The government and the ruling Democratic Party on Thursday agreed to push for stricter requirements for the reappointment of chief executives of holding companies in the banking sector.
The plan was announced during a meeting between government officials and DP lawmakers at the National Assembly to discuss ways to improve corporate governance.
"To prevent incumbent CEOs from exerting influence, we will ensure that the CEO recommendation committee consists entirely of independent directors and gradually tighten the requirements for the reappointment of CEOs to establish a transparent and fair succession process," DP Rep. Yoo Dong-soo, chair of the parliamentary national policy committee, said.
The two sides also agreed to allow shareholders to recommend candidates to independent directors of the recommendation committee.
According to the Financial Services Commission, a CEO candidate would need approval from at least two-thirds of all committee members for the initial appointment, compared with the current requirement of a majority of members present.
A stricter requirement would apply to a CEO seeking a second term, with the candidate requiring approval from at least three-quarters of the committee members. (Yonhap)
