Could Employment Review Become an Issue in the Selection of the Suhyup Bank CEO?

[Financial News] With a two-way race emerging between incumbent CEO Shin Hak-gi and Lee Hyeong-ju, head of the Financial Intelligence Unit (FIU), for the next Suhyup Bank CEO, Lee’s employment approval and restrictions on his duties after taking office have emerged as key issues.
According to financial industry sources on the 18th, the Suhyup Bank CEO Candidate Recommendation Committee is scheduled to interview the candidates on the 21st and select the final candidate on the 22nd. The six interviewees are incumbent CEO Shin Hak-gi; Lee Hyeong-ju; former executive vice presidents Jeong Cheol-gyun and Park Yang-su; Lee Hyeong-seung, an outside director at BNK Investment Securities; and Kang Cheol-seung, a former professor at Chung-Ang University (CAU).
Shin and Lee are being cited as the leading candidates in financial circles.
Shin is viewed favorably for laying the groundwork for Suhyup Bank’s transition to a financial holding company by pursuing acquisitions of nonbank affiliates during his tenure. The bank’s total assets rose from 57.8 trillion won at the end of 2024 to more than 70 trillion won for the first time in June this year.
Lee’s strength is considered to be his extensive experience across financial policy as a career finance official. After entering public service through the 39th national administrative examination, he served as director of the financial policy division, director of the financial industry bureau, director of the financial policy bureau and a standing commissioner at the Financial Services Commission (FSC).
However, as Lee is a sitting government official, conflict-of-interest concerns and the employment review for public officials are expected to be key variables.
The Public Service Ethics Act generally restricts individuals subject to employment review from taking jobs for three years after retirement at institutions subject to review if the positions are related to their previous work. If a close connection is recognized between the work of a department or institution to which they belonged during the five years before retirement and the prospective employer, they must undergo a review by the relevant Public Service Ethics Committee.
Some observers say a work-related connection could be recognized because the FIU directly supervises and inspects Suhyup Bank’s anti-money-laundering operations. In March, the FIU actually gave Suhyup Bank advance notice of a proposed 1 billion-won administrative fine and proceeded with follow-up measures.
Even if his employment is approved, the scope of duties he may perform after taking office could become an additional issue. The Public Service Ethics Act stipulates that former officials may not handle for two years after retirement statutory matters they directly handled while in office. Because the bank CEO must oversee internal anti-money-laundering controls, the restricted matters could conflict with the position’s core responsibilities.
The Public Service Ethics Committee is expected to determine whether Lee can actually take the job after comprehensively considering the candidate’s level of involvement and any grounds for an exception to the employment approval requirement.

[email protected] Ye Byeong-jeong Reporter