[Alpha Biz= Paul Lee] The Supreme Court of Korea is set to deliver its ruling on Wednesday (Jan. 29) on allegations of hiring irregularities involving Ham Young-joo, Chairman of Hana Financial Group, a decision that could mark a turning point for the group’s leadership.

Depending on the outcome, Chairman Ham may either fully put his long-running legal risks behind him and focus on management, or Hana Financial Group could be forced to enter an emergency management succession process.

According to financial and legal sources on Tuesday, the Supreme Court’s First Division (presiding Justice Seo Kyung-hwan) will hold the sentencing hearing at 10:15 a.m. on Jan. 29 in the case concerning charges of obstruction of business and violations of the Act on Equal Employment for Men and Women.

Ham was indicted in June 2018 on allegations that, while serving as president of Hana Bank between 2015 and the second half of 2016, he intervened in the recruitment process for entry-level employees by manipulating evaluation scores at various stages—including document screening, group interviews, and executive interviews—after receiving requests from acquaintances.

He was also charged with violating the Equal Employment Act by allegedly instructing the bank to maintain a pre-determined male-to-female hiring ratio of 4:1 between 2013 and 2016.

In March 2022, the court of first instance acquitted Ham, ruling that there was insufficient evidence proving that he directed improper hiring practices and that the alleged gender discrimination stemmed from long-standing internal practices rather than decisions made by the bank president. The court also found no clear evidence that Ham was aware of or involved in such practices.

However, in November 2023, the appellate court partially overturned the lower court’s ruling, concluding that Ham had intervened in the selection of successful candidates during the 2016 group interview process. He was sentenced to six months in prison, suspended for two years, and fined 3 million won.

Under the Act on Corporate Governance of Financial Companies, individuals sentenced to imprisonment or heavier penalties are prohibited from serving as executives of financial institutions. Should the Supreme Court uphold the guilty verdict, Hana Financial Group would be required to initiate emergency leadership succession procedures.

According to the group’s articles of incorporation, if the chairman is unable to perform his duties, the board of directors appoints an acting chairman from among internal directors, considering factors such as tenure, position, and age. The Chairperson Nomination Committee must then be convened within seven business days to begin the formal succession process, with a new CEO candidate to be recommended within 30 days unless unavoidable circumstances arise.

The next chairman would be selected from a pre-managed pool of candidates, currently consisting of 12 individuals—six internal and six external candidates.

Conversely, if the Supreme Court overturns the appellate ruling and returns the case for retrial with an acquittal, Ham would be able to fully clear the legal uncertainties he has faced for nearly eight years. He previously prevailed in another legal dispute in 2024 involving disciplinary action related to the sale of overseas interest rate-linked derivative-linked funds (DLFs).

Having successfully secured a second term in March last year, Chairman Ham’s current term runs through March 2028.

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]