Suhyup Bank president selection fails again at second committee vote
In short
Suhyup Bank's bank president recommendation committee failed for a second time on Oct 6 to name a final candidate, because no nominee won the required four votes from the five-member panel. The vote again split 3-2 between incumbent president Shin Hak-gi and Financial Intelligence Unit chief Lee Hyung-ju. The next meeting is expected in late October or early November, with Shin's term ending Nov 17.
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Suhyup Bank's bank president recommendation committee failed on Oct 6 for a second time to select a final candidate for the bank's next president. No nominee secured the agreement of at least four of the committee's five members, and the panel said it would resume deliberations later. Newsis first reported the outcome in a flash headline, and Maeil Business, Bloter, Seoul Economic Daily, Asia Economy and Yonhap followed. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
The vote again split 3-2, according to Newsis, Maeil Business, Bloter, Seoul Economic Daily, Asia Economy and Yonhap, with incumbent president Shin Hak-gi on three votes and Financial Intelligence Unit chief Lee Hyung-ju on two — the same result as at the first vote on Sept 22. Bloter and Asia Economy reported Shin drew the two federation-recommended members and one government-recommended member, while Lee drew the other two government-side members. Newsis and Bloter noted the ballot is held in private, so the breakdown was relayed second-hand. [ 2 , 3 , 4 , 5 , 6 , 7 ]
The committee has five members: three recommended by the government — Kim Byung-kyu, recommended by the finance ministry; Park Kyung-chul, by the oceans ministry; and Lim Hyung-jun, by the Financial Services Commission — and two by the National Federation of Fisheries Cooperatives, Song Kwang-bok and Jung Seung-man. A candidate needs four votes, a structure Bloter said is intended to stop either the government or the federation from deciding alone but that also stalls when the vote splits 3-2. [ 2 , 3 , 4 , 5 , 6 , 7 ]
The next meeting is expected in late October or early November, Maeil Business, Bloter, Asia Economy and Yonhap reported, while Seoul Economic Daily said it could come as early as this month. Shin's term ends Nov 17, leaving limited time if the third meeting also fails, since board and shareholder procedures would follow. Maeil Business and Yonhap said reopening applications is being raised as a possibility. [ 3 , 4 , 5 , 6 , 7 ]
Suhyup Bank closed applications on Sept 1 and interviewed six applicants on Sept 21, Bloter reported; the first vote the following day also ended without a final candidate and the committee discussed the same field rather than reopening applications. Newsis listed the six original candidates as Shin, Lee, former vice presidents Park Yang-soo and Jung Chul-kyun, Korea Fisheries Policy Forum head Kang Chul-seung and BNK Securities outside director Lee Hyung-seung. [ 2 , 4 , 5 ]
Maeil Business reported Shin is credited with expanding non-bank operations and improving results, but that regulators' wariness of CEO reappointments has weighed on him, while Lee's strength is communication with regulators during a planned shift to a financial holding structure, offset by conflict-of-interest concerns as a sitting senior official. Bloter said a public official employment review is also being mentioned as a variable, and reported the government-side seats date to public funds: the federation's credit business received 1.1581 trillion won from the Korea Deposit Insurance Corporation in 2001, repaid 4.007 trillion won by 2022 and handed over government bonds for the remaining 7.574 trillion won, with the insurer's cashing-out process running to the end of 2027. A senior bank executive told Bloter the structure must stay until then; union chief Lee Hae-hyung said it could change sooner if rules are amended. [ 3 , 4 ]
A financial industry official told Seoul Economic Daily that behind-the-scenes work is under way to narrow differences among committee members ahead of the next meeting, adding that the direction could be settled before then. Yonhap noted the bank went more than six months without a president during its 2017 selection, and Maeil Business recalled that re-postings were also needed in 2020 and 2022. [ 5 , 7 ]
Why it matters
The deadlock keeps Suhyup Bank without a confirmed next chief executive as the incumbent's term expires on Nov 17, and outlets raise the possibility of a leadership vacancy, as happened for more than six months in 2017. It also highlights a committee structure meant to prevent either the government or the fisheries federation from deciding alone, which stalls when the vote splits 3-2.
Key facts
- Suhyup Bank's bank president recommendation committee held its second meeting on Oct 6 and again failed to select a final candidate. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
- A nominee needs the agreement of at least four of the committee's five members. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- The vote split 3-2, with incumbent president Shin Hak-gi on three votes and Financial Intelligence Unit chief Lee Hyung-ju on two, the same result as at the first vote. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- The committee has three members recommended by the government and two by the National Federation of Fisheries Cooperatives. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- The next committee meeting is expected in late October or early November. [ 3 , 4 , 6 , 7 ]
- Shin Hak-gi's term as president runs until Nov 17. [ 3 , 4 , 5 , 7 ]
- Six people were originally in the running for the post. [ 2 , 4 ]
Confirmed by several sources
- The president recommendation committee failed to name a final candidate at its Oct 6 second meeting. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
- A final candidate must win the agreement of at least four of the five committee members. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- Votes split 3-2, with Shin Hak-gi receiving three and Lee Hyung-ju two, the same as at the first vote on Sept 22. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- The committee consists of three government-recommended members and two federation-recommended members. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- A third meeting is planned for late October or early November. [ 3 , 4 , 6 , 7 ]
- Shin Hak-gi's current term ends on Nov 17. [ 3 , 4 , 5 , 7 ]
- Shin drew the two federation-recommended members and one government-recommended member, while Lee drew the other two government-side members. [ 4 , 6 ]
Still unclear
- The exact vote breakdown in each round. Newsis and Bloter say voting is held in private and the 3-2 result was relayed second-hand, so it cannot be independently confirmed.
- Whether the committee will reopen applications for the post. Maeil Business, Bloter and Yonhap say re-posting is only a possibility being discussed if the third meeting also ends without a final candidate.
- Whether the committee's three government-recommended seats will remain until the end of 2027. Bloter reports a disagreement: a senior bank executive said the structure must stay until then, while the bank's union chief said it could change earlier if relevant rules are amended.
- Whether Lee Hyung-ju would face a public official employment review. Bloter lists this only as a variable being mentioned, and says the repeated 3-2 split is difficult to explain by candidate qualifications alone.
What local media are saying
Timeline, local time
- Newsis issues a flash headline saying the bank president recommendation committee failed to pick a final candidate at its second meeting. [ 1 ]
- Newsis reports the decision was postponed again, with a further committee meeting to follow. [ 2 ]
- Maeil Business reports the vote again split 3-2 and that the third meeting is set for late October to early November. [ 3 ]
- Bloter reports the repeat vote produced the same 3-2 split and details the committee's composition and the public funds background. [ 4 ]
- Seoul Economic Daily reports the deadlock continued and cites an industry official saying behind-the-scenes coordination is under way. [ 5 ]
- Asia Economy reports a third vote is expected in late October or early November. [ 6 ]
- Yonhap reports the committee will resume later, with the next meeting in late October or early November, and notes Shin's term ends Nov 17. [ 7 ]