Attention on Yang Jong-hee's Reappointment After Record Results... KB Financial Group Narrows Next Chairman Search to Three Today

[Financial News] KB Financial Group's next chairman candidates will be narrowed to three. As Yang Jong-hee, who led the group to record first-half earnings, is seen as having the edge in the race for reappointment, both internal and external candidates are competing for the three spots.
On the 27th, the KB Financial Group chairman recommendation committee will hold first-round interviews with six candidates for the next chairman and narrow the field to three.
The current internal candidates are KB Financial Group Chairman Yang Jong-hee, division heads Jae-Geun Lee and Lee Chang-kwon, and KB Kookmin Bank President Lee Hwan-ju. The external candidates are former Woori Bank President Kwon Kwang-seok and one person who requested anonymity.
The biggest focus is whether Chairman Yang will secure another term. KB Financial Group posted net profit of 5.0782 trillion won in 2024, entering the 5 trillion won club for the first time. In the first half of this year, it recorded net profit of 3.8846 trillion won, its highest-ever half-year result. The group's earnings structure has also become more diversified as the stable profit base of its banks was complemented by growth in nonbank affiliates such as securities and asset management. Nonbank affiliates' contribution to group profit rose to 44%.
In the financial sector, expectations are growing that Yang will be reappointed as the financial authorities' planned overhaul of corporate governance has been delayed. The reform plan is also unlikely to directly affect this chairman selection process. The 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.
A special tax audit recently launched by the 4th Investigation Bureau of the Seoul Regional Tax Office into KB Kookmin Bank is being seen as a late-stage variable. Because the audit began around the same time as KB Financial Group's next chairman selection, observers are closely watching whether its findings could affect the appointment. The NTS is reportedly focusing on materials related to global operations, general affairs and human resources.
There are also forecasts that internal candidates will have the upper hand. KB Financial Group has seen three consecutive outside figures take the chairman post, from its first chairman, former Woori Financial Group Chairman Hwang Young-ki, to former chairmen Euh Yoon-dae and Im Young-rok. Since 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.
KB Financial Group will narrow the field to three candidates today and hold second-round in-depth interviews with the three finalists on the 11th of next month before selecting one final candidate.
Chairman Jo Hwa-jun of the recommendation committee said, "We will continue to make every effort to ensure that the best CEO, one who meets the trust of shareholders and customers, is selected through a transparent and objective candidate review and evaluation process."

[email protected] Lee Hyun-jung Reporter