Banks under gov't pressure to replace outside directors

• Published date: 26 February 2023
• Publication title: The Korea Times

The country's five major banking groups ? Shinhan, KB, Hana, Woori and NongHyup ? are drawing attention over whether they will replace their outside directors whose terms will expire next month amid the government's push for an overhaul of the groups' governance structures.

Thirty out of 40 outside directors at the five companies will see their tenures end. And while they can serve up to six years as stipulated by the commerce law, industry sources say it remains uncertain whether they will win approvals from shareholders and boards of directors this year.

"The government has been against oligopoly in the banking industry, and in that regard, the five companies may try not to get on the nerves of the financial authorities by keeping the seats for their outside directors," a source said.

Outside directors are supposed to transparently and objectively monitor the management of the companies in which they serve.

But they have been blamed for merely...