Bank managers deserve stern punishment for unfair practices
Hiring fraud is one of the most serious crimes undermining the country's efforts to create a fair society with equal opportunities. A recent court ruling against a bank reminds us of why those involved in such fraud should be subject to harsh punishment.
Last Wednesday, the Seoul Eastern District Court handed down a suspended six-month prison term to Shinhan Financial Group Chairman and CEO Cho Yong-byoung, finding him guilty of engaging in unfair recruitment practices. Cho was found to have exercised undue influence over personnel department managers at Shinhan Bank, pressuring them to hire three family members of former group CEOs, while he was serving as president of the bank from 2015 to 2017.
Peddling such influence is illegal. It prevents fair competition among job applicants, and also runs counter to the principle of equal opportunity, frustrating young adults who aspire to land jobs at the country's major banks such as Shinhan. That's why the Moon Jae-in government has conducted a crackdown on rampant employment fraud at state-run enterprises and banks since his May 2017 inauguration.
The court discovered that Shinhan Bank had compiled a list of the children of the bank's incumbent and former managers, financial regulators and political bigwigs for four years from 2013. The bank hired some of those on the list even though they failed to pass recruitment tests. But Cho and five other bank officials were only given fines or suspended jail terms. For this reason, the court has invited criticism for being too lenient.
What is more worrisome is a move by Shinhan Financial Group to appoint Cho as its chairman for a second term. It is nonsense for the group to keep the chairman for another three years despite the court ruling against him. People are now wondering whether the group is willing to rectify its illegal hiring practices to restore the public's confidence in the financial institution.
Hiring fraud is one of the most serious crimes undermining the country's efforts to create a fair society with equal opportunities. A recent court ruling against a bank reminds us of why those involved in such fraud should be subject to harsh punishment.
Last Wednesday, the Seoul Eastern District Court handed down a suspended six-month prison term to Shinhan Financial Group Chairman and CEO Cho Yong-byoung, finding him guilty of engaging in unfair recruitment practices. Cho was found to have exercised undue influence over personnel department managers at Shinhan Bank, pressuring them to hire three family members of former group CEOs, while he was serving as president of the bank from 2015 to 2017.
Peddling such influence is illegal. It prevents fair competition among job applicants, and also runs counter to the principle of equal opportunity, frustrating young adults who aspire to land jobs at the country's major banks such as Shinhan. That's why the Moon Jae-in government has conducted a crackdown on rampant employment fraud at state-run enterprises and banks since his May 2017 inauguration.
The court discovered that Shinhan Bank had compiled a list of the children of the bank's incumbent and former managers, financial regulators and political bigwigs for four years from 2013. The bank hired some of those on the list even though they failed to pass recruitment tests. But Cho and five other bank officials were only given fines or suspended jail terms. For this reason, the court has invited criticism for being too lenient.
What is more worrisome is a move by Shinhan Financial Group to appoint Cho as its chairman for a second term. It is nonsense for the group to keep the chairman for another three years despite the court ruling against him. People are now wondering whether the group is willing to rectify its illegal hiring practices to restore the public's confidence in the financial institution.
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