Woori Financial Group chairman reappointed to 2nd term

Woori Financial Group Chairman Lee Pal-seong will remain at the helm for a second term, a move which analysts say will help accelerate the stalled privatization of the state-run conglomerate.

If Lee receives approval from shareholders, he will become the first Woori chairman to serve a second consecutive term since the group’s establishment in 2001.

Oh Jong-nam, head of the group’s chairman candidate selection committee, told reporters Tuesday that the committee recommended that Lee serve another term. The board will gather early next month to endorse the nomination before shareholders give final approval at their annual meeting on March 25.

If approved, Lee will serve for another three years.

“Chairman Lee received high marks in management capability, mediation of interests of affiliates, communication with other institutions and external negotiations. The committee in particular considered Lee the most qualified person to push for the group’s privatization, which has stalled over the last 10 years,” Oh told reporters.

Born in Hadong County, South Gyeongsang Province, Lee graduated from Korea University in Seoul and started his career in 1967 at Hanil Bank, which eventually became Woori Bank. After a six-year stint as president of Woori Securities (formerly Hanvit Securities) that began in 1999, he became chairman of Woori Financial Group in June 2008.

On whether he expected his reappointment, Lee said, “How could I expect that after all that I’ve gone through? I’ll do my best.”

On the group’s privatization plan, he said, “When the government releases its specific privatization plan, Woori Financial Group will do its best to attract bidders.”

Lee is expected to deliver Woori’s opinions when the government resumes the privatization process. He is known to be preparing for either a bloc sale (sales of certain shares), bloc sale plus public share sale, or competitive bidding. The latter involves distributing shares in consecutive order to those who bid the highest price.

The group will set up a candidate selection committee this week to replace Woori Bank CEO Lee Jong-hwi, Gwangju Bank CEO Song Ki-jin and Gyongnam Bank acting CEO Park Young-bin, all of whose terms end next month.

The candidates are known to include Woori Bank Senior Vice President Lee Soon-woo, Woori Financial senior vice presidents Yoon Sang-gu and Kim Jung-han, Woori Financial President Lee Byung-jae and Woori Bank`s China unit chief Kim Hee-tae.

Who will be the vice chairman is attracting interest. Chairman Lee will reportedly appoint the vice chairman, a position which has remained vacant since Park Byung-won resigned.

Woori Financial Group has a chairman, vice chairman, senior vice president and vice president.

achim@donga.com