Yoon Seok-heon Criticizes Financial Firms: "Worry About Organizations Failing Consumer Protection More Than CEOs"

[Asia Economy Reporter Park Ji-hwan] Yoon Seok-heon, Governor of the Financial Supervisory Service, recently emphasized the need to be concerned about the organization rather than just the CEOs of financial companies in relation to the reappointment of CEOs involved in issues such as derivative-linked funds (DLF) and the Lime scandal.

At a briefing with the press corps held online (non-face-to-face) on the 23rd, Governor Yoon said, "There may be individual circumstances for each financial company," and added, "It is difficult to speak specifically about this part," choosing his words carefully.

However, he pointed out, "There are still some unresolved conclusions regarding sanctions on certain financial companies, but I feel that financial companies are overly concerned about their CEOs and less worried about the organization." This means there is a lack of consideration for the fact that if an organization fails to protect consumers, it creates obstacles to sustainable growth and development.

Governor Yoon stated, "When looking at financial companies, concerns about the personal reappointment prospects of CEOs are quite noticeable, but worries about organizations that have failed in consumer protection seem insufficient," and urged, "I hope financial companies pay more attention to their organizations."

His remarks came in response to recent announcements by financial holding companies regarding the reappointment of subsidiary CEOs whose terms are about to expire.

On the 18th, KB Financial Group held a subsidiary CEO candidate recommendation committee meeting and reselected the current CEOs as candidates for seven subsidiaries, including KB Securities. Accordingly, Park Jung-rim, CEO of KB Securities, who was subject to severe sanctions by the Financial Supervisory Service due to the Lime fund scandal, succeeded in his reappointment. Shin Ok-dong, President of Shinhan Bank, also succeeded in his second term as the Financial Supervisory Service’s disciplinary committee postponed its review until February next year.

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