KB Financial Group has recommended the appointment of Euh Yoon-dae as chairman of the company, subject to regulatory approval.

"The chairman recommendation committee has decided to recommend to the board director Euh as the candidate for the chairmanship," the group said in a statement.

Euh is currently the chairman of the Presidential Council on National Branding and is a close friend of Korean president Lee Myung-bak. The other contenders to the post were Lee Hwa-won, the former chief executive officer of Daegu Bank, and Lee Chul-hwi, the CEO of Korea Asset Management Corp.

Once formally ushered into his new post, Euh will face the challenge of fusing the company together, particularly after a major conflict with the country's financial regulator.

KB Financial is working towards creating a new bank over the next months in a bid to obtain a larger share of the Asian region's growing wealthy numbers. The company has already expressed interest to buy a controlling interest in Korea Exchange Bank from Lone Star, which it then plans to merge with Kookmin, its banking business.