Open Bank has announced the new head of the bank.
OP Bancorp, the bank’s holding company, announced on August 23 that it has appointed Open Bank’s Chief Credit Officer (CCO) Sang Kyo Oh as the next CEO to succeed Min Kim whose term ends this year. Oh will officially take office on June 30, 2025.
Oh has been with Bank of Hope which was then Nara Bank, since 2007, focusing on lending in roles such as credit administrator.
“I am honored and grateful, but I also feel a great sense of responsibility,” said Oh. ”I will learn carefully through the handover process and do my best to fulfill the mission with a strong board of directors.”
Chairman Brian Choi and the current CEO Min Kim also revealed their future plans in line with the new leadership.
Choi will remain Chairman of the Board of Directors at Open Bank until next year’s annual shareholders’ meeting, at which time he will retire and become Chairman Emeritus.
Kim will become chair of both the holding company and the bank at the shareholders’ meeting scheduled for June next year, the bank said.
With the board of directors of Open Bank nominating Oh as the next CEO and Kim as chair, attention has turned to the background and future management strategy.
The appointment of the next CEO has been a hot topic in the Korean-American banking industry since the beginning of this year, when Kim, who has led Open Bank for 15 years, announced her intention to retire when she extended her four-year term in 2020.
While many had initially expected an internal appointment, speculation that the bank would be looking for an external candidate surfaced months ago when there were rumors that a potential candidate turned down the position.
Some speculated that Kim could stay on for another year or so, noting that it would be unreasonable to replace Kim amid a deteriorating business environment, including a slumping economy and high interest rates. However, as the board of directors did not form a search committee until mid-June, speculation of an internal appointment prevailed. As such, the rumors of Oh’s appointment began to spread rapidly in the Korean-American banking sector more than two months ago.
The Korean-American banking experts interpreted the appointment as a choice of consolidation and internal stabilization rather than a radical transformation during a difficult banking environment.
When an external executive is hired, it takes time for the management and employees to adjust to the new system, and there may be internal agitation and anxiety due to the new personnel, especially the CEO. This is one of the reasons why the company chose to promote from the inside, as it could lead to losses if it makes too bold a move when business conditions are not favorable.
However, there are also opinions that Oh may be relatively weak in sales and marketing operations, as he has been in the credit field since 2007 and served as the Chief Credit Officer at Open Bank.
Experts are of the view that the 10-month handover period and the board’s appointment of Min Kim, who has 42 years of banking experience, as chairman of the board were intended to compensate.
“Kim is a veteran who led the bank from crisis to listing on Nasdaq,” said a bank official, adding, “As chair of the board, Kim will help Oh with Oh’s lacking sales skills and connections.”
BY WONHEE CHO, HOONSIK WOO [cho.wonhee@koreadaily.com]
