이 기사는 2021년 08월 26일 08:06 thebell 에 표출된 기사입니다.

Lee Jae-won may not be reappointed as the chief executive officer of Fubon Hyundai Life Insurance to a third term as Taiwan’s Fubon Life Insurance, the company’s largest shareholder with more than 77% of voting power, possibly wants to replace him with its selection.

The South Korean insurance company will hold an extraordinary shareholders meeting on September 14 to decide on the reappointment of Lee as its CEO, according to industry sources. The nomination committee of the company’s board will hold a virtual meeting later this week.

Lee took office as the company’s CEO in January 2017 and was reappointed in September 2018 shortly after Fubon Life Insurance became the largest shareholder of the company. His term ends on September 14, 2021.

Under Lee’s leadership, Fubon Hyundai Life’s profitability has improved significantly through cost-cutting and restructuring. Since the company swung to a profit of 58.6 billion won ($50.2 million) in 2018, its net profit has continued to rise to 82 billion won in 2019 and 95 billion won in 2020. During the first half of 2021 only, the insurer recorded a net profit of 122 billion won.

Following the company’s strong performance in recent years, many expect Lee’s reappointment to a third term. But there are other views with a focus on the recent change in ownership of the company, which may have an impact on the board’s final decision on the CEO.

Fubon Life Insurance’s stake in the company was increased from 61.6% to 77.06% after a 458 billion won rights issue in June. The Taiwanese company now controls more than two-thirds of Fubon Hyundai Life, gaining enough voting power to arbitrarily decide on the company’s key issues such as a CEO appointment.


With stronger control of the company, Fubon Life Insurance may want to replace Lee with a person of its choice, some industry watchers said.

Lee, born in 1972, has connections with Hyundai Group’s financial services affiliates. He held several managerial and executive positions at Samsung Fire & Marine Insurance, ING Life Insurance Korea, Hyundai Card and Hyundai Capital before joining Fubon Hyundai Life, formerly known as Hyundai Life Insurance, in 2014.

After the rights issue was completed, equity interests in the company held by Hyundai’s affiliates were down from 37.25% to 22.25%, with Hyundai Commercial and Hyundai Mobis owning 12.12% and 10.13% stakes respectively.

There have also been changes in the company’s board composition. An outside director who is employed as an adviser to Hyundai Card and a non-standing director who serves as a managing director at Hyundai Card and Hyundai Capital left the board last month.

The nomination committee is expected to be dominated by those representing the Taiwanese life insurer. Apart from three existing members of the committee, two members among the company’s outside directors will join the committee.

Fubon Hyundai Life has four outside directors on its board, three of which are considered favorable to Fubon Life Insurance.

However, some expect Fubon Life Insurance to reappoint Lee as the company’s CEO as he played a key role in a successful rights issue in June.

“The appointment of a CEO will be decided at the shareholders meeting and nothing has been finalized yet,” said an official at Fubon Life Insurance. (Reporting by Min-young Kim)