The race to succeed Han Dong-woo, the chairman of Shinhan Financial Group, is shaping up to be a battle between the two incumbent CEOs of its banking and credit card arms.

Wi Sung-ho, Shinhan Card’s chief executive since August 2013 and a potential candidate for the group chairmanship, received a clear boost in his standing in Korea’s largest and most profitable banking group Thursday when its committee decided to retain him at the card company for another year.


The committee, which oversees the management of affiliate companies, comprises six of the group’s 12 board members, including Han, a spokesperson for Shinhan Financial said.

The reappointment is subject to approval by the board and shareholders who are likely to uphold the committee’s decision, judging by past records.

“With his strong leadership, strategic thinking and communication skills, Wi led Shinhan Card to achieve solid performances and solidify its market leading position. The committee’s decision is made in recognition of that,” the group said in a press statement.

The group must choose by early next year the successor to Han, who has repeatedly said he will retire once his term ends in March.

Shinhan Financial, in its annual report on corporate governance in 2015, said it was grooming five individuals as potential candidates, but did not disclose their names.

Market watchers have viewed Shinhan Bank’s Cho Yong-byoung as one of the five and a very strong candidate, particularly because he runs the bank, the core of the group’s business portfolio.

The reappointment of Wi has placed the Shinhan Card chief in the spotlight.

Han, in 2011, had laid out some key principles in the succession process.

“Executives who participate in the group’s management council are immediate candidates.”

As their performances are evaluated by the management oversight committee, CEOs will have to compete to win recognition, he explained.

Meanwhile, data from the financial regulator revealed that Shinhan pays the highest salary to its chairman among all financial groups in Korea.

By Lee Sun-young (milaya@heraldcorp.com)