One-vote battle ... Sh Suhyup Bank chief selection fails again: Shin Hak-gi 3, Lee Hyeong-ju 2

[Financial News] The selection of a final candidate for the next president of Sh Suhyup Bank has once again failed. After failing to reach a decision at its first meeting last month, the committee again split 3-2 at its second meeting, delaying the appointment of the next president. With committee members’ differences over current President Shin Hak-gi and Lee Hyeong-ju, head of the Financial Intelligence Unit (FIU), showing little sign of narrowing, the possibility of a leadership vacancy is also being raised.
According to financial industry sources on the 6th, the Suhyup Bank Presidential Candidate Recommendation Committee met that day to discuss selecting a final candidate for the next president, but failed to reach a decision.
Suhyup Bank said, “As no candidate received the support of at least four committee members at today’s meeting, we plan to reconvene at a later date.”
The committee consists of five members: three recommended by the government and two by the National Federation of Fisheries Cooperatives. The government’s representatives are outside directors Kim Byeong-gyu, recommended by the Ministry of Finance and Economy; Park Gyeong-cheol, recommended by the Ministry of Oceans and Fisheries; and Im Hyeong-jun, recommended by the Financial Services Commission. Representing the federation are Song Gwang-bok, head of the Buan Fisheries Cooperative, and Jeong Seung-man, head of the Gyeonggi Fisheries Cooperative.
A candidate must secure the support of at least four of the five committee members to be selected as the next president. Even if all three government-recommended members support one candidate, that person still needs the support of at least one federation representative. Conversely, the two federation-recommended members cannot decide on a candidate by themselves. Ultimately, it is difficult to put forward a final candidate unless the government and the federation reach agreement.
The committee had also failed to select a final candidate at its first meeting, held on the 22nd of last month. Shin was reported to have received three votes and Lee two. The vote at the second meeting, held today, was also reported to remain unchanged at 3-2.
The same result at both meetings has increased the pressure on the committee. The next meeting is expected to be held at the end of this month or early next month. However, given that the members’ choices did not change in either of the two votes, some observers say it will not be easy for the two sides to bridge their differences by the next meeting.
One government representative voted for President Shin again this time, while the federation’s position remains firm, making a quick decision seem unlikely. There is reportedly resistance within and outside Suhyup to appointing someone from outside the organization, particularly someone with a bureaucratic background, as president. Suhyup Bank has appointed three consecutive presidents from within the organization: Kim Jin-gyun in 2020, Kang Shin-sook in 2022, and Shin in 2024.
Since the presidential appointment process began, the union has also been wary of possible outside interference in the selection. In a statement last month, the National Financial Industry Labor Union said, “We can never accept an appointment process involving undue interference by political circles, the government, or outside organizations, or one tailored to favor a particular individual.” The union did not name any specific candidate, but financial industry observers interpreted the statement as referring to Lee, a senior government official currently in office.
This is not the first time Suhyup Bank has faced difficulties appointing a president. Since separating from the National Federation of Fisheries Cooperatives as an independent corporation, the bank has reopened recruitment at least once in each of its presidential appointments in 2017, 2020, and 2022. The longest process was in 2017, when government and federation representatives on the committee could not resolve their differences over the candidates, leading to a third round of recruitment. The bank was unable to choose a successor even after former President Lee Won-tae completed his term, and an acting president served for about six months. The leadership vacancy was resolved when Lee Dong-bin, a former vice president of Woori Bank, was selected as the final candidate in October of that year.
President Shin’s term ends on the 17th of next month. Given the subsequent steps in appointing a successor, including a board meeting and a shareholders’ meeting after the committee selects a candidate, there is little time to spare. The pressure on the committee is expected to grow accordingly.
This time, however, the process differs from previous cases in that discussions are continuing among the existing pool of candidates rather than restarting recruitment. A financial industry source said, “The key will be whether the committee members’ preferences regarding President Shin and Director Lee shift.”
[email protected] Seo Ji-yoon Reporter