[BizHanKook] The financial sector is closely watching who will be appointed as the next CEO of KB Kookmin Bank. The term of the current CEO, Lee Hwan-joo, who took office in January 2025, ends on December 31 of this year. Opinions on the possibility of CEO Lee’s reappointment are divided. Some expect him to be reappointed given the recent improvement in KB Kookmin Bank's performance.
Since CEO Lee Hwan-joo took office, the bank's performance has improved. KB Kookmin Bank's net profit for 2025 was 3.862 trillion KRW, an 18.8% increase from 3.2518 trillion KRW the previous year. Net interest income and net commission income also rose by 4.2% and 8.1%, respectively. In 2025, KB Kookmin Bank reclaimed its position as the "leading bank," posting the highest net profit among the four major commercial banks.
The trend of improved performance continued this year. The cumulative net profit for the third quarter of 2026 reached 3.5763 trillion KRW, up 6.3% compared to the same period last year. During the same period, net interest income rose by 5.9% and net commission income by 23.5%. However, last year's performance reflected the effect of the elimination of the burden of setting aside provisions related to ELS, and the increase in net profit in the third quarter of this year was also influenced by a decrease in corporate tax expenses.
On the other hand, there are significant voices arguing that reappointment will be difficult as negative public sentiment spreads following the recent KB Kookmin Bank hacking incident. Lee Jae-keun, a division head at KB Financial Group recently selected as the next chairman of KB Financial Group, could also be a key variable. With the change in leadership at the holding company, there are forecasts of a major reshuffle of executives across all KB Financial affiliates.
On October 2, KB Kookmin Bank announced that the personal information of 119 individuals had been leaked due to an external intrusion. At the time, the bank stated, "Immediately upon recognizing the possibility of an information leak through abnormal external access on September 30, we blocked the server and access routes to prevent further damage," and added, "We will provide full compensation if any customer damage occurs due to this leak."
However, on October 26, the bank announced that the number of victims of the personal information leak had increased from 119 to 2,210 following an accident analysis. Of the 2,091 additionally identified individuals, 1,631 are customers and 460 are employees. This was not a new hacking incident, but rather a discovery made during the re-verification process of systems and related data involved in the previous breach.
KB Kookmin Bank stated, "We have been conducting a precise cross-verification of the initial findings and analysis process with supervisory authorities and relevant organizations," adding, "During this cross-verification, additional facts were identified. We sincerely apologize to our customers for not being able to grasp the full extent initially, and we will do our best to prevent recurrence and ensure customer protection measures."
Although KB Kookmin Bank is working to handle the aftermath, it has not been able to avoid public criticism. One of the major issues at the parliamentary audit of the National Policy Committee held on October 19 was the problem of hacking in the financial sector. The CEOs of the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) all attended, with KB Kookmin Bank CEO Lee Hwan-joo and Shinhan Bank CEO Jung Sang-hyuk facing intensive criticism. The criticism stemmed from KB Kookmin Bank’s delayed response after the incident, and the sheer scale of the leak at Shinhan Bank.
During the parliamentary audit, CEO Lee Hwan-joo said, "I sincerely apologize for causing concern to our customers and the public," and added, "To prevent recurrence, we will secure sufficient budget and human resources and do our best to ensure security under the premise that the framework itself could be hacked via artificial intelligence (AI)."
However, political criticism of CEO Lee Hwan-joo continues. Analysts suggest that it may be burdensome for KB Kookmin Bank to reappoint a CEO who is under fire from political circles. Financial Supervisory Service Governor Lee Chan-jin also mentioned during the audit, "This hacking incident will be a case that holds the CEO accountable for the first time."
Another variable in CEO Lee Hwan-joo's reappointment is that Lee Jae-keun, a division head at KB Financial Group, has been selected as the next chairman. Current chairman Yang Jong-hee failed to secure a second term. The division head is expected to be appointed as the representative chairman at the extraordinary shareholders' meeting scheduled for November 20.
With a new chairman for KB Financial Group, there are expectations of major changes among the executives of KB Financial Group's affiliates. In particular, the possibility of replacement is considered high as CEO Lee Hwan-joo was appointed under the administration of Chairman Yang Jong-hee. Also, the division head was born in 1966, while CEO Lee was born in 1964; the fact that the CEO is older may be a point of discomfort for the new chairman.
Candidates for the next KB Kookmin Bank CEO include Kim Jae-kwan, CEO of KB Kookmin Card; Song Byung-chul, Deputy President of KB Kookmin Bank; Lee Jong-min, Deputy President of KB Kookmin Bank; and Jung Moon-chul, CEO of KB Life Insurance. However, the possibility of a second term for Lee cannot be ruled out, given the management achievements such as the improved performance of the bank during his tenure.
KB Financial Group held a meeting of the CEO Recommendation Committee (Committee) last September to begin discussions on selecting the next KB Kookmin Bank CEO. Once the Committee selects and recommends a candidate, the candidate undergoes a review by the KB Kookmin Bank CEO Recommendation Committee. After the committee review, the final appointment is made through the board of directors and the general shareholders' meeting.