Global proxy advisers scrutinize KB Financial's surprise leadership change

KB Financial Group’s surprise choice of Lee Jae-keun as next chairman is drawing closer scrutiny from ISS and Glass Lewis ahead of a Nov. 20 shareholder vote. The two proxy advisers have not yet issued recommendations. The company’s high foreign ownership is making their views especially influential as the selection comes amid governance reform pressure.

ISS and Glass Lewis are reviewing KB Financial Group’s nomination ahead of an extraordinary shareholders meeting scheduled for Nov. 20.

As of Monday, foreign investors held 78.76 percent of KB Financial’s shares.

Foreign ownership briefly exceeded 80 percent in June after Chairman Yang Jong-hee announced plans to cancel 14.26 million treasury shares, about 3.8 percent of total outstanding shares.

KB Financial had record net profits of more than 5 trillion won for two consecutive years before choosing Lee Jae-keun over Yang Jong-hee.

President Lee Jae Myung has repeatedly criticized prolonged leadership tenures, incumbent advantages in succession races and weak board oversight at financial holding companies.

Published Sep 29, 2026 3:27 pm KST

ISS, Glass Lewis reserved about commenting

KB Financial Group Vice Chairman Lee Jae-keun, nominated as the group's next chairman, speaks to reporters at the group’s headquarters in Yeouido, Seoul, Sept. 14. Yonhap

KB Financial Group's surprise decision to replace its incumbent chairman despite record earnings is under closer shareholder scrutiny, with the world's two largest proxy advisory firms reviewing the nomination ahead of a shareholder vote, industry officials said Tuesday.

Institutional Shareholder Services (ISS) and Glass Lewis told The Korea Times that they are currently reviewing company proposals ahead of an extraordinary shareholders meeting scheduled for Nov. 20. Neither has yet issued a recommendation on the appointment of Lee Jae-keun as KB Financial's next chairman.

Glass Lewis said it was unable to comment on the nomination at this stage because its research on the company was still underway.

ISS similarly said its recommendation would be available once its research is published.

"I’m happy to send you our shareholder meeting research and recommendations for KB Financial Group once we publish, which is typically 14-16 calendar days ahead of the shareholder meeting, as noted in our media policy," an ISS spokesperson said.

Their recommendations could carry particular weight at KB Financial, which has the highest foreign ownership ratio among Korea's major financial holding companies.

As of Monday, foreign investors held 78.76 percent of KB Financial's shares. Foreign ownership briefly topped 80 percent in June after Chairman Yang Jong-hee announced in April that the group would cancel all 14.26 million treasury shares it held, equivalent to about 3.8 percent of total outstanding shares.

The high level of foreign ownership makes the views of global proxy advisers particularly relevant. Many foreign institutional investors rely on their recommendations when voting on proposals at shareholder meetings.

The scrutiny comes after KB Financial unexpectedly chose Lee over Yang, who had widely been expected to secure another three-year term after presiding over record-high net profits of more than 5 trillion won ($3.6 billion) for two consecutive years.

KB Financial cans incumbent chairman to tap deputy as new leader

Who is Lee Jae-keun?

Although the group cited a need for "transformation and generational renewal," the decision has drawn attention because it comes amid a broader government push to reform governance and succession practices at financial holding companies.

President Lee Jae Myung has repeatedly raised concerns over prolonged leadership tenures, incumbent advantages in succession races and weak board oversight at financial holding companies, with Lee criticizing their boards as a "corrupt inner circle."

Regulators are now preparing governance reforms, though the final measures have yet to be announced.

Despite such scrutiny, both ISS and Glass Lewis backed the reappointments of Woori Financial Group Chairman Yim Jong-yong and Shinhan Financial Group Chairman Jin Ok-dong in March. Both reappointments won shareholder approval, supported by stronger share prices, higher dividends and tighter internal controls.

"The recommendations on KB will be closely watched as a test of whether global proxy advisers see the leadership transition through the broader lens of governance reform or treat it as a standalone succession issue," an industry official said.

KB金融集团出人意料地选择李在根担任下一任董事长，这一决定在11月20日股东投票前引发了ISS和Glass Lewis两家代理顾问机构的密切关注。这两家机构尚未发布建议。鉴于该公司外资持股比例较高，且此次人事任命正值公司治理改革压力之下，因此它们的意见尤为重要。

ISS 和 Glass Lewis 正在审查 KB Financial Group 的提名，该提名将在 11 月 20 日举行的特别股东大会上进行审议。

截至周一，外国投资者持有KB Financial 78.76%的股份。

今年6月，在董事长杨钟熙宣布计划注销1426万股库存股（约占已发行股份总数的3.8%）后，外国持股比例一度超过80%。

KB Financial 在选择李在根而不是杨钟熙之前，连续两年净利润超过 5 万亿韩元，创下历史新高。

李在明总统曾多次批评金融控股公司领导人任期过长、继任者在继任竞争中占据优势以及董事会监督不力等问题。

发布于2026年9月29日下午3:27（韩国标准时间）

国际空间站，格拉斯·刘易斯不愿置评。

9月14日，KB金融集团副会长李在根在首尔汝矣岛的集团总部接受记者采访，他已被提名为该集团下一任会长。（韩联社）

KB金融集团在盈利创纪录的情况下出人意料地决定更换现任董事长，这一决定正受到股东的密切关注。业内人士周二表示，全球最大的两家代理咨询公司正在股东投票前审查该提名。

机构股东服务公司（ISS）和Glass Lewis告诉《韩国时报》，他们目前正在审查公司提案，以备11月20日举行的特别股东大会。两家公司都尚未就任命李在根为KB金融集团下一任董事长提出建议。

Glass Lewis表示，由于对该公司的研究仍在进行中，因此目前无法对此提名发表评论。

国际空间站也表示，一旦其研究成果发表，就会公布其建议。

“我很高兴在发布后将我们对KB金融集团股东大会的研究和建议发送给您，这通常发生在股东大会召开前14-16个日历日，正如我们的媒体政策中所述，”ISS发言人表示。

他们的建议对 KB Financial 来说可能尤其重要，因为 KB Financial 是韩国主要金融控股公司中外资持股比例最高的公司。

截至周一，外国投资者持有KB金融集团78.76%的股份。今年6月，外资持股比例一度超过80%，此前，集团董事长杨钟熙于4月宣布，集团将注销其持有的全部1426万股库存股，约占已发行股份总数的3.8%。

外资持股比例高使得全球代理顾问的意见尤为重要。许多外国机构投资者在股东大会上就提案进行投票时，都会参考这些顾问的建议。

此前，KB Financial 出人意料地选择了李而不是杨，而杨此前被广泛认为会在连续两年带领公司实现超过 5 万亿韩元（36 亿美元）的创纪录净利润后，再获得三年任期。

KB Financial 撤换现任董事长，任命副董事长为新领导人。

李在根是谁？

尽管该组织援引了“转型和代际更新”的必要性，但这一决定引起了人们的关注，因为它正值政府大力推动改革金融控股公司的治理和继任制度之际。

李在明总统曾多次对金融控股公司领导层任期过长、继任者在继任竞争中占据优势以及董事会监管不力等问题表示担忧，并批评这些公司的董事会是“腐败的核心圈子”。

监管机构目前正在准备进行治理改革，但最终措施尚未公布。

尽管面临如此严格的审查，ISS 和 Glass Lewis 两家机构均在 3 月份支持友利金融集团董事长任钟镛和新韩金融集团董事长晋玉东的连任。这两项连任均获得股东批准，并得益于股价走强、股息提高和内部控制加强。

一位业内人士表示：“对KB的建议将受到密切关注，这将检验全球代理顾问是会从更广泛的治理改革角度看待领导层过渡，还是会将其视为一个独立的继任问题。”