[비즈한국] Recently, the financial sector has been focusing on the possibility of KB Financial Group Chairman Yang Jong-hee's reappointment. Chairman Yang's term ends in November of this year. He has received positive evaluations for leading the growth of KB Financial Group's performance. However, the government's negative stance on the reappointment of financial holding company chairmen remains a key variable.
On April 14, the KB Financial Group Board of Directors announced the 'Detailed Criteria for Chairman Qualifications.' Passive qualification criteria include 'a person who does not fall under the grounds for disqualification of executives as stipulated by relevant laws,' while active qualification criteria specify 'a person who possesses work experience, expertise, leadership, and integrity equivalent to that of a CEO of a financial company, shares the vision and values of the KB Financial Group, and can strive for sound management in the short and long term' and 'a person who has a strong sense of responsibility and ethics to represent the interests of all shareholders and stakeholders in a balanced manner, and possesses strategic thinking and professional knowledge to achieve the holding company's vision.'
The KB Financial Group Chairman Recommendation Committee (Recommendation Committee) plans to conduct the selection process for the next chairman based on these criteria. Although the committee held its first meeting on April 14, it is known that they only established basic standards such as qualification requirements and did not enter into detailed tasks. Since Chairman Yang Jong-hee's term lasts until November this year, there is still some time left.
The financial sector has been predicting Chairman Yang Jong-hee's reappointment because KB Financial Group's performance has been on an upward trend since he took office. Furthermore, there are not many candidates mentioned as potential successors. Chairman Yang took office as Chairman of KB Financial Group in November 2023 and has led the company for about 2 years and 5 months. During this period, KB Financial Group's net profit increased from 4.5263 trillion KRW in 2023 to 5.0286 trillion KRW in 2024, and 5.8407 trillion KRW in 2025.
The outlook is also bright. Choi Jeong-wook, an analyst at Hana Securities, expressed optimism about KB Financial Group, stating, "As the quarterly recurring net profit capacity has expanded to the 1.9 trillion KRW range, we expect the group to fully demonstrate the dignity and potential of a leading bank, with a Return on Equity (ROE) approaching 12% in the first quarter."
The government's attitude is considered a variable. During a business briefing with the Financial Services Commission and the Financial Supervisory Service last December, President Lee Jae-myung said, "It is not something to be left alone when a corrupt inner circle is formed and a small number of people take turns exercising dominance as they please." This signaled a negative attitude toward the reappointment of CEOs of major financial holding companies or banks. Financial Supervisory Service Governor Lee Chan-jin also said at a press conference last December, "Everyone seems to have a strong desire for reappointment," adding, "The problem is when that desire operates too excessively."
It is difficult for KB Financial Group to ignore the demands of financial authorities. If the relationship sours, there could be policy-related disadvantages, and the Financial Supervisory Service, in particular, has supervisory authority over financial firms. KB Financial Group shareholders are also expected to be conscious of this. To be appointed as chairman, one must obtain approval from more than half of the shareholders attending the general meeting.
The financial authorities plan to announce a 'Plan for Improving Governance of Financial Holding Companies' soon. Although the specific details have not yet been disclosed, some in the financial sector speculate that the reappointment of financial holding company chairmen might be designated as a special resolution item for the general meeting of shareholders. In this case, two-thirds or more of the attending shareholders must vote in favor. However, the Financial Services Commission stated on April 8, "Please be cautious in your reporting as the specific details of the governance improvement plan have not yet been decided."
As such, while the evaluation of Chairman Yang Jong-hee is positive, the surrounding environment is not necessarily favorable. The financial sector is focusing on whether Chairman Yang can overcome these concerns and succeed in being reappointed.