Who Will Lead Sh Suhyup Bank's Holding Company Transition?... "Suhyup Man" Shin Hakgi vs. "Bureaucrat" Lee Hyungjoo Face Off

Shin Hakgi Seeks Reappointment Backed by Non-Banking M&A and Growth in Performance
Lee Hyungjoo Leverages Financial Policy Expertise with a Strong Edge in Regulator Relations During Transition
Committee Vote as Deciding Factor: Three Government Votes, Two from National Federation

The race to appoint the next president of Sh Suhyup Bank, which is currently pursuing a conversion to a financial holding company, has officially begun. The competition has essentially narrowed to two key contenders: the current president, Shin Hak-gi, who is an internal candidate, and Lee Hyungjoo, President of the Financial Intelligence Unit (FIU) and a high-ranking official with the Financial Services Commission. Observers predict that the most suitable person to stably lead the holding company transition will ultimately be appointed as the next president.

From the left, Shin Hakgi, President of Sh Suhyup Bank, and Lee Hyungjoo, Director of the Financial Intelligence Unit (FIU).

According to the financial industry on September 10, the Sh Suhyup Bank Presidential Candidate Recommendation Committee (referred to as “the committee”) selected all six applicants for interviews the day before, after they applied for the next presidency position. The committee plans to conduct interviews on September 21 and announce the final candidate on September 22.

The internal candidates consist of the current president Shin Hak-gi, as well as former vice presidents Park Yangsu and Jeong Cheolgyun. External candidates include Lee Hyungjoo, Kang Cheolseung, President of the Korea Fisheries Policy Forum, and Lee Hyungseung, outside director of BNK Securities. However, the race is already shaping up as a two-way contest between Shin Hak-gi and Lee Hyungjoo.

Sh Suhyup Bank is aiming to transition to a financial holding company structure by 2030 and is working to expand its non-banking subsidiaries. As a result, the next president’s main challenge will be how specifically and quickly the holding company transition can be materialized and advanced over the next two years.

Shin Hak-gi’s greatest strength lies in the continuity of the holding company transition efforts and his past achievements. Since taking office in November 2024, he has accelerated new business development and portfolio diversification, driving faster mergers and acquisitions (M&A). Last September, he acquired Trinity Asset Management and launched Sh Suhyup Asset Management, and last month secured a 14.95% stake in Infiniteblock, a digital asset custody company, making Sh Suhyup Bank the joint second-largest shareholder. Most recently, a memorandum of understanding (MOU) was signed for the acquisition of Sang Sang Securities, with due diligence currently underway, and the bank is also considering acquiring Dutch-based capital firm DLL. The bank’s operational and financial performance has also been on the rise. Pre-tax net profit for the first half of this year was KRW 203.4 billion, up 3.6% compared to a year earlier, and total assets reached KRW 70 trillion, an increase of KRW 6.7 trillion compared to the end of last year.

In contrast, Lee Hyungjoo’s strength is his expertise as an incumbent senior official in financial policy. For Sh Suhyup Bank to pursue the acquisition of non-banking subsidiaries including Sang Sang Securities and to advance its financial holding company conversion, it must go through a series of regulatory screenings and licensing procedures by the financial authorities—including eligibility reviews for major shareholders. In this context, Lee Hyungjoo’s deep understanding of financial policy and supervisory frameworks, as well as his communication skills with regulatory authorities, are expected to be strong advantages.

Lee Hyungjoo is widely regarded in and outside the Financial Services Commission as a financial policy expert with outstanding work competence and a distinguished career, seen as a potential candidate for ministerial or vice-ministerial positions in the future. Amid ongoing competitiveness gaps between Sh Suhyup Bank and large commercial banks, there is also hope that he can drive organizational and business changes from an outside perspective, leveraging his financial policy expertise.

The final stage will be a committee vote. The committee consists of five members: three nominated by the Ministry of Economy and Finance, the Financial Services Commission, and the Ministry of Oceans and Fisheries, and two representing the National Federation. At least four votes are required to confirm the next president, meaning neither the government nor the National Federation alone can cross the final threshold with just their own support.

For Shin Hak-gi, a key issue is that he was appointed during the Yoon Suk Yeol administration, while for Lee Hyungjoo, a possible variable is potential internal opposition to appointing an external bureaucrat as president after the repayment of public funds in 2022. These factors are considered potential variables in the appointment process.

A source in the financial sector commented, “In this round, rather than whether the candidate is internal or external, the most important factor is who can more stably lead Sh Suhyup Bank’s transition to a financial holding company,” adding, “The next president is likely to be someone who can take on the tasks necessary for the holding company transition, such as expanding the non-banking portfolio and strengthening organizational competitiveness.”

This content was produced with the assistance of AI translation services.