KB Financial Group puts chief business officer Lee Jae-keun as candidate for chairman

KB Financial Group named Lee Jae-keun, chief business officer overseeing global, wealth management and corporate finance, as the final candidate to become its next chairman, the group's chairman candidate recommendation committee announced on Friday.

It defied widespread expectations that incumbent Chairman Yang Jong-hee would secure a second term given the strong earnings KB Financial reported under his leadership. Lee vied with Yang and former Woori Bank CEO Kwon Kwang-seok for the top post.

“We selected Lee Jae-keun as the right person to lead the transformation at a time when the group needs bold change and generational renewal to strengthen its core competitiveness and secure new engines of future growth,” the committee said in a statement.

“With the financial industry undergoing a major reshaping and the flow of money between asset classes accelerating, Lee has the capabilities to lead KB Financial’s future and deliver sustainable growth,” it added.

Lee, who previously served as the CEO of KB Kookmin Bank from Jan. 2022 through Dec. 2024, has expertise across the banking as well as nonbanking business, the committee said.

Lee will be appointed the new chairman following approval at an extraordinary shareholder meeting scheduled for Nov. 20, the day Yang's term ends. Lee's term will run for three years.

The decision was made amid pressure from financial regulators to curb lengthy tenures for financial holding company chairmen. Regulators have been considering broader governance reforms aimed at strengthening board independence and making succession processes more transparent, as chairmen at other major financial groups have secured second terms, including Shinhan Financial Group Chairman Jin Ok-dong and Woori Financial Group Chairman Yim Jong-yong.

BY JIN MIN-JI [[email protected]]