Board governance of the Korean banking sector is not in its second year, having been hastily assembled and launched in response to pressing concerns over the viability of the major Korean banks. Under the guidance of the Financial Supervisory Service, Korean banks now meet global standards in governance, with outside-majority boards and a committee structure. A recent survey was undertaken to assess the current status of board governance, and it showed both progress and areas to be improved. Among the latter there were four central concerns: the roles and responsibilities of the board and management, committee functions and guidelines, board/director evaluation and turnover, and the evaluation and compensation of top management.
In this paper, we address those four areas and make recommendations to resolve the issues. Suggested guidelines to contribute shareholder value and the management of banking institutions, among others, are as follows. (The rest omitted)
Governance structure of Korean banks
Korea Institute of Finance
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < General|
|Holding||Korea Institute of Finance|