'2024 Annual Report on Governance and Compensation System' Disclosed by Four Major Financial Holding Companies
Yang Jonghee, Jin Okdong, Ham Youngjoo, and Lim Jongryong Receive Tens of Billions of Won in Compensation as Chairpersons of the Four Major Financial Groups
The four major financial holding companies (KB, Shinhan, Hana, Woori) recorded their highest-ever performance last year, with the chairpersons of the holding companies receiving tens of billions of won in compensation. Among the four major financial holding companies, the highest-paid executive (based on disclosed business reports) was Yang Jong-hee, Chairman of KB Financial Group, who received an annual salary of approximately 1.85 billion won last year alone. The financial holding company with the highest average employee compensation was Woori Financial Group, where the average salary was found to be 178 million won.
According to the "2024 Annual Report on Governance and Compensation System" disclosed by the four major financial holding companies on the 6th, Yang Jong-hee, Chairman of KB Financial Group, received 1.85 billion won in compensation last year. Of this, 950 million won was performance-based compensation, including long-term performance bonuses received during his tenure as Vice Chairman.
Next was Jin Ok-dong, Chairman of Shinhan Financial Group, who received a total of 1.5 billion won in compensation last year, including 700 million won in performance bonuses. Woori Financial Group paid 1.66 billion won in compensation to registered executives, including Chairman Lim Jong-ryong and outside directors. Chairman Lim received 712 million won in the first half of last year alone. The performance-based compensation received by Chairman Lim was 280 million won. Lastly, Hana Financial Group’s Chairman Ham Young-joo, along with Vice Chairmen Lee Seung-yeol and Kang Sung-mook, received a total of 2.49 billion won in compensation.
However, after the disclosure of the business reports, the exact amounts received will be made public, which is expected to change the ranking of the annual salaries of the chairpersons of the four major financial holding companies.
The company with the highest average employee compensation was Woori Financial Group. Last year, 115 employees affiliated with Woori Financial Group received an average annual salary of 178 million won. This was followed by Shinhan Financial Group (199 employees) with an average of 165 million won, KB Financial Group (150 employees) with 164 million won, and Hana Financial Group (151 employees) with 160 million won.
Meanwhile, last year, major domestic financial groups recorded their highest-ever performance, with net profits reaching up to 5 trillion won or more. Despite interest rate cuts, household and corporate loans increased, pushing the interest income of the four major financial holding companies to about 42 trillion won. Thanks to this, the net income of the four major financial holding companies exceeded a record 16 trillion won. By financial holding company, KB Financial Group’s net income last year was 5.0782 trillion won, becoming the first financial company to join the 5 trillion won club. This was followed by Shinhan Financial Group with 4.5175 trillion won, Hana Financial Group with 3.7388 trillion won, and Woori Financial Group with 3.086 trillion won. The combined net income of the four major financial holding companies last year was 16.4205 trillion won, a 10.3% increase compared to the previous year (14.8908 trillion won).
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