[비즈한국] Bin Dae-in, Chairman of BNK Financial Group138930, has effectively secured his reappointment. BNK Financial Group explained that the reason for his reappointment is his contribution to management stability during his tenure. However, some shareholders have offered a contrasting assessment, pointing to low capital efficiency and a lack of management innovation. As governance risks could escalate if shareholders continue to raise these issues, restoring trust is expected to be the first priority for Chairman Bin's next term.
Despite Ongoing Controversy... Reappointment Confirmed
The BNK Financial Group Executive Recommendation Committee (ERC) selected Chairman Bin Dae-in as the next chairman candidate on the 8th. Chairman Bin was chosen as the final candidate after in-depth interviews were conducted with four candidates, including Busan Bank President Bang Sung-bin, BNK Capital CEO Kim Sung-joo, and former Busan Bank President Ahn Gam-chan. This decision was subsequently confirmed at a board meeting, effectively solidifying Chairman Bin’s reappointment. Chairman Bin is scheduled to be officially appointed as Chairman and CEO following the regular general meeting of shareholders and board meeting next March, with his term extending until March 2029.
Lee Kwang-ju, Chairman of the Board, explained the background of Bin's selection, stating, "We focused on the continuity of group management and organizational stability, given that we are in a situation where the aftereffects of local economic downturns and PF (project financing) instability are still ongoing, as well as considering the financial performance based on our risk management stance."
However, the process leading up to the reappointment was not smooth, as controversy regarding the legitimacy and transparency of the selection process was raised from various quarters. The ERC initiated the management succession process on October 1 and set the deadline for candidate applications for October 15. However, due to the overlap with the Chuseok holiday, the actual application period was only 4 days. This led to criticism that it effectively made it difficult for external candidates to apply and created a structure favorable to the incumbent chairman.
The ‘opaque’ process was also raised as an issue during the National Assembly audit. On October 21, during the Financial Supervisory Service audit by the National Assembly’s National Policy Committee, Rep. Park Beom-kye of the Democratic Party of Korea pointed out, "The process for selecting the next chairman was conducted in the dark without properly informing even the employees," and asked, "The previous chairman selection took nearly two months, but this time, candidate registration was completed in just a few days. Didn’t the board ignore procedural legitimacy?"
Life Asset Management, an activist fund holding approximately 3% of BNK Financial Group's shares, sent an open shareholder letter to BNK Financial on the 4th, demanding an immediate halt to the chairman selection process. They argued that a new board of directors and an ERC with transparency and expertise should be formed at the general meeting of shareholders next March. Life Asset Management criticized the move, stating, "The current chairman selection process is self-destructing its own legitimacy by failing to ensure transparency," and called it "an unreasonable attempt to reappoint the current management who have shown poor business performance."
BNK Financial has maintained its stance that there are no procedural issues regarding this criticism. The ERC stated, "The management succession process of BNK Financial Group is being conducted according to established principles based on schedules and standards of best practices, just like other financial holding companies."
Activist Shareholders Question Bin Dae-in’s Performance
Aside from the procedural controversy, assessments of Chairman Bin's actual management performance are also divided. While BNK Financial cited the improvement in performance indicators as the basis for his reappointment, shareholders are in a mood to question the decision itself, arguing that his achievements have fallen short of expectations. There are also voices asking whether granting another three-year term while the controversy over poor performance remains unresolved is truly in the interest of shareholder value.
BNK Financial evaluates that performance has clearly improved during Chairman Bin's tenure. They explained that despite difficulties related to real estate PF losses in 2023, the company saw a quick recovery through strengthened risk management and improved interest margins. BNK Financial posted a net profit of 802.7 billion won last year, and cumulative net profit up to the third quarter of this year was tallied at 770 billion won. The securities industry expects BNK Financial's annual net profit for this year to reach a record high of approximately 840 billion won.
Shareholders see it differently. Life Asset Management criticizes BNK Financial for failing to produce results commensurate with the scale of capital it holds. In particular, it is pointed out that its capital efficiency indicators are lagging behind its peer regional financial holding company, JB Financial Group175330.
BNK Financial’s cumulative net profit for the third quarter of 2025 was 770 billion won, while JB Financial Group posted a net profit of 702.7 billion won during the same period. As of the 11th, BNK Financial Group's market capitalization stands at 4.8547 trillion won, while JB Financial Group's is 4.6901 trillion won, effectively forming a similar level. However, there is a large gap in total equity (shareholder equity). As of the third quarter of 2025, BNK Financial’s equity is 10.7 trillion won, nearly twice that of JB Financial Group (5.8 trillion won).
Life Asset Management pointed out, "If you compare the performance of JB Financial and BNK Financial, there isn't much difference in net profit and market capitalization over the past few years. The fact that BNK Financial's total equity is twice that of JB Financial but the performance is similar means that BNK Financial is not managing properly." They added, "For shareholders investing from a long-term perspective, it is important that the company achieves management innovation. However, we are raising these issues because management innovation is difficult under the current structure."
As shareholder concerns become more concrete, attention is focusing on how BNK will communicate with shareholders in the future. Improving capital efficiency and restoring trust lost during the selection process are cited as the key tasks for Chairman Bin after his reappointment. BNK Financial stated, "We plan to continue active shareholder communication. To this end, we also plan to hold information sessions on future management plans and measures to enhance shareholder value."