Chairman could oversee Hana’s emergence as Korea’s No. 1 financial groupHana Financial Group plans to select the successor to incumbent chairman Kim Seung-yu, whose term expires in late March, in the coming days.
The new chairman will be the second figure to head Hana Financial since Kim took on the top post in 2005.
Further, Kim’s successor will take on the role of integrating different corporate culture of Hana Bank and Korea Exchange Bank, which was acquired by the group this month, over the next few years.
According to Hana spokespeople, the group will pick one out of three or four candidates before March.
The single candidate will be appointed to the top post via board of director and shareholder meetings next month, they said.
Hana Bank CEO Kim Jung-tae has been mentioned as a powerful candidate. He has been working for the commercial bank for 20 years since its foundation in 1992.
After serving as an executive vice president of Hana Financial Group between 2005 and 2006, he took the post of CEO of Hana Daetoo Securities between 2006 and 2008.
Born in Busan in 1952, he graduated from Sungkyunkwan University before starting his career as a banker at Seoul Bank and Shinhan Bank.
Other candidates reportedly included Chin Dong-soo, a former chairman of the Financial Services Commission, and Chin Young-wook, CEO of the Korea Finance Corp.
The coming chairman ― during his three-year term or more if extended ― may be able to see Hana Financial become the nation’s largest financial group.
Hana Financial, which had ranked fourth in total assets, recently became the second-largest financial group by taking over Korea Exchange Bank.
At the end of 2011, Woori Financial is the nation’s No. 1 with its assets reach 394.8 trillion won ($346.3 billion), followed by Hana plus KEB with 366.5 trillion won, KB with 361.6 trillion won and Shinhan with 332.2 trillion won.
Hana Bank plus KEB outpace Woori Bank in terms of the number of braches nationwide ― 1,007 versus 942.
As Woori Financial has to undergo sale of assets for privatization, there is a possibility that Hana Financial will top the list by total assets.
But the daunting task for the new chief is to raise the group’s profitability, which has remained at low a level compared to the average of the top four groups.
Further, many banking analysts said KEB’s competitiveness has weakened during Lone Star Funds’ controlling since 2003.
Under the agreement between incumbent chairman Kim and KEB union, the KEB brand will be maintained for five years ― separate from the group’s flagship Hana Bank ― as a new unit of Hana Financial.
KEB employees are also expected to enjoy what financial officials viewed the currently high level of salaries over the next few years though the bank has become a unit of Hana Financial.
By Kim Yon-se (
kys@heraldcorp.com)
