What drove KB to nominate Lee Jae-keun as next chairman?

The surprise nomination of KB Financial Group Vice Chairman Lee Jae-keun as its next chairman shows that the financial sector is under growing pressure from regulators to reform governance by strengthening board independence and improving fairness and transparency in leader selection procedures, according to observers in the industry. Current Chairman Yang Jong-hee, another contender, did not get the chance for a second term even though KB Financial had delivered record-high net profits of more than 5 trillion won ($3.7 billion) for two consecutive years under Yang’s leadership. Although the group cited a need for “transformation and generational renewal,” it is widely believed in the industry that the government's move is beginning to affect governance at financial holding companies. President Lee Jae Myung and financial authorities have long raised concerns over extended tenures of leaders at the holding companies. They have pointed out that incumbent heads have a relatively strong advantage in succession processes and that boards may not be able to provide adequate checks and b