Shinhan Financial Group has launched the process to select its next chief to succeed incumbent chairman Han Dong-woo, whose three-year term ends in five months.
While Han’s tenure expires in March 2014, market insiders predict he will seek a second term, citing his success in resolving woes in the wake of the group’s internal feud among senior executives in late 2010.
Shinhan had suffered a management crisis due to allegations surrounding its top three executives, who eventually resigned.
While a number of chiefs in the financial sector have stepped down before the expiry of their term since President Park Geun-hye took office in February, Han was one of several figures who survived.
“A large portion of Shinhan employees share the view that Han is restoring the group’s reputation and mending in-house friction,” said a group spokesman.
He said the group’s personnel committee plans to recommend the final nominee as the next chief before late December after screening three or four candidates including Han.
Shinhan executives stress the enhanced role of the chief post, pointing out the heated competition with the three other groups: Woori Financial, KB Financial and Hana Financial.
Meanwhile, market participants are also focusing on the personnel policies of other financial firms such as Korea Exchange Bank and Industrial Bank of Korea.
IBK chief executive Cho Jun-hee and KEB CEO Yun Yong-ro are seen among market observers as the figures who played significant roles in raising the competitiveness of their respective banks.
