Woori Financial Board Decides to Maintain 'Son Tae-seung's Reappointment'

Son Tae-seung, Chairman of Woori Financial Group and President of Woori Bank

[Asia Economy Reporter Kim Hyo-jin] The board of directors of Woori Financial Group has decided to maintain the reappointment of Chairman Sohn Tae-seung. Woori Financial also decided to resume the selection process for the next president of Woori Bank next week.

On the 6th, the Woori Financial board held a meeting at the Woori Bank headquarters in Jung-gu, Seoul, and made this decision. The board explained, "Since no official notification of sanctions has been issued against individuals (including Chairman Sohn), we judged that it is not timely to express opinions, and agreed that there is no reason to change the previously decided procedures and schedule regarding governance."

The Financial Supervisory Service's Sanctions Review Committee on the 30th of last month decided on a severe disciplinary warning against Chairman Sohn, holding him responsible for the overseas interest rate-linked derivative-linked fund (DLF) loss incident. Woori Financial had recommended Chairman Sohn as the next chairman candidate for a three-year term last December.

According to the schedule, Chairman Sohn was to be officially appointed at the shareholders' meeting next month, but the 'DLF severe disciplinary action' caused a setback. If the severe disciplinary action takes effect, he can complete the remaining term, but employment in the financial sector will be restricted for the following three years.

Since the Financial Services Commission's resolution procedure on sanctions against the institution (Woori Bank), not the individual, remains, the official notification of sanctions is expected to be made in early next month. For Chairman Sohn to be reappointed, he must resolve the sanction issue through provisional injunction procedures accompanying administrative litigation.

After the Financial Supervisory Service's Sanctions Review decision, Chairman Sohn has been contemplating whether to challenge reappointment under the legal authority granted. There had been speculation that he might reveal his finalized thoughts at the meeting held that day.

The position announced by the Woori Financial board on that day was superficially that "there is no matter to decide as there is no official notification of sanctions," but internally, it is known that they reaffirmed their support for Chairman Sohn and his reappointment.

A financial sector official commented on the official position of the Woori Financial board, saying, "Since the matter is very sensitive, it seems that the judgment was made to avoid unnecessarily provoking the authorities."