FSS vows to strengthen watch on financial firms’ corporate governance

SEOUL-- South Korea's financial regulator said Monday it will hold a regular meeting with the board of major banks to help strengthen its oversight of the corporate governance of the banks.

The Financial Supervisory Service (FSS) said the proposed meeting, which will be held at least once a year with the board of directors of each bank, is meant to identify potential risks of banks and support board decisions.

The announcement came amid recent controversies over the selection process of CEOs at major companies, including Woori Financial Group.

Last week, Woori Financial Group Inc. named former Financial Services Commission chief Yim Jong-yong as its next chair and CEO.

If approved at a general shareholders' meeting scheduled for March 24, Yim will replace incumbent Son Tae-seung, whose term ends in late March.

The FSS said it respects the decision by Woori Financial to name Lim as its next chair, and it expects Lim to build good corporate governance and internal control system.

But the financial regulator called for efforts to raise fairness and transparency in the succession of leadership, noting the procedures of selecting the chair of a financial firm may come short of global standards.

Also on Monday, the FSS said it will crack down on unfair business practices in financial markets, such as spreading malicious rumors and committing illegal short selling.

Source: Yonhap News Agency

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