Cho Yong-byoung recommended for KFB chair

Cho Yong-byoung [SHINHAN FINANCIAL GROUP]

The Korea Federation of Banks (KFB) recommended Cho Yong-byoung, who formerly led Shinhan Financial Group, as its next chairman.

The KFB, founded in 1928, aims to serve as the voice of Korea’s banking industry. It has 23 members, including nationwide commercial banks and regional banks.

Cho was nominated to replace the current chairman, Kim Kwang-soo, the committee said Thursday. The decision was unanimous.

The committee consists of 12 people including Kim and executives from KB Kookmin, Shinhan and Hana.

"I feel sorry that the banking sector is not being properly evaluated socially despite the KFB and banks' effort to protect consumers and coexist [with consumers] during the last three years of my term," Kim told reporters following the committee meeting amid rising criticisms over banks' heavy profits at times of high interest rates.

A total of six candidates were vying for the role, including outgoing KB Financial Group Chairman Yoon Jong-kyoo, who bowed out.

“Candidate Cho was evaluated as a well-qualified person for the role who will be able to resolve issues the bank sector confronts based on his in-depth understanding in the finance industry, excellent insights, and contributions to the development of a banking industry that faces internal and external uncertainties,” the KFB said in a statement.

The federation’s council, which consists of KFB members' CEOs, will hold a meeting on Nov. 27 to confirm the next chairman.

If approved, Cho will begin a three-year term on Dec. 1.

Cho was born in 1957 and studied law at Korea University. He was the Chairman of Shinhan Financial Group for three years, through March of 2023. He was expected to vie for another term at the company, but decided to bow out due to controversy surrounding Shinhan Bank’s sales of inappropriate private equity funds.

BY JIN MIN-JI [jin.minji@joongang.co.kr]