Industrial Bank of Korea's headquarters in Seoul / Courtesy of Industrial Bank of Korea

By Lee Min-hyung

IBK Deputy CEO Kim Seong-tae

The Industrial Bank of Korea (IBK) is set to appoint a new leader from within its ranks rather than parachuting in an outside figure, amid growing criticism over the government's long-held custom of nominating bureaucrats for the position.

According to sources from the financial industry here, IBK Deputy CEO Kim Seong-tae is widely expected to replace outgoing CEO Yoon Jong-won when his term ends on Jan. 2. Kim joined IBK in 1989 and has handled a variety of key tasks in major divisions such as future planning and strategy. He has also worked as CEO of IBK Capital.

Earlier, Jeong Eun-bo, former governor of the Financial Supervisory Service, was rumored to fill the position due to his broad range of experience working for major financial authorities. But given that he is a ranking financial figure nominated by former President Moon Jae-in, the incumbent administration is known to have shied away from appointing him to the post.

A strong backlash from IBK's union is unlikely to ensue if Kim takes office, as he has spent most of his career at the lender.

In early 2020, IBK union members blocked the now-outgoing CEO's entry into the headquarters for weeks, citing his lack of connection with the bank, as he was a bureaucrat without any practical experience working at a bank.

But such a controversy is unlikely this time, as Kim is known to have won the trust of the lender's employees thanks to his commitment in the bank for more than three decades. If Kim is appointed, this will be the fourth time in the lender's history that its leader is appointed internally.