Politics · South Korea · 49 mins ago
South Korea to tighten rules for financial group CEO reappointments
South Korea’s government and ruling party approved governance reforms for financial companies on Nov.
12.
The plan focuses on financial holding companies and their chief executives, aiming to curb leaders’ influence over their own succession.
CEO nomination committees must consist entirely of independent directors, and a sitting CEO cannot take part in relevant committee meetings.
Shareholders will gain a route to nominate independent director candidates, while institutional investors such as the National Pension Service will have more scope to recommend candidates.
Support thresholds rise with each CEO reappointment: for a third term, at least three-quarters of votes cast at the shareholders’ meeting must support the candidate, along with votes representing at least half of all issued shares.
The government did not include a legal ban on third terms, choosing stricter voting requirements instead.
The changes are expected to take effect six months after the law passes; the plan also calls for succession processes to begin earlier and follow rules set in advance.
South Korea’s government and ruling party announced a plan to tighten governance rules for financial companies, including stricter requirements for financial-group CEO reappointments.
CEO nomination committees would have to consist entirely of independent directors, and sitting CEOs would be barred from participating in specified nomination committee meetings.
A CEO seeking a third consecutive term would need support from at least three-quarters of votes cast at the shareholders’ meeting and half of all issued shares.
The plan does not ban third consecutive terms by law, but raises the approval thresholds for reappointments.
The measures are expected to take effect six months after the relevant legislation is passed.
- Who
- South Korea’s government and ruling party announced the plan.
- What
- They proposed changes to financial-company governance, including tougher CEO reappointment rules and more independent director nomination processes.
- When
- The plan was announced on November 12, 2026.
- Where
- The announcement followed a government-ruling party meeting at the National Assembly Members’ Office Building.
- Why
- The plan aims to strengthen board independence and prevent financial-group CEOs from improperly influencing succession or securing “self-reappointments.
This story does not have two clearly opposing sides.
The Financial Supervisory Service began special inspections of eight bank holding companies.
The government and ruling party finalized and announced the financial-company governance improvement plan.
The measures are expected to take effect.
- Plan scope
- 25 tasks across four areas
- CEO nomination committee
- Must consist entirely of independent directors
- Third consecutive term
- Requires at least 75% of votes cast and support representing half of all issued shares
- Shareholder nominations
- Eligible shareholders holding at least 0.1% for six months may directly recommend independent director candidates at listed financial companies
- Implementation
- Expected six months after the legislation is passed
What people are saying
The 75% rule is expected to function as an effective control mechanism.