Korean banking groups at risk of losing governance autonomy
Posted : 2021-02-19 08:45
By Lee Min-hyung
Financial holding firms here will have less and less leeway in setting key agendas, as their largest shareholder ― the National Pension Service (NPS) ― is on track to widen its influence on their top management.
The NPS is the largest shareholder of the nation s top four financial firms ― KB, Shinhan, Hana and Woori ― according to the latest data. The pension fund obtained more than 9 percent stakes in each of the companies as of the end of September 2020. This figure is slightly below the legal limit of 10 percent. Under the local financial law, a single investor cannot purchase more than a 10 percent stake in a single financial holding firm.
Korean banks speed up corporate culture reforms to survive
Posted : 2021-01-31 15:18
By Lee Min-hyung
Korea s financial firms are ramping up efforts to reform their rigid, hierarchical corporate cultures and break away from long-standing conservatism by streamlining their reporting mechanisms as well as abolishing bureaucratic ranks and outside hiring.
This is seen as a desperate move to embrace rapidly changing business conditions as digital banking trends have been accelerated by the COVID-19 pandemic.
Major banks here identify changing their working environments as a prerequisite, in order to root out their notorious top-down corporate culture and embrace the digital paradigm shift that s taking place in the banking industry.