The Financial Supervisory Service will launch a task force (TF) as early as next week and begin drawing up measures to improve financial companies' governance.
According to the financial sector on the 24th, the Financial Supervisory Service (FSS) is expected to launch the governance improvement TF as early as next week and hold its first meeting. The TF will be led by Park Chung-hyun, assistant governor in charge of banks at the FSS, and is expected to include officials from eight financial holding companies and academia.
The TF is expected to prepare improvement measures addressing the issue of the "corrupt inner circle" that President Lee Jae-myung pointed out during a work report on the 19th. In the work report, President Lee said regarding financial holding companies' governance, "A corrupt 'inner circle' forms and a small number rotate at will to continue to exercise control. It does not seem like something that should be left unattended." In response, Governor Lee said, "We will launch a governance improvement TF, derive legislative improvement tasks by January, and submit a bill."
The TF is expected to prepare measures to strengthen board independence and set up a mechanism to rein in financial holding company chairmen's self-renewals. Proposals under discussion include diversifying channels for recommending outside directors. The TF is also said to plan to review executives' performance-based compensation systems.
Governor Lee is expected to hold a meeting with the chairs of financial holding companies' boards next month. As the Financial Supervisory Service (FSS) plans to form a TF and draw up governance improvement measures for financial holding companies, related discussions are likely.
The Financial Supervisory Service (FSS) has also moved up its planned inspection of BNK Financial Group, which was originally scheduled to begin next month. The purpose is to examine whether there were any issues in the process of BNK Financial Chairman Bin Dae-in's renewal.