Prosecutors raided the residence of a former chief of a major banking firm on Tuesday, as part of a probe into bribery allegations involving a former lawmaker in connection with a high-profile land development corruption scandal.
One of the key areas that Korean banks are lagging behind global financial firms is corporate governance. Along with the country s complex regulations, a less-than-effective system of checks and balances has been cited as a key factor resulting in the undervaluation of stocks issued by Korean financial institutions compared to their earnings performances.