Party and government "Strengthen requirements for reappointment of CEOs of bank holding companies... All members of the executive recommendation committee become independent directors"

The ruling party and the government are pushing to improve the governance structure of financial holding companies, focusing on strengthening the requirements for reappointment of CEOs of financial holding companies.

The Democratic Party of Korea and the government announced this at the 'Party-Government Council on Improvement of Financial Company Governance Structure' held at the National Assembly on the 12th.

Yoo Dong-soo, chairman of the National Assembly's Political Affairs Committee, said at the Party and Government Council meeting that day, "In order to block the influence of the incumbent CEO, we will make the executive recommendation committee all independent directors and gradually strengthen the requirements for reappointment of bank holding CEOs to establish a transparent and fair succession process."

Chairman Yoo also said, “We will significantly improve the independence and responsibility of the board of directors by giving shareholders the right to recommend independent director candidates, mandating meetings with independent directors, and faithfully recording board meeting minutes.”

He emphasized, "We will establish a reasonable remuneration system based on compensation for performance and losses by introducing shareholder control over the executive remuneration payment plan and a performance fee recovery system."

Chairman Yoo said, “The path for shareholders to actually participate in core decision-making of financial companies, from independent director recommendations to executive compensation, will expand. A governance structure that allows shareholder participation and monitoring will lead to the protection of financial consumers and the healthy growth of financial companies.”

Lee Chan-jin, head of the Financial Supervisory Service, also said, "We will push for system enhancements such as strengthening the disclosure of independent director activity details and improving the effectiveness of the performance system so that independent directors can properly check management based on their expertise and sense of responsibility."

On this day, Democratic Party Policy Committee Chairman Kwon Chil-seung and Financial Services Commission Chairman Lee Eok-won also attended the party-government conference.