Dr. Jong Kyoo Yoon Selected as the Final CEO Candidate for KB Financial Group
The Extended Corporate Governance Committee (the “Extended Committee”; Chairperson: Young-Hwi Choi) of KB Financial Group Inc. (“KBFG”) held its third meeting at 9:00 a.m. on Tuesday, September 26, 2017, over the course of four hours, and unanimously selected Dr. Jong Kyoo Yoon as the final nominee for the next CEO of KBFG.
During the meeting, Dr. Jong Kyoo Yoon, who became the sole candidate pursuant to the second meeting of the Extended Committee held on September 14, participated in an in-depth interview, which lasted for three and a half hours. The members of the Extended Committee conducted their evaluation based on the criteria for “a candidate who shares the vision and values of KBFG and can strive for sound management in the short and long term,” from among the minimum CEO qualification requirements set forth in the CEO Succession Regulations. (Please refer to the table below for the in-depth evaluation criteria for Short List candidates.) To allow a multi-faceted evaluation, the Extended Committee was provided with opinions from various stakeholders, such as major institutional shareholders, employees and the labor union, in addition to the interview documents submitted by the candidate.
At the interview, the members of the Extended Committee verified Dr. Jong Kyoo Yoon’s qualifications and capabilities as a candidate for the next CEO of KBFG by focusing on questions relating to, among other things: mid- to long-term business strategies, including M&A, globalization and portfolio strategies; strategic responses to a digital age; synergy creation; fulfillment of corporate social responsibility; stabilization of the corporate governance structure and fostering of future leadership; organizational consolidation and cultivation of a corporate culture; labor-management relations; separation of CEOs between Kookmin Bank and KBFG; and management of KBFG’s subsidiaries.
In response to questions from committee members, Dr. Jong Kyoo Yoon indicated that he would make greater efforts to actively respond to paradigm shifts in the financial industry, such as digitalization; promote globalization; help KBFG fulfill its corporate social responsibility as a leading financial group by offering more medium-interest rate loan products and creating new jobs through its support to small and medium-sized enterprises, start-ups and venture companies; and enhance customer and shareholder value. Dr. Yoon also made it clear that he would seek to generate greater synergies within the group by strengthening business portfolios; enhance the CEO succession program in order to promote a more stable corporate governance structure and to foster future leadership; and improve relations with the labor union by continuously engaging in dialogue.
Following a discussion with non-executive directors, Dr. Jong Kyoo Yoon indicated his intention to separate the positions of the CEO of Kookmin Bank and KBFG, which he concurrently holds. The Standing Corporate Governance Committee of KBFG plans to commence discussions with the Board of Directors of KBFG regarding the appointment of Kookmin Bank’s CEO, once the Extended Committee’s CEO candidate nomination process for KBFG has been completed. Dr. Yoon expects that candidates for Kookmin Bank’s CEO will be drawn from individuals who are capable of adapting proactively to the rapidly changing business environment and who have accumulated leadership experience.
After engaging in a discussion following the interview, the members of the Extended Committee reached a consensus that the incumbent CEO Dr. Jong Kyoo Yoon would be the right person to become the next CEO of KBFG and unanimously selected him as the final CEO candidate. Accordingly, the Extended Committee plans hold its fourth meeting on September 29, 2017 to verify that Dr. Yoon meets the qualifications for appointment as a director pursuant to applicable laws and regulations and, upon such verification, will recommend Dr. Yoon as the final CEO nominee to the Board of Directors of KBFG.
Dr. Jong Kyoo Yoon is expected to be appointed as the chairman and CEO of KBFG with a three-year term at the meeting of the Board of Directors, subject to shareholder approval at the extraordinary general meeting of the shareholders of KBFG, both of which are expected to take place on November 20, 2017.
[Table. In-depth Evaluation Criteria for Short List Candidates]
Sharing vision and values of KBFG
- A person who is able to recognize the challenges that KBFG needs to overcome and suggest a vision as well as ways to realize that vision, and who has an insight on the direction of KBFG’s development
- A person with sufficient awareness of strategies to improve and foster KBFG’s organizational culture as well as KBFG’s position and in the market
Striving for sound management in the short and long term
- A person with entrepreneurial qualities who is capable of seeking and promoting new business opportunities as well as leading KBFG in its long-term development through qualitative growth
- A person who communicates well with stakeholders and seeks to fulfill corporate social responsibilities, and is able to inspire unity and dedication among management and employees of the entire group
- A person who has a plan to develop management personnel based on a full understanding of KBFG’s governance structure, and who possesses a deep understanding regarding the responsibility and of the Board of Directors