[비즈한국] The KB Financial Group Chairman Recommendation Committee announced on the 11th that it had held a meeting and selected Lee Jae-keun, currently head of a division at KB Financial Group, as the final candidate for the next chairman. The financial sector had widely expected the reappointment of current chairman Yang Jong-hee, so the decision is being perceived as a surprise. Attention is now focused on whether candidate Lee Jae-keun can maintain KB Financial Group’s upward earnings trend.
KB Financial Opts for Change Instead of Reappointment
On the 11th, the committee conducted two-hour in-depth interviews with the shortlisted candidates: former Woori Bank CEO Kwon Kwang-seok, Chairman Yang Jong-hee, and division head Lee Jae-keun. The committee members stated that they evaluated the candidates based on five categories—professional experience and expertise, leadership, integrity, sharing the group’s vision and values, and efforts toward sound management in both the short and long term—and 25 detailed criteria. They explained that through a final vote, they reached a consensus that Lee Jae-keun possessed the qualifications and capabilities suitable to be the next chairman.
Candidate Lee Jae-keun will undergo a qualification review for executive positions and is expected to be appointed as Representative Director and Chairman at an extraordinary shareholders' meeting scheduled for November 20.
Lee began his career at Housing & Commercial Bank (H&CB) in 1993, which merged with Kookmin Bank in 2001. Between 2015 and 2016, he served as head of the financial planning department at KB Financial Group and later as CFO in 2017, where he led the acquisitions of LIG Insurance (now KB Insurance), Hyundai Securities (now KB Securities), and Woori Financial (now KB Capital). He returned to Kookmin Bank in 2018, serving as CFO and vice president of the sales group before being appointed CEO of Kookmin Bank in 2022. Since 2025, following his term as bank CEO, he has been serving as the head of the global business division for KB Financial Group.
Until now, the prevailing view in the financial sector was that Chairman Yang Jong-hee would be reappointed, as KB Financial Group’s performance had improved under his leadership. According to business reports, the group’s net profit showed a steady annual increase: 4.5263 trillion won in 2023, 5.0286 trillion won in 2024, and 5.8407 trillion won in 2025. It also maintained strong momentum in the first half of this year, recording a net profit of 3.927 trillion won.
Consequently, some analysts suggest that the selection of Lee Jae-keun may be a move to appease the government. The Lee Jae-myung administration has previously expressed negative views toward the repeated reappointment of financial group chairmen. During a briefing with the Financial Services Commission and the Financial Supervisory Service last December, President Lee Jae-myung stated, "It is not something to be left alone when a corrupt inner circle forms and a minority group continues to exercise control by rotating positions." Financial Supervisory Service Governor Lee Chan-jin also remarked at a press conference last December, "Everyone seems to have a strong desire for reappointment, and the problem is when that desire operates too excessively."
Reappointment is not legally prohibited. Shinhan Financial Group Chairman Jin Ok-dong and BNK Financial Group Chairman Bin Dae-in both successfully secured reappointments earlier this year. Even within political circles, the criticism was directed at holding more than two consecutive terms, rather than a first reappointment. As this was Chairman Yang’s first bid for a second term, the selection of Lee Jae-keun is considered an unexpected turn of events.
Cho Hwa-jun, head of the Recommendation Committee, explained the decision: "In the current situation where the financial industry is being reshaped and the 'money move' is intensifying, Lee is a CEO candidate with the capability to lead KB Financial’s future and sustainable growth. Beyond his excellent expertise in both banking and non-banking sectors gained while serving as a division head and Kookmin Bank CEO, he also possesses deep insight and vision in finance, strategy, and global business."
Tasks: Maintaining No. 1 in Net Profit and Labor-Management Harmony
Candidate Lee Jae-keun faces the challenge of managing the group’s performance. KB Financial Group has held the top spot in net profit among financial groups for three consecutive years from 2023 to 2025. The runner-up, Shinhan Financial Group, recorded a net profit of 3.4958 trillion won in the first half of this year. While there is a gap compared to KB’s 3.927 trillion won, the second-half performance is not guaranteed.
Kyobo Securities projects that for 2026, KB Financial Group’s net profit will reach 6.0675 trillion won, while Shinhan Financial Group will reach 6.8151 trillion won. For 2027, the projections are 6.0565 trillion won for KB and 7.0579 trillion won for Shinhan, suggesting that Shinhan may overtake KB in both this year and the next.
Kim Ji-young, a researcher at Kyobo Securities, assessed, "(Shinhan Financial Group) has seen a significant increase in non-interest income centered on commission income, such as funds, bancassurance, and trusts. Solid first-half results point to annual earnings growth in 2026."
Looking at KB Financial Group's first-half performance, commission and insurance income increased compared to the same period last year. However, interest income—a core revenue stream—fell by 1.55%, from 14.7396 trillion won in the first half of last year to 14.5118 trillion won this year. For candidate Lee, managing interest income is crucial to expecting future earnings growth.
Additionally, his relationship with internal staff is under scrutiny. When Lee was appointed CEO of Kookmin Bank, the labor union expressed opposition. At the time, the union chair pointed out, "The members have no idea what standards and procedures the subsidiary CEO recommendation committee used to recommend Lee. Given issues like reckless branch closures and the unilateral implementation of the '9 to 6 Bank' system despite labor-management agreements, the committee's claim that he was selected for his horizontal leadership is a lie."
Lee subsequently faced labor-management conflicts over issues such as the wage peak system and the reinstatement of unfairly dismissed workers, but he completed his term as Kookmin Bank CEO without major incidents. The union has not yet shown any signs of statements or collective action regarding his selection as chairman. Attention is now focused on whether Lee can cultivate a more harmonious relationship with the labor union in the future.