[비즈한국] The Chairman Recommendation Committee (CRC) of KB Financial Group105560 announced on the 2nd that it has officially commenced the management succession process to select the next chairman. KB Financial Group explained that it will hold the CRC at least three more times to finalize the candidate for the next chairman on September 11. While the general atmosphere in the financial sector anticipates the reappointment of current KB Financial Group Chairman Yang Jong-hee, the negative stance of the Lee Jae-myung administration regarding the reappointment of financial holding company chairmen is considered a potential variable.
According to KB Financial Group, the CRC finalized a list of 20 chairman candidates last April. In a recent meeting, it resolved the 'Detailed Rules for Chairman Candidate Recommendation Procedure' and narrowed the pool of candidates down to 12. The candidates consist of 6 internal members of KB Financial Group and 6 external members.
Although KB Financial Group has not disclosed the list of 12, the prevailing sentiment in the financial sector is that current Chairman Yang Jong-hee will likely be reappointed. Chairman Yang took office in November 2023, and his three-year term expires this November. Since he took office, the performance of KB Financial Group has shown an upward trend. According to business reports, the net profit of KB Financial Group was 4.5263 trillion KRW in 2023, 5.0286 trillion KRW in 2024, and 5.8407 trillion KRW in 2025. Aside from Chairman Yang, there are not many candidates mentioned in the financial sector for the next chairman of KB Financial Group.
However, the government's position is cited as a variable. President Lee Jae-myung said at the Financial Services Commission and Financial Supervisory Service business report last December, "It is not something to ignore that a corrupt inner circle is formed, and a small number of people take turns exercising control as they please." 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 that this desire is operating too excessively."
Despite this atmosphere, Shinhan Financial Group Chairman Jin Ok-dong and BNK Financial Group138930 Chairman Bin Dae-in succeeded in being reappointed early this year. It is known that financial authorities are pushing for legislation to improve the system related to the reappointment of financial holding company chairmen after the local elections. There is also specific speculation that the content will limit the reappointment of financial holding company chairmen to one time.
Even if reappointment is limited to one time, Chairman Yang Jong-hee's reappointment is still possible, as he has not yet been reappointed. However, as the government continues to show a negative reaction to the reappointment of financial holding company chairmen, KB Financial Group cannot help but be conscious of this.
In this situation, the CRC appears to be more cautious about selecting a chairman than in the past. In 2023, the chairman selection process began in July, but this year it started in earnest at the beginning of June. Additionally, about two months of preparation time were provided from the selection of the shortlist to the actual interviews, creating an environment where external and internal candidates can compete on a level playing field. Separate preliminary meetings between the CRC members and external candidates are also planned.
The CRC plans to hold a meeting on July 3 to narrow the 12 long-list candidates down to a shortlist of 6. On August 27, it will conduct first-round interviews and evaluations of the 6 candidates to further narrow the shortlist to 3. Then, on September 11, it will conduct in-depth assessments of the 3 candidates through second-round interviews and finalize one candidate through a vote. The final candidate will go through the recommendation process of the CRC and the board of directors and will be appointed as chairman through an extraordinary general meeting of shareholders.
Cho Hwa-joon, Chairman of the KB Financial Group CRC, stated, "We will conduct the management succession process more transparently and fairly in line with the advancement of financial governance currently being led by financial authorities," adding, "We will do our best to ensure that the most qualified person who can lead the enhancement of shareholder value and sustainable growth of KB Financial Group is selected."