Lee Chanjin, Governor of the Financial Supervisory Service, pointed out that the independence of the boards of directors at financial holding companies is insufficient and needs improvement.
On December 19, during a presidential work report by President Lee Jaemyung at the annex of the Government Complex Seoul, Governor Lee responded to the president's remark that "a small inner circle takes turns serving as both chairman and president at financial companies," by making these comments.
Governor Lee stated, "Financial holding companies are particularly problematic, as their boards are structurally composed mainly of people who have some relationship with the chairman. We need to address this issue," adding, "We are considering how to strengthen the independence of directors."
He further noted, "If you look at the Act on Corporate Governance of Financial Companies and related laws, the authority to inspect, supervise, and sanction financial holding companies is extremely limited," and pointed out, "Although there are mechanisms for each business sector, there are no public management or regulatory measures for financial holding companies, which is a challenge that needs to be addressed."
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