[비즈한국] On the 15th, the Subsidiary CEO Recommendation Committee (Recommendation Committee) of JB Financial Group selected Park Chun-won, CEO of JB Woori Capital, as the candidate for the next president of Jeonbuk Bank. Jeonbuk Bank had planned to hold a board meeting and an extraordinary shareholders' meeting on the 16th to officially appoint candidate Park as president.
However, Jeonbuk Bank suddenly postponed the schedule for its board meeting and extraordinary shareholders' meeting. No specific future schedule was announced. Some in the financial sector suspect that candidate Park's judicial risks may have had an impact, as he invested 1 billion won in the 'Oasis No. 3 JD New Technology Association (Oasis)' during his tenure as CEO of JB Woori Capital.
Oasis subsequently invested in IMS Mobility, a company in whose establishment Kim Ye-seong, known as the 'butler' to First Lady Kim Keon-hee, participated. The Kim Keon-hee Special Prosecutor's team (Special Prosecutor Min Joong-ki) is investigating whether there was any quid pro quo involved in Oasis's investment in IMS Mobility. For this reason, candidate Park Chun-won was questioned by the special prosecutor in July. Although candidate Park has not been indicted, the appointment as president could be a burden since the allegations have not been clearly resolved.
There is also talk that remarks by President Lee Jae-myung have had an influence. At a business report by the Financial Services Commission on the 19th, President Lee stated, "A flood of complaints is being filed claiming there are problems with the selection process for bank presidents," adding, "These are not simple smears arising from competitive relationships; some have merit." President Lee further added, "So-called 'inner circles' are being formed, and they are taking turns profiting from it."
Although President Lee did not mention any specific bank, Jeonbuk Bank, which is in the middle of a presidential appointment process, cannot help but be conscious of this. Financial Supervisory Service Governor Lee Chan-jin immediately responded to the President's comments, stating, "We plan to launch a Governance Improvement Task Force (TF) to derive legislative improvement tasks by January and submit a bill," and, "We are preparing to begin inspections of individual financial institutions under the financial holding companies mentioned in the field." For JB Financial Group175330 or Jeonbuk Bank, this could potentially lead to an inspection by the FSS if they are not careful.
Voices openly opposing candidate Park Chun-won are also emerging from political circles. Cho Ji-hoon, a special advisor to the floor leader of the Democratic Party of Korea, stated, "(The next Jeonbuk Bank president) needs someone who understands Jeonbuk Bank well and truly knows the Jeonbuk State," adding, "I strongly urge that the appointment of Park Chun-won as president be completely scrapped and that a candidate suitable for public financial responsibility and community contribution be recommended again."
In fact, there were concerns from the moment candidate Park Chun-won was selected as the final candidate. Park, an accountant by trade, has worked at Bain & Company Korea, Aju Industries, and Aju Capital, but has no experience working in a bank. While it is true that JB Woori Capital's performance improved after Park Chun-won was appointed as its CEO in 2021, there are significant opinions that it is difficult to compare a bank and a capital firm on the same level.
The investigation by the Kim Keon-hee Special Prosecutor is scheduled to end on December 28. The financial sector expects that Jeonbuk Bank will proceed with the appointment process for Park Chun-won in line with the end of the special prosecutor's activities. A Jeonbuk Bank official stated, "Candidate Park Chun-won was recommended as the final candidate after a thorough verification by the Recommendation Committee regarding mandatory qualifications such as vision, strategy, leadership, professionalism, and social responsibility," but added, "We plan to finalize the bank president appointment process before the end of December after re-confirming whether additional verification is necessary at the Jeonbuk Bank board meeting."