Lee Dong-gull, chairman of South Korea’s largest state-run lender the Korea Development Bank, has de facto clinched his second term in office, officials said Wednesday.

Once the presidential office Cheong Wa Dae makes it official, Lee is to become the first KDB leader in 26 years to serve two consecutive terms and the fourth to do so in the state-run bank’s 65-year history.

Speculation about the KDB’s leadership had been rampant as no plausible candidates were in sight while Lee’s term was due to end this Thursday.

Market observers said the government had already decided to extend the incumbent chief’s term for another three years in consideration of ongoing policy issues.

Explaining their conclusion, they pointed to a series of key decision-making meetings scheduled for Friday, the day after Lee would have terminated his initial term.

One is an economy-related ministers’ meeting, where top policymakers including Deputy Prime Minister Hong Nam-ki and Financial Services Chairman Eun Sung-soo are to discuss alternative fiscal injections for cash-strapped air carrier Asiana Airlines.

As chief of the air carrier’s main creditor, the KDB, Lee is expected to play a pivotal role as HDC Hyundai Development Co. is seen as likely to renounce the takeover amid monthslong disputes about the acquisition terms.

Since taking office in September 2017, professor-turned-financier Lee has spearheaded bulky restructuring tasks such as the Kumho Tire and GM Korea deals. It was also under his leadership that the KDB disposed of Daewoo Shipbuilding & Marine Engineering after years of unsuccessful trials.

By Bae Hyun-jung (tellme@heraldcorp.com)