BNK Financial Expands Shareholder-Recommended Directors to Four... Joins Governance Advancement Initiative

Results of the Governance Advancement Task Force to Be Given Top Priority

BNK Financial Group has decided to replace 5 out of its 7 outside directors at next month's general shareholders' meeting and to increase the number of shareholder-recommended outside directors from 1 to 4. This move is intended to participate in the government's initiative to advance the governance structure of financial companies, thereby strengthening a sustainable and responsible management system.

On February 27, BNK Financial Group held a board meeting at the head office of Busan Bank and resolved to increase the number of shareholder-recommended outside directors, as well as to enhance the diversity and expertise of the board by increasing the number of female outside directors from 1 to 2.

Oh Myungsook, Professor of Materials Science and Chemical Engineering at Hongik University, and Kim Namgeol, Executive Director at Lotte Capital (shareholder recommendation), were reappointed. In addition, Cha Byungjik, Attorney at Klass Hangyeol, and Park Hyejin, Head Professor at the Graduate School of AI Software at Sogang University, were newly appointed.

The newly selected shareholder-recommended outside directors are Park Geunseo, Auditor at the Korean Institute of Certified Public Accountants, Lee Namwoo, Chairman of the Korea Corporate Governance Forum, and Kang Seungsu, CEO of DS Investment Partners.

At a meeting of outside directors held prior to the board meeting, it was agreed to prioritize the forthcoming results of the Financial Services Commission's governance advancement task force (TF) and to promptly reflect relevant updates in the company's articles of incorporation.

BNK Financial Group currently applies strengthened governance standards by limiting the CEO's consecutive terms to one, operating the tenure of the Board Chair on a one-year basis with the possibility of a single reappointment, among other measures to prevent excessive concentration of authority in the hands of the CEO and Chairperson.

Furthermore, the company has continuously reinforced the board's checks and balances and independence by appointing new outside directors annually.

Going forward, BNK Financial Group plans to enhance transparency and independence by improving the procedures for selecting institutions that recommend outside directors.

Additionally, the company is considering forming the Executive Candidate Recommendation Committee with all outside directors and specifying step-by-step evaluation criteria to increase the transparency of the CEO succession process.

A BNK Financial Group representative stated, "Governance is a core factor that determines the sustainability and market trust of financial companies. We will proactively reflect the policy direction of the financial authorities and further advance our governance system to establish a transparent governance structure that meets global standards."