Lee Chan-woo takes the helm at NongHyup Financial; Ham Young-joo secures second term at Hana

Former top policy official Lee Chan-woo is taking office as the new chairman of NongHyup Financial Group on Monday, while Hana Financial Group Chairman Ham Young-joo will begin his second term in March. Both leaders face mounting challenges, from fortifying internal controls to enhancing shareholder value, as South Korea’s banking sector navigates a turbulent landscape.
Industry reports indicate that Lee has completed his review by the public service ethics committee and is set to take office as chairman of NongHyup Financial Group on Monday, following an extraordinary general meeting of shareholders.
Born in 1966, Lee has extensive experience at key financial institutions, including the Ministry of Economy and Finance and the Financial Supervisory Service, where he served as chief deputy governor from October 2021 to October 2024.
His most immediate task will be strengthening NongHyup’s internal controls following a series of financial mishaps. The group's banking unit reported 16 embezzlement cases last year and three major incidents resulting in losses exceeding 10 billion won ($6.87 million).
Improving performance is another ongoing challenge. Despite posting its highest-ever nine-month net profit of 2.31 trillion won as of the third quarter of last year, NongHyup remains behind the industry's fourth-ranking Woori Financial Group, which reported a net profit of 2.66 trillion won.
Lee must also navigate a leadership overhaul within NongHyup’s subsidiaries. Six of its units, including the banking and insurance arms, underwent CEO replacements last year, while the group itself has been under interim leadership since Chairman Lee Seok-jun’s departure on Dec. 31. Lee’s ability to unify the new leadership and stabilize operations will be closely watched.
In contrast, Hana Financial Group has chosen continuity, naming Ham Young-joo to a second three-year term as chairman. The chairman nomination committee confirmed Ham’s reappointment on Jan. 27, selecting him from among five shortlisted candidates, including former Hana Bank CEO Lee Seung-lyul and Hana Securities CEO Kang Seong-muk.
The committee cited Ham’s leadership in delivering record-high earnings and share prices, describing him as the “right person to lead the group’s future by overcoming uncertainties and strengthening its competitiveness amid a rapidly evolving financial landscape.”
Born in 1956, Ham began his career at Hana’s banking unit in 1980, rising to CEO of Hana Bank in 2015 and assuming the group’s vice chairmanship in 2016. He was first appointed group chairman in March 2022.
In his second term, Ham’s top priority will be restoring Hana’s leadership in the sector by improving corporate value and expanding subsidiary synergies. The group led sector earnings in 2022 and 2023, though it slipped to third place last year.
Last October, Hana unveiled a comprehensive value-enhancement plan, aiming to raise its shareholder return ratio to 50 percent by 2027, up from an estimated 40 percent in 2024. The group also pledged to maintain a Common Equity Tier 1 ratio above 13 percent and return on equity above 10 percent. As part of this initiative, Ham purchased 5,000 shares of Hana Financial on the open market in December.
A key challenge will be bolstering Hana’s non-banking segment, which accounted for just 15 percent of its total net profit as of September -- significantly below rivals such as KB Financial Group’s 41 percent and Shinhan Financial Group’s 23 percent. To revitalize synergies, Hana recently replaced the CEOs of its key subsidiaries, including its banking and securities units.
In his New Year’s address, Ham underscored the need for deeper collaboration across affiliates to “bolster the non-banking sector’s competitiveness and drive sustainable growth.”
If formally appointed as scheduled, Ham will lead Hana Financial Group until March 2028.
By Choi Ji-won (jwc@heraldcorp.com)