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(Seoul=Yonhap Infomax) Won Jung – Woori Financial Group, currently undergoing a governance transition, will proceed as scheduled with executive appointments at its flagship banking unit early next month.
Previously, market observers expected that executive reshuffles at Woori Bank, the group’s core subsidiary, would be delayed until uncertainties surrounding the appointment of the next group chairman were resolved.
However, with Chairman Lim Jong-ryong having abolished the so-called ‘pre-consultation system’—a practice requiring prior agreement with the holding company for subsidiary CEO appointments—the group has opted to allow each subsidiary to set its own schedule for executive changes, independent of the holding company’s governance timeline.
According to financial industry sources on the 21st, Woori Bank plans to conduct executive appointments, including for vice presidents, on either the 4th or 5th of next month.
Thursday, the 4th, is considered the most likely date for the announcement. In the past, Woori Financial typically disclosed executive appointments late on Fridays, but under the Lim Jong-ryong administration, the trend has shifted to Thursdays.
A Woori Financial official explained, “This change is out of consideration for retiring executives. There were many concerns about vice presidents who had served Woori Financial for over 30 years having to pack up and leave hurriedly on a Friday night without a proper farewell. By moving the date up by a day, we aim to give them more time to wrap up.”
If the executive appointments are made on the 4th, appointments for department heads and staff are expected to follow at weekly intervals, meaning the entire personnel schedule should be completed within the month.
The ability to proceed with the bank’s executive reshuffle even as the Chairman Candidate Recommendation Committee (CCRC) process is ongoing is largely attributed to Chairman Lim’s decision to abolish the pre-consultation system.
The pre-consultation system required subsidiary CEOs, such as the bank president, to consult with the holding company chairman before making executive appointments. This system was previously used to maintain the holding company chairman’s influence over appointments of vice presidents and department heads at the bank.
However, concerns that this concentrated too much power in the hands of the holding company chairman and failed to adequately reflect the unique circumstances of each subsidiary led Chairman Lim to abolish the system at the end of last year.
Another Woori Financial official said, “President Jeong Jin-wan still has ample time left in his term, so there are no issues with proceeding with executive appointments. Delaying personnel changes could negatively impact business operations, so we decided to move forward as planned.”
The official added, “With the abolition of the pre-consultation system, there is now a clear rationale for this approach. We expect the appointments to better reflect the direction of the ‘Jeong Jin-wan administration.’”
At the bank, Vice Presidents Cho Byung-yeol (HR Group) and Ryu Hyung-jin (Global Group), both in their third year as executives, are reportedly likely candidates for personnel changes.
However, the situation differs somewhat for Woori Financial Holdings and other subsidiaries. Since Chairman Lim must make appointments at the holding company level, those decisions may be postponed until the CCRC process concludes. The same applies to other subsidiaries besides the bank.
Among Woori Financial’s subsidiaries, the CEO terms at 10 units—including Woori Card, Woori Investment & Securities, Woori Asset Trust, Woori Savings Bank, Woori Asset Management, Woori Private Equity Asset Management, Woori F&I, Woori Credit Information, Woori Fund Services, and Woori FIS—are set to expire at the end of this year.
A financial industry source commented, “For subsidiaries, it would be burdensome to push ahead with executive appointments when there is a possibility of CEO changes. The holding company’s CCRC must conclude before subsidiary CEO selection committees can proceed, so executive appointments at those units are likely to follow afterward.”
jwon@yna.co.kr
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