Korea Exchange Bank's newly-installed chief executive has begun what seems to be the first step in a massive reorganisation plan by dismissing nine vice president-level executives early this week, local reports show.

Yu Yong-ro, KEB's new CEO inaugurated 23 February, reduced the number of vice presidents from nine to eight, five of whom were replaced by promotions from rank-and-file staff. The other three were sourced from Hana Financial, the bank's new owner. 

Lone Star Funds sold Korea Exchange Bank to Hana Financial Group for $3.5 billion in January this year after eight years of ownership. KEB's new CEO used to serve as CEO of state-run Industrial Bank of Korea and was also the vice chairman of the Financial Services Commission. Yun assumed the CEO post at Hana Financial in March 2011. 

Concurrent with the changes at the senior level was a reshuffling of managerial figures at the business division, to "focus on strategic interchanges between the staff of Hana and KEB." At his inaugural speech, Yun reportedly said that he is aiming to strengthen KEB's competitiveness in foreign currency trading and overseas operations. 

More staff changes are expected to be announced over the next weeks given the new chief's plan for an "enhanced corporate structure."