Shinhan Investment Corp. noted on the 22nd that if internal control issues arise, the performance bonuses of all executives will be uniformly deducted. Shinhan Investment Corp. entered a crisis management system after experiencing a liquidity provider (LP) loss incident with an exchange-traded fund (ETF) worth 130 billion won in October last year.
Shinhan Investment Corp. reported that this decision is a strong declaration of collective responsibility, stating that the company executives will jointly bear any internal control issues, moving away from the previous practice of limiting responsibility to specific executives. Executives involved in internal control are excluded from this obligation due to the nature of their work.
Department evaluations will also be centered on internal control assessments. The weighting of evaluations related to internal control has been significantly increased, and if internal control is insufficient, the evaluation score can be adjusted down to the lowest performance evaluation grade, regardless of the score.
Shinhan Investment Corp. explained that the introduction of this system, which connects internal control evaluation to compensation, reflects its strong commitment to not treating internal control reinforcement as a mere slogan but as a practice.
Additionally, to emphasize the importance of middle and back office tasks related to internal control, the company established the internal control platinum sector in its achievement evaluation competition, which rewards outstanding departments and employees at the end of the year.
Earlier, Shinhan Investment Corp. activated a crisis management and normalization task force (TF) amid its crisis management system and set various tasks such as internal control, organizational culture, and human innovation for the first quarter of this year.
Lee Seon-hoon, CEO of Shinhan Investment Corp., said, "I believe that we must heal all invisible potential risks to restore trust, and we will continue to actively implement internal control reinforcement measures."