KB Financial chairman in spotlight as first test of governance reform

Tensions within the financial industry are mounting as authorities step up pressure by launching a corporate governance task force and signaling tough on-site inspections aimed at curbing the long-standing practice of financial holding company chairmen securing reappointments, industry sources said Friday. Market attention is particularly focused on KB Financial Group, where Chairman Yang Jong-hee’s term expires in November. While most financial holding companies wrapped up their leadership succession processes recently, KB was the exception, raising the possibility that it could become an early test case for the application of new governance guidelines once the authorities finalize their reform measures. The Financial Services Commission (FSC), the country’s top financial regulator, convened the inaugural meeting of its task force on financial group governance reform, bringing together officials from the Financial Supervisory Service (FSS) as well as experts from research institutions, academia and the legal community. The initiative followed President Lee Jae Myung’s criticism t