one candidate. The selected candidate will be recommended by the committee and the board of directors on October 2 and is expected to be appointed at a special shareholders' meeting in November.
The committee began the succession process in June and narrowed down the initial six candidates to three by August 27. This process started more than a month earlier than usual and included a three-month evaluation period to ensure thorough candidate verification.
The key points of this selection process are 'performance reappointment,' 'generational change,' and 'external renewal.' Chairman Yang is challenging for reappointment based on his performance and shareholder return achievements. Lee is advocating for generational change through internal succession, while Kwon, as the only external candidate, is positioned as a proponent of organizational renewal.
In the financial sector, Yang's chances of reappointment are considered the highest among the three candidates. He has consistently improved performance without significant management gaps or internal control risks, and he has significantly increased the profit contributions and shareholder returns from non-banking subsidiaries.
Some subsidiaries are reportedly preparing their business plans for next year with Yang's reappointment in mind, reflecting a focus on continuity rather than change in management structure within the group.
Since Yang's appointment, KB Financial's net profit has steadily increased. In 2024, net profit rose by 11.1% year-on-year, surpassing 5 trillion won, and in 2025, it recorded a 16.1% increase to 5.84 trillion won. In the first half of this year, net profit also grew by 13.9% compared to the same period last year, reaching 3.93 trillion won, raising the possibility of exceeding 6 trillion won in annual net profit for the first time.
The increased profit contribution from non-banking subsidiaries is also seen as a significant achievement for Yang. In the first half of this year, non-banking subsidiaries accounted for 44% of KB Financial's total net profit, a 5 percentage point increase from the previous year.
With a stable capital base, shareholder returns have also expanded. KB Financial's total shareholder return increased from 1.746 trillion won in 2023 to 3.058 trillion won in 2025, a 75.1% rise over two years. This year, it is expected to reach 3.7 trillion won, a 21% increase from the previous year.
Lee and Kwon are also competing fiercely, each highlighting their strengths. Lee is a strong internal succession candidate, having held key positions in both KB Financial and KB Kookmin Bank. His experience in both group and bank management is seen as a significant advantage, allowing him to continue the current management strategy while injecting new energy into the organization through generational change.
Kwon, as the only external candidate among the finalists, has accumulated experience across banking and non-banking sectors, having served as the head of Woori Bank and as the representative of Woori Private Equity Asset Management. His ability to reassess the organization and business portfolio from an external perspective is viewed as a potential 'external renewal' advantage.
A financial sector insider noted, "While Kwon may be at a disadvantage in understanding KB Financial's internal circumstances and organization as an external candidate, Lee's extensive experience in both the group and bank is a strength. However, given Yang's solid performance without significant management gaps or risks, he currently appears to have the strongest chance of reappointment."
* This article has been translated by AI.
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