INTERVIEW Diversity, inclusion crucial to elevating ethical standards in finance

Lee Hyung-mi, the head of human resources at Standard Chartered Bank Korea, speaks to The Korea Times at the bank's headquarters in Seoul, Tuesday. Korea Times photo by Choi Won-suk

By Lee Yeon-woo

• Published Dec 25, 2023 9:00 AM KST
• Updated Dec 26, 2023 10:56 AM KST

Ethical standards are important to every business. Yet in the finance sector, where millions or billions of won in transactions are made daily, their importance is significantly higher.

This is why creating diverse and inclusive groups takes on significant importance in the industry, according to Lee Hyung-mi, the head of human resources at Standard Chartered (SC) Bank Korea.

"Financial institutions are places where ethical management is particularly important. When people think and view things in the same way, there's a higher chance of making mistakes. A diverse group tends to uphold higher ethical standards, as different perspectives encourage individuals to be more cautious and considerate," Lee said during the recent one-on-one interview with The Korea Times.

Her belief is based on years of experience in the global market, including in Hong Kong and China, as well as in SC's consistent efforts to establish and maintain ethical standards. This was especially notable in the 2000s, a time when the concept of diversity was not as emphasized in Korea as it is today.

"I consider myself lucky. Even back in 2005, there was already a committee dedicated to diversity and inclusion in SC Bank Korea. We knew that creating a diverse, inclusive culture is important," Lee said.

Starting her career as a simultaneous interpreter and translator, Lee first joined the bank coinciding with SC's acquisition of Cheil Bank. At that time, there was a great demand for interpreters and translators due to the sale. Recognized for her ability, the bank offered her the opportunity to recruit and manage fellow interpreters and translators. This, what Lee describes as "entangled coincidence and destiny," marked the beginning of her 18-year HR career at one of the major foreign banks in Korea.

SC Bank Korea is renowned for having one of the highest proportions of female leadership within the Korean banking industry. Including non-executive directors, the bank boasts a female leadership rate of 24 percent, which is substantially higher than the average of 6 percent observed across other banks here.

Lee believes that the "glass ceiling" will eventually be shattered in the near future, driven by the increasing rates of female participation in the Korean labor market.

"I believe the fundamental starting point lies in the labor market participation rate. This was also the case in Hong Kong. As a city-state with a high demand for labor, women were naturally compelled to work. With a growing number of women in the workforce, there's a progression towards efforts to achieve gender equity. It will inevitably lead to the dismantling of barriers like the glass ceiling," Lee said, explaining that the rate of female leadership at SC branches in Hong Kong and China approaches 50 percent.

"When we look at Korea's demographics, it's inevitable that women's participation in the labor market will increase even more. Therefore, I think that Korea is on a fast track to eradicating such barriers," Lee added.

According to Lee, women's strengths in flexibility, courteous listening and empathy will be crucial, particularly in adapting to the rapid development and integration of AI.

To support this forthcoming future, Lee emphasized that the most crucial aspect is management's consistent focus, thoroughly grounded in data.

"We gather data concerning both women and men, such as usage rate of parental leave, return-to-work rates, the distribution of women across various positions and the gender balance in talent programs. By collecting data across all these areas, we use it as an opportunity for enlightenment," Lee said.

"For instance, we observed that women outnumbered men in the lower ranks, but later found out that there is a noticeable stagnation in women's promotions. Then we can delve into understanding the reasons and contemplate programs and initiatives to address this issue."

This approach prompted the bank to pioneer various policies, including guaranteeing 100 days of paternity leave and financing treatments for women going through menopause.

In August, the bank also organized the SC Women's Cup, an amateur futsal tournament, as part of SC's global initiatives under the Play On campaign. In cooperation with Liverpool FC, the campaign champions the idea that sports can equip young women with crucial skills like teamwork, leadership and a spirit of challenge. The tournament attracted significant interest, with over 200 teams applying to compete.

"When I first joined the bank, I struggled to learn teamwork, having previously worked alone as a translator. While some challenges were related to my professional background, I also believe that being a woman played a role. This is partly because I had limited opportunities to experience team sports during my childhood," Lee said.

"I believe that experiencing team sports at younger ages teaches essential teamwork skills necessary for any organization. It's an activity I hope the next generation of women will engage in more."

Lee also emphasized the crucial role of networking and mentorship for women in the industry, stating that learning from the experiences of senior colleagues is the quickest path to success.

"Every senior who has a successful career in the industry sincerely supports their juniors' development and growth. So please do not hesitate, and actively look out for your mentor."