ID :
192088
Thu, 06/30/2011 - 15:10
Auther :
Shortlink :
https://oananews.org//node/192088
The shortlink copeid
Shinhan Financial to push for governance structure reforms
(ATTN: ADDS more details in last 4 paras)
SEOUL (Yonhap) - Shinhan Financial Group Co., South Korea's No. 3 banking group, will push to amend its governance structure and succession process as part of efforts to clean up its image that was tarnished by last year's internal strife, its head said Thursday.
"We believe that setting up the clean process of selecting a group chief and creating a transparent decision-making scheme are the only way to regain confidence fast from customers and shareholders," Han Dong-woo, the chairman of South Korea's No. 3 financial services company, said at a press conference.
Han said the age of the group's chief executives will be limited to 67 years old or less in a bid to prevent them from exercising their power for a long period of time.
If a chief executive is seeking to serve a second term, he or she is only allowed to stay at the helm until the age of 70. The board of directors will supervise the overall process of selecting a chief executive, he added.
The move came as Shinhan Financial Group had been embroiled in high-profile internal strife, which erupted in September last year and was sparked by a power struggle among three of the group's former senior officials, including former chairman Ra Eung-chan.
The management feud came after Ra took control of the group for about 10 years, raising concerns that there needs to be measures in place to limit the long-term tenure of a head of a local financial firm.
Meanwhile, Han reiterated that the group will make efforts to become larger in the securities and insurance business in a bid to nurture its non-bank businesses.
Han dismissed speculation that the group may be seeking to buy Kyobo Life Insurance Co. if the insurance company is up for sale.
"If Kyobo Life Insurance is up for sale, the value of the deal would be large. For now, Shinhan Financial might have difficulty in pursuing such a big deal. The group would become financially sound after about two years," the chairman said.
Three private equity funds -- Vogo Fund, MBK Partners and TStone Corp. -- submitted letters of intent on Wednesday to buy a controlling stake in Woori Finance Holdings Co. while no banking groups joined the preliminary bidding.
When asked whether Shinhan has an interest in teaming up with one of the three funds as financial investors, Han said Shinhan Financial Group is not seeking to buy a bank as it will focus on boosting its non-bank businesses.
SEOUL (Yonhap) - Shinhan Financial Group Co., South Korea's No. 3 banking group, will push to amend its governance structure and succession process as part of efforts to clean up its image that was tarnished by last year's internal strife, its head said Thursday.
"We believe that setting up the clean process of selecting a group chief and creating a transparent decision-making scheme are the only way to regain confidence fast from customers and shareholders," Han Dong-woo, the chairman of South Korea's No. 3 financial services company, said at a press conference.
Han said the age of the group's chief executives will be limited to 67 years old or less in a bid to prevent them from exercising their power for a long period of time.
If a chief executive is seeking to serve a second term, he or she is only allowed to stay at the helm until the age of 70. The board of directors will supervise the overall process of selecting a chief executive, he added.
The move came as Shinhan Financial Group had been embroiled in high-profile internal strife, which erupted in September last year and was sparked by a power struggle among three of the group's former senior officials, including former chairman Ra Eung-chan.
The management feud came after Ra took control of the group for about 10 years, raising concerns that there needs to be measures in place to limit the long-term tenure of a head of a local financial firm.
Meanwhile, Han reiterated that the group will make efforts to become larger in the securities and insurance business in a bid to nurture its non-bank businesses.
Han dismissed speculation that the group may be seeking to buy Kyobo Life Insurance Co. if the insurance company is up for sale.
"If Kyobo Life Insurance is up for sale, the value of the deal would be large. For now, Shinhan Financial might have difficulty in pursuing such a big deal. The group would become financially sound after about two years," the chairman said.
Three private equity funds -- Vogo Fund, MBK Partners and TStone Corp. -- submitted letters of intent on Wednesday to buy a controlling stake in Woori Finance Holdings Co. while no banking groups joined the preliminary bidding.
When asked whether Shinhan has an interest in teaming up with one of the three funds as financial investors, Han said Shinhan Financial Group is not seeking to buy a bank as it will focus on boosting its non-bank businesses.
