From left are Shinhan Financial Group Chairman Cho Yong-byoung and Shinhan Bank CEO Jin Ok-dong. Both were shortlisted by the banking group's chairmanship nomination committee in the chairmanship race. Yonhap

Incumbent chairman voluntarily drops out of race

Shinhan Financial Group said Thursday it has nominated Shinhan Bank CEO Jin Ok-dong as its next leader.

Jin, 61, will be officially appointed as the new chairman for a three-year term upon confirmation by shareholders and board of directors in their respective meeting in March next year.

"We have judged CEO Jin is the right man to deal with uncertainties in the future in an active and flexible manner," the banking group's chairmanship nomination committee said following its meeting.

It also assessed Jin as being highly qualified in terms of ethics and management skills.

Jin's nomination came amid speculation that incumbent chairman, Cho Yong-byoung, could possibly extend his tenure for a third term after taking office in 2017.

Cho, however, voluntarily dropped out of the chairmanship race, according to sources familiar with the matter.

Cho was among three candidates, along with Jin and Shinhan Card CEO Lim Young-jin, who were shortlisted by the nomination committee.

Multiple industry sources speculated Cho could secure another term, considering Shinhan Financial Group, the nation's second-largest banking group, achieved a record net profit of 4.31 trillion won for the first three quarters of this year.

It was the best earnings performance among the nation's major banking groups, including KB Financial Group, which ranks at the top in terms of market capitalization.

Shinhan Financial Group diversified its operations to non-banking businesses under Cho's leadership, with the latest achievement being the acquisition of non-life insurer BNP Paribas Cardif in November 2021.

Cho, 65, however, expressed his willingness to retire after his term ends in March 2023, during a meeting with nominating committee members, according to the sources.

"Chairman Cho wanted to get out of the chairmanship race, stressing that it is good to have a generational change in leadership," a source said.