New Nonghyup Financial chief faces union opposition

A former bureaucrat has been appointed the new chairman of Nonghyup Financial Group on Wednesday despite strong opposition from the labor union.

Shin Dong-kyu, who built his career at the Finance Ministry, served as the chairman of the Korea Federation of Banks until November last year.

He worked as the first commissioner of the Korea Financial Intelligence Unit and head of the Korea Export-Import Bank before taking the helm at the KFB in 2008. 

A Nonghyup Financial committee in charge of recommending chairman candidates named Shin the sole nominee on Tuesday after two days of marathon meetings. Shin was appointed at a meeting of shareholders on Wednesday.

Shin was chosen over Lee Chol-hwi, former chief executive of Korea Asset Management Corp., and Kwon Tae-shin, vice chairman of the Presidential Council on National Competitiveness.

Nonghyup’s labor union opposed Shin’s nomination, saying that having an ex-bureaucrat as the chairman would bring about excessive government interference.

“We will not stand and watch a former bureaucrat become the new chairman under government orders,” the union said in a statement on Tuesday, warning that they will try to stop Shin from coming to work.

Yoon Chang-hyun, head of the Korea Institute of Finance and member of the recommendation committee, said Nonghyup needed a heavyweight with strong leadership in order to compete with the nation’s four largest financial groups.

“A person from inside Nonghyup was selected as the first chairman to avoid criticism over government interference, but he quit as he failed to gain full control of the organization,” Yoon said.

Shin Choong-shik offered to resign as chairman of Nonghyup Financial earlier this month, less than 100 days after he took office.

Shin Dong-kyu brushed off the union’s criticism, saying that nearly 10 years have passed since he stopped being a bureaucrat and that he had frequently stood up against the government while heading the KFB.

By Kim So-hyun (sophie@heraldcorp.com)