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.
The Yoon Suk Yeol administration has indicated its intention to meddle in the governance of former public enterprises that have long since been privatized - two decades ago - as the government forced financial holding companies recently to replace their chairmen. Concerns are therefore growing over the possibility of nepotism spreading to both KT and POSCO Holdings, based on who ends up replacing their chief executives.
Woori Financial Group Chairman Son Tae-seung has officially decided to wrap up his four-year term ending in March this year, and not to seek another term as group chief. “Today, I d like to say that I am also joining a generational shift movement that s been trending in the local financial industry,” Son said in an official statement released Wednesday.
The heads of Korea s five major financial groups had a common focus in their New Year s messages: the importance of risk management and a sustainable growth strategy amid heightened economic risks. In his New Year s message, KB Financial Group Chairman Yoon Jong-kyu stressed stable growth, as he forecast the economy will witness a decline in real purchasing power and weakened consumer sentiment this year, with continuing uncertainties on both the global and domestic economic fronts.
Woori Financial Group Chairman Son Tae-seung won a final victory in his legal battle to repeal a punitive measure imposed on him by local financial authorities, after the Supreme Court ruled in his favor.