The appointment of the next SH Cooperative Bank president has once again entered a prolonged phase. Shin Hak-ki, the current bank president under the new term, received three votes at the Bank President Recommendation Committee (BPRC), including one from a government-appointed member, but failed to cross the "four-vote barrier" required to become the final candidate. Lee Hyung-joo, director of the Financial Intelligence Unit (FIU), is reported to have secured support from two government-appointed members.
According to financial sector sources on the 22nd, the SH Cooperative Bank BPRC convened at 1:30 p.m. that day to select the final candidate for the next bank president but reached no conclusion. The committee had conducted interviews the previous afternoon starting at 3 p.m. in Seoul with six candidates for the next bank president, including the current president and Director Lee.
The SH Cooperative Bank BPRC consists of five members: one recommended by the Ministry of Economy and Finance, one by the Financial Services Commission (FSC), one by the Ministry of Oceans and Fisheries, and two recommended by the Korea Federation of Cooperatives. To be selected as the final candidate, approval from at least four of the five BPRC members is required.
In that day's vote, it was reported that President Shin received three votes and Director Lee received two. Two committee members from the Korea Federation of Cooperatives supported President Shin, while one of the three government-appointed members also voted for him. The remaining two government-appointed members supported Director Lee. Although President Shin secured a majority with three votes, he fell short by one vote of the four required to be nominated as bank president candidate.
Committee members who supported President Shin reportedly placed high value on his management achievements during his tenure and the continuity of business operations. SH Cooperative Bank's pre-tax net profit last year was 312.9 billion won, an increase of 11.9 billion won from the previous year, and in the first half of this year it reached 203.4 billion won, a 3.6% rise compared to the same period last year.
President Shin also led the expansion of non-bank businesses. Following the launch of SH Cooperative Asset Management last year, procedures are currently underway to acquire Sangsangin Securities. The bank is also pursuing entry into the capital business sector and, last month, secured a 14.95% stake in digital asset custodian company Infinite Block, becoming its second-largest shareholder jointly.
On the other hand, committee members who supported Director Lee reportedly emphasized the need for a policy expert with experience across the entire financial industry, given the rapid expansion of SH Cooperative Bank's business scope beyond traditional banking into non-bank sectors.
Director Lee entered public service through the 39th Administrative Examination and served as a senior official in key roles including Financial Policy Division Chief, Director of the Financial Industry Bureau, Director of the Financial Policy Bureau, and Standing Commissioner at the FSC. He currently serves as director of the FIU. His understanding of the entire financial industry and experience coordinating with institutional investors during the process of expanding its business portfolio from asset management into securities and capital sectors are seen as his strengths.
Accordingly, the BPRC is expected to proceed with additional procedures for appointing the next bank president. It is reported that the committee will conduct further consultations after the Chuseok holiday without launching a new recruitment process.
This is not the first time that the appointment of an SH Cooperative Bank president has failed to conclude after a single interview round. During the 2022 appointment of former President Kang Shin-sook, the final candidate was not determined in the initial interviews, leading to re-recruitment and additional interviews, with former President Kang ultimately selected as the final candidate at the third BPRC meeting. Similarly, during the appointments of former Presidents Lee Dong-bin in 2017 and Kim Jin-gyun in 2020, the final candidates were determined after re-recruitment and further discussions.
If President Shin succeeds in securing a second term, he will become the first president to be reappointed since SH Cooperative Bank was established as a separate legal entity by the Korea Federation of Cooperatives in 2016. If Director Lee is selected as the final candidate, he will be the first from the FSC and the first bureaucratic appointee to lead SH Cooperative Bank in nine years since former President Lee Won-tae, also from the Ministry of Economy and Finance, stepped down in 2017.
in FINANCE
