Incumbent Yang Jong-hee favored for second term on strong earnings, shareholder returns KB Financial Group Chair & CEO Yang Jong-hee. (KB Financial Group) KB Financial Group has started the process of choosing who will lead the group after incumbent Chair Yang Jong-hee's term ends in November, with a final nominee expected in September.The company said Tuesday its chairman candidate recommendation committee approved detailed rules for the selection process and narrowed its longlist of 20 candidates to 12, evenly split between internal and external contenders.The process is starting about one month earlier than last time. KB said the longer timeline allows it to secure about three months for candidate evaluation and verification before the final nominee is selected.The committee plans to meet on July 3 to select a first shortlist of six candidates. Interviews with the six candidates will be held on Aug. 27, after which the list will be narrowed to three.The final candidate will be chosen on Sept. 11 following a second round of interviews.If the final candidate passes the legally required eligibility review, the committee and the board will recommend the nominee on Oct. 2, before an extraordinary shareholders meeting in November to formally appoint them."As financial authorities push to improve governance standards across the financial sector, we will conduct the management succession process in a more transparent and fair manner," said Cho Hwa-joon, chair of the committee and KB Financial's board chair. "We will make every effort to select the most suitable candidate to enhance shareholder value and lead sustainable growth."The accelerated timetable is also drawing attention to whether Yang will seek a second term.Korea's banking groups came under regulatory scrutiny recently over concerns that incumbent chiefs could secure reappointment through opaque succession procedures. Renewals are common in the sector, raising questions over whether outside candidates are given a fair chance and whether boards provide sufficient checks on management.Financial authorities are reviewing changes to governance rules for financial groups, including a proposal to require a special shareholder resolution when a chair seeks reappointment. Under the proposal, reappointment would require approval from at least two-thirds of shareholders present at the meeting.With authorities expected to announce the measures this month, KB could become the first major financial group to test the tougher standards for chair succession.Industry watchers see Yang as a strong contender for reappointment, citing KB's solid earnings, higher shareholder returns and share price gains under his leadership.KB has retained its market lead under Yang, topping 5 trillion won ($3.3 billion) in annual net profit for the first time in 2024 and raising the figure to 5.8 trillion won the following year.Shareholder returns also strengthened, with KB's return ratio rising to an industry-leading 52.4 percent in 2025 from 38 percent in 2023 and annual returns surpassing 3 trillion won. Its shares have nearly tripled from about 51,000 won around Yang's appointment to 156,000 won at Tuesday's close, lifting its market value to about 60 trillion won.