Despite Record Earnings, Yang Jong-hee Fails to Secure Reappointment... KB Financial Group Names Jae-Geun Lee as Next Chairman (Comprehensive)

[Financial News] KB Financial Group Inc. selected Jae-Geun Lee, a division head at KB Financial Group Inc., as the final candidate for its next chairman. Incumbent Chairman Yang Jong-hee, who had been widely expected to win another term on the strength of record earnings and expanded shareholder returns, failed to clear the final hurdle. The Chairman Candidate Recommendation Committee cited bold change and generational transition to secure future growth as the reasons for its decision.
■ Recommendation Committee Chooses 'Change' Despite Record EarningsKB Financial Group Inc.'s Chairman Candidate Recommendation Committee announced on the 11th that it had selected Lee as the final candidate for the next chairman.
After conducting two-hour in-depth interviews with each of the three candidates shortlisted on the 27th of last month—former Woori Bank President Kwon Kwang-seok, Chairman Yang Jong-hee, and Division Head Jae-Geun Lee—the committee chose Lee through a final vote.
The appointment overturned expectations in the financial sector that Chairman Yang would win another term. After Ham Young-joo, chairman of Hana Financial Group, secured reappointment in March last year, and Jin Ok-dong, chairman of Shinhan Financial Group, and Jong-ryong Yim, chairman of Woori Financial Group, successively won new terms in March this year, KB Financial Group Inc. decided to replace its chairman.
Management indicators under Chairman Yang had supported expectations of reappointment. KB Financial Group Inc. posted net profit of 5.0782 trillion won in 2024, surpassing 5 trillion won in annual net profit for the first time since the group was launched. Last year, it set another record with 5.843 trillion won. In the first half of this year, it also posted record first-half earnings, with net profit rising 13.1% year on year to 3.8846 trillion won.
Despite these achievements, the committee placed greater weight on change through new leadership than on management continuity through the incumbent chairman's reappointment.
Cho Hwa-jun, chairman of the recommendation committee, explained, "At a time when bold change and generational transition are needed to strengthen the group's fundamental competitiveness and secure future growth engines, rather than resting on its current strong performance, we selected Division Head Jae-Geun Lee as the right person to lead that change. Lee is a chief executive candidate with the capabilities to lead KB Financial Group Inc.'s future and sustainable growth exceptionally well amid the restructuring of the financial industry and the accelerating movement of money." ■ Securing Growth Engines and Expanding Shareholder ReturnsLee is a finance specialist who has held key positions in finance, strategy, and sales at the holding company and the bank. He graduated from Seoul High School, studied mathematics at Sogang University, and earned a graduate degree in economics from the same university before joining Housing and Commercial Bank in 1993. He later served as head of the Financial Planning Department and chief financial officer of KB Financial Group Inc.
KB Financial Group Inc. said Lee contributed to diversifying its nonbanking portfolio by leading the acquisitions of LIG Insurance, Hyundai Securities, and Woori Financial. At KB Kookmin Bank, he pursued profitability-focused growth and systematized operations in the field after serving as CFO and head of the Sales Group.
Lee was selected in 2022 as the youngest bank chief executive in the industry at the time and led KB Kookmin Bank for three years through 2024. The recommendation committee assessed that, during his tenure as bank president, Lee laid the foundation for KB Kookmin Bank to post record net profit last year and reclaim its position as the leading bank by redesigning its earnings structure. Since last year, he has served as a division head at the holding company and currently oversees global operations, wealth management (WM), and small and medium-sized enterprise finance (SME).
The challenge for the forthcoming "Jae-Geun Lee administration" is to secure new growth engines while maintaining the higher level of earnings and shareholder returns.
KB Financial Group Inc.'s annual shareholder returns this year are expected to total approximately 3.7 trillion won. The ability to allocate capital efficiently—so that investment in growth areas can be pursued alongside shareholder returns—has therefore become increasingly important.
The mid- to long-term management strategy prepared by KB Financial Group Inc. for 2027–2029 is also a key task Lee must lead. KB Financial Group Inc. has presented five major agendas: redesigning its wealth management (WM) and pension business models; securing differentiated competitiveness in the small and medium-sized corporate business; collaboration between corporate and investment banking (CIB) and the capital markets; advancing its insurance business and investment management capabilities; and accelerating AI transformation (AX).
The group's growth strategy is also expected to continue in the direction of strengthening the competitiveness of nonbanking affiliates, including securities and insurance companies, while enhancing cooperation with the bank.
Meanwhile, Lee is scheduled to undergo an executive eligibility review under relevant laws and receive recommendations from the recommendation committee and the board on the 2nd of next month. If he is formally appointed as representative director and chairman at the extraordinary shareholders' meeting on November 20, he will lead KB Financial Group Inc. for three years starting November 21.

[email protected] Ye Byung-jung Reporter