The terms of South Korea’s five major bank chiefs end at the same time on Dec. 31, turning leadership succession into a key second-half issue for the financial sector. The industry is leaning toward reappointments to maintain management continuity, but performance differences and governance factors could shape outcomes. Regulators are also discussing governance reforms, including measures to boost board independence and transparency in CEO selection, which could affect year-end appointments.

With the June 3 local elections over, attention in South Korea’s financial sector is shifting back to financial authorities and the National Assembly. Issues that lost traction during the campaign, including governance reform at financial holding firms, digital asset regulation, loan rules for non-resident single-homeowners and a compensation liability system for voice phishing, may return to the agenda in the second half. Regulators have also adjusted ELS sanctions and stepped up work on consumer protection and AI security threats.