Lee Criticizes "Corrupt Inner Circle"... Financial Supervisory Service Likely to Inspect BNK Financial Group

Lee Chanjin, Governor of the Financial Supervisory Service. Photo by Hyunmin Kim

President Lee Jaemyung delivered strong criticism regarding the long-term rule of financial holding group chairmen during the Financial Services Commission work report on the 19th, referring to it as a "corrupt inner circle where executives take turns serving as bank CEOs and chairmen for 10 to 20 years." In this context, it has been reported that the Financial Supervisory Service is about to launch an inspection into BNK Financial Group.

According to the financial industry on the 21st, the Financial Supervisory Service is planning an inspection next month to examine whether there are any issues in the process of appointing the next chairman of BNK Financial Group. Previously, Lee Chanjin, Governor of the Financial Supervisory Service, stated during the presidential work report, "We are preparing to initiate inspections into financial holding companies where issues regarding CEO appointments are being raised."

The BNK Financial Group board of directors had solely nominated Chairman Bin as the candidate for the next chairman on the 8th. If he passes both the regular shareholders' meeting and the board meeting in March next year, his reappointment will be finalized. However, following President Lee's public reprimand and the subsequent inspection by the Financial Supervisory Service, there are observations that the results could impact the group's governance structure.

The Financial Supervisory Service is reportedly preparing inspections not only for BNK Financial Group but also for several other financial companies where controversies have arisen during the process of appointing chairmen or CEOs. It is suggested that the inspection could include not only financial holding companies whose boards have already nominated the next candidate, but also those where nominations have not yet been made.

Currently, including BNK Financial Group, the board of Shinhan Financial Group has solely nominated the current chairman, Jin Okdong, as the candidate for the next chairman. At the end of this month, Woori Financial Group will decide on its next chairman, with the current chairman, Lim Jongryong, seeking reappointment.