[2022 National Audit] Noise Over Appointment of YeBo President at Audit... YeBo Says "No Problem"

Criticism at National Assembly Political Affairs Committee Audit
Concerns Raised Over Candidate Yu Jae-hoon's 500 Million Won Supreme Court Compensation Ruling
Procedural Issues in President Recommendation Also Highlighted... KAMCO States "In Accordance with Procedures and Internal Regulations"

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Controversy over the appointment of the president of the Korea Deposit Insurance Corporation (KDIC) also surfaced during the National Assembly audit. The past actions of Yoo Jae-hoon, the leading candidate for the new president and former president of the Korea Securities Depository, were criticized.

At the National Assembly's Political Affairs Committee audit on the 20th, Min Byung-duk, a member of the Democratic Party of Korea, pointed out, "In 2013, when Yoo Jae-hoon was president of the Korea Securities Depository, 37 employees were demoted without reason, resulting in a lawsuit in which the Korea Securities Depository was ordered by the Supreme Court to pay 500 million won in damages." He added, "However, the Korea Securities Depository did not claim indemnity from then-president Yoo Jae-hoon."

Regarding this, Yoon Cha-yong, acting president of KDIC, avoided a direct answer, saying, "It is difficult for me to respond to matters from the Korea Securities Depository period."

Min also criticized Yoo’s conduct during his time at the Asian Infrastructure Investment Bank (AIIB). Min said, "After Yoo Jae-hoon worked at AIIB, the position he held was abolished," and added, "Not only that, but there are also issues with the procedure of forming the executive recommendation committee for the recent president candidate selection."

When KDIC recommended four candidates, including former Korea Securities Depository president Yoo Jae-hoon, to the Financial Services Commission for the new president, they did not form a new executive recommendation committee but 'recycled' the committee that was established on May 19 to appoint non-standing directors.

In response, acting president Yoon Cha-yong said, "I believe there is no problem with the new president recommendation procedure," and explained, "After the president's resignation, the process was carried out quickly according to internal regulations and board decisions."

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