Shinhan Investment Corp. Accelerates "Scandal Zero 2.0" to Strengthen Internal Controls

Strengthening Internal Controls and Consumer Protection

On October 14, Shinhan Investment Corp. announced that it is actively implementing its internal control enhancement program, "Scandal Zero 2.0," to protect the rights and interests of financial consumers and to establish a sound business culture.

Additionally, the company has launched an "Internal Control White Hacker" program to proactively identify and improve blind spots in internal controls that may arise in a rapidly changing financial environment.

This program is a talent management system that combines practical field experience and expertise. Selected employees continue to work in their original departments while also identifying and recommending improvements for vulnerable areas in internal controls. The company explained that, rather than creating a separate organization, it will spread a flexible and sustainable culture of internal control improvement through a cohort-based operating system.

Under the principle of "Right Business as a Daily Practice and a Cultural Norm," Shinhan Investment Corp. is expanding the scope of accountability across the entire organization in the event of an internal control issue. This includes deducting all executives' performance bonuses, excluding them from KPI evaluations and rewards, and reflecting such issues in branch manager and individual employee performance assessments.

In particular, even if a branch achieves outstanding sales performance, it will be excluded from all rewards if it falls short on key indicators such as consumer protection, customer satisfaction, or customer returns. This measure is intended to establish an organizational culture that prioritizes consumer protection over short-term branch performance.

Furthermore, the company has strengthened its consumer protection system for high-risk products. If investors aged 80 or older subscribe to ELS or DLS products, the sales profits for the relevant branch and employee will not be recognized. The company is operating its systems to prioritize customer interests over sales performance.

To fundamentally prevent misselling, Shinhan Investment Corp. provides standardized sales scripts for each product and has systematized its standard sales principles. The company has also introduced a sales suspension system linked to mystery shopping evaluations, restricting the sale of relevant products at branches that do not meet evaluation standards for a certain period.

Jung Yongwook, Head of Wealth Management at Shinhan Investment Corp., stated, "We are continuously expanding our value system for consumer protection to provide real benefits and trust to our customers. Through the participation of outstanding field personnel in the 'Internal Control White Hacker' program, we will proactively manage risks and establish an organizational culture where internal control becomes a daily practice."

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