Kookmin picks rival's ex-CEO as head of holding firm
SEOUL, July 4 (Reuters) - South Korea's Kookmin Bank 060000.KS said its board had picked the former chief executive of rival Woori Financial Group (053000.KS) as the chairman of Kookmin's holding company to be launched this year.
Hwang Young-key, who had led Woori and Samsung Securities (016360.KS), was unanimously recommended by a nine-member committee set up to select the chairman of the holding company and won board approval, Kookmin said in a statement on Friday.
"The committee had set five criteria of qualifications -- leadership and personality, global management capability, capability to manage a large organisation and pursue M&A deals and expertise in banking and non-banking financial sectors," it added.
Kookmin Bank (KB.N), with assets of $218 billion, is South Korea's top retail bank. It aims to launch the holding firm at the end of September to boost its investment banking and non-interest income, and in line with a loosened regulation over a holding company structure.
Hwang had pushed for aggressive asset growth at Woori Financial, which runs the country's No. 3 bank, between 2004 and 2006 to narrow a gap with bigger rival Kookmin and bought Woori Investment & Securities (005940.KS).
Merrill Lynch said on Friday that Kookmin Bank, led by CEO Kang Chung-won, was more likely to put an emphasis on regaining the market leadership as a leading bank under the incoming chairman Hwang.
"Given new chairman's pro growth stance and close relationship with the current government, Kookmin Bank may have a bigger chance to get smaller banks such as Korea Exchange Bank (004940.KS) and the Industrial Bank of Korea (024110.KS) in the upcoming sector consolidation," Merrill said in a note.
Merrill expects a management team reshuffling at Kookmin Bank and other affiliates after the establishment of the holding group.
Hwang will be approved at Kookmin's shareholder meeting on Aug. 25.
Shares of Kookmin fell 1.3 percent to 60,700 won by 0108 GMT, underperforming the broader market which edged down 0.12 percent.
(Reporting by Kim Yeon-hee; Editing by Kim Coghill)
