Lim Jong-ryong, FSS Chief on New Government Control Controversy: "I Do Not Consider It Personnel Intervention"

Lim Jong-ryong, Chairman of Woori Financial Group, said on the 10th that he does not consider the recent remarks by Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), regarding the responsibility of the current management in the improper loan incident involving former Chairman Sohn Tae-seung's relatives as interference in personnel matters.

[Image source=Yonhap News]

On the afternoon of the same day, Lim attended the National Assembly's Financial Services Committee audit at the National Assembly building in Yeouido, Seoul, as a general witness. In response to a question from Lee Kang-il, a member of the Democratic Party of Korea, about the controversy over new government intervention by supervisory authorities including Governor Lee, Lim stated, "I understand the recent remarks by the FSS Governor emphasize the need to fundamentally change corporate culture and for management's self-reflection and reform in light of this improper loan incident."

During the first hearing, Representative Lee mentioned suspicions that the background of this incident involves conflicts between the inspection team led by Governor Lee and the group including Lim, referred to as "Mofia" (a term for former Ministry of Finance officials). He also referred to rumors that Governor Lee called the FSS official in charge of the improper loan case and said, "If we cannot remove (Chairman Lim) this time, we will have to resign."

Regarding questions about the possibility of resignation, Lim briefly replied, "If there is something I must take responsibility for, I will take responsibility."

In response to Democratic Party lawmaker Kim Hyun-jung's question that Woori Financial Group's unique organizational culture caused this incident, Lim said, "Since Woori Financial Group was formed by the merger of several banks, it is true that some factional cultures remain due to its nature as an integrated bank," adding, "(The biggest cause is that internal controls at the group level did not function properly,) but there is such an aspect."