'KOSPI 5000 era' — who will open it…the next Financial Investment Association chairman will be decided today

Today's election for the next Financial Investment Association chairman

Three-way race: Seo Yu-seok·Lee Hyun-seung·Hwang Sung-yeop

First incumbent re-election or a new face?

An election to choose the 7th chairman of the Korea Financial Investment Association, regarded as the representative of Yeouido's securities and asset management community, is being held today.

According to the association on the 18th, an extraordinary general meeting will be held at the association building, the Financial Investment Center, from 3 p.m. to elect the next chairman. About 400 regular member firms affiliated with the association — including securities firms, asset managers, futures firms, and trust companies — are expected to exercise voting rights.

The candidates who have thrown their hats into the ring for this association chairman election are three people: incumbent Financial Investment Association chairman Seo Yu-seok, former KB Asset Management CEO Lee Hyun-seung, and Shinyoung Securities CEO Hwang Sung-yeop. Compared with previous years, the number of candidates has decreased, but it is difficult to judge superiority, so each candidate was campaigning energetically up to the day before.

Chairman Seo Yu-seok is seeking re-election. This is the first time in the history of the Financial Investment Association that an incumbent chairman has sought re-election. In the previous 2022 election for the 6th Financial Investment Association chairman, Chairman Seo recorded a vote share of 65.64% and was elected without a runoff. Chairman Seo also holds the distinction of being the first association chairman to come from an asset management company.

Former CEO Lee Hyun-seung is also notable for having a primary career in the 'asset management firm league,' like Chairman Seo. Lee, who passed the 32nd administrative examination, has served as a non-standing vice chairman of the Financial Investment Association and as an advisory member of the Financial Supervisory Service, earning evaluations that he has gained wide experience in both the private sector and government.

Born in 1963, Hwang Sung-yeop, CEO of Shinyoung Securities, joined Shinyoung Securities in 1987 and is a 'one-club man' who has worked at the same company for over 30 years. Hwang has been leading the regular meeting of the presidents of some 20 financial investment firms since June last year, following people such as Yu Sang-ho, vice chairman of Korea Investment & Securities; Na Jae-cheol, former Financial Investment Association chairman; and Kim Shin, vice chairman of SKS PE. It is the oldest presidents' meeting in Yeouido.

With the new government this year emphasizing the need to supply venture capital in the capital markets and financial investment industry within the broad policy agenda of 'productive finance,' the association's role is more important than ever. The industry also has high expectations for the next chairman because it is directly connected to various businesses and current issues.

The association selects the final chairman by combining equal-distribution voting rights of 30%, which are evenly distributed per regular member, and proportionally-distributed voting rights of 70%, which are proportional to this year's membership fee amounts.

By securities firm, the largest distributions of voting rights are in order: Korea Investment & Securities, Mirae Asset Securities, NH Investment & Securities, Samsung Securities, KB Securities, and Meritz Securities. Among asset managers, the largest are Mirae Asset Management, Samsung Asset Management, IGIS Asset Management, Hanwha Asset Management, and KB Asset Management, in that order.

If no candidate receives a majority in the first round of the election, a runoff will be held between the first- and second-place candidates.

The finally elected chairman will lead the association for three years, from January next year through December 2028.

Min-kyung Shin, Hankyung.com reporter radio@hankyung.com