Hana's new chairman puts focus on overseas expansion

Hana Financial Group's new Chairman Ham Young-joo poses for a photo after being appointed to the position. [HANA FINANCIAL GROUP]

Newly-appointed Hana Financial Group Chairman Ham Young-joo vowed to develop the group's non-banking subsidiaries through the expansion of global services in an inaugural speech on March 25.

Ham announced that the company will expand non-banking services overseas. Although a specific company wasn’t mentioned, the group's non-banking companies include Hana Card, Hana Life and Hana Capital. To expand such services, more merger and acquisitions and investments will be made in developing countries such as Indonesia and Vietnam.

Ham also plans to enhance the group's investment banking and corporate financing services available in the United States and Europe.

Hana Financial Group will create a so-called omni-channel in which its banks and financial organizations’ offline services can connect with online services. It plans to recruit personnel in digital and IT as well as make investments in start-ups to make this possible.

Ham was appointed chairman at an annual general meeting on March 25 and will serve a three-year term. Following shareholders’ approval, Ham replaced Kim Jung-tai, who was appointed to the position in March 2012.

Before Friday's shareholders' endorsement, Ham faced several hurdles.

Proxy advisory firm Institutional Shareholder Services opposed Ham's promotion to chairman on March 15. It's main concerns were Ham being involved in a trial for illegal hiring practices that took place in 2015 and 2016 and being under regulatory punishment for the improper selling of high-risk derivative-linked funds (DLF) from 2016 through 2019.

Ham was Hana Bank CEO from 2015 through 2019.

Although Ham was found not guilty of illegal hiring practices by the Seoul Western District Court on March 11, he received a reprimand from the Financial Supervisory Service in 2020 over the failure to fulfill his duties to prevent losses related to sales of DLFs.

A Seoul court upheld the punishment on March 14, which Ham has appealed.

Ham was able to temporarily mitigate risk by the Seoul High Court's decision on March 24 granting a request from Ham to suspend the enforcement of the regulatory punishment until 30 days after the appeals trial, assuming Ham loses the appeal.

The National Pension Service, the largest single shareholder of Hana Financial Group with a 9.19 percent stake, voted for Ham.

Ham started working at KEB Hana Bank in 2004 as a manager for a bank branch in Bundang, Gyeonggi. He served as the vice chairman at Hana Financial Group from 2016.

Following Ham's appointment, other financial companies appointed directors during annual general meetings on March 25.

Choi Jae-hong, a professor at Gangneung-Wonju National University’s Department of Multimedia Engineering, was named an independent director at KB Financial Group. Choi was recommended by the board for his expertise in IT, as the company works on its digital transformation.

Kim Young-su, an independent director proposed by the company’s labor union, failed to be approved. Kim is a former Export-Import Bank of Korea vice president. The union said his experience in overseas business would help KB Financial Group expand.

It was the fifth time the union has recommended an outside director. All its nominations have failed.

KB Bank CEO Lee Jae-keun was appointed as a director of the group.

Woori Financial Group appointed Song Soo-young as its first female independent director. Song is a partner at law firm Shin & Kim. Her main areas of practice include corporate governance.

Lee Won-duk, Woori Bank CEO, was named a director.

BY JIN MIN-JI, LEE TAE-HEE [lee.taehee2@joongang.co.kr]