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| Woori Financial Group's chairman nominee Yim Jong-ryong / Yonhap |
By Lee Min-hyung
Woori Financial Group's next chairman nominee Yim Jong-ryong stands to be tasked with a drastic organizational reshuffle and non-banking portfolio expansion if he takes the position, a possibility that could become reality by as early as March.
Yim has been nominated as the sole candidate for the position last week to replace outgoing Chairman Son Tae-seung. Woori's decision to nominate the former bureaucrat, however, has taken the flak, as Son was forced to leave the group in response to repeated political pressure from financial authorities.
Despite the controversy, Yim is widely forecast to serve as Woori's next chairman once receiving approval in the group's regular shareholders meeting slated for March.
Yim faces mounting tasks in leading the group as an outside figure. He has pledged to reshuffle and innovate the organization so that the financial holding firm can regain the trust of customers after its complete privatization.
"I will do my best to help the group become a trustworthy company in the view of the market, customers, executives and employees by pushing for organizational innovation and establishing better corporate culture," Yim said.
Yim is best known for his balanced and neutral viewpoint on the management of financial organizations. He served as a former chairman of the Financial Services Commission (FSC) and ex-chairman of NH Financial Group.
The chairman nominee must also decide whether the company will drop an administrative suit against FSC's sanction of Woori Bank which involved the selling of problematic fund products from Lime Asset Management.
But chances appear slim for Yim and the firm to take further legal action, as Son has decided to step down from the post, in part taking responsibility for the financial fiasco. The next Woori chief, however, is expected to strengthen the organization's internal control system to prevent the recurrence of such incidents.
Another crucial task Yim faces is the expansion of the group's portfolio into non-banking sectors, as the company is in dire need to diversify its business portfolio into the lucrative securities and insurance sectors.
Woori's reliance on banking revenue is the biggest among Korea's major financial holding firms. As of the end of Q3 2022, the banking business accounted for 85.29 percent of Woori Financial Group's net profit, the largest among the nation's top five banking groups. The figure for Shinhan and KB, the top two banking groups here, reached 66.6 and 70.83 percent, respectively, during the same period.
Against this backdrop, Yim, as an industry leader with a broad range of experience, is forecast to aggressively engage in any possible mergers and acquisitions in the non-banking sectors.
