The Financial Supervisory Service recently conducted a consulting project for large financial investment and insurance companies regarding the accountability structure and announced the shortcomings discovered during the process on the 26th.
According to the FSS, some financial investment and insurance companies operate under a co-CEO system, but there are no clear criteria for the distribution of responsibilities among the co-CEOs. This has led to confusion regarding the allocation of duties in practical terms. The FSS recommended that financial companies operating under a co-CEO system should ensure that the duties they fulfill are directly related to the scope of responsibilities assigned to each co-CEO.
The fact that 25 out of the 53 major financial investment and insurance companies have a co-CEO also raised concerns. While this is not prohibited under financial governance law, the FSS believes it contradicts the purpose of the accountability structure, which is to check executives. Therefore, the FSS pointed out that even if a co-CEO also serves as the chair of the board, effective internal control mechanisms must be established.
Additionally, the FSS recommended that if there are executives with overlapping duties, responsibilities should be distributed to superiors, ensuring that important executives do not miss out on responsibilities depending on whether they are full-time.
The FSS plans to check the preparation status in line with the implementation schedule for the accountability structure by sector. On the 29th and next month on the 19th, it plans to hold briefings on the accountability structure to support the establishment of the system.