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Photo = Yonhap news |
[Alpha Biz= Paul Lee] SEOUL, July 7 — Leading securities firms in South Korea are beginning to separate the roles of CEO and board chairperson, in line with regulatory recommendations aimed at strengthening internal controls and minimizing conflicts of interest.
According to disclosures filed with the Korea Financial Investment Association, KB Securities recently amended its internal governance regulations so that the board chair role—previously held by CEO Kim Sung-hyun—will now be assumed by outside director Yang Jung-won.
A similar move was made by KB Asset Management, where Jang Byung-hwa, an external director, has replaced CEO Kim Young-sung as board chair. Meritz Securities also appointed outside director Lee Sang-chul as board chair, replacing co-CEO Jang Won-jae.
These governance reforms come after the Financial Supervisory Service (FSS) raised concerns over potential conflicts of interest during a pilot consulting phase on its new “Accountability Map” framework. The FSS emphasized that having the CEO simultaneously serve as board chair undermines the independence of the board, particularly in its duty to oversee the CEO's performance and adherence to internal controls.
In May, the FSS revealed that 11 out of 27 financial investment firms (around 40%) had CEOs doubling as board chairs—an arrangement the agency recommended be revised.
Under the newly implemented Accountability Map system, which came into effect on July 3 for financial investment firms with more than KRW 5 trillion in total assets, executive responsibilities are clearly allocated to improve oversight and clarify accountability in areas such as risk management, compliance, and consumer protection.
Industry observers note that this marks a significant step toward aligning Korea’s financial governance standards with global best practices.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
