[2021 National Audit] Jeong Eun-bo "Financial Company Boards Fail to Function Properly"

Q&A Session at the Financial Supervisory Service National Assembly Audit

Jeong Eun-bo, Governor of the Financial Supervisory Service, is attending the National Assembly's inspection of the Financial Supervisory Service held by the National Assembly's Political Affairs Committee on the 7th, providing a work report. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jin-ho Kim] Jung Eun-bo, Governor of the Financial Supervisory Service (FSS), stated on the 7th that "there are parts where the boards of directors of financial companies are not functioning properly."

Governor Jung made this remark during the National Assembly's Political Affairs Committee audit, responding to Rep. Oh Ki-hyung of the Democratic Party of Korea's criticism that "the FSS failed to sanction internal system issues of financial companies during the sanctioning process of derivative-linked products (DLF)."

Regarding the first trial loss in the DLF-related lawsuit filed by Sohn Tae-seung, Chairman of Woori Financial Group, Governor Jung explained, "An appeal has currently been filed," adding, "The first trial court's ruling differs from our view."

He continued, "Since the court and the FSS have different applications and interpretations of the law, and an appeal has been filed, further discussions will proceed in the second trial."

Rep. Oh also pointed out that most financial companies' boards of directors merely act as rubber stamps, failing to check the management, to which Governor Jung responded, "I partly agree that they are not functioning properly."

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