Woori, Shinhan, and KB Chiefs Approach End of Terms as New Leadership Reviews and Regulatory Scrutiny Loom 
Major banking group leaders are set to complete their terms in the first half of next year. This has sparked expectations that top financial holding companies will soon begin preparations for potential reappointments.
Woori Financial Group Chair Yim Jong-ryong and Shinhan Financial Group Chair Jin Ok-dong are both slated to finish their terms in March. KB Financial Group Chair Yang Jong-hee’s term is scheduled to end in November. Hana Financial Group Chair Ham Young-joo is the exception, with his term extending through next year until March 2028.
Historically, leadership changes at financial holding companies have often coincided with shifts in political power. This pattern has fueled speculation that top executives may face pressure under the new administration.
Invisible Push
With President Lee Jae Myung’s recent inauguration, financial holding companies are bracing for potential headwinds from political circles. These firms often face pressure to overhaul their leadership with each new administration, reflecting the government’s strong influence over top appointments.
Kim Eun-kyung, a member of the presidential state affairs committee, expressed concern in June, stating, “When I see former high-ranking officials from the Finance Ministry and the Financial Services Commission join private financial firms, I cannot help but question their standards.”
Her statement was widely interpreted as a direct criticism of Woori Financial chief Yim, a former FSC chair and senior official at the Finance Ministry.
With Kim being floated as a potential candidate to lead the country’s financial regulatory authority, her remarks are seen as a signal that the new administration may be uneasy with former bureaucrats heading privately owned financial firms.
This wouldn’t be the first instance of major financial firms undergoing a sweeping leadership shake-up under a new government. During former President Yoon Suk Yeol’s term, the chiefs of KB, Shinhan, and Woori stepped down following regulatory criticism over extended tenures, foregoing reappointment.
Similar reshuffles have played out repeatedly over the years with each change in administration.
Power Without Ownership
Although financial holding companies are not state-run entities, political intervention remains possible. The financial services industry operates under government-issued licenses, leaving these firms vulnerable to pressure from financial regulators who wield broad supervisory authority.
At times, this intervention can play a constructive role, particularly given the current ownership structure of local financial holding companies. These firms are often referred to as “ownerless companies,” a term describing entities with dispersed ownership and no dominant shareholder.
In such structures, local financial holding company chiefs can surround themselves with handpicked outside directors and executives, effectively strengthening their grip on leadership and enabling long-term consolidation of power.
Intervention from financial regulators can, in some ways, encourage financial holding companies to pursue a “generational shift” in leadership.
However, this dynamic also means that regulatory interference can undermine management stability, particularly in developing mid- to long-term strategies and fostering global credibility.
Concrete Performance
With political intervention stemming from an initial lack of accountability in the executive appointment process, the financial sector has been stepping up efforts to enhance transparency.
In 2023, the watchdog Financial Supervisory Service announced measures aimed at improving governance at local financial holding companies. A key initiative requires firms to begin preparing for succession at least three months before the incumbent’s term ends, ensuring a smooth transition.
The FSS indicated in May that it is considering extending this preparation period even further.
In a similar vein, delivering tangible results during their tenure has become crucial in determining reappointment.
An official from a local bank noted that while current financial group chiefs aren’t under strong pressure to step down, as most are still early in their terms, they will need visible achievements to justify potential reappointment.
Industry watchers predict that Woori Financial Chair Yim is unlikely to face difficulties securing another term. Under his leadership, Woori Financial acquired two insurers this year, bolstering its non-banking portfolio – long considered a key weakness compared to rival financial groups.
The chiefs of Shinhan Financial and KB Financial have yet to deliver solid results, focusing on digital transformation initiatives and strengthening internal risk controls. Hana Financial Group Chairman Ham, despite facing age-related hurdles when seeking an extension, is set to serve until March 2028.
“Solid performance and transparent succession planning could help lessen government influence,” the official concluded.
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