The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Homeless women struggle to find place to spend night

  • 3

    More than dozen chaebol scions indicted on alleged drug use

  • 5

    People attempt to cut surging heating costs with creative solutions

  • 7

    Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film

  • 9

    Life prisoner sentenced to death for beating inmate to death

  • 11

    'I was a stock investment addict': psychiatrist seeks to help addicted people through his book

  • 13

    Korea's childbirths hit record low in Nov.

  • 15

    PHOTOSAnother day of heavy snowfall in Korea

  • 17

    Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters

  • 19

    S. Korea to increase joint air defense exercises following N. Korean drone incursions

  • 2

    Koreans stunned by spike in heating costs

  • 4

    Heavy snow hits Seoul, surrounding areas

  • 6

    Netflix series 'The Glory' draws focus to real school bullying

  • 8

    Inflation weighs on households

  • 10

    Kim Hyun-joo says humanity is at heart of action film 'Jung_E'

  • 12

    INTERVIEWPartnerships with Korean companies help Delta Air Lines' post-pandemic recovery

  • 14

    Jang Keun-suk steps out of his comfort zone with 'The Bait'

  • 16

    Gov't to double subsidies for vulnerable households as energy bills soar

  • 18

    BLACKPINK sets 6 more Guinness records

  • 20

    TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride'

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Sat, January 28, 2023 | 13:47
Policies
Financial authorities concerned about group chairs' 'emperor-like power'
Posted : 2020-10-23 16:57
Updated : 2020-10-23 19:03
Lee Kyung-min
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link

Financial Services Commission Chairman Eun Sung-soo, right, listens as Financial Supervisory Service (FSS) Governor Yoon Suk-heun speaks during an audit of the FSC and the FSS at the National Policy Committee at the National Assembly on Yeouido, Seoul, Friday.
Financial Services Commission Chairman Eun Sung-soo, right, listens as Financial Supervisory Service (FSS) Governor Yoon Suk-heun speaks during an audit of the FSC and the FSS at the National Policy Committee at the National Assembly on Yeouido, Seoul, Friday.

By Lee Kyung-min

The country's top financial supervisor and regulator called for a greater scrutiny of financial group heads whose "limitless power" has resulted in a slew of corrupt business practices including hiring fraud.

Financial Services Commission Chairman Eun Sung-soo and Financial Supervisory Service (FSS) Governor Yoon Suk-heun expressed the view that the much-needed scrutiny will work best if taken on by shareholders and the public, adding that it was a more desirable method of keeping the heads of financial firms in check than an outright government intervention which often ends up undermining corporate autonomy.

KB Financial Group Chairman Yoon Jong-kyoo clinched a third term, despite a hiring fraud allegation involving his granddaughter when he was KB Kookmin Bank CEO.

Similarly, Shinhan Financial Group Chairman Cho Yong-byoung and Woori Financial Group Chairman Son Tae-seung managed to secure second terms in March,

For Cho, the extension came only about two months after he was handed down a suspended prison term for exerting influence to hire applicants who were related to his acquaintances. Son's term was extended despite the recent fiasco involving derivative-linked funds (DLFs).

The FSC chairman and FSS Governor said they were concerned about financial group heads seeking term extensions without there being rigorous oversight, a highly problematic years-long practice that shows little improvement despite repeated criticism.

"We are aware of the problems, and so are the heads," Eun said during an audit of the FSC and the FSS at the National Policy Committee at the National Assembly on Yeouido, Seoul, Friday.

"I have had my concerns delivered to group heads and bank CEOs, although I do not intervene in a direct manner. Continued communication is needed, together with constant concerned voices raised through civic groups," Eun said.

The acknowledgement followed a criticism of financial group leaders who an opposition lawmaker said were subject to no accountability for their actions, precisely because of a lack of punishment due to the inaction of financial authorities.

Rep. Kang Min-kuk of the main opposition People Power Party said Son emerged from the DLF fiasco unscathed, an unacceptable outcome since many buyers of the financial product known for its highly complicated and complex structure lost a substantial part of their investment or in some cases their entire investment. Those affected included many senior citizens who put up their retirement savings.

The FSS initially recommended to the FSC that Woori Bank be suspended for six months, with a fine of 22.1 billion won ($19 million).

But the FSC reduced the fine to 19 billion won, essentially helping Son whose move seeking a second term was made easier due to the lighter punishment.

"Large-scale fiascos such as mis-selling of derivatives in the financial industry continued to occur due to the authorities' negligent oversight of the corrupt market players. The financial authorities have no measures to put a stop to this," he said.

Excessive government intervention should be avoided given the clear drawbacks observed in the past, Eun noted.

"A revision to the current shareholding loop seeking to limit the group heads' power is pending at the National Assembly awaiting your review. Criticism will help them become more conscious about their behaviors."

Yun echoed the sentiment, adding their power is far to greater compared to their responsibilities.

"Financial group heads should not sit on the group executive committees and their moves seeking term extensions should be more heavily scrutinized," Yun said.

Allegations against KB Financial Group Chairman Yoon was cleared in 2018.


Emaillkm@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1People attempt to cut surging heating costs with creative solutions People attempt to cut surging heating costs with creative solutions
2Seoul to work with Hanoi to pursue peace on Korean peninsula Seoul to work with Hanoi to pursue peace on Korean peninsula
3Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities
4More Korean manufacturers enjoy Georgia's hospitality More Korean manufacturers enjoy Georgia's hospitality
5Superintendent of Seoul Education Office gets suspended jail term Superintendent of Seoul Education Office gets suspended jail term
6SK E&S retains gov't support for Barossa gas project in Australia SK E&S retains gov't support for Barossa gas project in Australia
7Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event
8KT&G aims to become global top-tier company KT&G aims to become global top-tier company
9LGES to capitalize on US IRA, Tesla partnership to continue record earnings LGES to capitalize on US IRA, Tesla partnership to continue record earnings
10Middle East 'sales diplomacy' picks up speed Middle East 'sales diplomacy' picks up speed
Top 5 Entertainment News
1Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film
2Kim Hyun-joo says humanity is at heart of action film 'Jung_E' Kim Hyun-joo says humanity is at heart of action film 'Jung_E'
3Jang Keun-suk steps out of his comfort zone with 'The Bait' Jang Keun-suk steps out of his comfort zone with 'The Bait'
4BLACKPINK sets 6 more Guinness records BLACKPINK sets 6 more Guinness records
5TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride' TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride'
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

wooribank
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group