Kookmin punished for violating board rules
By Kang Seung-woo Kookmin Bank was penalized for violating rules governing its board of directors and received a penalty from the financial authorities, a lawmaker said Sunday. Rep. Lee Seong-nam of the main opposition Democratic Party said that the lender called the outside director recommendation committee and selected its outsider directors without reporting to the board in September 2009. According to its board regulations, the appointment of outside directors is subject to approval by the board meeting. The Financial Supervisory Service (FSS), which conducted an inspection of the nation’s largest lender by assets from Jan. 14 to Feb. 10, found the violation and issued a warning in August. “It is questionable whether outside directors selected improperly are able to monitor their management properly,” Lee said. Lee also said that Kookmin offended the rule regarding the compensation of outside directors. The bank paid them travel expenses worth 33 million won ($29,700) between 2007 and 2009. The lender’s outside director is one of the most lucrative position
