The logos of the nation’s top four financial holding companies (BusinessKorea DB)
President Lee Jae Myung strongly criticized the appointment procedures for financial company chief executive officers (CEOs) on Dec. 19, stating, “When left alone, a corrupt inner circle emerges and a small number arbitrarily take turns continuously exercising control.”
Following the Financial Supervisory Service’s earlier proposal for the National Pension Service’s recommendation of outside directors of financial holding companies, President Lee’s criticism of the financial holding company chairman selection process is expected to further intensify controversy over authorities’ intervention in governance structures of private financial companies.
At the work report meeting for the Financial Services Commission (FSC), Financial Supervisory Service (FSS), and Fair Trade Commission (FTC) held at the Government Complex Seoul on Dec. 19, President Lee made these remarks, asking, “They take turns being bank presidents, then financial holding company chairmen for 10-20 years. Is there a solution for this problem?”
President Lee pointed out, “We didn’t intervene because we were told not to have the government directly involved due to issues with government-controlled finance,” adding, “This cannot simply be left unattended.” This effectively amounts to ordering supervisory authorities to manage and oversee the CEO selection processes of financial holding companies. FSS Governor Lee Chan-jin responded, “We are preparing to commence inspections regarding the financial holding companies in question,” stating, “We will report specific details separately during January next year.”
During the day’s work report, the rough investment targets for National Growth Fund No. 1 were disclosed. Specifically, there are seven areas: fostering K-NVIDIA, national artificial intelligence (AI) computing center, renewable energy generation, all-solid-state battery materials factory, power semiconductor production factory, advanced AI semiconductor foundry, and Yonggin semiconductor cluster energy infrastructure.
A plan was also presented to provide low-interest credit loans of up to 5 million won at an annual interest rate of 4.5% for young people and basic livelihood recipients.
Immediately after the work report, the FSC announced the KOSDAQ Market Trust and Innovation Enhancement plan, which includes the full introduction of customized technology special listing systems for three core technology fields including AI and space industry. The fund management evaluation criteria will be changed to increase pension funds’ KOSDAQ investments. President Lee emphasized, “There is distrust in the KOSDAQ market,” adding, “The path to market normalization will open only when insolvent companies are cleared out.”
