4 Major Banks' Female Executive Ratio Only 5.3%
Amid ESG Management Focus... Launch of 'Female Leader Development' Program
[Asia Economy Reporter Jin-ho Kim] As ESG (Environmental, Social, and Governance) emerges as the biggest issue in corporate management, major domestic financial companies have launched company-wide programs to cultivate ‘female leaders.’ Attention is focused on whether these efforts to break the financial sector’s entrenched ‘glass ceiling’ (an invisible barrier preventing women from advancing to senior positions) will lead to tangible results.
According to the quarterly reports filed on the Financial Supervisory Service’s electronic disclosure system on the 24th, the proportion of female executives at the four major commercial banks?KB Kookmin, Shinhan, Hana, and Woori Bank?is only 5.3%. This clearly shows that despite emphasizing the development of female talent and gender equality as important tasks in recent years, the glass ceiling remains firmly in place.
However, as ESG management has emerged as a survival value for companies, major financial firms are actively pursuing mid- to long-term strategies to foster female executives. Woori Bank recently selected 60 employees to participate in the first cohort of its female leadership enhancement program, ‘Woori Wing 1st Class.’ The program aims to help female talents take initiative, interact with colleagues, and grow. The selected participants come from various ranks, ranging from managers to branch managers. They plan to strengthen their leadership skills through group coaching and expert lectures conducted by leadership specialists. A Woori Bank official expressed expectations that “having a rich talent pool through the female leader development program will maximize the organization’s productivity and competitiveness.”
Hana Financial Group also launched its next-generation female leader development program, ‘Hana Waves,’ in mid-April. Thirty-four female deputy branch managers within the group were selected based on recommendations from the CEOs of each affiliated company.
Shinhan Financial Group has been operating the ‘Shinhan She-roes’ program since 2018. Recently, 44 participants were selected for the fourth cohort and are undergoing six months of training. Through group mentoring sessions involving various external experts in organizational management, business promotion, and communication, they are expected to emerge as future female leaders. KB Financial Group is also running a female leadership enhancement program and aims to secure 20% female executives by 2023.
The major financial companies’ active efforts to cultivate female executives are analyzed as measures reflecting the ‘G (Governance)’ aspect of ESG management. The higher the proportion of female executives, the higher the ESG evaluation scores a company can receive. With ESG management becoming the top priority, these companies appear to have recognized the necessity of nurturing female talent from a mid- to long-term perspective.
There is also a purpose to actively respond to the global trend toward gender equality efforts. BlackRock, the world’s largest asset management firm, has announced a policy not to invest in companies with fewer than two female executives. Additionally, Nasdaq, the U.S. over-the-counter stock market, plans to prohibit listing companies without female executives and is considering delisting companies that do not meet this criterion.
A financial industry official said, “Securing diversity among executives, including female executives, is cited as an essential factor for the future development of the financial industry,” and added, “We expect more diverse female talent development programs to emerge in the future.”
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