Shinhan undertakes major reshuffle, replaces 9 CEOs

Shinhan Financial Group has embarked on a large-scale CEO reshuffle by recommending new candidates for the top positions of nine out of 13 affiliates on Thursday.

Jung Sang-hyuk, the 60-year-old CEO of the group’s flagship lender Shinhan Bank, was reappointed for his second term, which will last two years.

The personnel changes were focused on three pillars -- improving the organizational structure through high-intensity personnel reform, accelerating the implementation of a consistent future strategy by reappointing a CEO with proven management ability, and actively selecting next-generation leaders through generational change, according to the group.

Shinhan Financial Group Chairman Jin Ok-dong stressed in a statement “the urgency of improving the organization's structure through fundamental internal innovation, strong personnel reform and generational change to managing risk in an uncertain business environment.”

The CEO candidates picked through the group’s CEO recommendation committee will be finalized at each company's board of directors and general shareholders' meeting after the verification procedure.

Through the sweeping reshuffle, the CEOs of four subsidiaries, including Shinhan Bank, Shinhan Life, Shinhan Asset Management, and Shinhan EZ General Insurance, retained their positions, and the chiefs of nine affiliates, including Shinhan Card, were replaced.

Shinhan Bank CEO Jung was recommended for reappointment for a two-year term rather than the typical one-year term given to those keeping the seat.

“Jung demonstrated excellent management performance, including solid asset growth, increased non-interest income and global growth, and led various innovations and reformed the organization through stable management and new attempts for future growth,” the committee said.

Granting the two-year term was aimed at providing a sense of stability to his mid- to long-term strategies, it added.

Park Chang-hun, 56, head of Shinhan Card’s payment division, was recommended for the highest-ranked position of the country’s largest credit card firm.

With experience in various roles in the digital banking business under his belt, the committee expected that Park would contribute to evolving Shinhan Card into a platform company.

Along with Park, division directors of other affiliates Shinhan Savings Bank, Shinhan DS, Shinhan Fund Partners and Shinhan REITs Management, were promoted to CEOs, breaking the custom of elevating vice presidents to succeed CEOs.

For Shinhan Securities, the firm’s Vice President Lee Sun-hoon, 56, will replace Kim Sang-tae, who resigned in connection with a 130 billion won ($91.8 million) futures trading scandal in August this year.

“As various problems have arisen in internal control and risk management, the new CEO’s role as a control tower for risk management will be further highlighted. Accordingly, various follow-up measures will be implemented to improve the organizational structure,” a group official said.

Shinhan Life CEO Lee Young-jong, 58, was recommended for his one-year second term to give momentum to his growth strategy to turn the firm into a top-tier life insurer.

Shinan Bank’s Vice President Jun Pil-hwan, 59, was picked by the committee to lead Shinhan Capital in recognition of his rich experience encompassing digital business and sales and demonstrated excellent business management capabilities while serving as the head of SBJ, Shinhan Bank's Japanese subsidiary.