Analysts debate on next KB Financial chair's qualification

Discussion revolves on whether next chair needs to have strong government connections or not.

The financial market is full of speculation over who will be selected to lead KB Financial Group, where the post of chairman has been vacant for months.

While the process has been drawn out and criticism is strong that the government is trying to exert influence on who will become chairman, some analysts are saying that it may be better for KB to have a chairman with strong connections with the government to push ahead with a merger and acquisition effort. But others say that reason alone doesn't justify the need for a government-connected chairman.

"It would be better for the financial group to have a head who is on the same wavelength with the government when considering M&A deals," said Shim Kyu-seon, an analyst at Hi Investment & Securities.

Shim pointed out that M&A are crucial for KB which is less competitive in non-banking businesses. Shinhan Financial Group, which has a good business portfolio, has bested KB in terms of market cap while KB is suffering a leadership vacuum.

View the full story in Korea Times.