KB Securities Establishes Executive Accountability Structure and Promotes Internal Control Innovation

KB Securities announced on the 20th that it has begun preparing a Responsibility Structure Map in advance to proactively respond to the amendment of the Financial Company Governance Act scheduled to take effect in July.

The amendment to the Financial Company Governance Act, passed by the National Assembly in December last year, includes improvements to the internal control system in the financial sector, such as the introduction of a Responsibility Structure Map and the imposition of internal control management obligations. The enforcement decree and supervisory regulations specify detailed matters delegated by the law, including the method of preparing and submitting the Responsibility Structure Map, submission timing by financial industry sector, and the overall management obligations and specific contents related to internal control by the CEO and others.

The Responsibility Structure Map is a document that records the allocation of responsibilities by position held by executives of a financial company. Once the law is enforced, the CEO of a financial company must prepare a Responsibility Structure Map that allocates internal control responsibilities to each executive. This measure aims to establish a principle that designates the final person responsible for the company’s major tasks and prohibits delegating internal control responsibilities downward.

Accordingly, KB Securities has formed an "Internal Control System Improvement Task Force Team (TFT)" involving Deloitte Anjin Accounting Corporation and all headquarters departments of KB Securities, and has begun actively promoting the internal control system improvement project by holding briefing sessions for executives and department heads.

The main tasks of the project include the preparation and management plan for the Responsibility Structure Map, system design for implementation inspection, and strengthening executive qualification requirements. Through this, KB Securities plans to enhance the effectiveness of internal control activities and establish a culture of voluntary compliance with internal controls.

Additionally, KB Securities has expanded the dedicated internal control personnel within the Compliance Support Department. These personnel will focus on preventing incidents through inspection and improvement of the internal control system, raising employees’ ethical awareness, and strengthening on-site communication for internal control innovation.

Kim Seong-hyun, Compliance Officer of KB Securities, said, "We intend to introduce the Responsibility Structure Map earlier than the timing stipulated by law to quickly analyze and improve the existing internal control system," adding, "By clearly defining the responsibilities of all executives, we will continuously develop the interest, sense of responsibility, and awareness change of executives and employees regarding internal control."

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