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| Jin Ok-dong, the new chairman of Shinhan Financial Group, waves the company's flag during his inauguration ceremony held at the group headquarters in Seoul, Thursday, Courtesy of Shinhan Financial Group |
Shareholders' meetings for big 4 financial groups kick off
By Lee Yeon-woo
Jin Ok-dong, a former CEO of Shinhan Bank, officially took the helm of Shinhan Financial Group and started his tenure on Thursday, according to the financial company. He will serve in the position until March 2026.
Jin's appointment was decided at a general shareholders' meeting held at the headquarters of the group in Seoul.
"I feel a scary sense of responsibility to lead Shinhan's growth and to resonate with our customers' and shareholders' expectations," Jin said in his acceptance speech. "I will build a bigger Shinhan inheriting former Chairman Cho Yong-byoung's business direction."
Jin is known as one of the rare self-made men in the industry. He started as a bank clerk in 1980 after graduating from a commercial high school and worked his way up to become the CEO of Shinhan Bank after 39 years. Now, he has been appointed to the top position of Shinhan Financial Group.
The shareholders' meeting was held amid attention focused on whether Jin's nomination will proceed smoothly despite opposition from the group's largest shareholder.
Earlier, the National Pension Service (NPS) dissented Jin's appointment, claiming that he "damaged the company's value and neglected the duty of oversight" during his tenure as Shinhan Bank's CEO. Jin received a cautionary warning from the financial authorities in April 2021 for "lapse in supervising" the sale of soured fund products linked to Lime Asset Management.
However, the Institutional Shareholder Services (ISS), the world's largest proxy adviser, disputed those claims, stating that Jin "played a key role in improving risk management and prepared preventive measures regarding Lime Asset." As the adviser is regarded as a leading authority for foreign shareholders, those who collectively own almost a 60 percent stake supported Jin this time.
Meanwhile, at the meeting, Shinhan Financial also decided to retain its eight outside directors this year and to increase dividends to 2,065 won ($1.61), up 105 won from 2022.
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| Former chairman of Shinhan Financial Group, Cho Yong-byoung, wields the gavel at a general shareholders' meeting held at the group headquarters in Seoul, Thursday, Courtesy of Shinhan Financial Group |
The other three major financial groups, Hana, KB, and Woori, will also begin their general shareholders' meetings on Friday. These meetings are the first of their kind since the government pushed the groups to improve governance.
Among the key agenda is the appointment of outside directors. Of the 25 candidates, 18 are current outside directors. KB Financial Group recommended six outside directors, but three of them are filled by current personnel. Hana Financial Group plans to reappoint six of its current eight outside directors, while Woori Financial group intends to retain one of its current three outside directors.
The big four financial groups are also looking to increase shareholders' returns by raising dividends and retiring stocks.
"At Shinhan, we are doing our utmost to maximize shareholders' interests by distributing dividends quarterly, a first in this industry, and actively purchasing our stocks," said Jin at the shareholders' meeting on Thursday.
Also notable is the new directions of the Woori Financial Group to be presented by its new chairman. A former financial bureaucrat, Yim Jong-ryong is highly expected to win shareholder approval and start his tenure on Friday.
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