Bank Federation Union Expresses Concern Over Financial Union's Statement on President Appointment

Park Hong-bae, Chairman of the Financial Labor Union. / Photo by Asia Economy DB

[Asia Economy Reporter Kim Min-young] The Labor Union of the Korea Federation of Banks and the Credit Information Service (Federation Union) has expressed concerns over a statement issued by the parent organization, the National Financial Industry Labor Union, regarding the appointment of the Federation Chairman.

According to the financial sector on the 15th, the Federation Union released a statement titled "Branch Position on the Financial Union Statement" the day before, criticizing, "The current Financial Union executive committee issued the statement without the consent of the branch," and added, "The next chairman selection process has not even started yet, and the statement was distributed without the branch’s approval, exerting influence against the direct stakeholders' will."

Earlier, on the 13th, the Financial Union issued a statement under the name of Chairman Park Hong-bae, emphasizing the need for thorough verification of the qualifications and capabilities of the next chairman.

In the statement, the Financial Union said that in the process of selecting the next chairman, not only qualifications and capabilities such as expertise, field experience, and leadership should be reviewed, but also conflicts of interest involving public officials should be considered.

The Financial Union stated, "We will carefully verify whether the candidates for the new chairman are individuals who will lead financial development and innovation," and added, "We will watch closely to ensure that the process moves away from 'government-controlled finance' and 'closed-door, parachute appointments' toward transparent and objective evaluations."

The Federation Union criticized the Financial Union for issuing the statement against the branch’s will despite the fact that the new chairman selection process has not yet begun.

The Federation Union said, "Until now, the Financial Union has prioritized the position of the Federation Union, the direct stakeholder in the chairman appointment," and added, "Generally, statements were first issued by the branch, the direct stakeholder, and only when requested by the branch did the Financial Union issue statements at its level."

They further stated, "The exertion of influence by the Financial Union could intensify once the chairman selection process is in full swing, which raises serious concerns."

The current Federation Chairman, Kim Tae-young’s term ends on the 30th of next month. The Federation plans to begin the process of selecting the next chairman in earnest at the regular board meeting scheduled for the end of this month. The chairman appointment is expected to take place next month. Bureaucrats and political figures are being mentioned as potential candidates.

The Federation is a non-profit corporation formed by 22 member banks in Korea, and the chairman is appointed at a general meeting attended by the member companies.

This content was produced with the assistance of AI translation services.