'Innovate Internal Control'... Hanyang Securities Establishes Compliance Management Innovation Department

Hanyang Securities has embarked on an innovation of its internal control system. At the beginning of the year, President Lim Jae-taek of Hanyang Securities formed a 'Task Force (TFT) for Preventing Financial Accidents such as Embezzlement and Breach of Trust' to review internal control issues.

On the 26th, Hanyang Securities announced the establishment of the Compliance Management Innovation Department under the Compliance Officer. The Compliance Management Innovation Department primarily operates the Internal Control Committee and is responsible for diagnosing and improving company-wide internal control processes. Accordingly, Hanyang Securities' internal control system has been reorganized into a three-department structure, including the Compliance Management Innovation Department, the Compliance Department, and the Legal Support Department.

Furthermore, the Compliance Management Innovation Department manages and operates the executive accountability structure system. Starting from July, a revised Financial Company Governance Act, which includes the introduction of an accountability structure and the assignment of internal control management duties to improve internal control systems in the financial sector, will be enforced. Although financial investment companies with assets under 5 trillion won have a two-year grace period, Hanyang Securities has taken proactive measures by establishing this new department.

It is explained that Hanyang Securities' proactive move reflects President Lim's determination. In his New Year's address this year, President Lim stated, "Maximizing profits should not become Hanyang Securities' top priority," and emphasized that "we must become a securities company that is morally excellent and of the highest dignity."

As part of this effort, Hanyang Securities has been operating a Task Force Team (TFT) for preventing financial accidents since early this year. As the prevention of financial accidents has become increasingly important across the financial industry, this is a fundamental measure to prepare and enhance the effectiveness of internal controls. Through this, eight regulations have been established or revised, and 23 business processes have been improved.