KB Financial Group Narrows Next Chairman Candidates to Three: Yang Jong-hee, Lee Jae-geun and Kwon Kwang-seok

[Financial News] KB Financial Group has narrowed its pool of next chairman candidates to three. As attention focuses on the possibility of Chairman Yang Jong-hee, who led the group to record-high results, securing a second term, a three-way race for KB Financial Group's next leader is now taking shape. 
On the 27th, the Chairman Candidate Recommendation Committee of KB Financial Group Inc. said it had selected the final shortlist of three after in-depth interviews with six candidates for the next chairman. The narrowed list, in alphabetical order, consists of former Woori Bank President Kwon Kwang-seok, KB Financial Group Inc. Chairman Yang Jong-hee, and Jae-Geun Lee, head of a division at KB Financial Group. It includes two internal candidates and one external candidate.
Market sentiment is leaning toward Yang's reappointment, given that he delivered the group's best-ever earnings and diversified its revenue base during his term. KB Financial Group posted a net profit of 5.0782 trillion won in 2024, entering the 5 trillion won club for the first time. Last year, it set another record with net profit of 5.843 trillion won. In the first half of this year, it also reported a record half-year net profit of 3.8846 trillion won.
The group's earnings structure has also become more diversified as growth in nonbank affiliates such as securities and asset management was added to the bank's stable profit base. Nonbank affiliates now account for 44% of group earnings.
The delayed release of the financial authorities' governance reform plan has also reduced the likelihood that it will directly affect the chairman selection process. The financial authorities have been reviewing measures to limit a financial holding company's chairman to three consecutive terms and tighten reappointment requirements in order to improve the transparency of CEO succession procedures.
Observers also expect internal candidates to have the upper hand. KB Financial Group had three consecutive outside chairmen, from its first chairman, former Woori Financial Group Chairman Hwang Young-ki, to former chairmen Euh Yoon-dae and Im Young-rok. Since former Chairman Yoon Jong-kyu took office in 2014, the group has maintained an internal succession policy. With Yoon having led the group stably for nine years and Yang also proving his management performance as an internal candidate, momentum appears to be shifting toward internal contenders.
The committee plans to hold a second round of in-depth interviews with the three shortlisted candidates on Sept. 11 before finalizing the nominee. The final candidate is expected to go through recommendation procedures by the committee and the board on Oct. 2, and then be appointed chairman at an extraordinary general meeting in November. 
Committee Chair Jo Hwa-joon said, "This management succession process is being carried out transparently, based on fair and objective standards." She added, "We will do our utmost until the end so that the best-qualified person, one trusted by all stakeholders, can be selected as the next chairman."
[email protected] Lee Hyeon-jeong Reporter