[2023 Financial Forum] Baek Hyeryun, Chair of the Political Affairs Committee, "The National Assembly Will Also Make Institutional Improvements to Establish an Internal Control Culture"

Baek Hye-ryun, Chairperson of the National Assembly's Political Affairs Committee, is delivering a congratulatory speech at the '12th Seoul Asia Financial Forum' held on the 25th at the Chosun Hotel in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Baek Hye-ryun, Chair of the National Assembly's Political Affairs Committee, stated on the 25th, "The National Assembly will also strive to revise the Financial Company Governance Act and make institutional improvements to ensure that a proper internal control culture can be stably established."

On the same day, Chair Baek attended the 12th Seoul Asia Financial Forum held at the Westin Chosun Hotel in Sogong-dong, Seoul, under the theme "Desirable Financial Company Governance and Internal Control Systems," and said, "Enhancing the effectiveness of internal controls is not only a way to reduce various risks but also a path to prevent financial accidents in advance and restore trust in the financial market."

Chair Baek pointed out, "Although the Financial Company Governance Act was enacted to emphasize responsible management of financial companies, major financial accidents have occurred, such as the stock dividend error incident involving Samsung Securities' employee stock ownership association and the violation of anti-money laundering regulations at NH Nonghyup Bank's New York branch. Following the Derivative Linked Fund (DLF) incident, the Lime-Optimus scandal has further increased anxiety and confusion among financial consumers regarding the financial market."

He continued, "While financial companies bear primary responsibility, simply attributing these issues to the companies and emphasizing only ex-post sanctions is not a fundamental solution. It is essential to directly sanction executives and employees who violate internal control standards, but at the same time, measures should be explored to use internal controls as an incentive tool so that financial companies are motivated to strengthen internal controls on their own."

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