Suhyup Bank chief selection falls through again as third meeting ends without a decision

[Financial News] The selection of the next president of Sh Suhyup Bank also fell through at the third meeting of the bank president recommendation committee. With current President Shin Hak-gi's term set to expire in three weeks, concerns about a management vacuum are growing. The committee plans to hold a fourth meeting about a week before Shin's term expires and revisit the selection of a candidate.
According to financial industry sources on the 26th, Suhyup Bank's recommendation committee held its third meeting that day to discuss selecting the next bank president, but failed to decide on a final candidate.
Suhyup Bank said, "As no candidate received the consent of at least four committee members, we plan to reconvene at a later date." Rather than reopen applications, the committee decided to continue its discussions with the existing candidates.
The fourth meeting is scheduled for the 11th of next month. If the committee cannot finalize a candidate at that meeting either, it plans to launch a new round of applications.
After failing to reach a conclusion at the two previous meetings and again failing to select a candidate today, the process of choosing the next bank president is back at square one. The contest for the post continues between current President Shin Hak-gi and Lee Hyeong-ju, head of the Financial Intelligence Unit (FIU). The committee first met on the 22nd of last month and began the process of selecting a candidate for the next bank president. However, the votes were split, with three for President Shin and two for Lee, leaving the committee unable to decide on a final candidate.
Suhyup Bank's recommendation committee consists of five members: three recommended by the government (the Ministry of Economy and Finance, the Financial Services Commission, and the Ministry of Oceans and Fisheries) and two recommended by the National Federation of Fisheries Cooperatives. A candidate must receive the consent of at least four of the five members to be selected as the final nominee. The structure makes it difficult to finalize a candidate if either the government or the federation disagrees.
At the second committee meeting, held on the 6th, Shin and Lee received three and two votes, respectively. It was reported that the committee member recommended by the Ministry of Economy and Finance (MOEF) had voted for Shin, drawing considerable attention. Some in the financial industry interpreted this as possibly reflecting MOEF's desire to rein in the Financial Services Commission, which is backing Lee.
With the third meeting also ending without a decision, observers say the impasse over selecting the next bank president is lasting longer than expected. There is also talk that it may be virtually impossible to narrow the differences between the positions of the government-appointed and federation-appointed committee members.
Another factor in the selection is that Suhyup Bank is considering challenging the administrative fine imposed on it while Lee was head of the FIU. Since a legal dispute could arise between Suhyup Bank and the FIU over a sanction that Lee personally signed off on, observers point out that appointing Lee as the next bank president could spark a conflict-of-interest controversy. Meanwhile, calls to oppose Shin's reappointment, particularly from the government side, continue, and the differences do not appear to be narrowing.
President Shin's term runs through the 17th of next month. With only about three weeks left until it expires, the committee needs to expedite the selection of a candidate for the next bank president and the subsequent appointment process. If the fourth meeting also ends without agreement, there is a strong possibility that the next president will not be confirmed before the current president's term expires. The appointment process following the committee's recommendation of a final candidate must also be taken into account.
Suhyup Bank is facing major management challenges, including the financial sector's digital transformation, stronger internal controls, and soundness management. The longer the selection of the next bank president is delayed, the greater the burden may become on developing mid- to long-term management strategies and running the organization, observers say.
A financial industry source said, "In the current lineup, President Shin has a slight advantage, but the mood is such that it will not be easy to sway the votes of the government-appointed committee members." The source added, "The committee will try to move the process along as quickly as possible, but there is also a high likelihood that it will not complete the appointment process within the current president's term."
[email protected] Seo Ji-yoon Reporter