The financial authorities, which are inspecting BNK Financial Group after controversy erupted over its chair appointment process, plan to review the governance structures of more holding companies next year. As President Lee Jae-myung publicly criticized financial holding company governance as a "corrupt inner circle," the financial authorities are also expected to wrap up housekeeping of best practices for governance next month.
According to the financial authorities on the 29th, the Financial Supervisory Service, which began an inspection of BNK Financial Group on the 22nd, plans to examine multiple financial holding companies and banks next year as well. The Financial Supervisory Service is reviewing not only BNK Financial Group but also financial holding companies that have not finalized their chair candidates as potential inspection targets.
In the financial sector, there is a view that Woori Financial Group, which is currently proceeding with the process to select its next chair, and JB Financial Group, where there was controversy over candidates' qualifications during the appointment of the Jeonbuk Bank president, could come under inspection by the authorities.
The financial authorities are planning to convene this week to launch a governance improvement task force (TF) within the year. At the TF's first meeting, which will include eight financial holding companies, the Korea Federation of Banks, and academia, participants are expected to review the Financial Supervisory Service's plan, released in May, to advance financial holding company governance and discuss measures to strengthen best practices for governance. The authorities plan to complete the housekeeping of best practices as early as January next year.
On the 19th, during a work briefing from the Financial Services Commission, the president said that a "corrupt inner circle" had formed within financial firms, allowing a small group to keep rotating and exercising control, criticizing the governance of financial holding companies.