K Bank Achieves Highest Corporate Governance Rating Among Commercial Banks

[Asia Economy Reporter Kiho Sung] K Bank received the highest corporate governance rating among domestic commercial banks from the Korea Corporate Governance Service (KCGS).

According to the financial sector on the 28th, KCGS announced the '2021 ESG Ratings' on the 26th, evaluating the ESG (Environmental, Social, Governance) levels of domestic companies. The evaluation covered 950 listed companies and 55 unlisted financial companies. Listed companies were comprehensively assessed on Environment (E), Social (S), and Governance (G), while unlisted financial companies were evaluated only on financial company governance (G).

K Bank received an A+ rating, the highest grade, in the financial company governance evaluation?which assessed shareholder rights protection, the board of directors, CEO, and risk management?making it the only domestic commercial bank to achieve this level. KCGS's ESG ratings consist of seven grades: S being the highest, followed by A+, A, B+, B, C, and D.

KCGS highly evaluated K Bank for its appropriate management oversight function through shareholder nomination of outside director candidates and the dedicated participation of professional outside directors, enabling the board to play an active role in management decision-making and risk management.

The A+ rating signifies 'Excellent,' meaning "the evaluation items fully comply with the sustainable management system presented by the model code, and there is considerably little risk of shareholder value impairment due to non-financial risks."

A K Bank official stated, "Our efforts to establish sound governance have been recognized," adding, "We will continue to strive to maintain the highest level of governance going forward."

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