Shinhan speeds up drive to extend leadership
Shinhan Financial Group is on track to initiate internal procedures to extend the leadership of Chairman Cho Yong-byoung, whose term ends in March 2023.
Last week, the group set up a chairperson recommendation committee, and its seven board members have started discussion of the next candidates for the group’s top management. Shinhan is expected to confirm the shortlist for the group’s next chairperson sometime around early December.
After the final candidate is confirmed to lead the banking group during a regular shareholders’ meeting in March, the next chairperson will then take office as its next leader with a three-year tenure.
The incumbent leader is widely forecast to extend his term for another three years, as he cleared away legal risks he faced after the Supreme Court acquitted him on corruption charges over Shinhan Bank’s employee hiring practices in June.
Shinhan’s earnings growth also increases the likelihood for Cho to extend his leadership. According to earnings reports from major financial holding firms here, Shinhan Financial Group regained its title as the top banking group in terms of net profit during the third quarter. This was the first time in three years since Shinhan lost its leading status to KB Financial Group in 2020.
Shinhan’s net profit in the third quarter reached 1.59 trillion won, up 20.8 percent from a quarter earlier, surpassing that of KB, the net profit of which came in at 1.27 trillion won during the same period.
“The chances of Cho serving another term have increased in line with the alleviated legal risk,” an industry source said. “On top of that, the group also chalked up decent earnings by regaining its leading bank title.” But there stands a possibility of political intervention in banking groups’ leadership as President Yoon Suk-yeol and his administration have stepped up criticism of banks’ excessive interest profits. Financial authorities are also not in favor of banking groups’ interest-reliant business structures.