The selection of a new CEO for Shinhan Bank has once again failed. The fourth meeting of the CEO Recommendation Committee did not result in a final candidate, pushing the decision to next month. With the current CEO's term expiring on the 17th, it has become virtually impossible to appoint a successor within the term.
According to financial industry sources on November 11, the CEO Recommendation Committee held its fourth meeting to discuss the selection of the next CEO but reached no conclusion. The committee plans to meet again on December 1 to continue discussions on the candidate selection. However, no decision was made regarding the re-application process during this meeting.
Previously, the committee held meetings on September 22, October 6, and October 26, but failed to select a final candidate. Currently, Shinhan's current CEO and Lee Hyung-joo, head of the Financial Intelligence Unit (FIU), are competing as strong candidates. Reports indicate that in the previous three meetings, the current CEO received three votes while Lee received two, reflecting a divided opinion.
The CEO Recommendation Committee consists of five members: three appointed by the government and two recommended by the National Federation of Fisheries Cooperatives. To be selected as the final candidate, a candidate must receive the approval of at least four committee members. Ongoing differences between the government-appointed members and those from the National Federation of Fisheries Cooperatives have hindered the necessary consensus for candidate selection.
Initially, the financial sector anticipated that if a final candidate was not determined in this meeting, the re-application process would likely begin. Labor Jin, chairman of the National Federation of Fisheries Cooperatives, has also expressed that a re-application would be necessary if a candidate was not selected. However, since the committee decided not to determine the re-application process and to reconvene next month, uncertainty regarding the selection is expected to continue for the time being.
The current CEO's term expires on the 17th. However, according to internal regulations of Shinhan Bank, the current CEO can continue in their role until a successor is appointed, so there will not be an immediate vacancy. Nevertheless, the prolonged selection process could pose challenges for year-end executive appointments and the establishment of management strategies for the upcoming year.
Union opposition also presents a variable. The National Financial Industry Labor Union's Shinhan Bank branch recently criticized the government's and the National Federation of Fisheries Cooperatives' involvement in the CEO selection process, urging both the current CEO and Lee to voluntarily withdraw from their candidacies.
Shinhan Bank has previously experienced difficulties in the CEO selection process. In 2017, repeated re-application processes for the next CEO led to a vacancy lasting over six months. With no conclusions reached in the four meetings this time, it remains to be seen whether the committee will reach an agreement on the existing candidates or initiate a re-application process next month.
* This article has been translated by AI.
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