According to the financial investment industry, the firm planned to convene another special board meeting Thursday, following one held the previous day, to discuss whether to proceed with the overhaul. A move to the independent co-CEO model has been viewed as the most likely outcome.
The company plans to resume the CEO selection process once the governance structure is decided. The search has been clouded by uncertainty. Ahead of its regular shareholders meeting in March, the company decided to reconsider its governance model first and excluded the agenda item to appoint a CEO. As it reviewed multiple scenarios — including a single CEO, joint CEOs and independent co-CEOs — the selection process effectively paused.
The executive candidate recommendation committee later re-examined and expanded the candidate pool, but with no decision on the governance direction, it remained unclear even how to narrow the list. Roles would differ depending on whether the company adopts a single-CEO or multi-CEO structure.
Under a single-CEO model, an executive capable of overseeing business lines such as investment banking had been seen as a leading type of candidate. As the independent co-CEO option gained traction, a plan to split management support and business operations under separate CEOs emerged, widening the pool to include current and former executives.
The company has cited as its official rationale “the need to upgrade risk management systems amid rapid changes in capital markets and the expansion of business scale,” saying the goal is more stable operations in a fast-changing market environment.
Market participants, however, have largely viewed the move as more than a management strategy. NH Investment & Securities’ largest shareholder is NH NongHyup Financial Group, which is controlled by the National Agricultural Cooperative Federation. In the 2024 CEO selection process, Yoo Chan-hyung, a former vice chairman from the federation, was placed on the shortlist. This year as well, ahead of the March regular shareholders meeting, a figure seen as close to the federation was mentioned as a possible next leader, with the federation’s preferences seen as a variable in the selection.
Against that backdrop, some interpret the governance overhaul talks as aimed less at efficiency and more at balancing interests. Some have also said that if the firm adopts the independent co-CEO structure, it could raise the chances of CEO Yoon Byung-woon being reappointed, since it could allow a compromise that places a federation-backed figure alongside an internal company executive.
* This article has been translated by AI.
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