KDB-new chairman (LEAD) Presidential aide recommended as KDB Financial head

(LEAD) SEOUL, March 10 (Yonhap) -- South Korea's top financial regulator recommended Thursday a close confidant of President Lee Myung-bak as the new chairman of state-run policy lender KDB Financial Group Inc. The Financial Services Commission (FSC) said its chairman, Kim Seok-dong, requested that President Lee appoint Kang Man-soo to head KDB Financial Group, which controls Korea Development Bank. Currently, Kang is a special economic aide to the president and heads the Presidential Council on National Competitiveness. He served as the country's finance minister between 2008-2009. Kang, 66, will replace Min Euoo-sung, who has led the state financial firm since 2008 and was a former head of the Seoul branch of the now-defunct Lehman Brothers. The appointment of Kang is widely expected to provide fresh momentum for privatizing KDB Financial. President Lee promised to privatize the policy financial firm as part of his election pledges. According to the revised law governing the running of KDB Financial, the company is required to offer its shares to the public and sell a stake to a private shareholder by May 2014. Incumbent Chairman Min initially vowed to list its share on the Seoul bourse this year in order to accelerate the privatization of the bank, but a delay in the sale of another government-controlled firm, Woori Finance Holdings Co., has made the KDB Financial privatization plan look unfeasible. FSC Chairman Kim also said that the privatization plan will regain momentum, stressing his will to push for it. "I will entirely settle the privatization of KBD Financial Group while I'm in office," he told reporters after announcing the recommendation. "Kang is the right person to complete the plan."