Financial authorities have launched an on-site inspection of BNK Financial Group. BNK Financial has repeatedly faced criticism over the transparency of its recent process to select the next chair.
According to financial authorities on the 22nd, the Financial Supervisory Service has begun an on-site inspection of BNK Financial, which drew controversy during the process of extending the term of current Chair Bin Dae-in. Through this inspection, the Financial Supervisory Service will check whether there were any procedural issues when the board confirmed Bin as the sole candidate for the next chair and will also review how the board has been operated.
Earlier, President Lee Jae-myung publicly rebuked the bank holding company CEOs as a "corrupt inner circle." Financial Supervisory Service Governor Lee Chan-jin also noted that sitting CEOs build so-called "trenches" within boards to create favorable conditions for extending their terms.
If issues arise in this Financial Supervisory Service inspection, Bin's extension, which had been virtually finalized, could also become difficult. Even if the board recommends a single final candidate for chair, the person can officially take office as the next chair only after approval at the shareholders meeting in March next year.
Amid a series of governance issues, the Financial Supervisory Service will also form a "task force to improve governance" this month. Regarding the inspection period, a financial authority official said, "For now, it is expected to take about two weeks, but it may change depending on the situation."