FSS Chief Lee Chanjin Delivers Special Lecture to New Outside Directors: "Active Oversight of Management Is Essential"

Emphasizing Expertise and Independence of Outside Directors
for Sound Corporate Governance

Lee Chanjin, Governor of the Financial Supervisory Service, emphasized the role of outside directors with expertise and independence in providing effective oversight of management, in order to establish sound corporate governance in financial companies.

Yonhap News Agency

On the morning of April 28, Lee attended as the first lecturer for the orientation program for new outside directors hosted by the Korea Institute of Finance at the Bankers Club in Jung-gu, Seoul. He stated, "The role of outside directors has never been more important, as financial companies need to improve their business practices with a consumer-centric approach rather than focusing solely on short-term business performance, and to fulfill their core financial functions such as investing in productive sectors."

He added, "Transparent governance will not only help minimize principal-agent issues between shareholders and management and enhance shareholder value, but also contribute to building trust in the financial industry. Outside directors must represent shareholders' interests fairly and objectively, and actively monitor and oversee management."

He identified the issues of misselling, the need to strengthen 'financial consumer protection,' and the shift toward productive finance as urgent tasks, and called for the active involvement of outside directors with both expertise and independence. He also stated, "We will spare no effort in providing the necessary institutional support, such as strengthening communication with the boards of financial companies and reflecting the voices from the field regarding proper governance structures into our supervisory and inspection work."

Later, Lee signed a memorandum of understanding (MOU) on fostering and enhancing the capabilities of outside directors with the Korea Institute of Finance and regional financial holding companies. The event was attended by Choyongbyung, Chairman of the Korea Federation of Banks; Hwang Byungwoo, Chairman of iM Financial; Bin Daein, Chairman of BNK Financial Group; Kim Kihong, Chairman of JB Financial Group; and Lee Joonsu, President of the Korea Institute of Finance. With this agreement, the Korea Institute of Finance will launch specialized training programs for regional holding companies and introduce remote learning options to accommodate outside directors residing in regional areas.

Lee stated, "Customized education that reflects the unique characteristics of regional areas will provide a crucial foundation for balanced and transparent decision-making, and will underpin sound corporate governance."

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