From left, KB Kookmin Bank CEO nominee Lee Hwan-ju, Hana Bank CEO nominee Lee Ho-seoung, Woori Bank CEO nominee Jung Jin-wan and Shinhan Bank CEO Jung Sang-hyuk / Courtesy of each bank
By Lee Yeon-woo
Three of the country's top four commercial banks have decided to overhaul their management, choosing new CEOs with strong sales backgrounds. This comes amid concerns that volatility in both domestic and global financial markets will create a tougher business environment.
KB Kookmin, Hana and Woori Bank recently recommended Lee Hwan-ju, CEO of KB Life Insurance; Lee Ho-seoung, CEO of Hana Card; and Jung Jin-wan, executive vice president of Woori Bank's small and medium-sized corporate group, as their respective CEOs. Only Shinhan Bank's current CEO, Jung Sang-hyuk, will remain for another two years.
Market watchers believe each bank is opting for change over stability, as key profitability sectors like the net interest margin could shrink next year.
The average for the five commercial banks, including NH NongHyup Bank, in the third quarter of this year, was 1.57 percent, a decline of 0.07 percentage points. The impact of a reduction in the policy interest rate, coupled with the prolonged high won-dollar exchange rate, is expected to drag profitability down further.
Amid this challenging market outlook, it is notable that KB Kookmin Bank nominated Lee Hwan-ju, a talent from its nonbanking affiliate, as the bank CEO for the first time. During his tenure as CEO of KB Life Insurance, Lee is credited with successfully integrating Prudential Life Insurance and pioneering new markets, including the nursing care business.
Hana Bank has also placed a seasoned sales expert at the forefront. Lee Ho-seoung successfully popularized Travlog — a mobile currency exchange service specialized for travel — during his tenure as CEO of Hana Card.
Woori Bank demonstrated its determination to expand in corporate financing by selecting Jung Jin-wan. With expertise in small and medium-sized enterprise financing, Jung is recognized for laying the groundwork for "One Biz Plaza," a digital platform integrating supply chain management with financial services.
Jung Sang-hyuk, who has been reappointed as Shinhan Bank CEO, is also known for his strong sales acumen. During his 11 years as a branch manager from 2008 to 2018, he was honored 28 times, a testament to his field performance. By strategically placing division heads with outstanding sales track records throughout the organization, he continues to maximize results through strong sales leadership.
"It's clear that achieving another record-breaking performance, like those of this year or last year, will be challenging in 2025," a banking industry official said. "It seems each bank believed a strong drive is necessary at a time when significant changes are required."