Former KB Insurance chief tops finance sector

The top-paid executive in the local financial industry was Kim Byung-hun, the former CEO of KB Insurance, whose salary reached 3.347 billion won ($2.935 million) last year, according to local corporations’ 2015 business reports submitted to the Financial Supervisory Service (FSS) on Wednesday.

More than two-thirds of his salary, worth 2.83 billion won, was severance pay. Kim served as an executive at the insurer for 19 years and one month, long before the insurer was acquired by KB Financial Group. It was formerly called LIG Insurance

Shinhan Financial Group Chairman Han Dong-woo was paid 1.22 billion won for his annual salary last year. His pay surpasses Kim of KB Insurance, when the incentives in cash and in the group’s stocks he received last year are added.

As Han received incentives worth 3.35 billion won in the first quarter of last year for his performance in the 2011 to 2013 business years, his total salary amounted to 4.55 billion won.

In the brokerage sector, heads of firms that performed well last year got paid more.

Meritz Securities CEO Alexander Hi-moon Choi received 2.76 billion won last year. The brokerage’s former co-CEO Kim Yong-beom, who now heads Meritz Fire & Marine Insurance, was compensated with 1.72 billion won last year, including a severance pay of 556 million won he received from the brokerage. Meritz is a midsize firm but saw a record-high operating profit last year under Choi’s leadership.

Korea Investment & Securities CEO Ryu Sang-ho, who recently was re-elected to be the brokerage’s CEO for the 10th year, was paid 1.72 billion won. This was the top level as a non-owner family member CEO.

Daishin Securities Chairwoman Lee Eo-ryong, who also is an owner, was paid 2.49 billion won last year, while his son Yang Hong-seok, now the CEO and president of the brokerage house, received 1.51 billion won.

Mirae Asset Global Investments CEO Jeong Sang-kee received 1.32 billion won, while Samsung Securities CEO Yoon Yong-am was paid 1.25 billion won last year.

Among the financial holding companies and banks, Hana Financial Group Chairman Kim Jung-tae was the top-paid CEO, with 1.24 billion won. KB Financial Group Chairman Yoon Jong-kyoo, who is also heading KB Kookmin Bank, did not have to disclose his salary on the FSS list as his salary from each organization remained below 500 million won.

“Under the contract, Yoon is supposed to receive his performance incentives in the group’s stocks after he retires in November next year,” said a representative from KB Financial Group. “He will receive the stock incentive only from the group.”

Chairmen of the nation’s three financial groups KB, Shinhan and Hana have voluntarily returned 30 percent of their monthly pay since last September as a means of expanding employment.

Former Korea Exchange Bank President and CEO Kim Han-jo, who now heads Hana Nanum Foundation, was paid the most last year among bank presidents, with 689 million won. Ex-President of Hana Bank Kim Byung-ho, who is now Hana Financial Group’s vice chairman, received 668 million won, followed by Shinhan Bank President and CEO Cho Yong-byung’s 631 million won and Woori Bank President and CEO Lee Kwang-goo’s 548 million won.

When it comes to foreign banks, Citibank Korea CEO Park Jin-hoe was paid 541 million won, and Standard Chartered Korea CEO Park Jong-bok got 520 million won.

Among local insurers, CEO pays were highest at Samsung affiliates.

Samsung Life Insurance President and CEO Kim Chang-soo received 1.73 billion won last year, while the insurer’s vice president, Choi Shin-hyung, got 1.15 billion won. Samsung Fire & Marine Insurance President and CEO Ahn Min-soo was paid 1.62 billion won, while Vice President Jeon Yong-bae was compensated 1.45 billion won. Tongyang Life Insurance CEO Koo Han-seo received 1.33 billion won.

Hyundai Marine & Fire Insurance Chairman Chung Mong-yoon was the top-paid owner CEO, with 1.59 billion won. Kyobo Life Insurance Chairman Shin Chang-jae was paid 910 million won.

Vice Chairman and CEO of Hyundai Card and Hyundai Commercial Chung Tae-young, also called Ted Chung, who is the son-in-law of Hyundai Motor Group Chairman Chung Mong-koo, was paid a total 2.53 billion won last year. He received 1.74 billion won from the credit card company and 793 million won from the capital firm.

BY KANG BYUNG-CHUL, HAN AE-RAN [kim.jiyoon@joongang.co.kr]