Shinhan Bank CEO Cho Yong-byoung, who was nominated as new chairman of Shinhan Financial Group Thursday, faces mounting challenges including retaining the No. 1 post in the fiercely competitive local financial industry.

When the second term of current Chairman and CEO Han Dong-woo expires in March, Cho will take up the three-year post once he gets approval at the general shareholders meeting in March. The term can be renewed one time. 

Cho was unanimously voted by the seven members of the corporate governance and CEO recommendation committee to be the final candidate among the three candidates including Wi Sung-ho, CEO of Shinhan Card, and Choi Bang-gil, former CEO of Shinhan BNP Paribas Asset Management, the group said in a statement.

Wi, who chose not to seek chairmanship during the candidate interview, is likely to be appointed to Shinhan Bank CEO, observers said.

Shinhan Financial has various financial units under its arms such as bank, credit card company, brokerage, insurer, lease firm, savings bank and private equity.

Shinhan Financial’s net profit hit 2.16 trillion won in the third quarter last year, according to regulatory filings. Its archrival KB Financial Group’s net profit was 1.6 trillion won, and Hana Financial Group, 1.24 trillion won, respectively, in the same period.

KB Financial’s merge between its brokerage KB Securities with Hyundai Securities is a challenge for Shinhan, which would have to push its subsidiaries other than leading Shinhan Bank and Shinhan Card to do better in their respective market.

Hana Financial is pushing to boost synergy effects from KEB Hana Bank, which became a banking giant after the former Korea Exchange Bank and Hana Bank merged.

Woori Bank, which was recently privatized after 16 years of attempting to do so, aims to rebuild the financial holding firm Woori Financial Group in the first half of this year, industry officials said, which will be another challenge for Shinhan. Woori Financial was launched in 2001 but was later disintegrated in the process of privatization with sales of its subsidiaries such as Woori Investment & Securities, Gwangju Bank and Kyongnam Bank.

Meanwhile, Woori Bank said it has narrowed down candidates for the new CEO to six for interviews on Thursday.

The six candidates are the current Woori Bank CEO Lee Kwang-goo; Lee Dong-gun, deputy president and head of the bank’s business support group; Kim Byung-hyo, former CEO of Woori Private Equity; Yoon Sang-gu, former vice president at the bank; Kim Seung-gyu, former executive vice president at the bank; and Kim Yang-jin, former vice president at the bank.

Woori Bank is likely to pick the final candidate before the Lunar New Year and officially name the new CEO at its general shareholders meeting on March 24.

By Kim Yoon-mi (yoonmi@heraldcorp.com)