Lee Bok-hyun, Financial Supervisory Service Chief: "Board of Directors Responsible for Appointing Management with Expertise and Integrity"

Chairpersons' Meeting of Bank Holding Company Boards on the 14th

Lee Bok-hyun, Governor of the Financial Supervisory Service

Lee Bok-hyun, Governor of the Financial Supervisory Service, urged on the 14th, "Please make special efforts to ensure that the appointment of Chief Executive Officers (CEOs) is conducted transparently and fairly according to a rational management succession process."

On the same day, Governor Lee attended the 'Bank Holding Company Board Chairpersons Meeting' held at the Bankers' Hall in Jung-gu, Seoul, and stated, "It is necessary to do our best to ensure that the board of directors and management, which are the core pillars of financial company governance, are composed and appointed through fair and transparent procedures," emphasizing, "Appointing competent executives who possess both expertise and morality is the most important authority and responsibility of the board."

Currently, many CEOs in the financial sector are approaching the end of their terms at the beginning or end of the year. The terms of Son Byung-hwan, Chairman of NH Nonghyup Financial Group; Jin Ok-dong, President of Shinhan Bank; and Kwon Joon-hak, President of NH Nonghyup Bank, will expire at the end of December. In March next year, the terms of Cho Yong-byeong, Chairman of Shinhan Financial Group; Son Tae-seung, Chairman of Woori Financial Group; and Park Sung-ho, President of Hana Bank, will end. On the 10th, Governor Lee commented on Chairman Son Tae-seung, who is at a crossroads for reappointment due to a disciplinary warning, saying, "Unlike in the past, now is a time when financial authorities and institutions must closely cooperate in response to rapid market fluctuations," and added, "I believe the person concerned will make a wiser decision."

Governor Lee also said, "Outside directors should be composed so as not to be excessively concentrated in specific occupations or groups, thereby enhancing the diversity and expertise of the board," and requested, "Please make efforts to ensure that the terms of outside directors do not excessively overlap at specific times so that the board can operate stably and independently."

Regarding internal control, he stated, "If left solely to the management, effectiveness tends to decline due to performance-first principles," and urged, "There have been many major financial accidents across the financial sector, so I ask the board of directors to pay special attention and effort to prevent similar financial accidents from recurring."

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