Kang Man-soo, chairman of state-owned KDB Financial, has expressed his intention to resign, a widely expected move following the head of Korea’s financial regulatory body showing determination to overhaul financial holding companies.

Lee Ji-song, CEO of the state-run real estate developer LH Corp., also followed suit, fanning speculation that the resignations may affect other state-run firms’ heads who were appointed when Lee Myung-bak was president. Company officials said he tendered his resignation to the land minister.

Kang on Thursday shortly responded by saying “yes” while on his way to his office to reporters’ questions of whether he planned to step down even though he had one year left in his term as chairman.

Kang also mentioned that he would step down as he did not want to burden the administration of President Park Geun-hye, who has pledged to end “parachute appointments” and improve governance of financial holding companies.

Market observers suggested that he would officially tender his resignation on Thursday when KDB Financial was to hold a shareholders’ meeting.

His resignation may lead other top executives who were close to former President Lee to do the same.

Other close aides to former president in the financial community that have been speculated to resign are Lee Pal-seung, chairman of Woori Financial and Euh Yoon-dae, chairman of KB Financial.

Woori is state-owned, while KB is private but has generally been under government influence given its dominance as Korea’s leading retail banker.

FSC chairman Shin Je-yoon said that he would reform their weak governance structures as they turned out to be completely different than initially intended when the country adopted financial laws to compel holding companies to enhance efficiency and transparency more than 10 years ago.

By Park Hyong-ki (hkp@heraldcorp.com)