FSS Briefing on 'Unfair Transaction Inspection Results'
"Substantial Improvement in Woori Financial's Internal Controls Is Crucial"
"Aware of Hana Financial's Self-Renewal Controversy"
"Key Issue Is Whether Necessary Information Was Delivered to Stakeholders"
Lee Se-hoon, Senior Deputy Governor of the Financial Supervisory Service (FSS), said on the 25th regarding Woori Financial Group's acquisition of an insurance company, "We have notified the Financial Services Commission (FSC) of the necessary materials and will decide on approval after comprehensively considering various situations."
On the same day, Lee held a briefing at the FSS headquarters in the morning titled 'Recent FSS Inspection Cases on Unfair Transactions with Stakeholders,' stating, "We will judge (the acquisition of the insurance company) by considering how the improvement measures can actually work in the future."
When asked, "Financial Supervisory Service Governor Lee Bok-hyun showed a negative view regarding Woori Financial's acquisition of the insurance company. What position did you convey to the FSC?" Lee replied, "Neither the FSC nor the FSS has any particular differing opinion," emphasizing, "There is no change from the existing FSS stance."
Lee pointed out, "As mentioned in today's (Industrial Bank of Korea) case, overall, the internal control systems of banks remain formalistic variables, and many substantial deficiencies have appeared," adding, "We should question whether the expansion of financial companies' scale is desirable under such circumstances."
He further explained, "However, this is a past point in time, and the important judgment criterion will be how the financial sector establishes internal control procedures and genuinely changes organizational culture going forward."
Regarding the 'self-renewal' of Han Young-joo, Chairman of Hana Financial Group, Lee said, "Basically, the improvement of the standards for a financial holding company chairman's 'self-renewal' is an area governed by shareholders and the company's stakeholders."
When asked about plans to improve the system related to the financial holding company chairman's self-renewal, Lee drew a clear line, saying, "Basically, (the financial holding company chairman's self-renewal) is not a matter regulated by financial laws or authorities' guidelines."
He stated, "It is a matter for shareholders or financial company stakeholders to judge the appropriateness of (self-renewal) and decide on approval according to related procedures," adding, "Ultimately, the consideration is whether the necessary information has been accurately conveyed to the stakeholders."
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