Doubts Surround Bank President NominationKim Sang-hoon, deputy governor of the Financial Supervisory Service, was nominated as president of Kookmin Bank.
The bank's labour union expressed their opposition to the nomination, as did other financial institutions, concerned that this nomination could signal a shift in current restructuring.
On the surface, Kim's nomination appears to have been the decision of outside directors at Kookmin Bank, but there are suspicions.
The issue at hand is the extent of the government's power in nominating one of their own to bank presidency.
The government's approach to the election process was hurried and undemocratic, with no details on why Kim was chosen to succeed the current president.
The government's creation of a management election committee raises many doubts in terms of the transparency and fairness of the nomination. How will the government react if Kim should falter at his new post?
The public is watching with great interest; the election of bank president being closely linked to the second round of financial restructuring. Banks and other financial insitutions are expected to be in turmoil during this reformation, to immediately follow the general elections.
There have been numerous changes to the business and financial sectors after the currency crisis, with the government leading most of those changes. However, government intervention in these matters, now that the crisis is over, is unacceptable. The government must establish fair rules and practice what they preach. Participation and interference should never be a governement's primary role.