8 out of 10 Securities, Asset Management, and Insurance Companies Participate in Pilot Operation of 'Chaekmu Structure Chart'

79% of large securities firms, insurance companies, and asset management firms participate in the pilot operation of the 'Accountability Structure Chart.'

On the 13th, the Financial Services Commission and the Financial Supervisory Service announced that, as of the 11th, 53 out of 67 large financial investment companies and insurance companies subject to submission in July, accounting for 79.1%, have applied to participate in the pilot operation of the Accountability Structure Chart.

Since January this year, financial holding companies and banks have implemented the system, and from July, 27 firms including 19 securities firms with total assets of over 5 trillion KRW and managed assets of over 20 trillion KRW, and 8 asset management companies, as well as 26 insurance companies including 16 life insurance companies and 10 non-life insurance companies with total assets over 5 trillion KRW, will participate in the pilot operation.

The Accountability Structure Chart is a system that pre-designates the ultimate responsible person for the major tasks of a financial company. It implements the principle that internal control responsibilities cannot be delegated to subordinates.

Although the actual submission deadline for the Accountability Structure Chart under the amended Corporate Governance Act is July 2, the financial authorities have set a pilot operation period (from the receipt date of the Accountability Structure Chart to July 2) to facilitate early establishment of the system. Large financial investment companies and insurance companies must submit the Accountability Structure Chart by July 2.

During the pilot operation period, the financial authorities plan to provide incentives, such as not holding firms accountable under the Corporate Governance Act even if internal control management obligations are not perfectly fulfilled.