KFTC Strengthens Board Composition and Functions Through Articles of Incorporation Amendment

Kim Hak-su, President of the Korea Financial Telecommunications and Clearings Institute.

[Asia Economy Reporter Song Seung-seop] The Korea Financial Telecommunications and Clearings Institute (KFTC) will expand the composition of its board of directors and establish a deliberation function for major management matters. Additionally, to strengthen responsible management, internal management matters will be delegated to the president.

According to KFTC on the 15th, a proposal to amend the articles of incorporation reflecting these changes was recently approved at the general meeting and received permission from the Financial Services Commission.

Under the revised articles of incorporation, KFTC will grant speaking rights to financial investment companies and community finance institutions. Specific operational plans, such as appointing representative institutions by sector, will be decided later by the board of directors. Furthermore, participation in the board will be expanded to include all member banks, increasing the number of participating banks from seven to ten.

The board of directors will also take on the role of deliberating major management matters. Agendas such as amendments to the articles of incorporation, approval of business plans and budgets, and use of basic assets will require board deliberation before general meeting approval. Conversely, matters related to internal management, such as salaries and retirement benefits, will have their amendment authority delegated from the board to the president to strengthen responsible management.

Follow-up measures related to the amendment of the articles of incorporation are planned to be completed within the year. Additional board directors will be appointed through a general meeting resolution within this month. The newly formed board will deliberate and implement measures regarding attendance and speaking rights of financial investment companies and community finance institutions, as well as the delegation of internal management matters to the president.

Kim Hak-su, president of KFTC, stated, “With this amendment to the articles of incorporation, the board’s functions have been expanded and responsible management strengthened. We will not only respond swiftly to changes in the payment environment in the digital era but also more faithfully fulfill the role of a core infrastructure operator in the financial sector.”

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