Yang Jonghee Not Reappointed... KB Financial Group Opts for Generational Change with Lee Jaekeun, Defying Expectations

Lee Jaekeun Selected as Final Candidate; Final Decision at Extraordinary Shareholders’ Meeting on November 20

Lee Jaekeun, With Experience as Bank President and Division Head, Highly Rated for Financial, Strategic, and Global Capabilities

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The KB Financial Group Chairman Candidate Recommendation Committee has selected Lee Jaekeun, head of the KB Financial Group division, as the final candidate for the next chairman, instead of the incumbent chairman Yang Jonghee. This unexpected result breaks with the tradition of reappointing sitting chairmen, drawing attention to the background and reasoning behind the committee's decision.

On September 11, the KB Financial Group Chairman Candidate Recommendation Committee announced that it had selected Lee Jaekeun, head of the KB Financial Group division, as the final candidate for the next chairman.

During the meeting, the committee conducted in-depth interviews of two hours each with the three candidates shortlisted on August 27: former Woori Bank President Kwon Gwangseok, Chairman Yang Jonghee, and division head Lee Jaekeun.

The committee members evaluated and examined the candidates in depth based on the five main criteria defined for the chairman position: 'work experience and expertise', 'leadership', 'integrity', 'sharing the vision and values of KB Financial Group', and 'commitment to sound management over the short and long term', along with 25 detailed sub-criteria. After the final vote, there was consensus that Lee Jaekeun was the most suitable candidate possessing the necessary qualities and capabilities to become the next chairman.

The industry had initially anticipated that Chairman Yang would likely be reappointed, due to his strong management track record since assuming leadership of KB Financial Group. Under his tenure, KB Financial Group became the first financial holding company to achieve an annual net profit of 5 trillion won in 2024, and was on the verge of joining the '6 trillion won club' for the first time ever this year.

The delay in the release of the financial authorities’ governance improvement plan, which had been considered the most significant variable for the reappointment of the financial holding company chairman, was also one reason why Yang's reappointment was considered likely. However, the outcome turned out differently than expected. Contrary to widespread expectations in the financial sector that the incumbent chairman would simply continue in office, the committee chose a generational change.

Moreover, given ongoing criticisms that financial holding company chairmen have influenced the appointment of outside directors, who would then recommend the chairman candidates in a so-called revolving door process, the committee's independent decision has drawn attention, particularly in the wake of Yang's failed bid for reappointment.

Jo Hwajun, chair of the recommendation committee, expressed gratitude: "I sincerely thank all the candidates for their fair competition over the past three months." He added, "This succession process was launched early, based on a transparently established succession plan, to ensure rigorous evaluation of the candidates. The reliability and fairness of the entire process were further strengthened through objective verification standards."

The committee will complete the statutory qualification review and, after receiving recommendations from both the committee and the Board of Directors on October 2, the final decision on the next chairman will be made at the extraordinary shareholders' meeting in November. Chairman Yang’s term is set to end on November 20.

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