Woori Financial Group Establishes Strict Management System for Executive Relatives' Loans

Full-scale Implementation of the Executive Relatives Personal (Credit) Information Registration System
Screening of Relatives' Loans Now Reflects Registered Information

Woori Financial Group announced on the 23rd that it will officially implement the 'Executive Relatives Personal (Credit) Information Registration System' to prevent improper loans related to executives' relatives.

According to Woori Financial Group on the day, financial subsidiaries have started registering the personal (credit) information of executives themselves and their relatives and reflecting it in actual loan screening. When a loan application from a relative occurs at subsidiaries handling loans such as banks, the loan application is automatically notified to the credit supervision department and related executives.

The branch or department handling the loan strictly processes it according to guidelines and regulations, and the credit supervision department checks compliance with regulations and procedures as well as whether the related executive exerts improper influence. If improper involvement by an executive is detected, it is immediately reported to the Group Ethics Management Office for investigation and disciplinary action.

This system was first implemented by Woori Financial in December to prevent improper loans related to executives' relatives in the financial sector. In particular, the holding company and the bank included not only executives but also department heads in the registration target to strengthen the effectiveness of the system. Specifically, 193 executives and department heads from 13 affiliates are subject to this. However, Woori Card and Woori Financial Capital plan to proceed with the registration process as soon as new executives are appointed in February.

The scope of relatives includes the executive's spouse, the executive themselves, and the spouse's direct ascendants and descendants, as well as siblings. Personal information is registered with individual consent from the executives and their relatives, and the information is strictly managed only for internal control purposes related to loan screening.

The system mainly includes △ prior registration of executives' relatives' personal information △ compliance with related guidelines and regulations throughout the loan handling process for executives' relatives △ investigation and measures regarding executives' improper influence.

A representative from Woori Financial Group's Ethics Management Office said, "The Executive Relatives Personal (Credit) Information Registration System is a device to prevent executives from exerting improper influence in loan handling or relatives from making solicitations. As it is the first system implemented in the financial sector, we will continuously improve related systems and IT infrastructure to ensure smooth operation and plan to expand the scope of relatives in the future."

Meanwhile, this is not the only measure Woori Financial has taken to prevent the recurrence of improper loans related to executives' relatives. First, the system where the holding company chairman pre-approves the appointment of executives at subsidiaries such as banks has been abolished. This is to remove the excessively concentrated personnel authority of the holding company chairman and to guarantee the management autonomy of subsidiaries by allowing each subsidiary to establish its own executive operation and appointment plans.

Earlier this month, Woori Bank took the first step toward eliminating factional culture by deciding to integrate the retired employees' association for the first time in 26 years since the merger. This move reflects the urgent desire of all current and former executives and employees to restore customer and market trust and create a turning point for a new leap by establishing a corporate culture of communication and harmony completely differentiated from the past.

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