KDB Financial chief offers to resign

The head of South Korea's state-run KDB Financial Group Co. has offered to resign, its officials said Thursday, amid growing pressure from the government for a big reshuffle of major banking chiefs.

Kang Man-soo, the chairman of KDB Financial Group and its banking unit Korea Development Bank, has already tendered his resignation to the government, soon after President Park Geun-hye named the new chairman of the Financial Services Commission (FSC), the country's top regulator, according to people familiar with the matter.

"I decided to step down. I have nothing else to say for now,"

Kang told Yonhap News Agency by phone. He held off the announcement until the shareholders meeting on Tuesday to avoid any media fuss, its officials said.

Kang had another year left on his term at KDB Financial, after taking the helm of the state-run financial firm in March 2011.

Kang is the first to step down out of the three chief executives at South Korean banking groups who are widely expected to face a shake-up from the government.

Pressure has been growing as well for Euh Yoon-dae, the chairman of the second-largest KB Financial Group Inc., and Lee Pal-seung, the chairman of Woori Finance Holdings Co., the No. 1 lender by assets, as all of the three banking chiefs are known to be close aides of then President Lee Myung-bak. 

The government's move to replace the heads of banking firms became clear when Shin Je-yoon, the new FSC chairman, said he will recommend new candidates to the president if he thinks it is necessary.

Shin has pointed out that "it is important to be someone who is on the same wavelength with the new government's policy."

Although Euh and Lee have apparently expressed their wish to retain their posts till their terms expire, Kang's resignation will likely prompt them to follow suit, market watchers said. Euh is due to end his term in July this year, with about a year to go for Lee. (Yonhap News)