Woori Financial "Financial Services Commission Sanctions Acceptance and Sohn Tae-seung Lawsuit, Outline in January Next Year"

Regular Board Meeting of Woori Financial on the 16th

[Asia Economy Reporter Song Seung-seop] The board of directors of Woori Financial Group stated that they have no intention of discussing the Financial Services Commission's acceptance of sanctions related to the Lime Fund and the reappointment of Sohn Tae-seung, chairman of Woori Financial Group, until the end of the year.

On the 16th, Park Sang-yong, an outside director of Woori Financial, met with reporters after concluding the group's regular board meeting at Woori Financial headquarters in Jung-gu, Seoul, and said, “Each outside director has their own thoughts, but we have not yet gathered to discuss them,” indicating this stance. The board meeting included outside director Park Sang-yong, Sohn Tae-seung, chairman of Woori Financial Group, and Lee Won-duk, president of Woori Bank, among others.

Director Park emphasized, “The main interests are whether to accept the Lime Fund sanctions finalized by the Financial Services Commission and whether Chairman Sohn will file a lawsuit,” adding, “We still need more time to think, and I believe it is a bit premature.” He further stated, “There are absolutely no plans to discuss this at the board level until the end of this year, and some talks will likely begin in January.” He also said there are no plans yet to activate the chairman candidate recommendation committee.

When asked by reporters whether the directors had agreed to postpone the discussion, Park replied, “There is full consensus,” emphasizing, “There are many complex factors to consider, and it is not an issue to be decided quickly.”

It is known that Woori Financial’s board held a briefing session a day before the board meeting to coordinate the agenda in advance. The board briefing is a venue where outside directors convey opinions on behalf of shareholders and reconcile any differing views on agenda items. The agreed-upon matters from the briefing are then resolved at the board meeting.

Within the financial sector, it was widely expected that Woori Financial’s directors would discuss the overseas interest rate-linked derivative-linked fund (DLF) lawsuits, the Supreme Court ruling’s implications, the financial authorities’ atmosphere, and public opinion. This is because Chairman Sohn filed an administrative lawsuit in March 2020 to cancel the ‘disciplinary warning’ he received as responsibility for the DLF incident, and he recently won the final victory at the Supreme Court.

Regarding the Supreme Court ruling, Director Park said, “I knew it would turn out that way from the beginning,” explaining, “We entered the lawsuit expecting to win even before the first trial verdict.” He added, “We received legal advice indicating a more than 95% chance of winning, which is why we proceeded with the lawsuit.”

In the industry, attention is focused on whether Chairman Sohn, having shed the risks, will challenge reappointment. The key issue is the severe disciplinary warning he received from the Financial Services Commission as responsibility for the Lime Fund incident. To be reappointed, he must file a lawsuit to cancel the sanction against the Financial Services Commission. Since a lawsuit by the holding company chairman requires the consent of outside directors, it is expected that Sohn, having won the DLF lawsuit, will actively persuade the outside directors.

However, Director Park responded to speculation that outside directors whose terms expire at the end of this month might seek short-term reappointment before making important decisions by saying, “That is not the case,” and “It is not possible to extend.”

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