FSS Governor Lee Chan-jin Calls for Greater Fairness and Transparency in Financial Holding Subsidiary CEO Succession

Financial Supervisory Service (FSS) Governor Lee Chan-jin emphasized today (September 15) that the CEO succession procedures for financial holding company subsidiaries are inadequate and called for stronger fairness and transparency.

During an executive meeting at the FSS today, Governor Lee stated, "We have found that the CEO succession procedures for subsidiaries established by the subsidiary CEO recommendation committees of most holding companies are inadequate, and the roles of the subsidiary executive candidate recommendation committees are also limited," highlighting these issues.

He pointed out problems such as the failure to specifically outline CEO qualification requirements, the absence of minimum verification periods for each stage of candidate shortlisting, and the perfunctory management of permanent candidate pools.

Governor Lee said, "Moving forward, we must further strengthen transparency and fairness across the entire CEO succession process, including candidate selection, verification and evaluation, and documentation."

In particular, noting that the task force for advancing corporate governance operated by financial authorities since last January has discussed "various improvement measures to prevent CEO appointments from being operated closed-ly based on specific factions or personal ties," he urged financial institutions to "make efforts to contribute to enhancing shareholder value by operating transparent and fair management succession procedures."

The FSS also added, "We will strengthen inspections to ensure that CEO successions are conducted in accordance with transparent and fair standards."
※ Please note: This article was translated by AI and may contain errors.