Financial Supervisory Service imposes 150 million KRW fine on DGB Financial Group for 'Outside Director Qualification Violation'

[Asia Economy Reporter Song Hwajeong] DGB Financial Group was fined 152 million KRW by the Financial Supervisory Service (FSS) for violating the qualifications of outside directors.

According to the financial sector on the 10th, the FSS conducted a sector inspection of DGB Financial Group at the end of last month and imposed a fine for violations of the obligation to verify the qualifications of outside directors and the obligation to report business reports, while issuing warnings to three executives and employees.

DGB Financial Group appointed Mr. A, who is the CEO of an investment advisory firm and also an outside director at another bank, as an outside director, which was confirmed to violate the Act on the Corporate Governance of Financial Companies stating that "a person serving as a director of two or more other companies cannot be an outside director of the financial company."

Additionally, it was found that the company submitted a business report on the consolidated balance sheet of the financial holding company that was inaccurately prepared by omitting some derivative transaction amounts of consolidated subsidiaries.

DGB Financial Group was also pointed out for 11 management caution items and 11 improvement items each.

The group was advised to establish an external candidate selection process when recommending chairman candidates, rationalize the criteria for selecting outside director candidates, and strengthen the board of directors' supervisory and monitoring functions regarding short- and long-term management strategies.

DGB Financial Group’s Daegu Bank also recently received recommendations to rationalize the selection process of outside director candidates during an FSS sector inspection, along with 16 management caution items and 37 improvement items.

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