The government instructed state-owned banks, including the Korea Development Bank and the Export-Import Bank, to refrain from appointing new executives or making personnel changes, as of 24th. With the restructuring of the Financial Supervisory System by the Presidential Committee on Policy Planning dragging on, the personnel changes for state-owned banks are also delayed.
In the case of the state-owned banks where the term of the chief executive officer (CEO) has ended, a prolonged leadership vacuum is expected.
The Industrial Bank of Korea did not appoint any vice presidents during the regular personnel changes conducted on the 15th for the second half of the year. The Industrial Bank of Korea implements a 'one-shot personnel' system, where all personnel changes and transfers at all ranks are carried out simultaneously in the regular personnel changes. It is unusual for there to be no promotions or transfers of vice presidents in the regular personnel changes.
As former vice presidents Park Bong-kyu and Hyun Gwon-ik completed their terms and stepped down, Senior Vice President Kim Hyung-il has taken over the duties of the two vice presidents. Senior Vice President Kim is also acting in the vacant role of Head of the Digital Group.
Compliance officer Lee Jang-seop and Management Strategy Group head Kim Tae-hyung completed their terms on the 14th but decided to maintain their executive positions. The Industrial Bank of Korea explained that it plans to maintain the terms of these two vice presidents until their successors are appointed. Ultimately, the Industrial Bank of Korea should have appointed at least five vice presidents during the regular personnel changes for the second half of the year, but this was replaced by an acting system and term extensions due to government instructions.
A financial industry official noted, 'While there were no explicit instructions issued, I understand that an opinion was conveyed that it would be better to refrain from executive-level personnel changes.' The financial community is reportedly requesting restraint in executive appointments to prevent any potential 'backdoor appointments.'
In the case of the Export-Import Bank, Vice Presidents Jeong Soon-young and Hong Soon-young retired this month, but successor appointments have not been made. Yoon Hee-sung, president of the Export-Import Bank, will also step down on the 26th after completing his term. The chairman of the Korea Development Bank is currently vacant as well, following the retirement of Kang Seok-hoon last month.
The leadership vacuum at the Financial Supervisory Service is also ongoing. After the resignation of former chairman Lee Bok-hyun on the 5th of last month, the organization has been operating under the acting leadership of Senior Vice President Lee Se-hoon for a month. Han Yong-il, who was serving as the head of the joint response team to eradicate stock price manipulation, also retired that day, but no successor has been appointed. For the time being, Vice President Lee Seung-woo will take on the role of acting head of the joint response team.