The financial authorities will greatly enhance the ability of major shareholders to examine eligibility of major financial companies. We will expand the current largest shareholder from the current largest shareholder to the largest shareholder and major shareholder.

Major financial firms such as Samsung, Hanwha and Hyundai, which have major financial affiliates such as insurance, card, and securities, will become targets, and the total number of households will be included in the eligibility screening target for now.

The Financial Supervisory Commission (FSC) announced on March 15 that it would include the chairman Lee Kun-hee and vice chairman Lee Jae-yong as candidates for major shareholder examination of financial institutions.

First of all, the Financial Supervisory Service will significantly expand the scope of eligibility for major shareholders of financial companies. Currently, it is limited to one investor in the eligibility examination, but it will be expanded to become one of the largest shareholders and one of the major shareholders who are influencing the financial company.

Besides, it will be recognized as a reason for disqualification if it is punished by more than a treasury type such as embezzlement, bribery as well as violation of existing financial laws, tax punishment law and fair trade law. The corporation is also subject to disciplinary sanctions if it receives fines of more than 100 million won.

The financial authorities are looking at the improvement plan as an inflection point where the `government` spreads throughout the financial industry as well as the business world in the financial sector. This is because the expansion of the government`s eligibility criteria for major shareholders is aiming at major financial firms.

Especially, among the top 10 companies, chaebol owners, who have a small stake in financial subsidiaries such as Samsung, Lotte, Hyundai Motor, and Hanwha, are expected to be targeted.

Right now, Samsung Life Insurance is not only Chairman Lee Kun-hee, the largest shareholder, but also vice chairman Lee Jae-yong, a related person. Shin Dong-Bin, Lotte Group chairman, who is the main shareholder of Lotte Sonha Insurance and others, is also eligible.

However, if any one of the largest shareholders is disqualified, the voting rights of the largest shareholder in excess of 10% of the voting rights of the largest shareholder are limited, so the special shareholder whose current share is 0.06% does not have any special sanctions.

The financial sector is very concerned about the expansion of the financial industry `s tightening of industry to Hana Financial Group.

"The government seems to be trying to steal financial institutions as well as large corporations` financial institutions as a means of corruption because of the financial supervision authority," said one executive of a major financial affiliate. "But private financial companies have no interest in the government.

A high-ranking official of a commercial bank said, "It will not be possible for CEOs of financial companies to continue their reappointment without the government." Financial institutions will be more likely to pay attention to " I do not think the lobby will get worse. "

Meanwhile, chairperson Choi Jung-geum attended a meeting of the National Assembly`s general affairs committee on March 13, saying, "I will not limit the number of people and the period of time (to the inspection of Hana Bank)," he said. A high-ranking official of a commercial bank said, "Even so, it is inappropriate to make financial statements," he stated.

By Kim Dong Wook east@


[ copyright ⓒ The Digitaltimes ]