Politics · South Korea · 2 hrs ago
South Korea plans tougher approval rules for financial group chair reappointments
South Korea’s financial authorities plan tougher reappointment rules for chairs of financial holding companies.
The proposal would raise approval requirements as a chair seeks another term: the nomination committee would need a larger majority, and shareholders would face higher voting thresholds.
A third term would require 75% support from voting shareholders present and approval representing half of all issued shares.
Authorities considered banning a third term outright but instead chose to tighten the requirements step by step.
The plan also aims to make candidate selection more transparent, requiring the nomination committee chair to explain the choice and disclose contact with the sitting chair during the process.
Candidate records, including financial accident histories, would also be disclosed for shareholders to consider.
The proposal still needs further consultation before it is finalized.
South Korea’s Financial Services Commission is pursuing stricter approval rules for financial group chair reappointments, with higher voting thresholds for each successive term.
The proposal would require at least 75% support from shareholders attending a meeting and support representing at least half of all issued shares for a third appointment.
A committee chair would have to explain why a candidate was recommended, and all committee members would sign a confirmation document provided to shareholders.
The plan also calls for disclosure of a sitting chair’s contacts with committee members during the next-chair selection process, and of candidates’ financial-incident records and social controversies.
The proposal was presented to lawmakers on Nov. 2 and is due to be finalized after further consultations.
- Who
- South Korea’s Financial Services Commission is pursuing the proposal.
- What
- It would raise approval thresholds for financial group chair appointments according to the number of previous terms, and add disclosure requirements.
- When
- The commission presented the proposal to lawmakers on Nov. 2, 2026. It is due to be finalized after further consultations.
- Where
- South Korea.
- Why
- The stated aims are to reduce controversy over long-serving chairs and strengthen directors’ responsibility for vetting candidates.
This story does not have two clearly opposing sides.
A task force on improving financial-sector governance was launched.
The Financial Services Commission explained the proposal to Democratic Party lawmakers on the National Assembly’s Political Affairs Committee.
Maeil Business reported on the proposed changes.
- First appointment
- At least two-thirds of nomination committee members must approve.
- Second term
- At least three-quarters of nomination committee members must approve; shareholder approval must reach two-thirds of votes cast and one-third of issued shares.
- Third appointment
- Shareholder approval must reach three-quarters of votes cast and half of issued shares.
- Nomination committee
- Its chair must explain the recommendation at the shareholder meeting, and all members must sign a confirmation document for shareholders.
- Disclosure
- Contacts between the sitting chair and nomination committee members during the selection process, and candidates’ financial-incident records and social controversies, would be disclosed.