Lee Chan-jin, the head of the Financial Supervisory Service, emphasized the need for enhanced transparency and fairness in the CEO succession process of financial holding company subsidiaries on September 15.
During an executive meeting at the Financial Supervisory Service, Lee stated, "Most of the CEO succession procedures established by the subsidiary CEO recommendation committees are inadequate, and the role of the subsidiary executive recommendation committees is also limited."
He pointed out issues such as the lack of specific qualifications for CEO candidates, the absence of minimum verification periods during the candidate narrowing stages, and the formal management of a constant pool of candidates.
Lee added, "We must strengthen transparency and fairness throughout the entire CEO succession process, including candidate selection, verification, evaluation, and record-keeping."
He noted that since January, the financial authorities have been operating a task force aimed at advancing governance structures, stating, "Discussions have been held on various improvements to ensure that CEO appointments are not conducted in a closed manner based on specific factions or personal relationships." He urged financial companies to operate transparent and fair management succession processes to enhance shareholder value.
A Financial Supervisory Service official remarked, "We will strengthen checks to ensure that CEO successions are conducted according to transparent and fair standards."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.