SEOUL — KB Financial Group has delivered a major surprise in South Korea’s financial sector, selecting veteran executive Lee Jae-keun as its final candidate for chairman and ending expectations that incumbent Chairman Yang Jong-hee would secure another three-year term.
KB Financial’s Chairman Recommendation Committee chose Lee, 60, on September 11 after an in-depth selection process involving three finalists: Yang, Lee and former Woori Bank CEO Kwon Kwang-seok. The decision marked a break from expectations that Yang’s strong financial performance would lead to his reappointment.
Lee currently oversees global business, wealth management and corporate finance at KB Financial. He previously served as CEO of KB Kookmin Bank from 2022 before moving to the holding company.
The committee said the group needed “bold change and generational transition” to strengthen its competitiveness and find new sources of growth, rather than simply relying on its already strong financial performance.
A surprise decision after record profits
The decision came despite KB Financial’s strong earnings under Yang.
The group reported 5.843 trillion won in net profit in 2025, following more than 5 trillion won in annual profit in 2024. KB then posted 3.88 trillion won in net profit during the first half of 2026, its strongest first-half performance on record.
Yang’s tenure also coincided with increased shareholder returns and a sharp rise in KB Financial’s share price, making his expected departure one of the biggest surprises of the current Korean banking leadership cycle.
Lee will therefore inherit a company operating from a position of considerable financial strength — but with equally high expectations for what comes next.
Who is Lee Jae-keun?
Lee is a longtime KB veteran with more than three decades of experience in banking, finance, strategy and global operations.
He joined Housing & Commercial Bank, a predecessor of KB Kookmin Bank, in 1993. Over the years, he held senior positions at both the banking and holding-company levels, including financial planning and CFO roles. He also played a role in expanding KB’s nonbanking portfolio through acquisitions including LIG Insurance and Hyundai Securities.
In 2022, Lee became KB Kookmin Bank’s chief executive and was regarded as the youngest bank chief in the industry at the time. He later moved to KB Financial Group, where he took responsibility for global operations, wealth management and small- and medium-sized enterprise businesses.
That combination of banking and nonbanking experience was a major factor in the committee’s decision.
His biggest challenge may be what comes next
The new chairman-designate will be under pressure to turn KB’s strong earnings into sustainable growth.
Among the group’s priorities are expanding wealth management and pension businesses, strengthening SME finance, improving corporate and investment banking and capital-markets operations, expanding insurance and asset-management capabilities, and accelerating artificial-intelligence transformation.
Global expansion is another major test.
KB’s overseas operations have improved, but the group still faces the challenge of catching rivals in international markets. KB Bank Indonesia, in particular, remains an important turnaround project.
Lee’s experience overseeing global operations could therefore become one of the most important parts of his new role.
When will Lee officially become chairman?
Lee’s selection on September 11 makes him the final candidate, but the appointment is not yet fully finalized.
The process is expected to proceed through the relevant board and shareholder procedures, with an extraordinary shareholders’ meeting scheduled for November 20. Yang’s current term ends that day, while Lee is expected to begin his three-year term on November 21 if the appointment receives the required approval.
The change represents more than a simple leadership transition.
For KB Financial, it signals a deliberate move from protecting recent gains toward finding new engines of growth — and Lee Jae-keun will now be expected to prove that the surprise choice was the right one.
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