[비즈한국] Hana Financial Group086790 has unveiled its shortlist of final candidates for the chairmanship. The internal candidates include △Hana Financial Group Chairman Ham Young-joo, △Hana Financial Group Vice Chairman and Hana Bank CEO Lee Seung-lyu, and △Hana Financial Group Vice Chairman and Hana Securities CEO Kang Sung-mook, along with two undisclosed external financial experts. While the field is competitive, focus remains on Chairman Ham's potential reappointment. The Hana Financial board recently amended its corporate governance guidelines regarding the age limit for directors, effectively paving the way for Chairman Ham to seek another term. However, eyes remain on the outcome as judicial risks related to hiring irregularities still loom over him.
Character
Hana Financial Group CEO and Chairman Ham Young-joo was born in 1956 in Eunsan-myeon, Buyeo-gun, South Chungcheong Province. After graduating from Ganggyeong Commercial High School in Nonsan, he entered the banking industry and later earned a bachelor’s degree in accounting from Dankook University in 1985. He completed the Wharton School Global Program in 2008 and the Advanced Management Program at Korea University in 2011.
Hailing from a rural background, Chairman Ham is an inspirational figure who rose from a high school graduate and entry-level bank clerk to become the chairman of one of the country's leading financial groups. He is known for his unique affinity, sales prowess, and diligence. His motto is "Serving others with a low stance and a heart of consideration." Based on this people-oriented leadership, Chairman Ham has built a solid position within Hana Financial.
Career
After graduating high school, Chairman Ham began his financial career by joining Seoul Bank in September 1980. He was promoted to manager of the Seoul Bank Suji branch in November 2002, the same year Seoul Bank was merged into Hana Bank. Starting in March 2004, he held positions at Hana Bank including manager of the Bundang Jungang branch, head of the retail sales promotion department in October 2005, and head of the Southern region headquarters in January 2006. He was promoted to assistant vice president in January 2008, oversaw the Chungnam/North sales headquarters, and served as head of the Daejeon sales headquarters in January 2009. In January 2013, he rose to the position of vice president, overseeing the Chungcheong sales group.
In September 2015, he was appointed the inaugural CEO of KEB Hana Bank, formed by the merger of Korea Exchange Bank and Hana Bank. At the time, his selection was considered unconventional, as he was chosen as the integrated bank's head over the existing CEOs of both individual institutions, despite originating from the acquired bank.
While serving as both Hana Bank CEO and Group Vice Chairman in 2019, he gave up his bid for a second consecutive term as bank CEO due to opposition from financial authorities, but successfully assumed the role of Group Chairman in March 2022. At the time, the Chairman Recommendation Committee stated, "Candidate Ham has spent most of his career in the field with employees," adding, "Based on his extensive experience and financial knowledge, he understands the group's mid-to-long-term strategies and the direction the company should take."
Capability
During his tenure as Hana Bank CEO, Chairman Ham was credited with driving group growth by leading the physical and chemical integration of two banks with very different corporate cultures. Within a year of taking office, he completed the integration of the two banks' IT systems in June 2016, followed by the labor union merger in January 2017 and the institutional system integration in January 2019.
He also boosted the performance of both the bank and the group. During his first term as bank CEO, the bank's net profit grew from approximately 970 billion won in 2015 to over 2.2 trillion won in 2019, more than doubling. In the same period, the group's performance increased from approximately 900 billion won to 2.4 trillion won.
In 2022, the year he took office as Group Chairman, Hana Financial recorded a record-high annual net profit of 3.57 trillion won. Although profit dipped by 3.3% in 2023 (to 3.45 trillion won), the cumulative net profit for the third quarter of 2024 reached 3.2 trillion won, exceeding market expectations.
Critical
He has been unable to fully clear the judicial risks that have persisted since his time as vice chairman. Chairman Ham is currently undergoing a criminal trial (for obstruction of business, etc.) alongside Hana Bank and former Vice President Jang Ki-yong for alleged improper involvement in the hiring of new employees between 2015 and 2016, during his tenure as Hana Bank CEO.
The lawsuit was filed in June 2018 and took well over three years to reach a first-instance ruling in March 2022. After a long trial, Chairman Ham was initially found not guilty, but the verdict was overturned in the second instance in November 2023, where he was sentenced to six months in prison, two years of probation, and a fine of 3 million won. The second-instance ruling took 1 year and 7 months to be delivered.
With both sides having appealed the second-instance ruling, Chairman Ham, former Vice President Jang, and Hana Bank are currently awaiting a Supreme Court decision. The final appeal was filed in December 2023, and the presiding justice and the bench were assigned on February 21. As the final appeal also crosses the one-year mark, the trial that began in 2018 has now entered its seventh year. On the 16th, the Supreme Court stated that the case is currently "under comprehensive review of legal principles and issues."
Chairman Ham also engaged in legal battles with financial authorities regarding the Derivatives Linked Fund (DLF) crisis, which was linked to overseas interest rates. He had been subjected to severe disciplinary action by financial regulators—which would have restricted his employment in the financial sector—for his responsibility during the DLF crisis, which saw massive principal losses during his time as bank CEO. Chairman Ham filed a lawsuit in June 2020 to cancel the disciplinary action and was acquitted (with the action canceled) in both the second and third instances.
Challenges
Attention is focused on whether Chairman Ham will succeed in his bid for a second term as Hana Financial Chairman in March 2025. On December 10, the Hana Financial board amended its internal governance code to state, "The term of office for a director shall be until the age of 70, provided that if a director turns 70 during their term, their final term shall continue until the date of the first regular general shareholders' meeting convened after that term expires." The original regulation had set the limit to "that date," but by changing it to "after that term," the board enabled directors aged 70 or older, including Chairman Ham, to continue their terms if reappointed.
Upon taking office in March 2022, Chairman Ham put forward three key strategies: maximizing strengths and restructuring non-banking businesses, strengthening the group's status as a leading global financial group, and digital financial innovation. Since taking office, he has actively worked toward these goals, meeting overseas investors and forming a partnership with Samsung Electronics005930 to revitalize digital finance. However, strengthening the non-banking sector through mergers and acquisitions (M&A) of insurers and credit card companies has yielded disappointing results.
With ongoing domestic and international uncertainty in the financial environment, another challenge is balancing growth and stability. As the "three highs" phenomenon (high interest rates, high inflation, and high exchange rates) persists, leading to record-high levels of consumer debt, criticism that "financial companies are throwing money parties based on interest income" continues unabated. In his 2024 New Year's address, Chairman Ham remarked, "We must pause for a moment and reflect on the path we have taken. For those suffering from high interest rates, our interest rate systems raise not just distrust, but anger. We must be alarmed by the fact that our success formula is no longer valid."