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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The Financial Supervisory Service (FSS) is set to begin an on-site inspection of BNK Financial Group next month, marking the first review following President Lee Jae-myung’s criticism of governance issues at financial holding companies.
According to financial authorities on December 21, the FSS has prepared an inspection plan focusing on the process for selecting BNK Financial’s next chairman. The review comes after President Lee strongly criticized the selection procedures during a December 19 briefing with the Financial Services Commission and the FSS, stating, “If left unchecked, a corrupt inner circle forms, allowing a small group to monopolize control for decades.” FSS Governor Lee Chan-jin confirmed that preparations were underway to inspect the financial holding company in question, signaling BNK as the initial target.
The FSS plans to scrutinize the fairness and appropriateness of BNK Financial’s next chairman selection process. The inspection could have a significant impact on the final appointment, as current chairman Bin Dae-in has been nominated but the shareholder meeting in March next year has not yet occurred.
The FSS is also reportedly preparing inspections for multiple other financial firms where chairman or CEO appointment processes have raised controversy, prompting discussions in the market over whether the agency is overstepping its authority in governance matters.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
